how much do you think you need to retire?

[brian2013]

I'm into the retirement planning stage where I've started to think about how much I want/need to have to retire. (As opposed to when I was younger, and I was just trying to save as much as I could, and retirement seemed too far off to worry about an actual dollar amount goal).

I'm just curious, what is your target/goal/"magic number" that you want or need before you retire?

I'll start! After running various retirement calculators and simulations, I think I'd like to have at least $3 million. After that, maybe I'll keep working, maybe not, but at the moment I think this is my number.

Let's hear yours...

[Glockenspiel]

In today's dollars, around $3.5 million.

[David Jay]

To retire @55: 33x expenses
To retire @60: 30x expenses
To retire @65: 25x expenses

If you can't project your expenses, you can't project your required portfolio balance.

[MrBobcat]

Maybe it ought to be how much do you want to spend in retirement and work back from there.

X = Current annual spend, plus estimated health insurance, plus extra estimated travel. X= $48k +$20k +$10k = $78k.

Subtract (indexed) Pension from X = $78k - $26k = $52k X 25 = $1.3mm.

SS will be cushion. I still need to tie down X, maybe inflate it a bit more for just in case or just shoot for 30X which would be $1.56mm

[sperry8]

I'm into the retirement planning stage where I've started to think about how much I want/need to have to retire. (As opposed to when I was younger, and I was just trying to save as much as I could, and retirement seemed too far off to worry about an actual dollar amount goal).

I'm just curious, what is your target/goal/"magic number" that you want or need before you retire?

I'll start! After running various retirement calculators and simulations, I think I'd like to have at least $3 million. After that, maybe I'll keep working, maybe not, but at the moment I think this is my number.

Let's hear yours...

Different for everyone. Are you living in HCOL or LCOL? Retiring abroad? What sort of lifestyle do you want to lead in retirement? Vacation home or just primary? Do you want to bequeath any assets? Non actionable post - and rather pointless since everyone's number is totally different depending on circumstances

[Designairohio]

On expenses of 72,000 I retired at 63.5 with 21X or 1,500,000
5% Withdrawal rate for 6 more years until we take SS OF $45000 AT 70 AND 68.

[steadyosmosis]

I retired after I surpassed 25x annual expenses.

[count damoney]

If you can't project your expenses, you can't project your required portfolio balance.

I know this is a common statement and I get the philosophy behind it, but in practice I have difficulty with it.
It is contrary to how I've functioned for the last 35+ years of making money. I adjusted my expenses to what money I had coming in.
I can control my expenses (somewhat), but can't control my portfolio balance other than investing what I can and following my IPS - the market plays a big part in what the balance will be
I plan to do the same in retirement. I've got a date in mind and when that date comes (7 years!) I will retire and adjust my expenses to fit.

With that being said, in the spirit of the thread topic, I'm hoping that number is $3.5M 7 years from now.

[scorcher31]

I'm planning for expenses to be about 120k per year. Planning to hit 10 mil and retire by 55.

[Triple digit golfer]

So many variables and unknowns, so I'll say as soon as I hit 25 years of expenses, I'll allow myself to retire, whether I'm 40 or 65 or anywhere inbetween.

I'll get Social Security one day and the mortgage will be paid off one day, so that adds a buffer since current expenses include the mortgage.

Probably $2.5 million or thereabout, in today's dollars. We're currently more than halfway there.

[Wrench]

My first guess in my early 40s was $2M. Came to that figuring $100K will allow a comfortable life in all but the most expensive HCOL areas. So take $1M in an SPIA at age 65, yielding ~7% for life or $70K. Social security gives $30K plus or minus for life. $1M left over for legacy, long term care, one time expenses, or to cover loss of buying power from inflation.

This is crude and not necessarily what I would recommend, or ended up doing myself. I had no desire to FIRE (was there even such a thing 30 years ago?) and just wanted a sense that I would have enough if I continued on the savings path I was on. For my 40 year old self, it was close enough to satisfy me at the time. As it turned out, it was not that far off for my spouse and I, though partly because I have chosen to continue to work (b/c I love what I do) after age 65, and will likely continue into my 70s (though I don't really have to financially).

Wrench

[Jack FFR1846]

What will your expenses be when you retire and do you have a spouse, kids?

Step one is to build yourself a "retirement spending" list. This is different from your current "while working" spending list as many big dollar things can be very different and some are less and some are more. Build it.

