Quote:
Originally Posted by eastmemphisguy
Almost nobody who makes $50k spends 15% on retirement or 25% on taxes. Both of those are wildly inflated.
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I agree the taxes are definitely inflated.
As far as the retirement savings goes...it's probably true that not many save 15% at the 50K income level (and that's probably true even at higher income levels, too). But that's mostly because people don't want to...or they act shocked when they find they don't have that much "left over" at the end of the month. Almost no one has 15% "left over" at the end of the month. You budget your retirement savings
FIRST and then you budget the rest of your consumption around it.
Despite the fact that they take out 14% for my pension, plus Medicare. (although we don't pay into SS), I save around 27% of my 47K salary for retirement (plus maybe another 5% in general cash savings). Oh, and I live in the high cost SF Bay Area. Guess I'm weird
. But I do tire of hearing how impossible it is to save a decent chunk of one's salary for retirement.