retirment income goal

[jaime1982]

Just Bsing and looking through our finance goals, retirement goals for our age/desired retirement lifestyle with my wife today. Had this conversation with a few people at work and got very different answers (depending on who I talked to).

Has me wondering, what % of your current income would most of yall feel comfortable retiring? Curious

[tdwinklr]

that's why, everyone has different demands and needs. I would PREFER 100%, or more.

[Cajun Blake]

100% in order to maintain my same current lifestyle

What many people seem to forget is the cost of basic medicine and healthcare continues to skyrocket at alarming rates. If you have parents or relatives in their 60's, 70's, and 80's that have retired, ask how much money they pay today for medical bills vs. 5-10 yrs ago.

[BigL]

100% in order to maintain my same current lifestyle

What many people seem to forget is the cost of basic medicine and healthcare continues to skyrocket at alarming rates. If you have parents or relatives in their 60's, 70's, and 80's that have retired, ask how much money they pay today for medical bills vs. 5-10 yrs ago.

Ask that about property tax rates as well.

For me, assuming house is paid off, kids don't need help, and everything like health insurance and property tax staying flat would be about 50% of my current income vs expenses for current lifestyle. If course more than that because ins or tax won't stay flat.

[HogHunter34]

Most financial advisors will say at least 80%. You will hopefully give up some costs like mortgage, cost for dependents, vehicle payments, other paid debts, etc but however your medical & Rx costs could possibly get expensive depending on your health status & how healthy you remain. A better measure is to figure out how much annual income you feel it will take to meet basic needs plus some luxury or safety net. Deduct what your known monthly income will be such as SS, pension, etc... you can get your SS estimate on their website. Take difference and whatever that annual amount you need to make up divide by 0.04 and then is how much savings you will need to supplement at a 4% annual rate

[BO-N-ARO]

Same as now as a minimum.
Your day to day expenses will go down BUT you will want to do things you haven’t and that’ cost. The older you get the less you will need........ not including any health issues.
Get with a financial advisor sooner than later. They will know all the ins and outs of SS as well.

[jaime1982]

Most financial advisors will say at least 80%. You will hopefully give up some costs like mortgage, cost for dependents, vehicle payments, other paid debts, etc but however your medical & Rx costs could possibly get expensive depending on your health status & how healthy you remain. A better measure is to figure out how much annual income you feel it will take to meet basic needs plus some luxury or safety net. Deduct what your known monthly income will be such as SS, pension, etc... you can get your SS estimate on their website. Take difference and whatever that annual amount you need to make up divide by 0.04 and then is how much savings you will need to supplement at a 4% annual rate

Great post. Also wondering what age yall plan on retirement?

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[Traildust]

200%

[AntlerCollector]

200%

Greedy!





I only need 150%

[Shane]

Most financial advisors will say at least 80%. You will hopefully give up some costs like mortgage, cost for dependents, vehicle payments, other paid debts, etc but however your medical & Rx costs could possibly get expensive depending on your health status & how healthy you remain. A better measure is to figure out how much annual income you feel it will take to meet basic needs plus some luxury or safety net. Deduct what your known monthly income will be such as SS, pension, etc... you can get your SS estimate on their website. Take difference and whatever that annual amount you need to make up divide by 0.04 and then is how much savings you will need to supplement at a 4% annual rate

Don't forget to adjust for inflation from now until your retirement date and then continuing on until life expectancy. Also don't assume that the car you own when you retire will be the last one you'll need. It probably won't be, unless you don't live long after retirement.

[deerplanter]

About 80% of my working income. The reason being some expenses will be gone, the biggest being the retirement savings no longer needed. I work for a large corporation and will have insurance and pension thru them that isn't included in my retirement savings. Each person is different but I started saving for retirement in my early 20's with a target date of 60, I may work longer but I want it to be because I want to not need to.

[critter69]

100% in order to maintain my same current lifestyle

What many people seem to forget is the cost of basic medicine and healthcare continues to skyrocket at alarming rates. If you have parents or relatives in their 60's, 70's, and 80's that have retired, ask how much money they pay today for medical bills vs. 5-10 yrs ago.

This is exactly what I wrote about on the last retirement post. My mom and dad and in-laws with many many of there friends, thought they had enough saved, retirement funds thought out. But most of them spent what they had in savings paying for what there medical insurance didn’t cover. Plus new illnesss and bad happenings along the way and they had to rely on ss only. Then medicade and Medicare kicked in, after they had spent there intire savings and got rid of ( sold) all luxury items ( income properties, and any other “assets” ) except the house they lived in. So they all died broke. Many of the others died before they got to that point. And very very few retired the way they thought they would, and still had good enough health to enjoy it. Not a one of them complained about it ( other then there health care declining) and they all lived what time they had here very content. If you plan on more then that you had better save ( plan) for four times the amount you “ think “ you will need. Hope God is on your side that you get to enjoy it awhile before he calls you home.

[ken]

150%. I am traveling and going on out of state, out of US hunting trips.

[Traildust]

Greedy!





I only need 150%

Not greedy....just haven't reached my full compensation potential yet!

[thegrouse]

I put away a large percentage of income now so I don't need 100% to be at the same lifestyle. I know what my annual spending has been and currently is this year. This spendiing includes all taxes paid. That is the number I use. The percentage of current income to me is irrelevant.