# Retirement Saving guidelines (mileposts)



## Micheal (Jan 28, 2009)

According to one financial institution to be on track to have a "nest egg" to generate 85% of your income in retirement you'll have needed to save an approximate amount of 8 times your (current) salary. 
The mileposts given are:
At age 35 - 1 times annual salary
At 45 - 3 times.
At 55 - 5 times.
At 67 - 8 times.
Of course this is based on retiring at age 67 and spending the savings over a 25 year retirement....... 
Also hidden somewhere in their calculation(s) they did include what you'll get from SS.

Please cast no stones as to the "good or bad" specially since other financial institutions say you'll need up-wards of 11 times final salary to do the same......
Sooo, how far off were you in these "milestones"? 

Me, I'd still be needing to draw a paycheck (working)........... as I truly missed. 
But then again, with my life-style I'm not near needing (nor spending) that 85% of the income I made while working........


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## Ramblin Wreck (Jun 10, 2005)

I saw the same article you did on either MSN or Yahoo, and I agree that your lifestyle more than anything else dictates what you need in retirement. No one formula fits all. 

My pension was based upon 60% of my final (or best) two year salary average, and it has been ample. I don't have to pay SSN or have retirement taken out, which saves a chunk. My federal and state taxes are less. There are no commute expenses or work related costs (parking permit was $600 annually when I retired). I also was maintaining two homes, an in town condo and the farm. Sold the condo in the nick of time and that eliminated a small mortgage and the monthly association fees. The bottom line for me was that my budget in retirement had more "free" funds than my budget while working. Trouble is, when you have more free time you can find more ways to spend money if you are not careful. I find the best way to save $'s is to just stay home...and off the amazon.com link.


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## jassytoo (May 14, 2003)

I guess that's just a ball park figure but there are so many variables. If you have debt or not. Where you live would make a difference. Your life style and spending habits etc.Also if you own your own home. We are fine right now. Our life style hasn't changed much since DH went to part time.. I've always been a homemaker and DH is still working 2 days a week. He doesn't need to but he likes his job. We manage right now anyway, on our SS with no major changes. What the future holds, who knows. What with inflation and maybe future medical issues, it's hard to know what we'll need. We've done all the traveling we want to do and don't buy the latest and greatest so we do very well here on our little farm where at least we can raise some of our food. We are very happy and that's what counts. We've done the best we can so I'm not going to waste our "golden Years" stressing about it.


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## where I want to (Oct 28, 2008)

I love those articles by Wall Street- which should just be re-titled "You need to save at least this much to keep me wealthy by managing this money for you."
But there have been a few surprises for me anyway- the rapid increase in taxes being one, the increasing costs of health care which is getting harder to find. 
If your income is not tax free as many Social Security people have, then taxes are a fearsome bite out of your income.


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## emdeengee (Apr 20, 2010)

We never hit any of the milestones recommended. In fact we were like a lot of young people - never gave retirement a thought because it was so far off. But once you hit your 40s it does not look as far off.

The only advice we got from our parents was to save 10% of our income every time we got paid. Of course that is not enough in today's world so the advice we passed on was to save 25%. 

One thing we did understand even when we were just starting to save (playing catchup big time) was that you cannot settle for a fixed income. Expenses are not fixed so income cannot be either. Otherwise you just get poorer and poorer.

We are aiming for an income of 75% of our pre-retirement income with no consumer debt, education debt, mortgage or loans. We will continue to save even after retirement and we will work when the opportunity arises to always get a little extra. We will also continue to be as frugal and self sustaining as possible but we intend to enjoy retirement as well. 

The one advantage we have is that we do not have to worry about medical care. But we do have to have enough to pay for help when we need it.


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## Scott SW Ohio (Sep 20, 2003)

My employer terminated our pension plan a number of years ago so I will rely primarily on my 401(k) and what I have invested in stocks and real estate. I am nine months short of my 55th birthday and have about ten times my salary in mutual funds, bonds and stocks, plus another 3.5 times my salary in real estate equity excluding the house we will live in. 

I have been planning to retire at 55 but now think I might continue a few years past that, assuming my job lasts, to sock away a few extra bucks.


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## TheMartianChick (May 26, 2009)

Hubby is 55. He has almost exactly 5 times his annual salary in his 401k. I will be 43 this year and have about 4 times my former work salary in a 401k. We also have income that is not tied to our employers in the form of royalties, rent and side-gigs. I haven't contributed to a 401k since 2000, when I was downsized. Luckily, I started saving for retirement at the age of 24 and the money has had time to grow.

While I know that charts and investment calculators aren't always accurate, I do use them to try to measure our goals.


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## Horseyrider (Aug 8, 2010)

That's only about half what we've saved. We intend to draw about 4% interest on the principal, and leave the nest egg to our kids. Everybody can use a leg up; we got one.


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## Sour Kraut Farm (Sep 26, 2012)

My big dilemma is that I can retire from work at 50 years old, at 50%. For each year I stay past 50 years old I get 2 % extra on my retirement. Is it worth going to work for 50% to get the extra 2%?


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## TheMartianChick (May 26, 2009)

Sour Kraut Farm said:


> My big dilemma is that I can retire from work at 50 years old, at 50%. For each year I stay past 50 years old I get 2 % extra on my retirement. Is it worth going to work for 50% to get the extra 2%?


