Are we financially sound?

Question

My wife and me are both disabled and get disability payments from the government in the Netherlands. Our problems are autism and adhd. With our pension, starting at age 25 and 30 we save 160 dollar/month we put in a mutual fund. We have no debt.
When we are 65 we get the same amount adjusted to inflation as we live of now. We are now 10 years later with at the moment around 17000 dollars in mutual fund. We both have the best health insurance the institutions offer. Never had to pay for medical cost and most things are covered in the future.
We are not a case by ourselves know some other people in such a situation in the Netherlands. Thanks for your response!

Answer 1

My answer is NO? But that all depends on factors that aren't included in your question.
You have 35 to 40 years before age 65. In 35 years that $17,000 and $160/month could grow to a nice nest egg of around $600,000 dollars if you earn 8% per year. If you earn 12% per year, it is even nicer; it will be equal $1,900,000.

All of that sounds great but let me give you some reality. Inflation in developed countries is around 3% to 4% per year. That means that $600,000 in 30 years is worth only, $156,000 of spending power today and the $1.9 million will be equal to $500,000 of spending power in today's dollars.
Using some formulas that have been developed such that you wouldn't run out of money before you die, it is recommend that once reach that age 65 you only with draw 5% per year. That means that if you do have $1.9 million in investments, you would have less than $25,000 per year in purchasing power each year in todays dollars.

I would say that you ought to find some ways to earn extra money and put it all in savings. Raising your monthly contribution by 100 per month would change your situation significantly.

Please forgive me but I don't know Netherland's plans for investments or taxes. I don't know your ability or allowability to work. My son has ADHD and he hold down a job. But I don't know your situation or the laws. All of that would come into play.

Answer 2

For your condition you seems to be stable, since after meeting all your expenses and needs still you are putting away something, which is very interesting. You have no healthcare costs or anything and since the government is helping you seems to be alright, otherwise it might have been slightly risky.