I would really recommend the retirement spreadsheet at simpleplanning.com. It makes it easy to see how your savings (including 401-like plans)+pensions+social security will see you through retirement. Using this program it becomes clear that what really determines the quality of your retirement is your savings+pension. Social Security is a pittance and will keep you from living on the street. Young people should start investing at a regular rate in savings plans and look for jobs which give a pension (quite rare these days). For me personally, I will have about 500K in savings, which combined with my wife's State pension and my Federal pension will give us an annual income of around 60K through age 100. This goes up to about 70K if we "plan" to croak at age 90.
Daveof CO11:21AM March 12, 2011
So a 60 year old has enough in retirement to draw about $100/mo? Basically their plan is to rely on social security?
I'd be curious at what percentile the 60 year old has say $500K, where at least the annual draw gets up to $20K. Even that's not enough to retire on, but it's beter than nothing.
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Dave of CO 11:21AM March 12, 2011
JoeTaxpayer of MA 5:35PM February 19, 2011