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]

The whole idea of wealth building is based upon having wealth to begin with.

Not necessarily. My 20-year-old son, who makes $14/hour, contributes a portion of every pay check to his IRA, and already has over $10,000 in it (he rolled over a portion of his 529 into it). Wealth building can be done by "regular" people, it just needs to be made a priority, and it needs to be started early. Too many 20-somethings just don't want to think about it, and would rather live in the moment.

[babyNP., APRN]

Will probably work part time in the next 15-20 years until age 65 or so once the house is paid for.

For those looking for a quick and easy way to estimate retirement costs I would check out Chris Hogan's RIQ tool: Retire Inspired – Take Chris Hogan’s R:IQ Retirement Assessment | Chris Hogan (once you are done going through it, the top left has a button to click on that you can change assumptions like rate of return, inflation, etc- the rate of return assumed is 12% which is too high)

Unless the US government enacts universal basic income, I feel confident that social security will be around. It's supposed to become insolvent (less money coming in than incoming money) by around the year 2032. Old people vote and baby boomers will put serious political pressure on Congress to fix this- like raising payroll taxes (currently capped at $126k, they could take off that limit or raise it for higher incomes- right now once you reach $126k you don't pay any more money at all even if your income is $300k) or making it more means tested. Worse case scenario SS does become "insolvent" but...people are still working. So unless the generations below me don't work at all, there will be money for me. Maybe not all that was promised, but there will be something.

Lastly, if anyone wants to learn more about retirement and financials, for the basics I recommend Dave Ramsey. For those looking for more and to go "radical" I would recommend looking up the FIRE community (financially independent, retire early) through avenues like Mr Money Mustache, ChooseFI, reddit, Frugalwoods, etc etc.

[Horseshoe, BSN, RN]

I got ripped up because I mentioned that my folks left an estate worth about 1.6 million dollars but that was divided by 18 (5 kids and 13 grandkids) so about 80 grand apiece. The grandkids don't get theirs until they are 35. But us kids will get ours sometime next year.

Hppy

So...people were angry that you are to get an inheritance?

Jealousy is so unbecoming.

When DH and I got married, we had literally nothing. I was a school teacher, supporting the two of us on my tiny salary because DH's industry had tanked (he was in a 100% commission industry). Despite working 7 days a week, DH did not earn a dollar for three years. He finally closed a big deal right before I gave birth to our first child, and we were able to pay off some debt and start looking to the future with optimism.

Because DH is self employed, his retirement account is a profit sharing trust, with the ability to invest in real estate. Unlike most investments, our profit is not taxed as capital gains (lower rate), but as regular income (higher rate) in this trust. Nevertheless, he has invested our money over the past 27 years to BRILLIANT effect. Once we hit 59.5, we will have access to this retirement fund, and I doubt we would ever be able to spend it all.

If you met me, you would probably never realize that we are that affluent. We have a very nice house and when we travel, we travel very well. We usually eat at home, but when we go out, we go to very nice restaurants and order what we want. But I wouldn't know Dior from Chanel, and I have to be prodded to go shopping. I hate shopping. Our biggest expenses aside from the usual are that we are putting our kids through college, grad school, and law school so that they will have zero debt when they finally launch. We help our family when needed, we give to charity, and we always remember we came from nothing.

My hope is that we are able to leave our kids enough money to provide for their kids' educations and fund their eventual retirements, seeing that most young people will not be able to attain the lifestyle of their parents, due to the current state of our society and economy. Our estate will be put into a family trust fund for our kids, with stepped up distributions rather than one big influx of money. We don't want them overwhelmed with a huge inheritance all at once. They will have to develop their own work ethic (they are showing that in spades) because they will only get distributions at intervals as they age.

Waiting to get "ripped up"...

[Kooky Korky, BSN, RN]

For my investment plan, I come from a middle class family and my husband and I have the worst luck in real estate. We've had a 2nd house for the last 11 years. Thought we could sell it when we moved and that was not the case. The area the house is in has never recovered from the real estate crash, and it's still underwater in the mortgage. It sat on the market for an entire year from 2016-2017. Renters trash it and it costs around 4000 in repairs every time a renter moves out.

So how are we affording the 500/paycheck for stocks? Overtime. A single overtime gives us enough to do that. We have 2 house payments, 2 car payments, 2 student loans...but we buy within our means. We pay my son's private school tuition in full, and we are so used to doing with so little that it's fine. As a stay at home mom we only had 1 income and made it work. We didn't have new(er) cars then, but they were on their last leg when I became a nurse. We have an allowance every 2 weeks, a roof over our heads, and food on the table. Fingers crossed the second house sells this year. We do with less because it's worth it right now.

