+1 on multiple threads, same subject. Let it go where it will, or in the case of a recent post, our sharp moderators have been great in merging the posts, without stepping on toes.
........................................................................................
No offence, but I have difficulty even talking about averages, or amounts needed, or portfolios... and then qualifying amounts by not including pensions or Social Security, or house values, or cost of Living increases... and then, compounding the equation by deciding on amounts to withdraw, while not touching the portfolio or total assets, and then in some cases, setting aside an emergency fund.
Then, adding to the confusion, talking about a pension... Like, how much of a pension? $100,000/yr.? or maybe $12,000. Then, is that amount for one person? Two persons? Is the SS $25,000 for one person or two?
With two people each drawing pensions of $75,000/yr, LEAST assets might well be zero.
Gets confusing.
....................................................................................................
But back to the intent of the post... we retired 24 years ago, at age 53, with much less than a million dollars in total assets... but that was when interest rates were as much as 12%, a 2400 sf home was less than $100,000, gas was about $1.25 gal., cigarettes were $7 carton, healthcare cost was about $1200/yr, hamburg was $.89 lb, and a top shelf drink at a bar was $1.75.
I'd certainly have a different viewpoint if I were retiring today, even if SS and healthcare were to remain stable, considering the 17 Trillion in national debt, and wondering if there were any alternatives to high inflation in the 14 years between age 53 and SS at 67.
What sounds to me to be incredible fortunes of $1.5Million to $5 Million, have to be looked at in terms of one's age today.
Those of us with lifetime outlooks of 10 to 20 years are certainly in a very different situation than those who have to look at 35 years of retirement.
At this point in our life, we (DW and I), look at the number of years that we have to finance, with our current income and assets. Much easier to do when one has a measurable horizon.
For those who are considering early retirement between age 50 and 60, the good part of making the decision is that the real safety net, is the ability to go back to work, full or part time if conditions change. After age 65, that option is limited.
Lastly, in partial answer to the intent of the original question... the amount needed is what the individual decides. In our case, we changed our spending, not according to what we "needed", but changed our "needs" according to what we had.
It worked out so that we were able to do and have more than we ever expected, and are comfortable with looking at the future, though not rich in terms of dollars.
