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[quote=Anonymous][quote=Anonymous][quote=Anonymous]OP, don't think of retirement security as a number, but as an income stream.

Figure out how much income you will need in retirement.  Say right now, your income is $60,000 and you are 45 years old.

Let's say you want to retire at age 60.  You have calculated that your pension will be $35,000 per year, and your Social Security will be $15,000 per year.

If your income grows at 3% per year, your income at age 60 will be approx. $94,000.   If you want to retire on 80% of your income, you will need an income of about $75,000 per year.

Your pension and Social Security will be $50,000 per year - so you will need enough retirement savings to bring in $25,000 per year.

This is a bit simplified, but shows you how to think it through - "net worth" does not tell you much compared to estimating  your income needs.

[/quote]

OP - thanks that is helpful.  In order to determine retirement income needed I assume we take out things like student loans, daycare, kids extra curriculars, mortgage (hopefully) and get down to the nitty gritty amount.  We are currently spending closer to [b]$30,000 a month [/b]all in but obviously hope that number goes down over time![/quote]

What are you spending $30 a month on?!?![/quote]

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