What is your projected 401(k) + pension monthly income?

[Spungo]

I think people overestimate how much it costs to retire. What would your cost of living be if you didn't have a mortgage, didn't have car payments, had no kids, didn't drive to work, and didn't need to buy nice clothes for work? It would be very low. You could live in a house and drive a car on less than $1000/month.

At my current rate of saving, using an estimated growth rate of 2% in real terms (assume 6% nominal return and a very high inflation rate of 4% just to be safe), I should retire at age 65 with $930,000 in today's dollars. It sounds unusually high because it is. I live in a condo instead of a house, I have no intention of ever buying a house (I'm too lazy to maintain a house properly), and I have no intention of having kids.

 

[Engineer]

No clue. I've been in the game long enough to realize that projections are just an educated guess...if even that. Projections said that I would have over a million at age 45. I'm nearing 47 and am nowhere near that million....so there's that.

If I make it to 65, I should be able to get about $1500 per month pension plus whatever SS is available plus whatever I have in 401k/IRA/savings.

I would say I don't have any debt (because I didn't for a decade) but I recently bought my youngest daughter a new car and it would have cost me lost savings (interest) to pay cash for it vs buying it at 1.29% interest rate (so I kept the money in savings).

Again, don't have a clue...just keep chugging along until I feel it's time to go (or get fed up enough to just give it up and stop working).

 

[Spungo]

No clue. I've been in the game long enough to realize that projections are just an educated guess...if even that. Projections said that I would have over a million at age 45. I'm nearing 47 and am nowhere near that million....so there's that.

What happened? Kids? Marriage?

 

[purbeast0]

I think people overestimate how much it costs to retire. What would your cost of living be if you didn't have a mortgage, didn't have car payments, had no kids, didn't drive to work, and didn't need to buy nice clothes for work? It would be very low. You could live in a house and drive a car on less than $1000/month.

i don't plan on sitting around in my paid off house all day when i retire. i plan to be all over the world.

 

[Riverhound777]

The calculator says $5k-20k/m. But that assumes an awful lot. I really doubt my income growth will be anywhere near that steady in my job. Also doesn't take into account Roth vs standard. Just about all of my money is in a Roth account.

 

[brianmanahan]

Also doesn't take into account Roth vs standard. Just about all of my money is in a Roth account.

that certainly makes things easier from a tax standpoint

i currently do the full 401k amount in standard, but have thought about making some of that Roth though. that would mean an extra 4$k-5$k in taxes now though, so i haven't done it. i do get about the same amount into Roth each year as well, so maybe %50/%50 is a safe way to go.

 

[overst33r]

that certainly makes things easier from a tax standpoint

i currently do the full 401k amount in standard, but have thought about making some of that Roth though. that would mean an extra 4$k-5$k in taxes now though, so i haven't done it. i do get about the same amount into Roth each year as well, so maybe %50/%50 is a safe way to go.

It depends on several things. For example, if you want to retire early, you're probably better off going the Traditional route (both 401k and IRA)

http://www.madfientist.com/traditional-ira-vs-roth-ira/

 

[brianmanahan]

It depends on several things. For example, if you want to retire early, you're probably better off going the Traditional route (both 401k and IRA)

http://www.madfientist.com/traditional-ira-vs-roth-ira/

yeah that's what i thought, avoid %28 taxes now and pay %10-15 in retirement instead

i would probably do the traditional IRA too, but income limit is too low

 

[TXHokie]

$5k, putting it all on black each month

 

[Blackjack200]

My calculator tells me $5k before social security. It doesn't really explain the assumptions besides 65 retirement age though, so it's possible that could be assuming wage (and therefore contribution) growth.

I'm only 34, so making assumptions about 30 years down the road is pretty ridiculous, but I guess it feels nice that I should be okay in retirement?

 

[Blackjack200]

i don't plan on sitting around in my paid off house all day when i retire. i plan to be all over the world.

Things keep going the way they're going, international travel will get cheaper and you'll be able to spend all your time on the Cote d'Azur.

