Let's say, the retirement age is 66. Good health. Let's assume life expectancy at 88 years.
This leaves you with 22 years before you expire. Let' say average lifestyle is about 10K/month. Let's say you were making good $$$ while working, now your social security at 66 is about 3K.
So, you need that extra 7K/mo for 22 years. 22 years is 264 months. So, 264 months * $7K rounds up to about $1.8M.
I hope you have that $1.8M saved in your 401K.
How is my math?
Contra Costa County in the East SF Bay Area as some of the priciest houses in the US.
You forgot inflation
Move to a lower cost of living area.
There's a reason people are fleeing California (and New York, New Jersey, Illinois, etc).
@ogs+1hnfZWQE Exactly. He posts this same bizarre humblebrag troll thread every few weeks.
@acp+
Sad when Americans only dream of fleeing the country instead of being under the boot of a shadow CCP puppet gov't lead by old man Brando, the economic socialist destroyer.
Your math is decent but your logic is flawed.
You may be able to live on 10K/month now but it's going to increase every year (before AND after retirement). Your ss will adjust for that but you'd also have to adjust your savings for that.
And the maximum SS you'd get at FRA is $3,240 so it seems like $3k is pretty ambitious unless you maxed out your earnings every year for 35 years.
And you didn't include the interest you'd make off the $1.8M.
And you didn't consider taxes.
Using the 4% rule, you'd need $2.1 million.
@acp, healthcare overseas sucks compared to America. Not to mention most places smell.
You’d be better off selling that house in East Bay and moving overseas where your money will last longer thanks to cheaper housing, food costs and nationalized healthcare.
Normal conditions its your annual spend * 25, with adj for SS pay. Since id--ts with no economic common sense took over the gov't, who knows, you might retire and soon after find yourself living with children, eating a cup of rice, collecting soda cans to survive.
~10 million
It's real weird and off-topic. OP is a lone-wolf HR weirdo or disgruntled manager trying to stop the bleeding by making you believe you need this place. You don't.
two million sounds about right
if you are in east bay and have a paid off house it's likely over a million. you can do a reverse mortgage on it, in that case you'd just need one million saved. i am not sure how numbers break down you can even assume that the proprety go up in value, in that case the reverse mortgage will give you $1.5M