Next, build a spread sheet. Doesn't need to be fancy. Lots of copy/paste. For each year, list assets, income, spending and a percentage for assumed gain on assets for next year. If you do have kids going to college, you can put those costs in and add them in the spending area. When you quit your job, you can subtract that from income. When you'll start social security, you can add that into spending. THIS tells you what you will have when you're at your end date. So you can decide to be dead at 85 or 90 or 73. Your choice. But the spread sheet tells you what you'll have and you can look at the numbers along the way and see what the trend is.

Everyone's number will be vastly different because people spend a different amount. DW and I were spending $50k a year while working. We live one marathon west of Boston, so sort of expensive but not NYC or San Francisco. Retired the end of June and our retirement spending is $75k. I'm 66 and when I pulled the plug, I had $4.1M in liquid assets with the house and 4 cars all paid with kids working and done with college. Today, 6 months later, we have $4.2M and 5 cars. So we saved way too much and for my own good, I should buy a really fun car. (no, really).

[almostretired1965]

The number I had set for my wife and I was ~ $4M and we hit that around 7/2016. Got laid off a year later, though I was able to stay employed for another year and was planning to retire around 9/2018. Got a job offer right before that to move to the west coast and I'm still at the same employer but will finally pull the plug this coming July. Way past safe at this point, but I think the old number would have been fine too.

[InvestorHowie]

Current low end of my range is 25x expenses at age 58-59. Aiming for 33x. Anything in between will be fine.

[Olemiss540]

Feeling $3M right now. Maybe paid off house too.

[sailaway]

My first guess in my early 40s was $2M. Came to that figuring $100K will allow a comfortable life in all but the most expensive HCOL areas. So take $1M in an SPIA at age 65, yielding ~7% for life or $70K. Social security gives $30K plus or minus for life. $1M left over for legacy, long term care, one time expenses, or to cover loss of buying power from inflation.

This is crude and not necessarily what I would recommend, or ended up doing myself. I had no desire to FIRE (was there even such a thing 30 years ago?) and just wanted a sense that I would have enough if I continued on the savings path I was on. For my 40 year old self, it was close enough to satisfy me at the time. As it turned out, it was not that far off for my spouse and I, though partly because I have chosen to continue to work (b/c I love what I do) after age 65, and will likely continue into my 70s (though I don't really have to financially).

Wrench

I knew more people who retired in their 50s back in the 1990s than I do now.

We are targeting 3.5% as our spend rate, so roughly 28x. Good thing DH decided he likes being an engineer, because we overspent his first year part time...Ah well, still spent less than he earned and managed to save a little. And we have a solar array now; shouldn't need another one of those next year.

[travelnut11]

I'm thinking we could get it done at $3.5 million...definitely $5 million at most. I guess we'll see depending on how things go in the next 10 years or so. Currently at about $2.1 million. Ages 46 with 6 and 8 year-old.

[Lee_WSP]

I don't plan on retiring until I actually can't work. I'd be too bored. Otherwise, enough so that I can just lounge around at the country club all day every day. You

[grkmec]

Min $20mm, but $30mm is preferred.

[SchruteBucks]

I'm planning for expenses to be about 120k per year. Planning to hit 10 mil and retire by 55.

And of course don’t forget inflation: if you are planning to save $10 mil in age 55 dollars, what would the $120k be? Is that in todays dollars or age 55 dollars?

[CoffeeNTea]

I can make it work at 3mm but would aim for 5 for more comfortable spending.

[delamer]

It makes a huge difference at what age you want to retire and whether/when you’ll be eligible for a pension or Social Security.

In theory, because we waited until our early 60’s to retire, my spouse and I could have retired with just enough savings to cover emergency expenses (like a roof or car replacement).

[InvestorHowie]

I don't plan on retiring until I actually can't work. I'd be too bored.

I envy you. I enjoy my job most days and if I announced my retirement and they let me go half-time completely remote and with medical benefits they'd probably get a few extra years out of me. Otherwise I would just pull the plug and get a PT job if I get bored. Perhaps working mornings at the little beach market in the town where we hope to retire?

[privateer79]

1000 X the S&P 500

(so about 4.6 M these days)

[bobcat2]

At retirement a person would need a funded ratio of at least 1.00.

BobK

[scorcher31]

I'm planning for expenses to be about 120k per year. Planning to hit 10 mil and retire by 55.

