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Retirement Discussions / Retirement-Soon or Done
|Subject: Re: Is it true?||Date: 8/5/1999 2:21 PM|
|Author: intercst||Number: 27 of 176|
A question to the already retired. Based on your salary when you retired what % was needed after you retired? Is it true that you only need 75% of your current income for retirement? I am having trouble figuring out how this 75% of current salary occurs. Will apprciate any feedback.
I'm only spending about 30% of my former salary in retirement, but then I was only spending about 30% of my salary when I was working -- that's how I retired at age 38.
I'd ignore the 75% rule. Some folks spend more, some a lot less.
The best thing to do is to track your expenditures for 2 or 3 years before you retire to get a baseline budget, then estimate how your expenses will change once you retire. For example, I've found what I'm saving on commuting costs and work clothes (suits and ties, mostly) I'm spending on health insurance (now I have to pay for my own) and greens fees (since I have more time to play golf), but my overall spending remains about the same.
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