 

[TheGardener]

How much you will be able to draw is only half the equation. And to some degree an estimate is more achievable. What is more uncertain is how much it will cost to live and at what lifestyle. The cost of medical care is going up dramatically. Perhaps tax rates for retirees will be much higher, with fewer deductions. Not only income taxes on your distributions, but also property taxes, sales taxes and others that are only being thought up now. Food costs continue to go up. Clothing prices are increasing, while quality goes down. The only people who don't have to worry about higher prices are those on public assistance.

 

[jlee]

yeah that's what i thought, avoid %28 taxes now and pay %10-15 in retirement instead

i would probably do the traditional IRA too, but income limit is too low

I'm hoping I can max my HSA this year - between that and 401k, I think I'll retain eligibility for a deductible IRA this year. Probably not next year, though.

 

[ViviTheMage]

Not going to worry about it, just dumping money into my 401k and we'll see what happens if that's even there in 30+ years anyway.

 

[IronWing]

How much you will be able to draw is only half the equation. And to some degree an estimate is more achievable. What is more uncertain is how much it will cost to live and at what lifestyle. The cost of medical care is going up dramatically. Perhaps tax rates for retirees will be much higher, with fewer deductions. Not only income taxes on your distributions, but also property taxes, sales taxes and others that are only being thought up now. Food costs continue to go up. Clothing prices are increasing, while quality goes down. The only people who don't have to worry about higher prices are those on public assistance.

^^ It takes a special kind of moron to write this.

 

[AdamK47]

I'll be retiring at 54. I'm maxing out employee contributions plus getting a 100% of 5% employer match, maxing out a Roth IRA, getting the max limit on a reduction cost ESPP, and putting quite a bit into savings afterwards.

I'll have more than enough to live off of until age infinity. That is, if the markets don't collapse.

 

[brianmanahan]

I'll have more than enough to live off of until age infinity. That is, if the markets don't collapse.

sorry, i don't think the markets will withstand the heat death of the universe

 

[TheGardener]

^^ It takes a special kind of moron to write this.

This thread is for people who work for a living and have to support themselves. You cannot possibly understand the concept.

 

[biostud]

If i stop working at 65:

Own pension ~$1900 + $900 from the public pension, so $2800/month. I should get a onetime payment of $7800 and hopefully I own my house at that age.

Most likely I'll be working until 70.

 

[IronWing]

This thread is for people who work for a living and have to support themselves. You cannot possibly understand the concept.

^^ It takes a special kind of moron to write this.

 

[Fingolfin269]

There are a lot of calculators out there for this. Heres one https://www.calcxml.com/do/ret09

I have done several of these calculators and have gotten numbers ranging from 1600 to 11000 monthly payouts depending on estimated return rates, estimated salary increases and estimated inflation. I expect low salary increases, low inflation and higher taxes in the future so i believe the lower number over the higher ones.

This is my favorite calculator. It gives me hope. Which also means it is probably wrong. I do max 401k and get 8% salary match into 401k from employer. Plus have vested interest in a pension that will draw ~$500/month. Also contributing max to a Roth but hoping to consider that the SS replacement since I doubt i'll see that in 20 years.

 

[TheGardener]

^^ It takes a special kind of moron to write this.

Your just another troll on this forum who has nothing to contribute except insults.

 

[IronWing]

Your just another troll on this forum who has nothing to contribute except insults.

No, you took a reasonable discussion into the gutter with your asinine political commentary in a non-political thread.

 

[Theb]

The calculator from the provider says that 30 years from now when I retire I can take out $3k per month.

The 401k isn't going to be for monthly income though. The wife has a pension that will pay 45% of her final salary at retirement so that plus social security should be pretty good for a couple of old people in a paid off house. The 401k will be for travel, house projects, helping the kids with big purchases, unforseen big expenses, that kind of thing.

 

[Spungo]

i don't plan on sitting around in my paid off house all day when i retire. i plan to be all over the world.

Then add $5k/year. A week in Cancun only costs about $1500 per person.
One could argue that you should be doing that right now instead of later. It's a little hard to surf or go diving if you have diabeetus and shitty knees.

The cost of medical care is going up dramatically.

Only in the land of the free. A lot of old people get surgical procedures done during their vacation. New hips, new knees, new teeth. Teeth is a big one.