Comments on: The 15 minute retirement readiness review

By: Here is how much you should have saved for retirement by now - Intentional Retirement

Wed, 25 Mar 2015 14:10:15 +0000

[…] plus 11-12 times their annual income in savings when they retire (for more on this topic read “The 15 minute retirement readiness review”). So the chart above can give you a rough idea of how much you should have saved for […]

By: Joe Hearn

Joe Hearn — Mon, 30 Sep 2013 14:55:23 +0000

In reply to Ron.

Hi Ron. You’re right, rules of thumb will only get you so far. There’s no substitute for have a detailed analysis of your specific situation. I’ve written several things that go down that path as well. See my response to Anthony above or check out the Archives page here at the site. Thanks.

Joe

By: Ron

Ron — Sat, 28 Sep 2013 01:15:05 +0000

I’m really sick of these studies and “rules of thumb” that are all based on the pre-retirement income side of the equation. Just like with the government we need to take a harder and realistic look at the spending side of the equation. That’s what is going to determine how much you really need, not some arbitrary rule of thumb based on assumptions that do not apply to folks that are paying attention and know how to say no to frivolous spending.

By: Joe Hearn

Joe Hearn — Mon, 12 Aug 2013 20:09:43 +0000

Great point Anthony. I wrote a post that included a case study awhile back that you might find helpful. You can read it here: http://intentionalretirement.com/2012/07/case-study-when-can-i-retire/.

In addition, there’s a chapter in my book “The Bell Lap” that takes you through a detailed analysis of how much you’ll need to retire. That might be helpful as well.

Thanks for reading. Keep up the great work on your planning!

Joe

By: Anthony

Anthony — Mon, 12 Aug 2013 03:02:47 +0000

I’m in a similar position as Jean (above). We wive well below my annual salary, so this calculation works out perfectly, if I cut my salary in half, which I have no intention of doing. I guess for folks like us, we need to look at an actual annual cost of living vs. income, which is different for those living paycheck-to-paycheck. It quickly becomes a very complex calculation.

By: Joe Hearn

Joe Hearn — Fri, 09 Aug 2013 17:56:02 +0000

Hi Jean. Yes, the 85% rule is definitely a rule of thumb. It won’t apply to everyone. Since the article was published I’ve talked to several people who live on considerably less than they make. For them, 85% is probably going to be more than they need (all else being equal). The best way to determine your specific need is to work through a retirement budget, which it sounds like you’ve already done. That will give you a more accurate projection for your unique situation.

BTW, great job on your savings! Keep up the great work and touch base if I can ever help.

Joe

By: Jean

Jean — Thu, 08 Aug 2013 22:02:20 +0000

That 85% rule seems to assume that people are living paycheck to paycheck, spending pretty much everything they earn. I live on slightly more than 1/3 of my gross income, with a little less than 1/3 going to taxes and the remaining 1/3 going into savings. My estimate of my monthly expenses in retirement is about the same as my current monthly budget, so less than 40% of my current income.