And of course don’t forget inflation: if you are planning to save $10 mil in age 55 dollars, what would the $120k be? Is that in todays dollars or age 55 dollars?

Current expenses are 80k...so expecting it to be 120k at retirement.

[Johm221122]

I'm into the retirement planning stage where I've started to think about how much I want/need to have to retire. (As opposed to when I was younger, and I was just trying to save as much as I could, and retirement seemed too far off to worry about an actual dollar amount goal).

I'm just curious, what is your target/goal/"magic number" that you want or need before you retire?

I'll start! After running various retirement calculators and simulations, I think I'd like to have at least $3 million. After that, maybe I'll keep working, maybe not, but at the moment I think this is my number.

Let's hear yours...

I want 1.1 million at 63/64

I'll settle for $900,000 at 63/64

If my health falters in anyway, I'll retire at 59/60 with anything over $500,000

[alpenglow]

We're at 30X expenses at ages 48/45 with paid off house/cars, so I feel pretty comfortable right now. Wife is SAHM and I expect to work to 55-58. If I go to 58, my pension should be about $110k, which, if adjusted for inflation at 3%, covers our current level of expenses. My #1 concern is getting my kids through college debt free and paying for our medical insurance.

[NashTransplant]

25x at age 62 but I plan on working part time until 70. My goal is to work half time via a job or consulting in my 60s. Not for money but for intellectual engagement.

[stoptothink]

We're currently at nearly 50x current expenses plus a paid off home and kids' 529s funded at 42 and 37, but our number keeps going higher and higher. We're now looking to buy a larger home (in-laws are looking to move in with us permanently, maybe in the next year) and possibly helping out my parents financially as well. Our expenses will surely be increasing, but we don't have a good idea about how much. Should have a better idea of that in the next 5yrs. Either way, almost no way I'm retiring before 50 unless my job dramatically changes or they push me out.

[jsapiandante]

Based on our current spending and our age (41 and 39), we are targeting between 3.25% and 3.5% SWR. Our current spending also comprises of about ~30% discretionary so we can adjust if things go south. We are FI based on the 4% rule but since we may be looking at a 40-50 year retirement, we want a little bit of a cushion. At the moment things are very good with our work-life balance so we are striving for Fat FIRE in the near to medium term if we can reach it.

[Cicero123]

When I was in my thirties (long time ago) making around $55k I always had $3 million in mind. My thought was at 5% passbook savings rates then in effect, I’d generate $150k a year, and I could live high on the hog and not touch the principle. Then inflation and low interest rates hit, and I had to rethink things. I never again picked a number, I just saved everything I could until I retired, and fortunately, I’ll be fine. Probably could have spent a little more along the way, but oh well.

[theplayer11]

a lot less than the "experts" are saying. Expenses under $50k now in our 50's

[HomerJ]

To retire @55: 33x expenses
To retire @60: 30x expenses
To retire @65: 25x expenses

If you can't project your expenses, you can't project your required portfolio balance.

This is what I think as well...

We figure $115,000 a year in expenses ( which seems a lot, but it includes $20,000 a year for health care, and a 20% buffer).

SS will give us $55,000 a year together... I'm only 54 but I have a 8 year TIPS ladder that pays the same as my future SS, so I can just plan around having the $55,000 the day I retire.

So we need to pull $60,000 a year... 33x that is $2 million, so that's my number (AFTER spending $180,000 building that 8 year TIPS ladder)

[HomerJ]

I'm planning for expenses to be about 120k per year. Planning to hit 10 mil and retire by 55.

Heh can you adopt me? Pulling 1.2% a year (not even counting Social Security) means you will probably have $40 million plus on your deathbed...

[Gecko10x]

Current plan calls for about $2.5M, around age 52.
That should come into focus a bit more as the kids move out in the next few years and we get a little closer.

[TheGiantess]

$1.3 million would be ideal because I want to stop working at 65 but wait until 70 for SS. But then we still don't have LTC insurance and that will be expensive and I want us to have the option to afford original Medicare and a supplement if that's what works for us when of Medicare age and that's not cheap. We have a ways to go and sometimes I'm hopeful and then my FIL just told us he needs $30,000 in dental work. He could go a different route and pay $12,000!! We don't have those kinds of huge dental expenses built into our budget and maybe we need to so then we need more. It never ends. I'm 60 my wife is 57.
TG

[jerrysmith]

We're not high earners so our "number" is 2 pensions, 2 SS and an IRA funded by previous 401ks.

