Midpack
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With the How to Retire at X, How Far Below Your Means, LBYM metric & ER Extreme threads, I thought I'd provide THE "irrefudiatable" answer to all such questions. Here's what you'd have to save to work & retire at any given age for a range of real returns. I assume this will be the Sticky to end all...
Assumptions:
Years | Years | Retirement | Real Return | Real Return | Real Return |
Worked | Retired | Age | 2.5% | 5.0% | 7.5% |
Savings Rate Req'd | Savings Rate Req'd | Savings Rate Req'd | |||
9 | 65 | 30 | 74% | 59% | 47% |
14 | 60 | 35 | 63% | 46% | 32% |
19 | 55 | 40 | 53% | 35% | 22% |
24 | 50 | 45 | 45% | 27% | 15% |
29 | 45 | 50 | 37% | 20% | 10% |
34 | 40 | 55 | 31% | 15% | 7.1% |
39 | 35 | 60 | 25% | 11% | 4.8% |
44 | 30 | 65 | 20% | 8.4% | 3.2% |
Assumptions:
- Start work/income at age 21
- End of plan at age 95
- Constant spending throughout whether working or retired
- I chose a wide range of real returns (actual returns minus inflation) so folks could interpolate
- No income or benefits of any kind once retired (100% SIRE)
- Income increases exactly with inflation throughout
- Constant real return