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I don't think it's possible to "over save" for retirement, especially if you're only in your thirties. The magic of compounding will pay off handsomely over those years.
To the people who voted "No".....can you please explain to me why $32K in today's dollars isn't good enough during retirement for a single person?
I'd be concerned about the cost of health care, medications (most need when aging), transportation costs, other insurance. Would you ever need long term care as an oldtimer? You might need to pay for it in your 50s.
we do way more driving now being home and free to do whatever we want every day .
just put 40k miles on my 2-yr old car, that's about 5,000 over my mileage while working.....I do a lot of travel with my RV.....but OP said he'd wouldn't be interested travel......
To the people who voted "No".....can you please explain to me why $32K in today's dollars isn't good enough during retirement for a single person?
Only thing I can conclude is that some people have a more lavish lifestyle. Nothing wrong with that. However, I think they are out on the outer limb of the normal distribution bell curve.
The median U.S. household income was $51,393 in 2014, according to the U.S. Census Bureau. A per capita number was a little more difficult to find. One source shows it as $28,889, also in 2014. So, I would think that $32k for a single person is plenty to support a modest and comfortable lifestyle. Maybe not in a major city where prices are just nuts, but otherwise shouldn't be a problem.
The HOA and car payments seem ridiculous for someone who is retired.
As her budget nag, I would love them to be less -- but it's not really an option. Check out the HOA fees at 55+ communities near you. Hers includes cable, electric and water/ sewer (plus a pool and a clubhouse). Also includes all grounds maintenance, including the flower beds abutting her property. While it's not a bargain, it's also not unreasonable.
Mom also wants a new SUV every 3 years, so the $400 monthly lease payment is part of the game. Yes, you can do these items more cheaply, but she's cash positive so it's kind of a silly debate -- either more gifts for the grandkids or a nicer car.
Well, currently, I am saving 16% of my gross income to my 401k. That's $11,200 per year being saved to retirement for just myself. I created this thread because I was wondering if that's excessive. All I care about is achieving an average lifestyle during retirement; nothing luxurious. I am currently 32 years old and have $26K saved for retirement. I am "aiming" to retire at the age of 67 and am estimating that I will die at the age of 82. So I'm planning for 15 years of income just for myself. I also factor in Social Security as a significant part of my income, which will be $2,244 a month and will account for about 50% of my income during retirement. Anyway, if I continue on this path, I should be able to draw $54K per year (gross) during those 15 years in retirement. I just want to be on track for an adequate retirement, but there's so much conflicting advice out there.
If people in this thread are telling me that I can live comfortably off $32K, then I can go ahead and reduce my 401k contribution percentage from 16% down to 3%! If I do this, Social Security income will account for 84% of my retirement income. What do you think?!
(For purposes of discussion, everything I discuss is in today's dollars).
Basically, you are asking permission from us if its ok to reduce your 401k contribution down from a very wise well -thought- out amount to a miniscule pittance. The answer is NO. If you think $32000 is a wonderful amount to live on in retirement, staying in your collapsible tent, riding your bike and eating off the streets, then by all means, go ahead. But don't come back in 30 years to blame us.
Her "misc" also funny. NONE of that is a "basic cost" or relevant to the OP question.
A hint is - she has the lately worthless concierge doctor and an umbrella. I guess because she still drives?
I'd guess your mother is very well off and had no interest in downsizing like most people her age. I'm all for it. But it's kind of a big exaggeration here, IMO. Maybe it all works out in the end, though. With missing items like home maintenance, and spending like hairdresser, manicures etc.
Her medical concierge service is good -- the doctors (there are four or five in this practice) even make house calls. She outlays almost 1000/ month on health care -- this is the big eye-opener for me. Between that and taxes and insurance, it's almost 2000/ month to start.
Yes she drives, and the umbrella is for that. She is comfortable but not "well off"-- mid-six-figures in investments, way at the low end of what retirement advisors want to see. I'm not posting to ask for financial advice here -- she's cash positive year-to-year, and we have made some nice capital gains and dividend plays in the last few years.
What I am posting to show: This illustration shows how much it would cost for what I consider a middle-class retirement lifestyle for a single person in a moderate COL area. She does not go on vacations (not even to Seattle) nor does she have any expensive habits -- she eats 90%+ at home and does a lot of craft activities with her lady friends.
Eventually, we will dump the car and she will take Ubers or the town bus service for seniors. She's not ready to give up driving yet however.
Home maintenance is included in her HOA -- I wish it were lower but I've looked through the community budget every year for decades -- the budget is pretty tight except for the ridiculous earthquake insurance. Her disadvantage, the HOA fee is apportioned by square footage. Since my mother has a 3BR unit (for occasional visiting grandkids -- these are attached townhomes), she gets whacked with a higher HOA than the people with 1BR and 2BR units.
You are right about the hairdresser -- women of that generation get their hair 'done' every week. I honestly do not know what happens at that salon to justify the $$$, but it happens every Wednesday as regularly as her bridge game on Thursdays.
If it is indeed comfortable to live off $32K during retirement, then I may consider reducing the amount of money I contribute to retirement from my paycheck, because right now I am on track to having $54K a year during retirement, which I'm starting to think is overkill for a single retiree.
-- CAN a person live on 32k a year? (today) yeah they CAN. But it could be tight, and will they want to live like that.
-- Even 54K a year during retirement is not super big bucks at all.
And who knows WHAT the health insurance situation will be 30 from now….
Why would you cut back on what your saving?? Do you feel like you're denying yourself things you'd like now? Do you feel like you're tight financially? THAT's another story.
But to cut back just because you think you might be able to live off 32K -- 30 years from now….. that reasoning seems faulty to me.
Besides -- it's not one of the other, you could cut back on saving and still have 50K, or 45K, or 40 K to live on in retirement.
Why is it 54K or 32K?
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NONE of that is a "basic cost" or relevant to the OP question. 
