Are you anywhere near your benchmark retirement savings goals?

[Reggie]

Do you mean combined yours and his?

For retirement, we save separately. We each save 17.5k and 12k ea year. I know it won't be enough but we will have his two pensions.
Idk...advice?

[KTP]

For retirement, we save separately. We each save 17.5k and 12k ea year. I know it won't be enough but we will have his two pensions.
Idk...advice?

I think we could be happy with just $60,000 in pensions...the 17.5k and 12k (how do you each save 12k in IRA???) would just be gravy.

[QuarterMillionMan]

The 2014 contribution limit for Roth IRAs is $5,500 ($6,500 if you're age 50 or older).

[Reggie]

We have a business so our IRAs are different and they are employer contributions.

[bjl584]

I too disagree with the article. 8x is too low. I have 5x now at 36. I'm shooting for more in the 20 to 25x range.

[feh]

As has been stated many times on this site, basing your "number" on your working income makes absolutely no sense. I can't believe how often this is done in articles related to retirement.

What matters is your annual expenses in retirement. While 25x is a useful benchmark, your individual number will depend on many factors, including when you retire, your SS benefits, if you have a pension, etc.

I am at our "number" right now, which is about 35x annual expenses. My multiplier is higher because my retirement will be a long one (I'm 48 now). I want to keep our withdrawal rate under 3%.

[Reggie]

I'm going to take some time today and work on a retirement budget. Healthcare is my big unknown. We don't currently pay much at all, but I use Tricare thru my husband and go to the base hospital. I can see them not covering spouses in the future.

[corn18]

I'm going to take some time today and work on a retirement budget. Healthcare is my big unknown. We don't currently pay much at all, but I use Tricare thru my husband and go to the base hospital. I can see them not covering spouses in the future.

Your husband and you are covered by Tricare for Life until Medicare/Medicaid kick in. I have the same coverage. It is fine and certainly is affordable. I am 48 and very confident that there will not be any sweeping changes that affect current retired military. Too much positive sentiment to go after veteran's benefits right now. They will probably change the benefits for future retirees.

For my retirement budget, I have not increased my medical budget beyond what I have now. I am using the same program I will use when I retire and even if the amount of care I need goes up, the Tricare program covers everything so I am not increasing the amount I pay.

Tom

[Reggie]

You are probably right. They throw veterans benefits in as threats to gain political sympathy but I doubt anyone will let them screw with current benefits. I'm not concerned with him losing any of his retirement. He just recently retired so I'm still getting acclimated. His retirement is currently 55k.

I will subtract that from our estimated annual expenses. I know that will increase with inflation.

[KTP]

ACA with subsidies also covers pretty much all of your medical needs at fairly low cost. I think it is around $2000 a year including out of pocket expenses for a married couple age 50 if your income is near poverty level. I don't expect that to change much either...once benefits are assigned to a program the tweaks are usually very minor. I could see the whole system going to single payer though...

[Weird Tolkienish Figure]

As has been stated many times on this site, basing your "number" on your working income makes absolutely no sense. I can't believe how often this is done in articles related to retirement.

What matters is your annual expenses in retirement. While 25x is a useful benchmark, your individual number will depend on many factors, including when you retire, your SS benefits, if you have a pension, etc.

I am at our "number" right now, which is about 35x annual expenses. My multiplier is higher because my retirement will be a long one (I'm 48 now). I want to keep our withdrawal rate under 3%.

I don't have a goal. I just put in a certain percentage of my income every pay period and that's that. I have a good amount saved up, nothing spectacular, but I believe I'm well over the average. I believe it's foolish to expect that your life will be so foreseeable anyway. You might not even make it to retirement, not everyone does.

Just my perspective.

[Petunia 100]

For retirement, we save separately. We each save 17.5k and 12k ea year. I know it won't be enough but we will have his two pensions.
Idk...advice?

I'm wondering how you are saving 12k annually in an IRA, and so wondered if you meant 12k between the both of you? The penalties for overcontributing to IRAs are pretty stiff, so I hope I am misunderstanding somehow?

If you are maxing retirement accounts and want to save more, a good choice for a taxable account is a total market index fund, an s & p 500 index fund, or any foreign fund with low turnover.

[Petunia 100]

We have a business so our IRAs are different and they are employer contributions.

Oh, so SIMPLE or SEP Iras? Those are employer plans and do not affect your ability to contribute to traditional/Roth IRAs. If your income is too high for Roths, you can contribute to traditional and then convert. Your Simple/Sep will make part of the conversion taxable, but it is still a great way to get some money into Roths.

[corn18]

Oh, so SIMPLE or SEP Iras? Those are employer plans and do not affect your ability to contribute to traditional/Roth IRAs. If your income is too high for Roths, you can contribute to traditional and then convert. Your Simple/Sep will make part of the conversion taxable, but it is still a great way to get some money into Roths.

Actually, there is a limit to the total an individual can contribute to an employer 401k, an individual IRA and a SEp/Simple IRA. The total for all cannot exceed your income or $51,000.

[QuarterMillionMan]

I've attached a link to one of my retirement plans. It is a contributory defined benefit plan brochure. Page 60 shows the percentage of final compensation.

https://members.lacera.com/lmpublic/forms/pdf/asd541.pdf;jsessionid=42D5BB8BD555CAA42B7CD7040B6B9C27