If you want to retire by 65, you should be saving at least 20% of your gross income (starting at 20yo).

I'm in my mid-30s and have been saving about 45% of my gross income for at least five years. Mortgage debt, but that's it. Hoping to retire before 60....go to something more "fun" like working at a state park visitor center or something like that.

Why are so many people focused on retiring as young as 65?

Much easier to enjoy life going for 70+ retirement age.

And if your mind is sharp, you are still productive and are making good money at age 65 why would you want to stop making money?

Five additional years of making money without draining your savings is a huge plus.

For me, I find it difficult to think I'll have a FT job that doesn't feel like "work," no matter how much I enjoy it. I could be wrong, of course. Maybe I'll work until I'm 80! For now, I'm hoping for before 60.

Fast 'n Fresh wrote:

More is better, of course.

Once you realize that materialism is hollow and unsatisfying, saving becomes pretty easy.

Old car, small house, few toys, inexpensive hobbies.

I guess traveling the world can be expensive though if you are too old to enjoy doing it on the cheap. And college tuition for your kids is a nasty blow.

Confused European wrote:

Don't you have state pensions in America?

Sort of, it is called social security. Basically you and your employer each pay a little more than 6% of your salary into an "account" that you can start drawing from when you turn 62 (earlier with some special conditions).

However, the account does not accrue interest and if you die all the money contributed pretty much disappears. There can be survivor benefits but it is not a great deal.

(funny how this says age 19 if in elementary or high school---elementary?)

A privately funded account is an investment account and can easily be inherited by survivors.

Also, a divorced spouse could get benefits. So if I died tomorrow, my ex would be able to claim the benefits. (Which would be ok since we still have kids who are under 18).

looks good wrote:

savingssavingssavings wrote:

Am I doing OK compared to other people 33 y/o?

1. $180k salary (Mine + Spouse)

2. $65k in stocks/mutual funds, $8k checking account, $30k savings account

3. $300k 401k (Mine + Spouse)

4. $25k in an HSA

5. $10k Studen Loan Debt left

6. $230k mortgage on a home valued at $410k

Yeah, you're doing great. You're ahead of me:

36 y/o

$145 combined income (me + spouse)

$175k 401k

$25k Roth IRA

$20k across checking & savings

$13k in college savings for a 1.5 y/o

And I'm projecting I'll be able to retire by 55 given our current contribution level (just starting maxing out two 401k's). So you're ahead of that, just keep it up.

How am I doing? HOW AM I DOING?

35 y/o

$130k salary (me, myself and I)

$40k in checking and savings

$20K in college debt

$330k mortgage on home valued at $475k one year after buying

Blew out my Roth to buy house

Retirement is rock solid thanks to my union

Social Security is not any kind of account that you pay into and draw upon.

It is a system where you pay in while you work and the money goes to elders.

Then when you are an elder the current workers pay in to get money to you.

The money you receive is based on what you had earned while you working.

So it has the optics of a savings account and mechanics of a pension.

Teacher here:

38 yo Make 90k.

Will be able to retire at 55 with 75% of my last five years salary average as a pension.

asdfasdfa wrote:

rebel rouser wrote:

Could easily get by on 15%.

10% is enough for most middle class (50-100k) people. For a person making 100k, the math works out to something like you get 25k of SS and 50k from the investment and since you don't pay payroll or have to save, you pretty much replace your income.

20% lets you retire after 35 years instead of 40. Getting above average returns and you might be able to bring in the years by 5 years.

The real issue is your odds of working at a high paying job til 65 isn't great. Too many health issue and job losses.

No to nearly all of this. Work on multiples of living expenses. If you are lucky enough to have a full-time gig in your twenties, you live like a college student and pour as much into savings as possible.

The reason why are the poor aggregate rates of return on investment, public benefits losing against inflation and the boomers filling social programs.

The right has conditioned their voters to punish themselves. This in turn will punish all of us.

Do you get the whole 75% or a smaller amount if you leave it to your wife/partner

Coach wrote:

Do you get the whole 75% or a smaller amount if you leave it to your wife/partner

Wife gets 50% of the 75% as long as I make it at least 20 years in.

retire at 55 wrote:

Coach wrote:

Do you get the whole 75% or a smaller amount if you leave it to your wife/partner

Wife gets 50% of the 75% as long as I make it at least 20 years in.

And the mistress?

company does 17% i do the rest. I believe it's $18k a person per year. I split 7% into traditional 401k and 7% into roth 401k

If everyone actually saved 20% of their income, the economy would collapse and there would not be much income to save.

retire at 55 wrote:

Teacher here:

38 yo Make 90k.

Will be able to retire at 55 with 75% of my last five years salary average as a pension.

When did teachers become so overpaid? I sure hope they aren't still complaining. 90K is ridiculous for working 6 hours a day for 8 months.

Lots of bragging on this thread. 99% of you are full of crap

brogan1 wrote:

Bretom wrote:

How? I thought contributions were % capped way below that level.

Your company may have a % cap, but I have never heard of a federal % cap. I have put in 25% in the past. I would have put more but 25% was my company's max.

There is a federal cap of 80% as well as a dollar cap, somewhere in the $17,000 range. So maybe he does contribute 31%, but that means he's probably making less than 50k (to not hit 17k dollar cap). Also; he's lying.

Wnkiedinkie wrote:

Lots of bragging on this thread. 99% of you are full of crap

It's the Letsrun way.

Here are the averages for this very exclusive website:

Straight As, elementary through college

SAT/ACT in the 98th percentile

4:05 mile (4:16 in high school), 13:55 5K, 1:04:40 half marathon

Income $250K at 25, $400K at 35

House at $600K (paid off in 6 year), plus a condo in Aspen or Vail

2nd wife and a mistress by 40

Nope not lying. ContributionsEmployee Contributions (2016)$13,104.58Company Contributions (2016)$15,499.53

oh please wrote:

brogan1 wrote:

Your company may have a % cap, but I have never heard of a federal % cap. I have put in 25% in the past. I would have put more but 25% was my company's max.

There is a federal cap of 80% as well as a dollar cap, somewhere in the $17,000 range. So maybe he does contribute 31%, but that means he's probably making less than 50k (to not hit 17k dollar cap). Also; he's lying.