re: Yes, another retirement thread - RE: How much you need to retire

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So if someone makes 200k per year now they'll need 1.6 million per year to maintain their lifestyle in retirement?

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I think in the op explained rationale, the 1.6 would suffice for the whole life of your retirement. Not that annually.

My goals since I don't have a pension: 1) save minimum of 15% through company plus my contribution, 2) need to hit $1,500,000, and 3) assume I'll be retired for 30 years.


I've read that less than 10% have pensions. I suspect most shipyard employees have a pension.

You are corect. This is easier done if you are making OT-style bucks and living below your means. By my calcs, at a 0% real return, it would take 45% of salary. At an average (real)return of 4%, it would take 30% of your salary. For returns of 7% and 10% (unrealistic in these times), it would take 23% and 16% respectively. Obviously, this is easier to do for someone making 200-300K than for someone making 100K. (Also, remember that company contributions to retirement reduce the savings requirement.)

However, the targets seem reasonable to me and the challenge is to try to make it happen. Personally, I'm sitting above target on savings, but carrying more debt than the guideline (primary residence mortgage only).

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Don't your income needs go down dramatically in retirement? No Mortgage, No Kids, No College, No more putting money aside for savings? Basically all of your income goes toward lifestyle. (Barring significant illness.)

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Health insurance could be a huge cost particularly for a couple

A lot of people take for granted having employer subsidized health insurance

I'm not sure how the new healthcare law will affect this or what could be in store for me by the time I retire

I'm not one of the "over savers" like many on this board are, but those numbers are much too low IMO.

Yeah. Especially with the uncertainty of Social Security.

I know people who are recently retired. the 2 categories of people doing the best are 1)life long employees of fortune 5oo companies that worked there for 30+ years 2)entrepreneurs with profitable business.

as has been stated previously, the life long employees live CONSIDERABLE better than they did during working years. this is a result of a STRONG company pension and two workers in household. add in 401k(which was dippled into periodically) and there you go. these people were not major savors in fact one couple paid for their kid to go to Tulane for 4 years out of savings/401k.

ps. expenses do go down in retirement as long as the children and grandchilden are gone.

the moral in all this is if you start early and you contribute consistently over 30+ years then you will end up in good/great shape. and no, none of these guys were highly compensated people, moderately compensated at best and
only half of them had college degrees.

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Bumping this thread for this article which contains a similar "milestone approach" to the table I posted above. (These are basically the same as what I posted until age 45 and then less aggressive from there.) Should be fairly easy for most guys on here:

Milestones
1x — Reach age 35 with one times your annual salary saved.
3x — By 45, accumulate three times your salary.
5x — When you are 55, your savings should have risen to five times your salary.
8x — You are there. It is age 67.

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These figure look a bit low. Is this net worth or money saved in retirement accounts and not including residence. If the former, I would be way ahead. If the latter, I'm not sure since I have yet to buy permanent residency.

Are all of you accounting for your wives? Do they work? Are we talking combined total retirement savings, or just one?

What the hell are you people saying $3,000,000 going to do with all that money when you retire? That seems like overkill. Assuming you'll own your home and not have any kids leaching off of you, that's a hell of a lot of cash to spend.

Unless of course you plan on leaving a large chunk of change to your pups.