The old retirement savings dogma

[nun]

Of course how much you make is also important. Someone on minimum wage will probably need 100% of their pre retirement income. It will have been difficult to save for retirement because they probably won't have a 401k and won't have had much left over after expenses to fund an IRA. The only thing they have going for them is the larger relative SS they'll get when compared to someone making a lot more money.

 

[unclemick]

Years ago, when this was Dory's board, we had a conversation about this among retirees. Most of us (that responded) were living in the range of 20 - 35% of pre-retirement income.

Yep - with brief excursions into really cheap SOB land - for health reasons(mine) I listened to her 'suggestion' that I loosen the purse strings AFTER:

A one year 12% all time never to be repeated best and final 'really frugal' in the 90's.

heh heh heh - I backed off when she made me 'an offer I could not refuse' .

 

[nun]

What really comes out of this is that if you want to retire and maintain your lifestyle you have to LBYM pre retirement. So you'd better be living on 70, 50 or 30% of your income and saving the rest for retirement and the smaller the fraction you live on the more financial security you'll have.

That should be the first thing out of a "financial guru's" mouth. Unfortunately I see LBYM becoming increasingly difficult without a radical rethink of what most people consider a resaonable lifestyle

 

[W2R]

What really comes out of this is that if you want to retire and maintain your lifestyle you have to LBYM pre retirement. So you'd better be living on 70, 50 or 30% of your income and saving the rest for retirement and the smaller the fraction you live on the more financial security you'll have.

That should be the first thing out of a "financial guru's" mouth. Unfortunately I see LBYM becoming increasingly difficult without a radical rethink of what most people consider a resaonable lifestyle

It constantly amazes me when I encounter people who think that their paycheck is an allowance that regulates how much they can spend until they receive the next paycheck. I am nice, though, and haven't ever said, "Are you on CRACK?" when hearing someone talk like that.

 

[bizlady]

I think it is impossible to read guidleines, and think it may apply. As stated above, too many variables- income during working years, savings, children, mortgage etc.

Though we are still 17 months out, we tracked expenses for years with Quicken, and determined what we wanted to live on based on history. Admittedly, we have been good savers, and we have tweaked the plan. But we have been living (spending) now comfortably only what we expect our retirement expenses to be after retirement for 3 years now. We also plannned and saved for medical expenses/premiums since we will FIRE at 55. This has given us comfort knowing our budget is realistic, and confirming we can maintain this during retirement with savings and DH small pension. We budgeted 3.5% inflation, 0% returns until retirement, and 6% after retirement. For SS we are assuming only 75% of what might be available- and still have some room. We also have a budget for car replacements, maintenance etc.

I do think retirment is a plan that has to be worked and tweaked. If you can "try it on" before jumping in, it really helps!