Current Income Vs. Retirement Income

[SecondCor521]

How do we count kids?

I'm currently looking for a new job, but based on my current situation my total current spending rate is roughly 60% of my annual income. As my kids grow up and my kid related and mortgage interest expenses drop off, I calculate that I could live on about 15% of my annual income. (Yes, my kids, mortgage interest and taxes on my pre-retirement income represent approximately 75% of my current spending level.)

2Cor521

 

[CuppaJoe]

...the only comment I have to say is plan on 100% of your current expense payout (if you are still employed). If you find you don't spend as much, you will be much better off. However, if you decide to retire (or RE) and then find out that you can't live the life you planned (due to lack of $$$) you will be quite disappointed in your "life". We've been a bit "consertative" in our planning, and luckly this has been in our favor.

- Ron

That's sort of my plan, to use the top of the monthly expense range (rather than the average) and add a rounded up insurance premium (from $522 to $600). I still feel insecure. Do I dare jump in September?

 

[mickeyd]

I selected 90%-99%, but that is a bit misleading. I ERd a few years ago (ok, I was fired) but I have a couple of DB plans as well as ample IRA $ but DW was still working for the local school district. Our goal was to not tap into any retirement money and just live on the net school teacher pay. We did pretty well for a couple of years of living on her net pay and did not have to tap our retirement savings/pensions.

This happened to be a good test of our LBYM limits so we knew that we could live at that rather low level and be ok. DW retired in July and one of my DB plans is now paying off as well as her DB plan from the school district.

Our current income totals are just about what they were prior to her retirement and I have yet to activate most of my retirement benefits.

So we are living on less than 100% of what we were taking home for the last 3-4 years.