What do you need to retire?? - Chevelle Tech
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post #1 of 71 (permalink) Old Aug 15th, 19, 5:35 PM Thread Starter
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Ron
 
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What do you need to retire??

Just curious what people need to retire these days. $30,000, $40,000, $60,000, $100,000 a year? I know some people say they will never afford to retire but I don't know what some people need. I know everyone's needs are different but do you really need the same income in retirement that you need when you were working?
No one needs to post their specific income but what is enough to be comfortable?
BTW, I am retired due to disability and live very well making $50,000 a year myself but my wife still works as she is younger than me and adds to our income.

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post #2 of 71 (permalink) Old Aug 15th, 19, 5:55 PM
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Re: What do you need to retire??

For me, I need to make the same as I did while working. Also, since the cost of living increases, you need to make progressively more as time goes on, putting you in the same financial bracket or better. Some retirees spend far more than they ever did while working so you really have to be honest with yourself.
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post #3 of 71 (permalink) Old Aug 15th, 19, 6:42 PM
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Re: What do you need to retire??

A big part of it is your expenses. If you have a mortgage and car loans that will make a difference. I have no debt and get by pretty well on SS and a pension which totals about $2100/month. But because of IRA tax rules, I had to take an RMD last year of $57 000 which I really do not need for any immediate purpose.
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post #4 of 71 (permalink) Old Aug 15th, 19, 6:48 PM
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Re: What do you need to retire??

CQOM

Copious quantities of money. If you can figure it, it’s not enough.
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post #5 of 71 (permalink) Old Aug 15th, 19, 7:04 PM
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Re: What do you need to retire??

Geographic location, debt load, and wants and needs factor into whats needed or wanted to retire. We have no debt and I retired at age 54 and my wife does not work. I started with far less than the amounts all the investment bobbing heads say you need and the way I've cyphered our money and us will probably die off together. When I can start collecting SS next year it will make my retirement much more pleasant, when my wife starts collecting in 3 years after that, it will be icing on the cake. Current cash requirement is about $2400/month
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post #6 of 71 (permalink) Old Aug 15th, 19, 7:15 PM
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Re: What do you need to retire??

I've worked my way up over time to putting aside about 25% of my income into retirement savings every year by just taking raises and funneling them into savings instead of spending. So I know I can get by on 75% of my current income.

But I also know that when I retire I will have no debt (house will be paid off soon enough), so that will significantly reduce my expenses. Not sure exactly what I will need, but current estimate with no debt would be less than 50% of my income today, and it may be significantly less as much of my retirement savings is in tax free investments so my tax bracket will go down quite a bit too.

Only unknown thing will be health insurance as I plan to retire early, so I have to sort that part out.

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post #7 of 71 (permalink) Old Aug 15th, 19, 7:29 PM
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Re: What do you need to retire??

I retired last year at age 72. I have no mortgage, car payments or any of that stuff. My wife and I only have to pay for insurance, taxes and utilities........oh, yah, and food. We still have 3 years of annual payouts from the sale of our business, but we're fine without it. I wish our health was better, but you can't have it all. We'll be just fine.

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post #8 of 71 (permalink) Old Aug 15th, 19, 7:37 PM
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Re: What do you need to retire??

No mortgage and auto loans are key. Im not retired living like the commercials show, like sailing around the world in a 100 foot sailboat, but I do as I want and the first thing I did was not set the alarm clock! Unless, I had an early tee time! Its all about your monthly expenses and how much more you think you may want on top of that. I have a 401 ,but I dont include that as part of my income needed monthly. So, I can take a vacation if I want, and have that as an emergency fund if needed.
But my way of thinking is I worked all the good healthier years of my life, so I owe whats left for myself. That there has value. I do miss the social part of work, but not the job itself. And Im not going to die at work. But in the end ,its all different for everyone.
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post #9 of 71 (permalink) Old Aug 15th, 19, 7:57 PM
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Re: What do you need to retire??

We started saving "later" than most financial people say but we tried to pay down debt ASAP as it came along. Once the kids got out of college and such, we really started putting it away and investing. my wife has been retired for 4 yrs. and I still work part-time. We both are drawing SS and she gets a pension. We are rather frugal but once in a while a "luxury" is fun. The big question is healthcare, esp. in the future. Right now, our health is pretty good but tomorrow is another day. We hope we have enough but we are still investing small amounts for some growth/dividends...what constitutes enough?
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post #10 of 71 (permalink) Old Aug 15th, 19, 9:18 PM
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Re: What do you need to retire??

the problem with retiring at 54 is health insurance. I pay 3200 a month for the 5 person family plan and it'll only get more expensive till Im 65...
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post #11 of 71 (permalink) Old Aug 15th, 19, 9:21 PM
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Re: What do you need to retire??

