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An Estimate for Needed Retirement Savings

3 pointsby mshafriralmost 13 years ago

1 comment

anothermachinealmost 13 years ago
Source: <a href="http://www.aon.com/attachments/human-capital-consulting/The_2012_Real_Deal_Highlights.pdf" rel="nofollow">http://www.aon.com/attachments/human-capital-consulting/The_...</a><p>10 pages of analysis for the conclusion that if you want to maintain your lifestyle for 23 years after you retire, you'll need 23 * 0.65 (no income tax on savings) * 0.75 (social security income) = 11 years income of savings.<p>So if you want to live for a year without working, you'll need to save a year's worth of income.<p>The analysis doesn't say whether that is pretax or post-tax (I'm guessing pre-tax), with is a huge distinction.