[Metsfan91]

I retired after I surpassed 25x annual expenses.

at what age?

[abracadabra11]

33X to retire at 42. Almost there.

[Metsfan91]

$1.5M with Obamacare for healthcare.

[scorcher31]

I'm planning for expenses to be about 120k per year. Planning to hit 10 mil and retire by 55.

Heh can you adopt me? Pulling 1.2% a year (not even counting Social Security) means you will probably have $40 million plus on your deathbed...

Haha well I've noticed from old posts you and I have a very similar mindset. In reality, I'm a fan of 25x at 65 and 33x at 55 or earlier. I'm overshooting to insulate for downturns, job loss, inflation, long term care, inheritance, disability etc. The end number itself was an arbitrary goal i set years ago and at this point It's sort of a game to hit it before I hit 55.

[Fortitude]

This brings me down memory lane.

I remember thinking about this in my early thirties. At that time without doing any analysis whatsoever, I recall thinking $3 million would do it and I now recall that I didn’t take Social Security into account. I figured if I could get 3% to 4% annually off of the $3 million, we’d be fine. I also figured we’d work until our early to mid 60s.

I also remember when naively thinking about this as a younger man that if we hit the lottery for $3 million, we could retire immediately. Of course, I failed to realize one simple thing being that it would need to last us over a 60 year period instead of a 30 year period!

As the years passed and after doing all of the thorough analysis to determine what we actually needed to retire, I retired at 58 while my wife, who makes a modest salary in health care administration, has chosen to still work since she’s afraid she’d be bored. She’s finally talking about retiring mid next year.

Our portfolio value when I retired not only exceeded my back of the envelope number from three decades ago, but it’s now 40% higher today than the actual number was when I retired and our SWR is 1.4%.

[casun]

$7 million @ age 55. i’m on track with four years to go.

[EnjoyIt]

25x expenses. When we hit 25x expenses I continued to work but part time. Since I still worked, I increased my expenses therefore I am still at 25x expenses. I am still working part time and will eventually retire with 25x expenses. The only difference is that my discretionary budget has kept growing compared to our fixed expenses. That will allow for flexibility when/if the time comes to demand such flexibility. Since I am in my late 40s social security isn't considered. I expect SS will either be my backup if markets don't cooperate or if the markets do well, SS will cover the taxes on my RMDs.

Long story short. You need to have an idea how much you want to spend and plan accordingly. Add some flexibility and your good to go.

[HomerJ]

I'm planning for expenses to be about 120k per year. Planning to hit 10 mil and retire by 55.

Heh can you adopt me? Pulling 1.2% a year (not even counting Social Security) means you will probably have $40 million plus on your deathbed...

Haha well I've noticed from old posts you and I have a very similar mindset. In reality, I'm a fan of 25x at 65 and 33x at 55 or earlier. I'm overshooting to insulate for downturns, job loss, inflation, long term care, inheritance, disability etc. The end number itself was an arbitrary goal i set years ago and at this point It's sort of a game to hit it before I hit 55.

Heh, I can understand that.

And if you have more than you expected at 45 or 50, why stop?

Working an extra 5-10 years when you are 60 or 65 or 70 may be a bad return on the time, but if you hit your number early at 45, doesn't hurt THAT much to work another 5-10 years and double it again.

[LFKB]

Around $30 million

Probably would look something like:
$15M in owned real estate for a first and second home
$7.5M of mortgages
$22.5M invested in taxable and tax advantaged

[1moreyr]

I retired at 56 four years ago (I have unretired three times in that period but think i am done now).
I am at 33X expenses now and will be near 60X expenses after SS in 5-7 years.

dollar amounts mean nothing and are not actionable. you have to understand your expenses or you will just keep working "1moreyr"... Don't ask me how I know

Frankly, I am spending more than I expected because i have it to spend.
I have become a fan of enjoying the time I have left and to "die with zero"

,,,,,though I don't expect to die with zero. I expect to leave $1M - $2M or more on the table as a buffer

[toddthebod]

Don't have one. I will figure out how to live based on how much money I have saved.

[txgolfer_19]

Somewhere between $10 and $15 million in current dollars in ~20 years which would be in my late 50s.