Everything is for sale at the right price. Lower the house price so you can find a buyer and get it off of your back. Or find better renters. Can you get grad students or incoming college staff via the Student and Faculty Housing departments at the local colleges? If not, just sell to the highest bidder and put it behind you.

Request financial aid for your son's schooling.

Take the destroyers to small claims court, even Judge Judy or Judge Mablean or the many other judges on TV today.

[Kooky Korky, BSN, RN]

Regarding why Happy may have gotten "ripped up," in a previous post. Even the concept of retirement savings is associated with privilege. And, while there are certainly stories of people who have changed class/income brackets from their family of origin, that is not usually the case (especially for people of color). Everything from student loan debt, home ownership, or even who you marry (college graduates of medium to high income generally marry other college graduates), is set up by the circumstances under which you were raised. Some people start out on a path to financial success, others have to fight like hell.

The whole idea of wealth building is based upon having wealth to begin with. Also, peoples standard of living varies greatly. I am a director of a department, my husband is a surgeon, and we live in a big east coast city. Our spending patterns reflect that, so our retirement needs are greater. In the era of pensions and owning your home by the age of 60, retirement was attainable for many more. Now, pensions are gone, the stock market is unstable, and people use the equity in their house like an ATM. Those who are the most protected are those that have the greatest number of income streams. All of this requires "extra" income to start with.

It's probably easier to start out with a leg up. But it's also possible to start at the rear of the pack and still come out ahead or at least farther up front than dead last.

Work hard, live frugally, budget everything, say no to just about everything, pay yourself first.

work extra hours, work 2 and 3 jobs. Hold Rent Parties. Learn to fish. Get cheap cuts of meat, and day old produce and bread, 2nd hand clothes, use food pantries. Sew for others, walk pets, run errands for others, just do everything you can possibly do to make a buck.

Stop feelihg sorry for yourself.

[NutmeggeRN, BSN]

oops wrong thread

[llg, PhD, RN]

I am within a few years of retirement -- which means I am starting to think about it constantly. Every time I have a bad day, I want to retire NOW!

But when I think it through, I stick with my plan of retiring in 3 years (& aged 66), if I can hold off that long. By then, I should have about $1.5 million in my retirement accounts + my home worth about $200 thousand. I'll sell the condo and move into a retirement community near my family that has all levels of living (independent houses to full care + everything in between). I'm not really anxious to live in a retirement community, but this one is really nice, locate 1/2 mile from my home town, and will provide everything I will need as I age and need assistance. I don't want to be a burden for my nieces and nephews to have to worry about.

While I could afford to retire now, I want to wait until I am eligible for Medicare in 2 years. I also want to keep building those savings because I have some family members who may need some financial assistance -- and I want to be in a position to help them. Mostly, I want to help my nieces and nephew with college expenses so that they don't start out life with big loans. They will all be going to grad soon -- and that is expensive.

[llg, PhD, RN]

After thinking about this a little more ... One thing that I find really matters to me is that I don't want to resign suddenly, because I am angry about something ... or because something goes wrong and people are angry at me. I want to "go out as a winner" -- as someone who has had a successful 40+ year nursing career. I want that retirement party where my accomplishments are highlighted and appreciated by colleagues who will miss me when I am gone.

I don't want to slink off in shame about something I did or did not do ... or because I couldn't cope with something.

I don't want to retire feeling like a loser.

That wasn't a big part of my thinking in the past, but I find that feeling/desire growing as I get closer to retirement.

[K9lover, ASN, RN]

Well I started late so retirement will be death. Hopefully not anywhere near a crash cart...

[Jules A, MSN]

I'm hoping for a quick decline and demise, if not a sudden one. When I'm too old to work, my plan is to refuse everything and let nature take its course. I am open to norcos and percocts, though.

This except switch up too old to work to too decrepit to make it to the crapper unaided. I'm planning to retire 62-65 with the multiply by 25 rule as a rough guide. Like SourLemon I have no plans on spending money my upkeep whilst I linger. DNR, DNI, no antibiotics, no hydration....excessive pain medication.

[Jules A, MSN]

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.

I have to think much of the reason people aren't saving enough now is the expectation that everyone is entitled to everything. Sucks I know, I was raised by poor but hardworking frugal people who taught us to save. Most of the younger people I work with who make far less money live in homes twice as expensive as mine. Twice as nice also, lol, but mine are paid for. I don't get the entitlement, maybe because I never really had much. I don't know. Great thread by the way. :)

[dudette10, MSN, RN]

I'm not retiring, but the hubs is soon. When he gets SS at 66, his monthly take-home (pension + SS) will be more than he brings home now, and that's not counting the 401k, which we will probably just let sit unless we want to do something extravagant. Plus, I'm still working, the house is paid off, and the kids are paying for their own education.