How much money do you think you need to retire?

Question

How must money do you plan to accumulate before retirement?

Be realistic, please!

Answer 1

that depends on your life style. & the place u live. i live in india. here in a city to lead a decent retired life u need atleast rs.15000 to 20000 a month . if u own a house. ina small village or a town u can manage with just rs. 5000. a month with a house of your own. i have decided to settle down in a small town in karnataka after my retirement & i am looking forward to it. there is no noise pollution, no air pollution, no waiting for these buses, etc. u can enjoy the nature, & make new friends , cultivate some hobbies like gardening, teaching , etc.the time is at your disposal.don't u think it is a good idea ?

Answer 2

Good question. People like to think their expenses will decrease once they retire. That may not be true. The money will just go different places.

Here's a guideline: figure out how much you will need each year. If you are making $40,000 a year and you are comfortable with that amount, then use it. Next question is how many years you expect to live after retirement. It isn't unrealistic for that to be 20-30 years. If you decide 30 years, that comes out to $1.2 mil total. But at the end of the 30 years, if you are still alive, you are flat broke. Being 90 years old is a lousy time to start working at McDonald's.

The trick is to invest the money and only take enough each year so that your investments continue to grow. The magic number seems to be 4%. In other words, if you take more than 4% each year, you will run out of money before you run out of life.

You may be able to factor in Social Security, but don't count on it. When I was in 6th grade, back in 1961, we learned that Social Security wasn't a viable system. So all the anguish about changing the system is nothing new. It cannot work as it is presently set up and you can't rely on it always being there for you. Make allowances accordingly and if a better system comes along, then consider it a bonus.

Answer 3

At my present level of savings and expecting a return on investment of about 7% a year on average along with my projected retirement age, around $1.5 million will be accumulated. Do I need more or less? Time will tell....

Answer 4

The average life expectancy in developed countries is about 85 years old. Assuming you want to retire at age 65, there is 20 years which you'll be dependent on your savings. Assuming the interest you earn from your savings at that time is totally offset by inflation, and further assume that your annual spending needs is $40,000 a year. You are looking at at least $800,000 ( 20 years times $40,000 ).

START SAVING !!

Answer 5

You need to decide what kind of lifestyle that you want to know how much you will need. If you want to live high then you will need to have more money. If you just want to relax when you retire and do some fishing or some travel then you won't need as much.

Answer 6

I invent very good intelligent stuff so i plan to make 16billon before my retirement but im still a fourteen year old kid.

Answer 7

It all depends on each person. Is the person disabled, have any mental problems, have any children who will be depending on the retiree? The best way to get a good answer is by speaking to a CPA (Certified Public Accountant). They can give you an idea of how much money is needed. A site to go on is besttaxresolution.com

Answer 8

depends on where you will spend your retirement. if you go to a developing country, then i think $500,000 will do it for the next 20 years.

Answer 9

how old are you now? I would say if you are in your 20s you will need over 1 million dollars sinc there wont be any social security

Answer 10

Its depends on your life style get some RSPS and saving bonds and term desopit