Pension/401k question

I know, we're a little young to be thinking about this stuff, but living with an elderly parent has made me feel like I'm 72 myself

So, my question - how much do you think realistically a person would need to live comfortably in retirement. I know there are SO many variables, but let's say your mortgage is paid off and you live in a major city, and you plan to retire in your late 50's, or early 60's.

Along those lines, how much do you think you need to squirrel away each year into your work 401k, pension or IRA to accomplish that monetary goal?

Re: Pension/401k question

By the time we are ready to retire...in 30-40 years...i would say a minimun of $500,000 to $1 million dollars to live is what you should have in your 401k and investments

Message edited 8/24/2007 8:54:23 AM.

Re: Pension/401k question

I would say at least 60% of your current salary to live the life you're accustomed to. I have a pension at my current job. I also have a defunct 401k from my previous job that is going to be converted to a tradition IRA. I also contribute to a seperate Roth IRA. You can never have enough money for the future.

Re: Pension/401k question

They tell you the later in life you start your 401k/Roth IRA, the more you should save in it to catch up.

I save 10% of my salary in my 401k. As of now, I am above my target for retirement. I try to put money into my Roth IRA every year, but that doesn't always work out.

You'll need around $1.5 million to get you through retirement, more the earlier you retire. There are retirement calculators out there that could help you see how much you'll need to save for retirement.

Re: Pension/401k question

I am hoping to get to 2 million in savings by the time we retire (not including home equity). I am 30 and DH is 32.

Re: Pension/401k question

Re: Pension/401k question

neither my DH or myself will have a pension

I think we would need at least a couple million to retire

I am no opposed to retiring outside the US- I would actually prefer it

My Dad currently lives off his pension and the interest from his investments- and he lives quite well- thankfully he also got long term care insurace (he is only 57 and has been retired for 3 years)

Re: Pension/401k question

We're hoping to have at least 1 million by the
time we retire. We're doing good so far.
I contribute 15% each pay check and my company
matches it.

Re: Pension/401k question

ooops Posted twice.

Message edited 8/24/2007 11:09:32 AM.

Re: Pension/401k question

It's so hard to say because we have no idea how anything will be in 30 years, you know? I mean, wasn't milk 30 years ago 30 cents? So a million dollars sounds great now, but that could be pennies in the future or it could be billions, who knows. All I know is that I am just putting in as much as I can and hoping that it's enough.


ETA: I'm with the NYC Bd of Ed, so there are more options for us.

Message edited 8/24/2007 12:34:49 PM.

Re: Pension/401k question

Re: Pension/401k question

With a rebalance and reallocation plan our goal with current market conditions and allowing for cyclical changes is about $2mm.

This can change of course for any reason but our plan tries to take into account a lot of variables.

The ability to earn now is key..later it becomes harder to work so we both sock away 15% into our 401(k). We also have IRAs and really can't put any more into it because we are maxed. Both our firms match a good portion.

So 30% of our gross pay goes towards retirement. That's a lot of moolah!

I hope to actually enjoy our retirement and not just get by.

We figure we have about 20 years until retirement so we are being as aggressive as we can be. I don't want to end up in the situation both of our parents are in.

If I stay at my company for another 16 years I will also get a pension. Heck, I'm never leaving...that's 60% of my pay and full medical benefits.

Message edited 8/24/2007 11:28:53 AM.

Re: Pension/401k question

It's such a hard question because I honestly have no clue how much we are going to need.

I do know that it is unlikely that DH and I are going to have a pension (unless he get a government job) so the burden of saving for retirement is entirely on us.

We don't want to be old and poor so we are trying to save as much as we can now.

We both max out on our 401K every year and put some extra money in an IRA.

We also own a 2 bedroom co-op (with a mortgage) that we would like to keep and rent out when we buy a house in about 5 years. We want this to be an additional nest egg for us for either our future children's college or for retirement. I am no idea if this is going to be feasible, but we would like too.

Re: Pension/401k question

Well, to answer my own question, I never really had an end-goal in mind, and perhaps we should.

We do both contribute the maximum matching percentage to our work 401k, contribute a hefty portion to our IRA accounts for for tax shelter purposes, and I get a very nice pension through work.

But, I always feel like it's not enough. I guess I'm a worrywart...

Re: Pension/401k question

Re: Pension/401k question

I would say $2 million but if you plan on retiring in your 50's more than that.

Re: Pension/401k question

I will have a pensions and 403B (same thing as a 401K, but for nonprofit organizations). My DH and I put about 10% of our salary into it.