Let's compare retirement savings

[Deleted]

I can't believe I'm doing better than 81% of the people in my age group. I make 31K a year for crying out loud.

[olderburgher]

Age 55+
>$500,000 - 17% for each of us (DW and I) ;D ....without counting SS but counting all investments not just retirement accounts
>$500,000 - 17%
$250,000 - $499,999 - 11%
$150,000 - $249,000 - 9%
$100,000 - $149,999 - 11%
$50,000 - $99,999 - 11%
$25,000 - $49,999 - 9%
$10,000 - $24,999 - 5%
<$10,000 - 31%

[CPWnyc]

azph 1972
Oh...I'm sorry I didn't see the individuals only part.
either way. Not counting my husband's retirement accts, my retirement accts still exceed 500,000. I have approx. 330K in IRAs and 403b and 240k in taxable acct that is earmarked for early retirement at 50. I also have a small pension at TIAA Cref approx. 50K.

[Wisconsin Beth]

Apr 28, 2011 13:42:06 GMT -5 qofcc said:

I'm currently here... better than 57%

Fourteen percent of people age 35-44 have saved $50,000 – $99,999 for retirement.

But I expect to be here in 3 years... better than 65%

Nine percent of people age 45-54 have saved $100,000 – $149,999 for retirement.

Yeah I'm in this group too. God and the market willing, I'll hit 100K sometime this year.

DH is part of "Seven percent of people age 35-44 have saved $100,000 – $149,999 for retirement. "

I'll be getting some kind of pension. The estimator currently pegs it around 30K a year but that doesn't take survivor benefits into account and I don't know how it would be applied to this. Although there's a discussion going on the networthiq thread about adding a pension to that.

[midjd]

Right now I'm in the 9% that's above the bottom 68% for my bracket. I have another 7.5 years left til the next bracket though, I'm on track to be in the top 8% of the 25-34 age group by my 35th birthday... fingers crossed!

[debtheaven]

Can't work it out, because DH is in one age bracket (55) and I'm in another (51). I supposed I should do an average but I can't be bothered.

Also, what do they mean by "saved"? Literally, money sitting in the bank? Investments? Real estate? We don't have much in the bank but we're sitting on a pretty penny as far as our RE investments go, since that's where we have chosen to spend most of our "investment" money these past seven years.

Does that even count?! Maybe not.

I'm not worried about eating cat food in retirement. I'm much more worried about having to eat bricks LOL.

[crystal1588]

We're not even in an age bracket (23 and 24) and have 40k saved for retirement. So, nothing to compare it to.

[formerexpat]

Two percent of people age 25-34 have saved $250,000 – $499,999.

As of right now. We'll easily be over the $500k mark by the time I hit 34 [in a little over 3 years]

Even if you are able to achieve the IRS limit for 401/457/etc. & IRA contributions, it takes a heck of a return to reach over $500k by age 34.

This isn't limited to only retirement vehicles in my opinion. I can use my taxable accounts for my retirement needs and while I can't use my home equity in retirement, it is savings [i.e. increases your net worth].

One thing I didn't consider was the PV of my SS benefits as I don't count those in my retirement calculations or my balance sheet like the link suggests.

[debtheaven]

Hi Expat

Does this mean just money that is in 401Ks or Roths?

ETA: In which case of course I can't "play" here.

[formerexpat]

Does this mean just money that is in 401Ks or Roths?

ETA: In which case of course I can't "play" here.

Personally, I would consider it as net worth because as far as I'm concerned, I'm building my net worth as high as I can FOR retirement!

[debtheaven]

Expat, of course you would! But I'm asking you, since I'm in France and I have neither one nor the other, would my RE count in this discussion? Or just retirement money sitting in the bank / a money market fund / investments / etc.

Thanks!

[LlamaLlamaDuck]

age 45-54
> $500,000: 9%
$250,000 – $499,999: 12%
$150,000 – $249,999: 10%
$100,000 – $149,999: 9%
$50,000 – $99,999: 15%
$25,000 – $49,999: 11%
$10,000 – $24,999: 10%
< $10,000: 29%

Well geez, I'm not sure if it's very comforting that I am doing better than 50% of my age group. But I am making progress; I expect to move up to the next tier before very long.

