I don't know what I'm going to do for retirement. (See why here.) But I thought I'd start ball parking numbers and roughing out plans to try them on for size.
The first possible retirement plan is the traditional one. Work to the age of 65, then take the typical quiet retirement, visit friends and family, take the occasional trip and spend a lot of time reading and sewing.
I don't see a whole lot changing from my current lifestyle so I took a look at my monthly budget and subtract the areas I'll no longer need, namely Savings, Debt Repayment, Mortgage Payments (mortgage will be long payed off), and about half of my Transportation budget. I could live quite comfortably on $2,000/month. If I want to see $24,000 per year after taxes that will mean that I'll need $28,000 before taxes according to this site. At a safe withdrawal rate of 4% I'll need a total of $700,000 for a traditional retirement.
I currently have $21,395.72 set aside for retirement savings. I add an additional $359 a month (which will increase with inflation) and I expect to earn 7% after inflation over the next 40+ years.
I will assume that I will see no help from the government and that I will not have a pension, since the company I work for now does not have a pension plan.
That all taken into consideration I should retire with the hefty sum of $1,500,340.79. More than double what I will need to survive on. In other words at the moment, even though I don't have a company pension I should be in excellent shape to retire by the time I am no longer able to work.
Have a question? I'd love to hear it!