Retirement savings - are you on track?

[NY Disney fan]

I'm a little dissappointed. I have been saving for retirement for 14 years and am not sure if I am saving enough. I used an online calculator and pretended I had $0 saved and am retiring in 14 years and it calculated a huge sum of money that I "should" have. But in reality, I don't have nearly that much. FWIW, I'm aggressive with mostly stocks (about 95%).

How do you know you are on track?

 

[crisi]

Yep, I use a site that does Monte Carlo simulations - I'm 80% sure I'll have enough.

But do play with your assumptions - if you don't think you'll have enough - can you work a little longer? Can you save a little more? Can you downsize in retirement? A lot of sites assume you'll need 80% of your pre-retirement income - my pre-retirement income includes saving for kids for college and having two teenagers - I'm thinking there are some major expenses I won't have in retirement - like college - or like saving for retirement

 

[lisaross]

i'm not really sure...but we've been saving 10-15% in our 401K for about 20 years so far...still have about 15+ years till retirement....

 

[wiigirl]

We are currently back on track...took a couple years of hard saving though.

 

[maplevale]

I feel like I am behind.... but I am contributing to a pension and it will put me at about 60% of my pre retirement income. Like someone else posted... my pre retirement income includes saving for college, paying for daycare (I and my kids are pretty young still) and paying off our mortgage.... I figure my actual retirement income needs to be about 50% of what I currently make to pay the necessities.

 

[NY Disney fan]

But do play with your assumptions - if you don't think you'll have enough - can you work a little longer? Can you save a little more? Can you downsize in retirement? A lot of sites assume you'll need 80% of your pre-retirement income - my pre-retirement income includes saving for kids for college and having two teenagers - I'm thinking there are some major expenses I won't have in retirement - like college - or like saving for retirement

Actually my calculations were off by 1 year, I have been saving for 13 not 14 years so the numbers look more accurate. I want to try the Monte Carlo calculator which you mentioned.

 

[FINFAN]

Unfortunately, in recent years I am not even at the station let alone on the right track. Oh well, no where to go but up, right?

 

[Gr8t Fan]

Unfortunately, in recent years I am not even at the station let alone on the right track. Oh well, no where to go but up, right?

You and me both, Pam. You and me both.

 

[crisi]

Actually my calculations were off by 1 year, I have been saving for 13 not 14 years so the numbers look more accurate. I want to try the Monte Carlo calculator which you mentioned.

Vanguard has one: https://retirementplans.vanguard.com/VGApp/pe/pubeducation/calculators/RetirementNestEggCalc.jsf

This one is more complicated: http://www.flexibleretirementplanner.com/wp/

There are others out there if you search monte carlo retirement calculator.

 

[RitaE]

I have a chart that I did several years ago -- how much we need to have saved at the end of every year to retire with the balances we wanted.

We're almost to the 2014 goal and we'll get some Profit sharing and deferred Compensation awards in Nov/Dec. I hope we finish 2013 one full year ahead on the chart at Dec 31 - which is nice because we had some years during The Great Recession!!!! that it seemed like we were doomed.

 

[Minnesota!]

We are on track. Like someone else said, our monthly "stuff" will be near non-existant in retirement. No college saving, no mortgage, no student loans, no daycare, etc. Currently, we could live on 1/4 our current income if it was not for those "things". So, we are aiming for 30% of our current income in retirement.

That will leave enough each month for fun, and enough for a few vacations each year, too

 

[MomToOne]

my pre retirement income includes saving for college, paying for daycare (I and my kids are pretty young still) and paying off our mortgage.... I figure my actual retirement income needs to be about 50% of what I currently make to pay the necessities.

Be careful with this. While you won't have daycare or other child-related expenses, you will have new expenses like increased healthcare costs - esp. as you get into your 70s and 80s. Even with Medicare. Also, do you have dreams of travelling more in retirement than you do while you are working? What about other hobbies you plan to explore more?