Say! I just noticed that the total percentage of this group is 105!

[formerexpat]

Expat, of course you would! But I'm asking you, since I'm in France and I have neither one nor the other, would my RE count in this discussion? Or just retirement money sitting in the bank / a money market fund / investments / etc.

You've got equity in those homes, right? That would be included in my opinion.

The site suggests you include the PV of SS benefits. If you feel that way , then I guess for you, you would include the estimated PV of future rents that you expect to receive on these properties. I'd be conservative in the estimate and use a high discount rate to decrease the PV [i.e. couple percent higher than the rate of inflation].

[debtheaven]

Thanks Expat! I really appreciate it! However I will not be entitled to US SS benefits, or very little, since I left the US at about 22.

We definitely have equity though. Our house is all paid off. Part of my problem is that we actually own two private reverse-mortgages, and there is absolutely no way to account for those, this doesn't even exist in the US (or the UK for that matter, DH is a Brit).

We are definitely "house-poor", and I am really just sick to death of it. When I said I had a knack for RE, I really wasn't kidding LOL.

[Waffle]

age 45-54
> $500,000: 9%
$250,000 – $499,999: 12%
$150,000 – $249,999: 10%
$100,000 – $149,999: 9%
$50,000 – $99,999: 15%
$25,000 – $49,999: 11%
$10,000 – $24,999: 10%
< $10,000: 29%

I'm in the $250,00 - $499,999 group; I don't think it's enough, and yet so many people in my age group are much worse off. It's amazing (in a bad way)

ETA: I will qualify for a very small pension (about $350 a month) from a former employer. The money above is just what is in my 401k - doesn't include RE equity.

[constanz22]

Apr 28, 2011 13:11:14 GMT -5 cael said:

Personally I'd be scared shitless if I was 45-54 and had zero retirement savings. Do people actually count on social security?!

I'll be 42 this year and have nothing "saved" toward retirement. However, I have over 11 years government employment so will get a decent pension. Even if I lost my job tomorrow, between my pension and SS, I wouldn't be too terribly concerned. My house will be paid off by the time I retire and I live in a very LCOL area. I've never understood how anyone in their mid 20's to mid 30's even is able to "save" 250-500K...really?! Guess maybe that's due to my social work income. That's just out of my realm of reality. We can't all be high powered attorney's and businessmen raking in the big bucks. Guess it's a good thing I'm frugal and don't have expensive tastes...

[debtheaven]

Eleven percent of people age 55+ have saved $250,000 – $499,999.

Along with a paid off house and rental property.

I guess we're around here. DH is 55, I'm 51.

[resolution]

Wow this looks like the odd article that actually wants you to include pension benefits in your total. Most of them seem to exclude as much as they can to come up with alarming statistics. Counting pension, 401k and IRA but excluding real estate and non-retirement funds, this is where we end up.

Age 25-34
>$500,000 - 4%
$250,000 - $499,999 - 2%
$150,000 - $249,000 - 2%
$100,000 - $149,999 - 7%
$50,000 - $99,999 - 10%
$25,000 - $49,999 - 9% - This is DH. We did get him up one bracket since we got married last year. He is 30 and he paid off his student loans instead of investing in the market. =(

Age 35-44
>$500,000 - 4%
$250,000 - $499,999 - 4% This is me, on the lower end of the bracket.

[cronewitch]

I am over 55 and have over 500K so in the top 17%. That is just invested money not net worth, some is taxable, some 401K and some ROTH.

It doesn't help much to compete since we each have different needs in retirement. Some have good pensions or expect inheritances or very low cost. Some ha e a spouse who might have more than them. Some of us have nothing but our savings and will have a mortgage forever in a HCOL location so need more.

[achelois]

I am also over 55 with a good bit more than 500,000 in invested money(like crone, this is not net worth as I did not include cash/cash equivalents or my home equity)and I did not include any value for my pension/SS--I have both(hopefully they will be there for me), although the pension is only going to be about 1500 per month.

I am single. Mortgage has 13 years to go with low interest rate and a balance less than half a year's salary. MCOL.

I still do not feel secure. I am going to try to retire in six years or so, so continue to save/invest til then. I don't know why I worry so much when none of my family lives past midseventies.

