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Old 02-01-2017, 08:03 AM
 
817 posts, read 747,023 times
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I believe in taking my SS at 62. We don't know how long we will live, so get what you can while you can. And I figure that will be somewhere around $2000 per month, assuming they give us 70% of our projected benefit at that time.

401k should be high 6 figure or low 7 by then. Should we plan to live 20 years? I'm not a health nut, no way will my body make it to 90. 80 would be lucky. Let's just shoot for $3k in monthly income from the 401k. When its dry, it's dry.

So there's $5k/mo, plus the wife, so with a paid off house that sounds like plenty.
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Old 02-01-2017, 08:16 AM
 
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how much do we need to live on ? how long is a rope ? depends what you want your retirement to be like . what i want is certainly not what you need .

no one can say what is right for anyone else
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Old 02-01-2017, 09:13 AM
 
18,480 posts, read 15,425,162 times
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Quote:
Originally Posted by 69Charger View Post
I believe in taking my SS at 62. We don't know how long we will live, so get what you can while you can. And I figure that will be somewhere around $2000 per month, assuming they give us 70% of our projected benefit at that time.

401k should be high 6 figure or low 7 by then. Should we plan to live 20 years? I'm not a health nut, no way will my body make it to 90. 80 would be lucky. Let's just shoot for $3k in monthly income from the 401k. When its dry, it's dry.

So there's $5k/mo, plus the wife, so with a paid off house that sounds like plenty.
You need to write out a budget, line by line. Start by looking at what you spend now, then consider the impact of changes in your life and also potentially drastic future health care cost.
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Old 02-01-2017, 12:51 PM
 
Location: Florida
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The life expectancy of a couple is in the 90's. 20 years sounds to short of a time for planning.

For security I would take SS at your full retirement age or 70.

Remember when one spouse dies you will lose the lower benefit but your expenses will probably not drop by that amount.
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Old 02-01-2017, 12:58 PM
 
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and the surviving spouse has to then file single not married on their taxes increasing the pain . rmd's can be very high if single .
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Old 02-01-2017, 01:20 PM
 
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It's not a question anyone can really answer for you, but figure out your fixed expenses, multiply by however many years you have between now and retirement, adjust for 3% inflation and keep adjusting until you are about 90. Then, figure out how much of a budget you want for "fun"--travel, grandkids, etc. Then, add in costs for medical care, premiums, etc. Most people find that they need about the same income early in retirement years as they had when they retired and that drops by, oh 10% or so each 5-10 years or so depending on health. Then, there is always the possibility that you die the day after you retire, so....
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Old 02-01-2017, 01:23 PM
 
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the difficulty is adjusting for inflation . while you can figure around a 3% average , healthcare has been running as high as 7.50% and fidelity just reduced it down to 5.50% based on last years data . long term care costs can run 5.50% as well .

the point is those two items have been exceeding the rate of inflation by a lot .
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Old 02-01-2017, 02:10 PM
 
24,508 posts, read 17,962,799 times
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So the OP is retiring in 25 years at age 62? That makes them 37. You have to guess that anyone 37 is going to have a full retirement age of 69 and that to get Medicare plus supplemental that is anything like what exists today is going to cost $10K per person in 2017 dollars. When you bump the FRA to age 69, that Social Security check taken at age 62 is going to shrink. Figure $20K per year. I'd also guess that the Medicare age will be bumped from age 65 to 67. With Obamacare gone, market rate for decent insurance is going to be $25K per year for five years. If the OP is married, double that. $1.5 million in 2017 dollars would probably be OK. Guessing 3% inflation, that's $3.2 million 25 years from now.

Anybody who thinks they're going to retire in luxury 25 years from now off an age 62 Social Security check and 401(k) contributions is likely to be in for a nasty surprise 20 years from now when they do the math again in their late-50's.
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Old 02-01-2017, 02:17 PM
 
Location: Boise, ID
8,046 posts, read 28,354,458 times
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Quote:
Originally Posted by 69Charger View Post
I believe in taking my SS at 62. We don't know how long we will live, so get what you can while you can. And I figure that will be somewhere around $2000 per month, assuming they give us 70% of our projected benefit at that time.

401k should be high 6 figure or low 7 by then. Should we plan to live 20 years? I'm not a health nut, no way will my body make it to 90. 80 would be lucky. Let's just shoot for $3k in monthly income from the 401k. When its dry, it's dry.

So there's $5k/mo, plus the wife, so with a paid off house that sounds like plenty.
No way to answer that for you.

My husband and I will only need about $1000 a month in today's dollars to meet basic living expenses, plus whatever for medical and entertainment. SS will likely more than cover our basic needs, so all of what we have saved will be for medical and for fun.

But I know some people who have lifestyles that require $10k a month.

Also, people in expensive cities obviously need a LOT more than people in less expensive areas of the country.

No one knows how long they will live. You didn't say how old you are now, but if you aren't at least 55, it is far too early to be thinking about this. Save as much as you can now, and when you get closer to retirement age, then you start thinking about exactly when you can afford to call it quits. Too many variables between now and then, otherwise. What will happen to SS, what will happen to medical expenses, what will the market do in the meantime, what will a gallon of milk cost, what will taxes be, what will your health be like? And 50 or 100 other things.

If you are close to retirement age, then you are ready to start asking those questions. If not, save as much as you realistically can.
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Old 02-01-2017, 03:05 PM
 
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The amount of beer I drink, and buttered crab legs I eat, I won't be making it to 90, hahaha.

Im 37.
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