U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
View Poll Results: What percent of current income are you trying to match?
More than 100% 18 14.06%
100% 18 14.06%
90-99% 5 3.91%
80-89% 16 12.50%
70-79% 25 19.53%
60-69% 17 13.28%
50-59% 11 8.59%
Less than 50% 18 14.06%
Voters: 128. You may not vote on this poll

Reply Start New Thread
 
Old 02-02-2016, 02:08 PM
 
Location: NE Mississippi
13,650 posts, read 8,565,244 times
Reputation: 19863

Advertisements

Quote:
Originally Posted by DelightfulNYC View Post
It should be current expenses not current income. Lets say I make 10 million a year and spend 1 million a year.

In retirement why do I need to consider the ten million at all.
Yeah, unfortunately the vast majority of Americans seem to have expenses that are exactly equal to their income. It makes no sense, but there it is.
Reply With Quote Quick reply to this message

 
Old 02-02-2016, 03:52 PM
 
Location: Albuquerque NM
1,657 posts, read 1,522,222 times
Reputation: 3632
My gross retirement income will be about 65-70% of my current gross income. But a good chunk of my current income goes to retirement savings - I could spend more but prefer to save for retirement and I have a busy job so don't have the time to take vacations or shop. Vacations are generally to visit my large extended family so are relatively inexpensive. I will actually have more money to spend in retirement (about 125% of my current expenses) when I no longer have to save so much and have more time to do things.
Reply With Quote Quick reply to this message
 
Old 02-02-2016, 09:02 PM
 
Location: Wasilla, AK
7,240 posts, read 4,128,251 times
Reputation: 15614
I did it a little differently. Rather than peg it to a percentage of income, I determined that $10,000 a month would be suffcient to live on and should be my goal. Expenses are quantified and it should be the same for retirement income.
Reply With Quote Quick reply to this message
 
Old 02-02-2016, 09:26 PM
 
Location: Dallas, TX and Las Vegas, NV
5,692 posts, read 4,413,829 times
Reputation: 11660
Quote:
Originally Posted by AlaskaErik View Post
I did it a little differently. Rather than peg it to a percentage of income, I determined that $10,000 a month would be suffcient to live on and should be my goal. Expenses are quantified and it should be the same for retirement income.
We did the same thing.
Reply With Quote Quick reply to this message
 
Old 02-02-2016, 10:22 PM
 
Location: Los Angeles area
14,018 posts, read 17,729,443 times
Reputation: 32304
Quote:
Originally Posted by AlaskaErik View Post
I did it a little differently. Rather than peg it to a percentage of income, I determined that $10,000 a month would be suffcient to live on and should be my goal. Expenses are quantified and it should be the same for retirement income.
Are you playing word games here? $10,000 a month is vastly more than "sufficient" to "live on" in retirement. While there is nothing wrong with that amount being your goal - after all we all set our goals based on our wants and on the practicality of achieving the goal given our circumstances - your use of the word "sufficient" is pretty jarring.

I do not have statistics at my fingertips to show what percentage of retirees in the United States have that amount or more available, but you are in rather exclusive and lofty company. It makes a difference whether the $10,000 is understood as gross or net income, of course, but either way it's more than a lot.
Reply With Quote Quick reply to this message
 
Old 02-03-2016, 07:59 AM
 
1,039 posts, read 774,768 times
Reputation: 817
Quote:
Originally Posted by emm74 View Post
Then your number would be 10% of your income to match your current lifestyle without savings. Most people don't live on 10% of what they make, of course, so figuring out the percent of your current income is a reasonable back of the envelope way to think about your needs in retirement.

For instance, if I'm saving 15% for retirement, then presumably, I could keep my current lifestyle on 85% - assuming of course that my retirement savings, pension, SS, etc. added up to enough to meet that figure and I wasn't trying to save in early retirement to help fund later retirement.
Most of my expense right now are Kid related and work related (commuting), back them out and I can live on 10% of my income easy.
Reply With Quote Quick reply to this message
 
Old 02-03-2016, 08:12 AM
 
Location: Wasilla, AK
7,240 posts, read 4,128,251 times
Reputation: 15614
Quote:
Originally Posted by Escort Rider View Post
Are you playing word games here? $10,000 a month is vastly more than "sufficient" to "live on" in retirement. While there is nothing wrong with that amount being your goal - after all we all set our goals based on our wants and on the practicality of achieving the goal given our circumstances - your use of the word "sufficient" is pretty jarring.

I do not have statistics at my fingertips to show what percentage of retirees in the United States have that amount or more available, but you are in rather exclusive and lofty company. It makes a difference whether the $10,000 is understood as gross or net income, of course, but either way it's more than a lot.

I'm talking gross income. And $10,000 a month is not that much anymore. It makes for a comfortable, but not extravagant lifestyle.
Reply With Quote Quick reply to this message
 
Old 02-03-2016, 09:19 AM
 
Location: Loudon, TN
5,769 posts, read 4,830,089 times
Reputation: 19395
Quote:
Originally Posted by AlaskaErik View Post
I'm talking gross income. And $10,000 a month is not that much anymore. It makes for a comfortable, but not extravagant lifestyle.
$120K annually exceeds the income of 90% of Americans, including WORKING people, so I'm pretty sure you can be comfortable on that.

http://www.mybudget360.com/wp-conten...stribution.png
Reply With Quote Quick reply to this message
 
Old 02-03-2016, 12:19 PM
 
Location: Forests of Maine
30,679 posts, read 49,437,227 times
Reputation: 19129
Quote:
Originally Posted by DelightfulNYC View Post
Most of my expense right now are Kid related and work related (commuting), back them out and I can live on 10% of my income easy.
When I was working, our expenses were never allowed to approach my salary.

We tithed 10%+, and then anything left over beyond expenses was invested in principal-only payments.
Reply With Quote Quick reply to this message
 
Old 02-03-2016, 12:26 PM
 
Location: Denver CO
21,164 posts, read 11,768,218 times
Reputation: 32161
Quote:
Originally Posted by AlaskaErik View Post
I did it a little differently. Rather than peg it to a percentage of income, I determined that $10,000 a month would be suffcient to live on and should be my goal. Expenses are quantified and it should be the same for retirement income.
You are playing with semantics. Regardless of how you arrive at a calculation of your needs in retirement, $10,000 per month would be some percentage of your current income so you could have answered the question without humble bragging about a specific figure.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top