I think that I'd be tempted to retire and take the 50%. If I still felt compelled to work, then I would pick up a job someplace else...maybe something part time and call myself semi-retired!


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## Ramblin Wreck (Jun 10, 2005)

Sour Kraut Farm said:


> My big dilemma is that I can retire from work at 50 years old, at 50%. For each year I stay past 50 years old I get 2 % extra on my retirement. Is it worth going to work for 50% to get the extra 2%?


That's a toughie, but I kinda' agree with MartianChick. If you can live on 50% and then make some extra as required/desired, it gives you more time to do what you want/like. We never know how much time we have, but I know for sure I have less of it now than when I started writing this note.


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## thesedays (Feb 25, 2011)

Sour Kraut Farm said:


> My big dilemma is that I can retire from work at 50 years old, at 50%. For each year I stay past 50 years old I get 2 % extra on my retirement. Is it worth going to work for 50% to get the extra 2%?


I used to work with a woman whose husband retired at about age 53. He was a teacher, and found out that he could retire with full pension and benefits, so he did. He's been a househusband and SAHD ever since, and does a small business on the weekends. 

:dance:


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## Micheal (Jan 28, 2009)

Sour Kraut Farm said:


> My big dilemma is that I can retire from work at 50 years old, at 50%. For each year I stay past 50 years old I get 2 % extra on my retirement. Is it worth going to work for 50% to get the extra 2%?


Let me ask , your 50% retirement is it inflation adjusted????? Probably not as most aren't.
Just read some of the other postings in this retirement section from others where rising costs (inflation) after a few years is "really" causing pain and worry about hanging on; let alone living a "good" life..
You have, I guess a steady job now. If'n you retired and found out you needed to go back to work are jobs even part time ones, available in your area? Never heard of Maine being a booming state as to jobs is why I ask.

My thought; as long as you don't mind working keep at it. You'll find that that 2% a year increase that looks poorly now will be really large in a few more years...........

And I won't even inquire bout health coverage.........


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## Shrek (May 1, 2002)

Those percentages seem a bit low to me.


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## Ramblin Wreck (Jun 10, 2005)

Shrek said:


> Those percentages seem a bit low to me.


Do you mean too low of a percentage of income to get by on?


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## Taylor R. (Apr 3, 2013)

Thank goodness we started saving early! We are both under 30 and already have 2 years of our combined income in my husband's 401K, not nearly as much in mine as I haven't been working for as long and I'm only part time. My husband can retire at 49 from the company we work for, though I'd be shocked if he does. Come to think of it, I guess I could retire at 46 if I so desired, that is, if I stick with the company.


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## suitcase_sally (Mar 20, 2006)

Micheal said:


> If'n you retired and found out you needed to go back to work are jobs even part time ones, available in your area?


 
Also, will you be _able_ to find a job? Older people are sometimes discriminated against, not to mention whether your health would _allow_ it.


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## Ramblin Wreck (Jun 10, 2005)

I hear and understand the cautions some are offering about leaving a job for retirement "too early". The flip side of that warning would be this concern: On your death bed, do you really think you'll regret not spending the extra time you could have spent at your work place? It's a balancing act for all of us.


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## Shrek (May 1, 2002)

Ramblin Wreck said:


> Do you mean too low of a percentage of income to get by on?


When I decided to retire at 45 I targeted an investment earnings goal of at least 15 times my yearly salary in reserve and an active investment income stream.


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## Bentley (Jul 10, 2008)

When I retired the first time, we had managed to save over 17 times annual salary. When I retired the second time we had saved 25 times annual salary.

As I look back over the years, it is obvious that we could never have done that had we not started saving early and never never never using those funds for anything. There was several times that I was very tempted, but we stuck to our goals.

Remaining married to my first and only wife helped. Having a decent paying job, and staying with it for 35 years helped. On the rare occasion that a little surplus came our way, we bought rental property. We now have 2 units that are completely paid for. The rent makes a nice retirement check each month.

We have been blessed more than we deserve.

I have tried to teach my children to start saving early, save a minimum of 12% from each check, remain faithful to your spouse, and never leave God out of your life.

It worked for me.

B


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## tallpines (Apr 9, 2003)

My DH was a workaholic .......
It made our marriage a struggle as I yearned for more time with him for relaxation.

But ----- without knowing the retirement formula ...... and as a result of thrifty living we retired with about 15 times our annual wage in savings and overall worth.
Today that overall worth does not get touched for any expenses.

All those tough, difficult years of very hard work resulted in a decent combined retirement income from SS and pension.

Finally, we are able to RELAX!
The only thing we wish we had now, are younger bodies, free of so many ACHES & PAINS!


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## volleypc (Jul 25, 2010)

Sour Kraut Farm said:


> My big dilemma is that I can retire from work at 50 years old, at 50%. For each year I stay past 50 years old I get 2 % extra on my retirement. Is it worth going to work for 50% to get the extra 2%?


How much have you saved in addition to the 50% or are you just planning to use the 50%? I think with inflation this would be tough unless you plan on picking up some part time work.


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## Bentley (Jul 10, 2008)

Sour Kraut Farm said:


> My big dilemma is that I can retire from work at 50 years old, at 50%. For each year I stay past 50 years old I get 2 % extra on my retirement. Is it worth going to work for 50% to get the extra 2%?


What are your plans for health insurance until you are 65?


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