Porter provided another chart that shows what you need in the bank if you live to 123 and retire at age 22 (unlikely, but, hey, if you can), 45 (again, kudos if you can swing it) and the more traditional 65. The calculations assume an annual inflation rate of 3 percent, and that you can live on $40,000 a year in retirement. He lists the amounts you'll need to save if your nest egg earns 3 percent, 5 percent and 7 percent in annual interest.
|Retirement Age||Years Until age 123||Money You Would Need Earning:|
But whatever amount of money you hope to have on hand for retirement, you may want more than you think you will. Consider that just last week, USA Today ran an article about Floyd Pullin, of Confluence, Pa., a 102-year-old who purchased a new Ford pickup truck. It doesn't take much imagination to assume that saving for a retirement that lasts into the 120s may someday become the norm.
Updated on 09/03/2013: This story was originally published on August 28, 2013.