If under 54 add $200-300k for medical expenses
FINANCIAL SAMURAI 401K RETIREMENT SAVINGS GUIDELINE
Age Years Worked Low End High End
22 0 $0 $0
23 1 $8,000 $17,000
24 2 $25,000 $37,000
25 3 $42,000 $70,000
30 8 $127,000 $182,000
35 13 $215,000 $331,000
40 18 $300,000 $521,000
45 23 $383,000 $764,000
50 28 $468,000 $1,075,000
55 33 $553,000 $1,470,000
60 38 $638,000 $1,974,000
65 43 $723,000 $2,618,000
From the results, we can conclude that even after 43 years of consistent saving, you only have around $723,000 to $2,618000 in your 401K. Let’s say you live for 20 years after retirement, you only get to live on $36,000 – $131,000. If goodness forbid you live to age 95, then you can only live off of $24,000 – $87,000 a year!
We know from simple economics that thanks to inflation, a dollar today will not go as far as a dollar 40 years from now. Private school tuition will probably cost over $100,000 a year in 20 years, so who knows what medical, food, shelter and energy costs will cost then. One thing is for sure, prices will be much higher.