Join Early Retirement Today
View Poll Results: What %age of your pre retirement income do you need in ER?
0-10% 1 0.60%
11-20% 9 5.42%
21-30% 20 12.05%
31-40% 29 17.47%
41-50% 32 19.28%
51-60% 28 16.87%
61-70% 20 12.05%
71-80% 6 3.61%
81-90% 8 4.82%
91 to more than 100% 13 7.83%
Voters: 166. You may not vote on this poll

Reply
 
Thread Tools Search this Thread Display Modes
Old 01-02-2012, 06:42 PM   #21
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Location: Los Angeles area
Posts: 1,432
I retired on a gross investment income of just over 40% of my final salary - however, -SS, -401k deposits, -regular savings, +health insurance, -mortgage I had recently paid off, my aftertax income was slightly higher than my net salary.
__________________

__________________
learn, work, save, invest, fire
CyclingInvestor is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-02-2012, 06:43 PM   #22
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
Quote:
Originally Posted by mickeyd View Post
My current expenses are about what they were prior to retiring, so I cast a vote for 100%.
That's not what the poll asks, I expect my expenses to be the same pre and post ER too, but those expenses are 28% of my pre-retirement gross income.
__________________

__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 65% Equity Funds / 20% Bonds / 7% Stable Value /3% Cash / 5% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Old 01-02-2012, 07:04 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,408
ER'd 1993. Range 12k(once never repeated) to 89k one year post Katrina. Salary in 1992 61 k. Did some temp(jobshopper) work in the 90's at a 90k rate.

Basically was el cheapo early in ER and post 2000 decade have been running 100% and higher on occasion. And I can vary quite bit as 'core' expenses are usually below 50% of yearly expenditures.

heh heh heh - fear of running low on portfolio was a motivator in early ER to be really tight. . Now after 18 years more worried about running out of time instead of money.
__________________
unclemick is offline   Reply With Quote
Old 01-02-2012, 07:29 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 7,376
Im spending about same amount now that I was before retiring. It is about 75% of my take home pay. Getting a 2% cola this month so that will knock it down a tad. Mine should keep on dropping from here out. When my DD gets off the dole in 2 years, that will knock me down toward 65%. In another 10 years or so when house is paid off, I will be under 50%.
__________________
Mulligan is offline   Reply With Quote
Money in retirement.
Old 01-02-2012, 08:10 PM   #25
Dryer sheet wannabe
 
Join Date: Apr 2007
Posts: 18
Money in retirement.

I've always thought percent replacement is a fallacy. It is number that can be calculated from a budget.. One might want to travel more, gift more, help children/grandchildren more.It is also possible that healthcare previously paid for by an employer might in retirement not be available. Anyone who retires without figuring out cost is looking for trouble.
__________________
joeprintz is offline   Reply With Quote
Old 01-02-2012, 09:24 PM   #26
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
I'll be retired five years in a few months. As for my plan (and actual spent) during that time, my rate has been 100% of pre-retirement net income, adjusted each year based upon my personal rate of inflation (PROI), for the products/services I actually budget for.

I never considered gross income for what I needed to plan on for retirement, due to all the "extra's" - both required and optional deductions.
__________________
rescueme is offline   Reply With Quote
Old 01-02-2012, 10:24 PM   #27
Recycles dryer sheets
 
Join Date: Mar 2011
Location: Dallas
Posts: 457
So far we're spending less than $3k monthly. Compared to $5-6k while w***ing. Didn't need the second car and trying out the first 6 months in PDC Mexico and surviving quite well 2 blocks from the Caribbean.
We were in the $15-18k salary/bonus range / mo (pre-tax) prior and saved big time for the past 10. Taxes kicked us in the hiney for a few final years in So Cal.
__________________
Surewhitey is offline   Reply With Quote
Old 01-02-2012, 10:34 PM   #28
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 3,862
This is always a difficult question for me to answer because twice in the 8 years before I ERed in 2008 I voluntarily reduced my pay because I wanted to work fewer hours and have more time for myself.

The first pay cut back in 2001 reduced my hours (and gross pay) by nearly 50%. The second pay cut back in 2007 reduced my hours (and gross pay) by 40% of my previous pay. Taken together, those 2 pay cuts reduced my hours (and gross pay) by 68%, or about 2/3.

So......which pre-retirement income should I use in the denominator, the full-time pay or the latest part-time pay? If I use my current expenses versus the FT pay, I would choose the 20%-30% answer. But if I use my current expenses versus the lowest ending PT pay, I would choose the 70%-80% answer. The latter is what I chose for this poll.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is online now   Reply With Quote
Old 01-02-2012, 10:43 PM   #29
Thinks s/he gets paid by the post
 
Join Date: May 2008
Posts: 2,259
I never understood the 80% income thing. It makes sense if this theory assumes that you are spending 100% of your income now. So it makes more sense to me if someone said that when you retire, you will spend 80% of what you used to spend (kids are gone, mortgage gone, added healthcare equals 20% less expenditure, or something like that.)

I am not voting because although I spend much less than what I make, I will probably be spending about the same amount in retirement as I am spending now.

