What is your number?? Retirement ...

[punkin]

We're young enough (30 & 39) that I'm still hopeful, but it can't hurt to think about the what-ifs. Thank goodness we've got the kids' college funds spread out - they got pre-paid tuition contracts from their grandfather, so those are stable even though the rest of the college fund has taken a hit. And we do still have time for that to recover as well, since our oldest isn't even starting middle school until fall. I really feel for people who are facing college or retirement right now and can't wait out this mess.

We are also far enough away from retirement to wait and see what happens, but of course I am thinking of the "what ifs". Of course we are facing college right now, so I am concerned.

 

[amylevan]

We're 30 and after seeing my mother-in-law pass away a few months after retirement, we hope to retire young enough to enjoy a little freedom. (I hope for 55, but 60 is probably more realistic.)

Anyhow, we don't have a magic number at this point. We just save the best we can. We sock away 12% to 401Ks (get a 3% match) and have about 200,000 saved already between them and the inheritance from my mother-in-law. I pay just enough extra on our mortgage to have it paid off the month I turn 55.

 

[nunzia]

DH plans to work until at least 65 at this point.

He looked at our retirement plan and says we will bring in $60K per year in retirement per year until age 100 if we live that long. This is if he retires at 62.5 years old.

This is not counting my retirement as I worked 16 years also and probably will go back to work at some point.

Assuming we have no mortgage, this will be a good start. I am hoping that we can either sell this house and downsize to pay off a house in the next 5 to 7 years or that we can get some additional income to pay this one off before our 15 years mortgage is due. Right now it is tight.

We put in about 12% of DH's income towards retirement. I put in 16% when I worked (I paid 8% and it was matched)


Dawn

We don't make that NOW...We save alot percentage wise, but dollar wise we are nowhere near anyone who has posted. Neither one of us work in jobs that have pensions, so its what we can save and SS if any is still there for us. We will have our house paid for and live very cheaply now so will do the same then. I worry most about medical costs..that is what will get you.
We have a mix of 401K, stocks, bonds, Roth, but still...I think the number is never enough but the best we can do We also try to find a nice balance of living now and saving for then. We have known way too many people who saved saved saved and put off fun things for a later that never came..my Dad was among that group, so I guess that's why I try and do so much now while we can. We can live..meagerly..on either of our salaries if it comes to that. DH is in a physical job, so I don't think he can work more than 10 more years tops..my job I could stay until forever if I wanted to...so we shall see, with a hope and a prayer..

 

[DisneyLover83]

We have a goal of around 2.2 million, we are not counting on one penny from SS. Who know if we will ever get there but thanks to Dh being a CFP we at least have a plan!

 

[C_leen]

I highly recommend reading this book

The Number by Lee Eisenberg.

It is not a dry accounting book, but rather widens one's thought process about the vague idea of retirement to encompass what do you want to do? Because, what you want to do will help you better determine what your number should be.

 

[moongirl]

Not to scare anyone but make sure you do the math:

Example:
current salary = $50,000/year
years to retirement = 20
inflation rate = 2%
equivalent salary in 20 years = $50,000(1.02^20) = $74,300

You'd have to have saved $1.5 million (assuming no interest will be earned on your money after retirement) to make it 20 years after retirement spending a constant $75,000 a year. Hopefully, you are earning a decent interest rate and can make it much, much longer or spend more or need less or leave some for the kids .

Will you have any social security to supplement? (I'm not counting on it in my planning)
Will you have any pension to supplement?
Will you need more than you make now or less or the same?

 

[punkin]

Not to scare anyone but make sure you do the math:

Example:
current salary = $50,000/year
years to retirement = 20
inflation rate = 2%
equivalent salary in 20 years = $50,000(1.02^20) = $74,300

You'd have to have saved $1.5 million (assuming no interest will be earned on your money after retirement) to make it 20 years after retirement spending a constant $75,000 a year. Hopefully, you are earning a decent interest rate and can make it much, much longer or spend more or need less or leave some for the kids .

Will you have any social security to supplement? (I'm not counting on it in my planning)
Will you have any pension to supplement?
Will you need more than you make now or less or the same?

This is the big question. Most of the calculators assume you will need between 70-80% of your salary, but I wonder if that takes medical costs into consideration. Right now we are young and healthy and have good insurance. What happens when we are retired and have medicare (if there will be medicare)?