Reply to Retirement Saving Benchmarks

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[quote=Anonymous][quote=Anonymous]How does SS income factor in? Let’s say both spouses can expect $3000 or so per month based in the calculator on the SS website. That’s 70,000 per year right there. What am I missing? I  agree with some posters who say that the formulas don’t apply for people with a higher HHI. Right now, 80% of my expenses are child related: private school, lessons, tutors, clothes, hobbies, and more than 50% of vacation expenses as I have to travel at peak season. So I really don’t think that the models apply. In terms of healthcare - I already pay for private insurance and max out all co pays etc. So what am I missing? Honestly, if I need institutional care when I am old, I’ll get it in my home country and not the US. Can’t afford quality care here (and unwilling to spend all my hard earned savings on that).[/quote]

You have to start with your best estimate of retirement expenses.  Harder to do the further out you are, but you do the best you can - what will go away, what will increase, etc.  You can use different numbers or ranges if you want to .

Then you can do what almost all financial planners do and plug it into one of the available calculators.  I like cfiresim but firecalc and others are fine.  I find that the calculators from the brokers and advisers tend to skew much more pessimistic.  Tell it when you’re planning on taking SS and the amount - and definitely think about deferring until age 70 if you can.  If you have an expected inheritance, plug it in.  If you plan on selling your home to move into a retirement community, plug that in too.  Adjust rates of return and inflation to see what those do to your projections.

Do a bunch of runs with different assumptions and you’ll get a great idea of what your retirement will look like.   Way better than any “benchmark.”[/quote]

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