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?

[klone, MSN, RN]

wow!!!

Both of those locations, as well as many others, have a large number of American expats, and are much cheaper cost of living, so retirement dollars go a much longer way.

[Kitiger, RN]

We don't have long term insurance.

House is paid off, but we'll still owe about $5,000 by the end of the year.

Estimating retirement at 75% of our current income, we are (right now) about $200/month short when counting SS and savings.

We plan to enter retirement with no outstanding loans.

Plans can fail, but at least we do have a plan.

[Horseshoe, BSN, RN]

This formula says you should have about 80% of your annual salary available in retirement. So if you make $100K per year, you should have about 2 million dollars saved to accomplish that goal.

Total Savings: The 4% Rule

To determine the amount you will need to have saved to generate the retirement income you want, one easy-to-use formula calls for dividing your desired annual retirement income by 4%. To generate the $80,000 cited above, for example, you would need a nest egg at retirement of about $2 million. This assumes a 5% return on investments (after taxes and inflation), no additional retirement income (i.e., Social Security) and a lifestyle similar to the one you would be living at the time you retire.

The sad thing is, on average, most people have very little. A disturbing number of people have saved NOTHING for retirement!

Another Multiple Formula

Another formula (like the one proposed by Fidelity) holds that you should save 25% of your gross salary each year, starting in your 20s. The 25% savings figure may sound daunting, but it includes a combination of 401(k) withholdings, employer match, cash savings and even debt repayment. Following this formula should allow you to accumulate your full annual salary by age 30. Continuing at the same average savings rate should yield the following:

Age 35 - two times annual salary

Age 40 - three times annual salary

Age 45 - four times annual salary

Age 50 - five times annual salary

Age 55 - six times annual salary

Age 60 - seven times annual salary

Age 65 - eight times annual salary

Saving 10% of your annual salary may not be enough:

Start thinking about more than 10%

The chart also shows that, for most people, saving 10% of income is simply not going to be enough.

Almost 4 in 10 people believe you need $1 million to retire, but in 13 U.S. states, $1 million would last less than 20 years if you retired today.

How Much You Should Have Saved (by Age) | Investopedia

How Much Should You Save for Retirement? -- The Motley Fool

This shows how much people are actually saving:

Mean retirement savings of families between 44 and 49: $81,347

Median retirement savings of families between 44 and 49: $6,200

Mean retirement savings of families between 50 and 55: $124,831

Median retirement savings of families between 50 and 55: $8,000

Mean retirement savings of families between 56 and 61: $163,577

Median retirement savings of families between 56 and 61: $17,000

https://www.cnbc.com/2017/04/07/how-much-the-average-family-has-saved-for-retirement-at-every-age.html

This is not something young people usually think about, but if you are just starting out, it's critical that you do. Who knows what the status of social security will be when it's your turn.

[203bravo, MSN, APRN]

My best guess at this point is that I'll not only be able to retire but will probably have to work to lunch on the day of my funeral.

[traumaRUs, MSN, APRN]

We are very fortunate: my husband is retired military and next year will retire from 26 years as a teacher so we will have two retirements from that. I was fortunate to have a very small pension from a prior job and my current job has a VERY VERY generous retirement too. I plan to work until 66 or so.

Our biggest issue isn't the amount of money but rather ensuring we have enough health insurance - again as my husband is retired military, our Medicare supplement and Part D plan will be Tricare.

I think medical insurance is often a reason to continue to work - I know it has been for a number of my friends.

[Emergent, RN]

My retirement plan is to work an FTE to get insurance until eligible for Medicare, then do per diem here and there for fun and extra money. I have a paid off house and 2 rental houses, one of which I owe some money on but will be paid off in about 3 years. I'll build up my liquid assets and pay off that house, and the rentals will give me good cash flow to supplement my social security. I'll wait for full retirement age to collect that.

[meanmaryjean, DNP, 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

[That Guy, BSN, RN, EMT-B]

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

Why stop there. Add some Lasix to it and it can be the all in one flush em out, heal em up pill.

[Fiona59]

After reading this, my first thought is, don't you people have pensions?

My husband retires with roughly $3600 a month, I get 50% of this as survivors benefits if he dies first. My own pension and government pension will be roughly $2300 a month. The house is paid for, no debt. We both have registered retirement savings accounts, not huge but enough to let us travel each winter.

I guess being in a nation with high taxes and universal healthcare isn't that bad at the end years of life

[Quota, BSN, RN]

I'm just finishing up my nursing program but this my second career. I saved appropriately from my first job in high school for retirement so I'm already in a comfortable position for my age. Time will tell but I should be able to fairly comfortably retire in my early to mid 60s. I want to be able to live comfortably, travel, and enjoy my current lifestyle. I've always lived below my means, don't have expensive tastes beyond nice vacations every 1-2 years. Between IRAs, 401k, and savings I have 3-4 times my previous income in my past job.

[RNperdiem, RN]

Somehow I forsee the concept of retirement changing for a younger generation. It will become more of a luxury for the wealthy. I doubt social security as we know it will be around when I am eligible. The benefits my family gets at work are a whole lot watered down compared to what my father and father-in-law got.

With the cost of living being what it is, I really cannot imagine having enough savings to live without working for decades. Longevity is a family trait, so I suspect I will continue working in some form for as long as possible.

[brandy1017, ASN, RN]

After reading this, my first thought is, don't you people have pensions?

My husband retires with roughly $3600 a month, I get 50% of this as survivors benefits if he dies first. My own pension and government pension will be roughly $2300 a month. The house is paid for, no debt. We both have registered retirement savings accounts, not huge but enough to let us travel each winter.

I guess being in a nation with high taxes and universal healthcare isn't that bad at the end years of life

Pensions are just about gone in the US. The only hospital system that still has them that I'm aware of is the VA. Govt pensions remain, but the majority are underfunded. I believe Detroit just docked it's retiree's pensions which was before unheard of. Many others working for multi-employer unions are seeing their pensions cut as well as the govt and the Supreme Court look the other way and don't want to have to foot the bill if the plan goes bankrupt. Most private plans pay into the Govt Pension Guarantee Plan that is supposed to backstop and insure pensions when companies go bankrupt, but it is in deficit and doesn't have enough money to keep paying out. Worse many hospital systems never paid into the plan in the first place due to a "Church" pension plan so there is no guarantee if you are stuck with a church pension. If they go bankrupt or run out of money you are simply out of luck! Most remaining private employer pensions have been frozen so if you have one it will pay out much less than planned. Mine originally was supposed to be $4500 a month, now it is only $1200 month and a church pension to boot!