Retirement at what age, and how much $$ will you will need to retire "comfortably"?

[Horseshoe]

Throughout my years on AN, I have often come across discussions about salary, quality of life, saving habits, spending habits, definitions of luxury and wealth, etc. In those threads, I frequently read posts from some members who state that they have already saved so wisely that they are pretty sure that they will be able to retire "comfortably." Others haven't gotten there yet, but feel confident that with their current financial habits, they will absolutely get there.

Knowing there is no one definition of "enough" or "comfortably," I still wonder what the general consensus is.

How much do you need in your retirement account to feel confident in a comfortable retirement, and at what age do you plan to completely retire?

[Horseshoe, BSN, RN]

My Dad has retired Air Force pension, retired American Airlines pension, and retired SW Airlines pension. He is doing great. But those kinds of pensions are becoming obsolete.

[Apple-Core, ASN, BSN, RN]

Could somebody kindly explain how Medicare works? Is it basically a medical insurance provided by the government that people can buy after they retire? Is it available to everybody or are there income limitations? If you are excluded (for whatever reason) are there other options? Why would somebody decline Medicare insurance if the option is there - is it not very good?

Excuse my ignorance on this topic - I've tried to look around for answers but haven't really found too much that explains it well!

On topic: I'd like to retire with enough money that I don't have to worry, can travel, and pretty much do everything I want to do without scrimping and saving, plus not worry about covering health related expenses (hence my question above). I have no interest in "things" per se - jewels and fancy clothes; I am much more interested in experiences and travel, things like that.

[Have Nurse, ADN, RN]

You'll die of constipation then....

I can't help chucking after reading that!

[Have Nurse, ADN, RN]

Here's my Million Dollar Idea: Norco/ Vicoden/ Percocet with Miralax right in the pill!! All it needs is a name: Mira-cet? Vico-lax?

you're welcome

Now there's someone who thinks "outside of the box!" LOL

[missmollie, ADN, BSN, RN]

This is a second career for me, and I was a stay at home mom until my son was six. My husband will have a pension, and I'm 38.

We both have retirement funds, and we recently started putting 500.00 a paycheck towards stocks. If I retire at 65 we will have put 351,000 into stocks, but we reinvest the dividend every month (DRIP). That 351,000 should be much more, and I am certain there will be another stock market crash in my lifetime but we will continue to buy stocks in the downturn. My 401k is very generous, and we will have his pension.

My hope is to build our stock portfolio to the point where we can use the dividend payment for utilities, his pension for necessities and allowance, and my 401k for fun. The house will be paid off in 15 years, and we are working on student loans to be debt free.

As a side note, I have already started a stock portfolio for my son and we put 100.00 in there every month. He had 4000 saved up from birthdays/christmas/gifts and gave him a good amount of dividend stocks to start with. I don't want him to realize at age 38 that he needs to start considering retirement. I want him to understand the power of compounding interest now, giving him the knowledge and tools to succeed financially.

[missmollie, ADN, BSN, RN]

For anyone interested in how DRIP works, go here: DRIP (Dividend Reinvestment Plan) Calculator

For the numbers, looking at what I'm doing:

3500

1000

11.5

1%

25

10.5

1%

yes

no

Compounding interest is beautiful.

[203bravo, MSN, APRN]

Could somebody kindly explain how Medicare works? Is it basically a medical insurance provided by the government that people can buy after they retire? Is it available to everybody or are there income limitations? If you are excluded (for whatever reason) are there other options? Why would somebody decline Medicare insurance if the option is there - is it not very good?

Excuse my ignorance on this topic - I've tried to look around for answers but haven't really found too much that explains it well!

On topic: I'd like to retire with enough money that I don't have to worry, can travel, and pretty much do everything I want to do without scrimping and saving, plus not worry about covering health related expenses (hence my question above). I have no interest in "things" per se - jewels and fancy clothes; I am much more interested in experiences and travel, things like that.

Medicare Program - General Information - Centers for Medicare & Medicaid Services

[Luckyyou, BSN, RN]

I turn 30 this year, and have around 73k in my 401k, IRA, and a few other investment accounts. While I'm far and away ahead of all my friends in the amount I've invested, I'm aware that I'm probably behind in how much I should be saving. 12% in my 401k, maxing out my IRA every year - and it may not be enough? There's so much uncertainty in my generation's retirement plans. I'm paying into social security like everyone else but I have no illusions that that money will be there for me when I retire. I figure I'm working until at least 70, and considering my knees are already killing me, that's a scary prospect.

