Quote:
Originally Posted by lewdog
They say a couple retiring now, with 20-25 year extended life expectancy from retirement should have around 1M saved. That’s for a fairly comfortable draw down rate of 4% per year. That lets you live comfortably but not luxurious in retirement. A major health issue or someone needing long term care can see that vanish quickly without the right planning.
Those looking to retire 20-30 years from now will likely need 1.5m+.
And no, most Americans don’t have these savings.
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A 4% drawdown on $1 million is $40,000 a year. And with inflation, it'll have the buying power of $20,000 in 20 years. I think people need a heck of a lot more than $1 million these days.
I'm quite envious of my friends who are in government or military jobs. They're retiring early with no uncertainty while the rest of us have to save like crazy and also plan for the worst case scenario. I should've joined the military when I got out of college.
The biggest change in society over the past 30 years has been the elimination of pension programs. We're all going to learn a hard lesson about that during the next 30 years.