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Rising Star
If you have an employer sponsored retirement plan, they will have resources available to help you know how much to save, including lots of average data for different locations, etc.
For my husband and I, when we earned about 100k a year, AFTER taxes, we felt really comfortable with our finances. We weren’t blowing money right and left, but we ate out when we wanted, cooked what we wanted, and didn’t have kids yet. So I decided that amount adjusted for inflation was as good a guess as any for us to shoot for as an annual income in retirement. It forces us to save a fair amount, but not so much that we’re paupers.
Pro
Among the things that might change over those 3 decades, even when you’re being prudent with your money, is the lifestyle to which you may become accustomed.
I think you’re doing things the right way, but that doesn’t mean that things won’t change over time even while you’re still being reasonable.
But I’d also bet that you’ve modeled your growth conservatively, and, as a result, will have more in retirement than you’ve modeled.
Pro
Impossible to say.
I think the classic conventional wisdom is something like 70-80% of your pre-retirement income.
Personally, I’m retiring at 60 or 62 regardless of my savings, and will adjust my lifestyle to fit the money I then have.
My wife and I have a shorthand for what that might mean: if we end up on a tighter budget, I call it a “Civic retirement” and if I end up with more disposable income, it’ll be a “5 series” retirement - obviously because our range of disposable income may be such that those are the kinds of cars we may be able to buy when retired depending on how things work out.
Could I live on $100k/year in 2022 dollars in retirement? Sure. But I’m hoping that the number will be closer to $250k and that I’ll be mortgage free and able to have the 5 series, travel (while staying at a JW Marriott instead of the Hampton Inn) and help my kids if they need it (or if they don’t).
Where will you be living? When do you plan to retire? Still have dependent kids? Still have mortgage or renting?
I think it depends on too many factors. Will you have a mortgage still? Will you travel a lot? Etc.