[hppygr8ful, ASN, RN, EMT-I]

I answered this question on another post and sort of got ripped up but here goes again. My father once told me that a couple needed to have a million dollars in the bank by the time of retirement. Assuming you had that cash and placed it into a higher interest saving (5%) you could earn a little over $5,000.00 a month to spend without ever touching the principal. This would be added to whatever pension, social security you might receive. Add to that the value of any non liquid assets such as a paid for home and you know just how much you have to live on after retirement. My father was a frugal man who ran a small horse farm (Not much money in that) and was also a general contractor. He never owned a new car, did not go on lavish vacations and didn't buy a bunch of gadgets, although he did love computers and bought the first home computer made by Texas Instruments in 1977. Understand he never went to college he just liked the idea of owning a computer.

He managed by very frugal living (Not easy with a bi-polar manic wife) to put that million dollars in the bank. and retired when he was 55. My mom never really worked outside the home. The horse ranch was on property that turned out to be worth about a million more and he sold that and bought a place in Kauai HI. They lived off the interest of the original million for 10 years before he got cancer and came home to be close to his children and grand children. I think my mom would have stayed in Hawaii but came back with him to give the appearance of a good wife.

So ask yourself - could you live on about $5000.00 a month? If so a million dollars in the bank will get you that. My husband and I just reached that threshold this year but like my father we live pretty simply. No new cars, infrequent vacations, no latte's from Starbucks etc........ We both work a lot and out 16 year old son is venturing into the workplace this Summer with his first official job to show he has the responsibility to have a car.

So I'd say plan for a million in the bank but if you can do more you'll be able to retire in some type of comfort.

Hppy

[ProperlySeasoned]

I am with you Happy - My husband and I are aiming for 1.5 million, and we are 100% on track. I am currently saving the max allowed, and ultilize several vehicles ranging from work 403 b, IRAs, and HSA's. I am also been saving since I was 22. One trick - most large hospitals have a system where you can link your raise to your retirement contribution. Meaning, let's say you get a 2% raise. You can automatically set your retirement contribution so that it goes up 1%. While it looks like we have all our $%%@ together, especially given we are in our mid 30's, we do not really track or pay attention to how our money is invested. Especially given the amounts we are talking about, we could further maximize our earnings. Caveat - I came from a background that allowed me to graduate school without debt. This has been a huge advantage when it comes to savings

[Meriwhen, ASN, BSN, MSN, RN]

I don't have a set retirement age in mind. I'm going to work until it's no longer fun, then call it a day.

As far as how much I'll need...I don't know. I have been aggresively contributing to my retirement funds for several years, and will continue to do so. I'll see where I am at each 5 year mark (age 45, 50, 55, etc.) and adjust accordingly.

I'll also have the benefit of a military pension--well, the surviving spouse portion, unless I die first. That is income which I will receive until I die, regardless of whether I am working. It by itself isn't enough to live on, but it does add to the nest egg, and it also increases each year to meet the cost of living.

[Quota, BSN, RN]

I answered this question on another post and sort of got ripped up but here goes again. My father once told me that a couple needed to have a million dollars in the bank by the time of retirement. Assuming you had that cash and placed it into a higher interest saving (5%) you could earn a little over $5,000.00 a month to spend without ever touching the principal. This would be added to whatever pension, social security you might receive. Add to that the value of any non liquid assets such as a paid for home and you know just how much you have to live on after retirement. My father was a frugal man who ran a small horse farm (Not much money in that) and was also a general contractor. He never owned a new car, did not go on lavish vacations and didn't buy a bunch of gadgets, although he did love computers and bought the first home computer made by Texas Instruments in 1977. Understand he never went to college he just liked the idea of owning a computer.

He managed by very frugal living (Not easy with a bi-polar manic wife) to put that million dollars in the bank. and retired when he was 55. My mom never really worked outside the home. The horse ranch was on property that turned out to be worth about a million more and he sold that and bought a place in Kauai HI. They lived off the interest of the original million for 10 years before he got cancer and came home to be close to his children and grand children. I think my mom would have stayed in Hawaii but came back with him to give the appearance of a good wife.

So ask yourself - could you live on about $5000.00 a month? If so a million dollars in the bank will get you that. My husband and I just reached that threshold this year but like my father we live pretty simply. No new cars, infrequent vacations, no latte's from Starbucks etc........ We both work a lot and out 16 year old son is venturing into the workplace this Summer with his first official job to show he has the responsibility to have a car.

So I'd say plan for a million in the bank but if you can do more you'll be able to retire in some type of comfort.

Hppy

In general not bad advice but 1 million dollars isn't what it used to be and no one is getting 5% interest on a savings account these days.