Retirement!

**KimZ** · 08-02-2011, 01:23 PM

So I just recieved a DR News letter... and boy does it have me thinking:

So say I want to retire... um YES

and I want to live on $55,000 a year and that is what you are currently making ( you can put what ever # you want)

This is taking the following into consideration:

No debt: Being and staying debt-free is the key to building wealth, and it will stretch your retirement dollars.

Medical costs: The average couple retiring at age 65 will spend $285,000 in health care costs in retirement. You could end up spending significantly more or less.

Long-term care needs: Folks who reach age 65 have a 60% chance of needing long-term care either in a nursing home or assisted-living facility. Long-term care insurance will protect your retirement savings, so factor those costs into your planning.

Annual income you wish to retire on: $55,000
Divide by: .08
Retirement goal: $687,500
That is what you would need put away to retire on what you are currently making... now depending on your age: you would do the following

687,500 x .001698 ( my age is 45) = I would need to put away $1,167.38 a MONTH! Ekkkkkkkk

I better start socking it away!

Want to try yours?

25 = .000286
30 = .000436
35 = .000671
40 = .001051
45 = .001698
50 = .002890
55 = .005466
60 = .013610

**forHISglory** · 08-02-2011, 01:45 PM

Thanks! I'm a retired person, and I'd say that Dave has it right. About the medical expenses: we are very healthy, but just the insurance costs alone eat up 1/3 of our pension. My advice is to save like crazy, and if you feel deprived, just keep those retirement years in mind!

**Telephus44** · 08-02-2011, 01:50 PM

Wow. That's weird.

I once spent a few hours calculating a "dream" scenario. You know, I want to retire at 50 and have tons of money to spend, while covering the basics, figure that I'll live to 105, don't draw down principle, 7% investment returns, and 3% inflation - and figured I only needed to save $4500 a month. It was a really fun exercise.

I did the above calculations, and came out with $1048 a month. Currently we're saving $1450 a month for retirement. That actually makes me feel better.

**pollypurebred39** · 08-02-2011, 02:18 PM

We'd need to put away $4,335 a month if we went by DH's age and income before he was laid off.

Serious belly laughs here. Not going to happen.We need to come up with another plan.

**forHISglory** · 08-02-2011, 02:58 PM

Just did the calculations that you gave. If we were start right now preparing to retire, I'd have to put away over $10,000 a month! Sure glad we decided to do it slow and steady over the decades! Thanks for the info!

**McD** · 08-02-2011, 03:56 PM

Health care costs during retirement are the only reason why hubby will be re-enlisting in the Guard. It's going to make a huge difference in income for us when we get to the retirement age.

**low-1** · 08-02-2011, 04:10 PM

Time is on my side I guess, I only need to put away $299.75 a month!

**mauimagic** · 08-02-2011, 04:18 PM

Well, we are squruud for sure - but then we knew that!! Save early and often!! Plan!!

**forHISglory** · 08-02-2011, 06:44 PM

McD, Health care costs are our biggest worry. We are blessed to have a pension (which by the way is not as big as a paycheck), but to fork over 1/3 of that a month hurts. When I was younger, I had no idea that our future would be impacted so heavily with that cost. We probably should have saved more just for that.

**Russ** · 09-09-2011, 07:26 AM

I honestly wonder if I will be able to retire. Don't get me wrong, I would like to and I am going to try to, but with health care and inflation, I just have my doubts.

All that said, I'm guessing I am better off than most, so I shouldn't complain.

**krbshappy71** · 09-09-2011, 10:34 AM

I'll be eating cat food in my retirement years. Hopefully its on sale, and if its a really good sale I might splurge for canned!

**Josephhgoins** · 09-09-2011, 10:48 AM

YIKES!!

I need to put away $503.25 a month!!

Gues I need to get started on it.

**BeachFun** · 09-10-2011, 05:57 AM

Yikes, according to these calculations we need to save at least $1000 a month. Once I finish school and find employment, we'll need to amp up our savings.

**arnie** · 09-10-2011, 07:49 AM

great information.
thanks for sharing!

**zakity** · 09-10-2011, 03:15 PM

Our "retirement plan" is for me to get a job when the boys get older (like in a few years). We plan on living off one income and putting the other in retirement. I am hoping that we can live off the lower income and put the higher one into the retirement fund. It will probably be the other way around though.