Deleted
Joined: Oct 7, 2024 10:28:19 GMT -5
Posts: 0
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Post by Deleted on Jan 24, 2016 17:26:53 GMT -5
I tend to believe, in spite of what Fidelity says in the article, that "economies of scale" apply in terms of retirement savings much like they do in other aspects of life. If you make a relatively low salary, I think you may very well need 10x your income at 67 to be able to retire. If you make a high salary, you may only need 5x your income (as a general rule). Once you are able to cover your necessary expenses (shelter, food, medical, etc.) it is easy to economize if needed, and these discretionary expenses like travel, doting on grandchildren, etc. will likely diminish overtime, as opposed to shelter and food costs which go on until you expire. Actually this is a curve. People at the extreme low end and high end don't follow these rules of thumb. www.ssa.gov/oact/progdata/retirebenefit2.htmlIf you only make ~10K/yr you really don't need to save anything. SS pays out 90% and other social programs are probably required (subsidized housing, medical, etc.). These people have probably also used all these program throughout their life. Alternatively, someone who make say $500K/yr can live a very nice life on ~100K/yr in retirement and thus could only require ~6X their salary.
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whoami
Well-Known Member
Joined: Jan 8, 2011 12:43:49 GMT -5
Posts: 1,292
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Post by whoami on Jan 24, 2016 18:36:09 GMT -5
We have 10X DHs income in retirement and taxable accounts and our house is paid off.
He is 56, I'm 48.
My biggest concern is healthcare. He has to retire at 65 so I have a number of years that I have to come up with some policy to cover me.
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xandrose
New Member
Joined: May 27, 2013 20:03:20 GMT -5
Posts: 34
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Post by xandrose on Jan 24, 2016 18:56:48 GMT -5
Ahead of target. ~1x salary and I'm only 24.
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Deleted
Joined: Oct 7, 2024 10:28:19 GMT -5
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Post by Deleted on Jan 24, 2016 20:33:29 GMT -5
Guidelines for what? I am retired and 10X income would not be enough for an early retirement.
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ArchietheDragon
Junior Associate
Joined: Jul 7, 2014 14:29:23 GMT -5
Posts: 6,379
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Post by ArchietheDragon on Jan 25, 2016 13:40:14 GMT -5
I am on target. I would like to be ahead of the target, but at least I am on target.
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Plain Old Petunia
Senior Member
bloom where you are planted
Joined: Dec 21, 2010 2:09:44 GMT -5
Posts: 4,840
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Post by Plain Old Petunia on Jan 25, 2016 14:28:51 GMT -5
No. But, I am on target with my own plans. Therefore, I'm not going to fret about it.
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