Personal Finance

3809 readers

1 users here now

Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!

Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)

founded 1 year ago

MODERATORS

WandererLagomorph799@lemmy.ml

nieceandtows@programming.dev

nieceandtows@lemmy.ml

On Retirement Savings (sh.itjust.works)

submitted 1 year ago by akilou@sh.itjust.works to c/personalfinance@lemmy.ml

26 comments fedilink hide all child comments

I'm almost 40 and according to the wisdom found everywhere on the internet, I don't have enough saved for retirement. Which worries me because I've been saving for as long as I've had a proper job with access to a retirement vehicle. But also because the internet wisdom doesn't make sense or sound feasible.

According to what I've read, you're supposed to have:

1x your income when you're 30
3x your income when you're 40
6x at 50
8x at 60
10x when you retire

I'm almost 40 and I have just barely over 1x saved. So it feels like I'm 10 years behind. However, my income has grown substantially over the course of my 30s, more than doubling. So accounting for growth in income, I do have almost 3x my salary in my late 20s. But similarly, the above advice could be interpreted as needing 6x the income you had when you were 30 by they time you're 40. And by that metric, I'm doing even worse!

you are viewing a single comment's thread
view the rest of the comments

[–] cabbagee@sopuli.xyz 1 points 1 year ago

I made a very lengthy reply here using the example of $30k/year actual salary. Ultimately it hinges on this assumption from the calculator you linked: "Your current annual expenses equal your annual expenses in retirement". I think I will need higher annual expenses than what I have now.