I try to go by the rule that my expenses will stay roughly the same in retirement, even though I will have paid off my house and won't be feeding a teenager or getting her through college without debt

 

[smiths02]

Be careful with this. While you won't have daycare or other child-related expenses, you will have new expenses like increased healthcare costs - esp. as you get into your 70s and 80s. Even with Medicare. Also, do you have dreams of travelling more in retirement than you do while you are working? What about other hobbies you plan to explore more?

I try to go by the rule that my expenses will stay roughly the same in retirement, even though I will have paid off my house and won't be feeding a teenager or getting her through college without debt

Also, you have to account for inflation especially if you are relatively young. I am 32. I don't think I will be able to live off of 30% of my income when I am 80 because things will cost a lot more in 50 years!

 

[Tinkermommy]

My DH just met with our financial advisor yesterday.

We are on track to retire at 61 for me and 62 for him. This is estimating the same spending/lifestyle we have now.

I was thinking we would need to work until 65 so I am.

I agree with others that certain costs will go up (like healthcare). Our guys says healthcare will replace your mortgage costs.

Looking into getting a financial planner. They will help you determine your goals (retirement, college for kids, etc).

 

[mickeyplanner08]

This one is more complicated: http://www.flexibleretirementplanner.com/wp/

Thanks so much for posting this one. We've been having a lot of fun with it.

We were just at the financial planner on Monday, and he had a fun tool like this. It's awesome to be able to do it on our own

94% chance that we'll be good!

 

[sweetdana]

Depending on the calculator, and if both dh and I keep our jobs. And what level we want to spend during retirement at ... I think so.

We paid off out house this yr, and no debt. I think we are all set with our 401ks for over 59 1/2 without travel/ bells/ whistles. We are now working on traveling more, kids coll funds, and retiring younger. I think we will make it. I think we are on pace... Time will tell.

 

[DisneyBill]

I'm a little dissappointed. I have been saving for retirement for 14 years and am not sure if I am saving enough. I used an online calculator and pretended I had $0 saved and am retiring in 14 years and it calculated a huge sum of money that I "should" have. But in reality, I don't have nearly that much. FWIW, I'm aggressive with mostly stocks (about 95%).

How do you know you are on track?

OP, unless you're retiring in 14 years, I don't see how the information you entered could generate an accurate answer. In the event you do plan to retire in 14 years then you should have included your present investment balance to expect a decent analysis of your current status. Perhaps I just don't understand what you've stated.

www.firecalc.com is an excellent spot for evaluating retirement saving strategies.

 

[lvillotta1]

I am 41 and left a job after 23years in May. I hired a financial planner who was wonderful and we rolled over my entire retirement acct being very aggressive. We talked about how much I think I will need to live on at 67 and I gave him $5,000. This figure is with no mortgage payment,no debt, and kids grown and gone. One big thing to consider is inflation over the next 20years. Looking at all that info I will be short upon retirement. But I am starting a new job tomorrow which I hope to be at for the rest of my nursing career and will have almost 20 plus years into that retirement plan also. The biggest thing I regret in not starting a roth IRA when I was 20 years old!!!! One thing my kids will do immediately after finsing jobs is to open an IRA. None of these numbers included social security. I have a feeling there will be nothing there at that point. Being a nurse I can do anything after I retire to make some extra income so I feel I am doing great being single and raising 2 daughters also. Life is good and I have no regrets.

 

[manning]

Actually my calculations were off by 1 year, I have been saving for 13 not 14 years so the numbers look more accurate. I want to try the Monte Carlo calculator which you mentioned.

I think the T.R. Price site uses the Monte Carlo model.

 

[Luv Bunnies]

We met with a financial advisor several years ago. He said that in terms of retirement and general savings/investments, we were doing better than 91% of people in our age range (late 40s/early 50s). Based on that, I think we're on track for retirement.