[SVT]

Age 25-34
>$500,000 - 4%
$250,000 - $499,999 - 2%
$150,000 - $249,000 - 2%
$100,000 - $149,999 - 7%
$50,000 - $99,999 - 10%
$25,000 - $49,999 - 9% <<< Me. I'm 25 so I just make it in the bracket and I'll be in the next one up in a few months time.

[Deleted]

whew...what a challenge to figure out a pension! I took my best guess.

Age 25-34
>$500,000 - 4% <----------------------------With Wife's Teacher Pension of 45k a year guess
$250,000 - $499,999 - 2% <----------------------------Without Wife's Pension
$150,000 - $249,000 - 2%
$100,000 - $149,999 - 7%
$50,000 - $99,999 - 10%
$25,000 - $49,999 - 9%
$10,000 - $24,999 - 18%
<$10,000 - 50%

Dave

[garion2003]

wow, i'm doing better than 82% of folks in my bracket

[sil]

Age 35-44
>$500,000 - 4%
$250,000 - $499,999 - 4%
$150,000 - $249,000 - 9%
$100,000 - $149,999 - 7% <---me
$50,000 - $99,999 - 14%<---DH
$25,000 - $49,999 - 10%
$10,000 - $24,999 - 16%
<$10,000 - 41%

Not including SS. We're 36, so we should both move up a tier before we are out of this age bracket.

Dave - how did you factor in a pension? Are you assuming the $45k pension is inflation-adjusted? In that case, Id expect it would be worth > $500000 even if you only expect to live 12 years post retirement.

Im guessing that pensions are a major factor for the top 4% of the younger age brackets.

[Deleted]

I was trying to use some of the annuity calculators that were out there but most of the ones I was finding was based on a purchase at age 40 so I just kinda guesstemated as to the present value of it after I got the annuity numbers based on age 40. I spent some time trying to figure it out but just kinda gave up and went with a guess of around 300k. I figured based on some of the calculators I was trying to use that it was a very conservative guess.

[sil]

Thanks Dave, I have never really understood how to estimate future value of a pension, but I will say that this is one area where "keeping up with the Jones'" mentality has helped me Most of my friends have at least one government pension in their family, so I'm motivated to save enough in our 401k's to "keep up" so we can all travel together when we retire.

[Deleted]

The future value of the Pension was pretty easy to find online. I got a couple calculations that when we retire at 52 the FV would be about 1.5M to provide 45k until our mid 80's. I think 45k is conservative too as her district has had budget cuts the last few years so she hasn't had a raise in about 5 years and that 45k is based on if her salary never changing in the next 18 years. The present value became more of a guess to be honest! We save as though we don't have that pension though and max everything right now as she does have an optional 401k.

I think keeping up with the Jones's on saving is perfect! Maybe we will pass you on a cross Atlantic flight!

[resolution]

I think to calculate the value of the pension, you just look at the amount that has already been earned. You can't really count something as an asset if you haven't worked the time yet. So if you have 10 years on the job and the pension pays 2% per year it would calculate as 20% of your pay to be plugged into the annuity calculator. For my own pension it is worth 36% of my salary right now, but if I last another 10 years it will be worth 60% of my pay. So I count the lower amount since I have no idea how long I will have this job.

I don't think these statistics include social security value because the under 10k category is so large. I would hope that just about everyones social security would be worth over 10k by the time that they qualify.

[spartan7886]

kari, agreed on calculating the pension. I always assume mine will be frozen tomorrow when I add it in, although I actually just ignored it for this calculation, since it's less than $300/month right now and not cola'ed. That might buy me dinner for 2 once a month in 40 years. Reasonable estimates if I put my entire career in at my current employer would be closer to $3000/month. That's a big difference to just assume I will have.

[mesquite77]

Apr 28, 2011 20:54:47 GMT -5 constanz22 said:

I've never understood how anyone in their mid 20's to mid 30's even is able to "save" 250-500K...really?!

Nothing rocket science about it - 11 yrs x $25-35k retirement plan contributions/yr (about 25% of our gross salaries) - diversify beyond the stock market into cash flowing real estate. Planning to rinse, repeat twice more and retire at about 55. Inflation is our concern - will this that we've built be worth anything?