Andross_Darkheart t1_jboprmd wrote on March 10, 2023 at 3:47 PM

Reply to comment by YaGirlKellie in Dow sheds 300 points as Friday’s key jobs report looms ahead: Live updates by OMG__Ponies

Depends on how much you put into it and how much you expect to live off.

YaGirlKellie t1_jborwrh wrote on March 10, 2023 at 4:01 PM

Yes, but most people don't go beyond the matched % for their 401(k) and they also don't expect to have to live a more austere life in retirement than before. Obviously the point of retirement planning is to be ready for it when you want to retire, but not everyone plans that carefully and I don't want folks to think it's as simple as ' job+401(k) = retire by 60 '

Andross_Darkheart t1_jboz4gt wrote on March 10, 2023 at 4:48 PM

These are all true points. You can only retire if you have put a sufficient amount into your retirement funds. Like 6 or 7 digits.

Aazadan t1_jbqvgoy wrote on March 11, 2023 at 12:28 AM

For those in the US who can afford to put away money, the most common retirement plan, is making a median wage (so somewhere around $55k), contributing up to the company match of probably 6%, using pre tax dollars, putting it into index funds, and relying on a 4% drawdown rate.

If a 25 year old did this, and wanted to retire at 67, that $275/month contribution would get them a nest egg of $760k, which would be 30,400/year, with no room for safety with market fluctuations.