I retired at 62 and will be 69 towards the end of this year. My wife is going to finally retire at the end of this year at age 67. By no means are we rich. Everything we own is ours though no mortgage, no car payments. We never had any kids but we did have 6 of the little fury things running around the house through the years, were down to our last two now. Were not ones that want to travel the world we had a comfortable life together not expecting a whole lot. If we can keep the lifestyle we live now we'll be satisfied. To many people work their lives away save everything they can and in the end they die young and rich or end up in a rest home and the state gets everything if they didn't make plans ahead of time. How many people do you know that died at an early age or were really looking forward to retiring only to be cheated out of it because the end of their time beat retirement out. My wife and me had a good run never had any bill collectors breathing down our necks. Hopefully we'll still have a few good years together and if we have it planned out just right there won't be anything left for anyone to squabble about.
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post #12 of 71 (permalink) Old Aug 15th, 19, 10:38 PM
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Re: What do you need to retire??

Mary and I have no debt, that is the key to retiring with a small income. Our combined Social Security income is $2300/month and I get $180/month pension. We have no desire to travel around the world or even the country. We take our once a year vacations, she goes to Alaska to visit family and I travel out of state for some car shows. My side job money supports our car addiction. We are happy and healthy, that is what is important to us.
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post #13 of 71 (permalink) Old Aug 16th, 19, 12:29 AM
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Re: What do you need to retire??

Quote:
Originally Posted by 64tempestwagon View Post
the problem with retiring at 54 is health insurance. I pay 3200 a month for the 5 person family plan and it'll only get more expensive till Im 65...
Wow. Thats a lot of insurance cost. How old are the kids? Im guessing your job doesnt have health care.???
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post #14 of 71 (permalink) Old Aug 16th, 19, 12:29 AM
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Re: What do you need to retire??

we never really stopped to figure how much we will get or how much we will need. we are debt free, which helps. We got to talking about buying a bigger place and really didnt have a clue how much we should spend. we're 56 and thinking of a house payment after retirement really made us nervous. Either way, wife plans on retiring at 62, I told her I'll retire at the same time, ill be 63.
we get to keep my wifes insurance after retirement (DOD) so its affordable.
between pensions, SS and 401k we should be fine as long as we dont go buy a 300k house. jim
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post #15 of 71 (permalink) Old Aug 16th, 19, 1:31 AM
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Re: What do you need to retire??

I'm in California, San Francisco Peninsula, and with no debt but property taxes, homeowners dues and medicare payments along with car insurance I figure you can't take in less than $1K per month just for those. So that's 12K per year.

Younger wife requires health care but we have found that a very high deductible plan ($6K) which is a "sharing" plan is lower cost than regular "health insurance". Even with my wife having some back issues and a broken ankle this year it has still been FAR less money than the regular insurance people want. You need to negotiate with the clinic before doing anything though and pay cash. The clinics' love cash. 30% discounts!

An MRI for her back started at $1600, then after saying it was cash it was $1200, then we say we're going somewhere else they made it $900 and in the end, we did go somewhere else, and it was $500.

Then with the basic 12K per year and 4.5K for health we are at 16.5K and have not bought food, gas, a night out, trip to Europe, etc. Bottom line is I believe that you need in my geographic location about $30K per year to get by. All these things will go up every year so even at a small inflation rate, say 3%, it will be 40K or so in 10 years.

By then the bathroom will need a redo, the kitchen will need a redo, the Chevelle will need a redo.. it is hard to estimate. I believe that you need a minimum $30K free cash flow after taxes if you have no debts. Thus with a 3% return on $1,000,000, yes ONE MILLION DOLLARS! you can easily slide by. You can get better than 3% in a lot of conservative bond funds but if there is a recession maybe not.

Notice that SS is not included here. I have always bet that the government will screw me on this one. If not now sometime in the future. What SS I do get will pad enough that I will be able to get the 40K in 10 years.

Note that I'm not trying to spend down principal but just get by on returns; children will get what seems a lot but in 30 years it won't be.

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