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?
As many of you have stated, having your house paid off brings a lot of peace of mind. There are sometimes valid arguments (especially when interest rates were at rock bottom) that your money can work better for you by being invested rather than sitting dormant as home equity, but DH and I also decided that we preferred to go ahead and pay off our mortgage early. It feels so nice!
For most of us it is less about how much you make and more about what percentage you save. I am a big fan of the site MrMoneyMustache. It is all about re-evaluating how you spend. Is that 30k car really worth having to work 3 more years? Is that Starbucks worth two more years of working?
Excluding my mortgage I spend well under 15k a year. I have been a nurse for 3 years. I just upped my mortgage payments to pay it off in 15 years. I have 150k in retirement/savings. In 15 years I plan to probably go down to PRN once a week, which will cover living expenses. At that point my savings should mostly cover my expenses with 5% return (assuming 3% real return and 2% inflation) but I want to still work. Do that until I retire and take social security.
Of course depending on my health and healthcare costs this will adjust. I just know I don't want to be working full time for another 30-40 years.
The not saving attitude has been around since ever. It is one of the reasons social security was created. Most millennials and younger assume there will be no SS for them even though paying into it whereas the baby boomers refuse to have their payment lowered help SS last longer.
The not saving attitude has been around since ever. It is one of the reasons social security was created. Most millennials and younger assume there will be no SS for them even though paying into it whereas the baby boomers refuse to have their payment lowered help SS last longer.
What would help SS last longer would be if congress didn't utilize it as a petty cash fund.
What a lot if people aren't mentioning is long term health care costs. And I wouldn't be thinking about it either except my Mom mentioned one year she paid out $70K for my Dad between rehab and assisted living. One bad hospitalization put him in a WC, gave him C diff, and exacerbated his Alzheimer's. When searching for his last place, a nursing home, I learned to say "private pay", but even then many places didn't have a male bed. There are only so many Medicaid beds a nursing home has to have, and you have to be down to pretty much nothing to be eligible. While everyone thinks they won't ever go into a nursing home, I think I read it's 3 of 4 that will (could be wrong).
There is really no wrote answer for that. Cost of living, expectations and health all play a role. Do you want to travel? Cha-ching!, Do you want to eat out most of the time? Cha-ching! Do you want to stay in your own home, even if paid off? Cha-ching!
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. :)
When I look around, I see much of the same thing -- people making less money than I am buying all sorts of luxury items. They seem to feel they are entitled to those things.
They say things like, "I'll never be able to afford to retire," but I don't see them making a serious effort to save. They don't seem willing to make any sacrifices now to have money later. They'd rather just whine about it -- and hope that someone comes along to rescue them when they get old. (or perhaps, IF they get old and unable to work)
There is really no wrote answer for that. Cost of living, expectations and health all play a role. Do you want to travel? Cha-ching!, Do you want to eat out most of the time? Cha-ching! Do you want to stay in your own home, even if paid off? Cha-ching!
Of course; that's why I asked what nurses think about this subject. I know full well that everyone will answer it differently. I am curious as to the various answers people have for this question.
Since I asked the question, I guess I should have been the first to answer. I personally want to stay in my nice paid off home. I want to travel and treat my various family members to trips I take as well. I want to continue to be able to dine out when I feel the urge. I want to be able to afford all necessary medical care, even if that means long term care, as much as possible of that being in my own home. I want to have enough left over to leave my kids well situated for their own retirements, and if possible, education for their own children.
All that would take a very large retirement fund, many millions in fact. Thanks to DH (I get no credit for this), we are very well situated to live the retirement we dream about. How well placed we leave our kids will depend on things like the future of estate taxes, future COL, how many children they have, where in the US they settle, etc. D1 has a Ph.D in a field that will pay a respectable but not lucrative salary. D2 will make a very good living, much more than D1, but neither will likely make the kind of money their Dad has. Which is okay with both of them, I believe. But if we can assure them college educations for their kids and an adequate retirement fund, we will feel we did everything we wanted to do. Our kids are not OWED this from us, but it's something that we would like to do for them given the current economic outlook for this generation.
I don't see any retirement. I hope i go quickly, as i cant see doing this job at 70,much less 55. My husband lost all of his 401k in 2008, so he will have nothing, and I'm picking up the daily living slack, so can't save enough to matter. So hopefully quick and easy.
Horseshoe, BSN, RN
5,879 Posts
As many of you have stated, having your house paid off brings a lot of peace of mind. There are sometimes valid arguments (especially when interest rates were at rock bottom) that your money can work better for you by being invested rather than sitting dormant as home equity, but DH and I also decided that we preferred to go ahead and pay off our mortgage early. It feels so nice!