Are you spending in retirement 80% of what you used to spend? (I imagine this would be another poll...)
__________________
tmm99 is online now   Reply With Quote
Old 01-02-2012, 11:03 PM   #30
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
I'm in the 21-30% category and I'd like to say hello to all my fellow below 30% friends.......we are truly cheap big time LBYMers
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 65% Equity Funds / 20% Bonds / 7% Stable Value /3% Cash / 5% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Old 01-02-2012, 11:41 PM   #31
Thinks s/he gets paid by the post
veremchuka's Avatar
 
Join Date: Oct 2010
Location: irradiated - too close to the nuclear furnace
Posts: 1,294
I retired just over 4 years ago. I paid off my mortgage 1 1/2 years ago. I spend less today than when I was working mostly due to not having the mortgage payment but even with that I was spending a little less than when I was working and that was mostly due to not using as much gas or car maintenance. Other than that my spending and behavior is pretty much the same as when I was working. My gross pension is 35% of my what my gross salary was and since paying off the mortgage I have lived off my pension and banked 36% of my gross pension each month.
__________________
veremchuka is offline   Reply With Quote
Old 01-03-2012, 04:37 AM   #32
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
Minimum % in my case is about 10.
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Old 01-03-2012, 06:16 AM   #33
Recycles dryer sheets
 
Join Date: Feb 2006
Posts: 223
I voted 100% of current gross. Currently we have company subsidized health insurance but that goes away when I quit work. In addition, we are planning on moving to a more expensive place on water (extra house insurance and flood insurance). So what we save now will go for those things plus some set aside for extras
__________________
I don't mind coming to w**k,
but that eight hour wait to go home is just bulls**t!
F-One is offline   Reply With Quote
Old 01-03-2012, 07:07 AM   #34
Recycles dryer sheets
Beryl's Avatar
 
Join Date: Jun 2007
Posts: 413
Retired 11 months ago - 6 months after paying off my mortgage. I could live off my pension which is 30% of my salary but I don't. I'll supplement 3-6% more with my savings until SS kicks in (it is my only COLA). So, I voted 31- 40% is needed.

Obviously, I'm no longer actively saving.
__________________
Retired - Class of 2011
Beryl is offline   Reply With Quote
Old 01-03-2012, 09:46 AM   #35
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,971
Quote:
Originally Posted by nun View Post
Obviously this forum is way out of the mainstream and I expect the results to be skewed by that. Still it's an interesting exercise and it might highlight the basic contradiction inherent in the 80% dogma.
Not sure how you're going to reconcile these two sentences, looking forward to your conclusions.

What % would you recommend FP's use for people who don't track their expenses and can't project spending for themselves (as they should)? I would expect an FP to err on the high side for those customers, unfortunately there are a lot of people like that though you won't find many here.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 01-03-2012, 11:05 AM   #36
Recycles dryer sheets
 
Join Date: Aug 2009
Location: westerville
Posts: 242
Not yet ERd. save 33% spend 33% and give all the tax folks (feds, state, local, SS, medicare, realestate etc etc..) 33%. Post retirement projected expenses are 45% of pre RE gross income as we will have HC insurance on our own and plan to spend more than we do today on travel and hobby. The best part of this is our Taxes should be going down down down to almost nothing except realestate the first few years of RE.
__________________
Trawler is offline   Reply With Quote
Old 01-03-2012, 11:20 AM   #37
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
We're not having a bit of trouble spending as much post retirement as pre-retirement. And we weren't doing much saving immediately prior to RE as DW had switched to part time work and my career was winding down along with a rapidly imploding MegaCorp employer (no bonuses and no stock option performance). I picked 100%.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 01-03-2012, 11:29 AM   #38
Thinks s/he gets paid by the post
RockyMtn's Avatar
 
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,231
This is an irrelevant question in my mind. Post retirement spending related to pre retirement income as a % is misleading. The better question is what % is your post retirement spending of your pre retirement spending IMHO.
__________________
FIRE'D in July 2009 at 51...Never look back!
RockyMtn is offline   Reply With Quote
Old 01-03-2012, 11:56 AM   #39
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,402
Quote:
Originally Posted by RockyMtn View Post
The better question is what % is your post retirement spending of your pre retirement spending IMHO.
Agreed.

Even then, it is difficult for me to answer, as our expenses are in flux right now. With our children out of college, that frees up quite a bit of money. But then, we started to pay for healthcare, and may splurge some more on travel.

I do not have a definite plan, other than striving to keep our fixed expenses low (hah!), and splurging on discretionary leisure spending if the market god is generous.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 01-03-2012, 12:15 PM   #40
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
Quote:
Originally Posted by RockyMtn View Post
This is an irrelevant question in my mind. Post retirement spending related to pre retirement income as a % is misleading. The better question is what % is your post retirement spending of your pre retirement spending IMHO.
We should poll that, although the results for careful planners would probably be a lot of 100%s. My spending will be the same post as pre retirement. I'll have to pay for health insurance, but the premiums will be covered by savings on commuting costs and going from paying 16% Federal tax to 10%
__________________

__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 65% Equity Funds / 20% Bonds / 7% Stable Value /3% Cash / 5% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Poll: Which source provides the most retirement income for you? nun FIRE and Money 59 11-21-2011 01:34 PM
Question on level income option early retirement JOHN CARRIGAN FIRE and Money 5 10-17-2011 04:38 PM
Income Investment Strategies During Retirement easysurfer FIRE and Money 22 09-01-2011 10:29 AM
GAO Report on Retirement Income Purron FIRE and Money 5 07-17-2011 03:27 PM
What percentage of your working income do you spend in retirement? KisKis FIRE and Money 29 07-06-2011 01:59 AM

 

 
All times are GMT -6. The time now is 07:49 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.