I guess I kinda figure that based on our spending habits that $60k gross is what would be a more than comfortable retirement for us at our target age of 57 as long as we were still free of debt. (including mortgage)
Currently DW and I are both 45yo and the milestone I just hit with the Federal government (FERS) is 25 years
(27 if you count the active duty time I bought back but am afraid to count that until it is in the bank in case something ever got screwed up!)
I have always felt that the 25 years was a
milestone because barring a criminal act they have to give me an immediate annuity with health care benefits if for some reason my job is eliminated.
So at a minimum (no job promotion) the 25 years is worth $20,000 per year towards the $60,000 goal and this should grow over the next 11 years (1% per year times salary) to $30,000 per year (at 56 & 1/2 yo when I am eligible to retire) after the Surv. Benefit Plan premium is deducted.
My Guard retirement at 60yo will be another $8,000 (todays dollars but it is cola'd so at 60 it'll be worth what $8k is worth today)
And if I figure only half of what SS is claiming we will get @ 62 then I can count another $14,000 + towards my $60,000 goal
So all total of FERS Pension, Mil Pension, and 1/2xSS should be $52,000 of the $60,000 goal
I am planning to fully fund my 401k ($17,500) until I retire and also build a $100,000 bucket to cover the amounts that the Mil Pension and SS won't be paying until they kick in at 60 and 62 respectively .
This will leave about $8,000 a year shortfall that will be funded by 401k monies which currently are up to $420,000 -- Even if that amount only keeps up with inflation it should be enough to fund the $8,000 shortfall with a 2% draw each year. And of course we are planning to grow it as close to a million before pulling the plug so hopefully we are golden.
Now if they ever offered an early retirment I would have to pare the budget down quite a bit but would seriously consider throwing off these handcuffs!