At what age do you hope to retire?

[disneysteve]

We often talk about what we are doing to plan for retirement. I think one fact we often skip over is what age we are planning to retire but I think that plays a big part in what you need to save.

I am currently 42 and plan to retire by age 62.

That doesn't necessarily mean I won't ever work again after that, but if I do, I want it to be on my schedule and my terms, and I want a whole lot more than 4 weeks vacation. No more 5 days/week, 40/hours/week at that point. So I might do something part-time or maybe something online like ebay (or whatever the 2027 equivalent is). But I also want to have enough saved to have the option of not working for pay anymore.

How about everyone else?

[crow67]

Hopefully around the same age. Then I would like to be able to volunteer and keep busy, doing things that I want to do along with having the money and the energy to do them. I turn 40 in a couple of months, so that's 22 more years till I do.

[LivingAlmostLarge]

55! But that's probably aiming really early. More likely 62.

[thekid]

Aiming for 55. With company defined pension plan and anticipated savings it should be possible. Actually, if I keep to my current career, 50 is quite possible (differ pension plan until 55th b-day and live on savings in the 50 to 55 interim). My goal is however not to retire as soon as possible or to blow my savings completely.

[genmed]

Tough question. Possibly as early as 50-55, but probably 62. I'm still pretty young, I think when I get closer to 40, I'd have a better idea. I've been saving for retirement since I started working about 14....what that says about my goals in life, I don't even want to begin to analyze.

[jIM_Ohio]

I plan to retire the day after my savings is my current income/.03- meaning I can withdraw 3% of what I have saved and sustain my current income level.

I might work/ change careers/ find something constructive to do with my time (like ski, white water raft, travel and play more soccer)... but I am already "charting this could be as young as 40, probably closer to 50, and much earlier than 68.

[disneysteve]

I plan to retire the day after my savings is my current income/.03- meaning I can withdraw 3% of what I have saved and sustain my current income level.

I don't ever expect to reach that point, and I'm a pretty aggressive saver. That would mean nearly $4 million for me. That isn't happening unless I work well past 62.

[jIM_Ohio]

I don't ever expect to reach that point, and I'm a pretty aggressive saver. That would mean nearly $4 million for me. That isn't happening unless I work well past 62.

For me, any retirement prior to age 59 needs to be "income/.03".

Once I hit 59, "income/.04" works just fine. The difference to me is a million.

income/.03=$1M + income/.04

I realize that difference is substantial. If I learn enough along the way, maybe I could retire with 4% initial withdraw at age 52...

There is risk to retiring early. so a lower initial withdraw rate is my way to hedge that risk.

For me that number is in "millions". I'll hit the number by 68 easy... but hitting it earlier would be the sign I can retire without issue.

[thekid]

I was wondering how prevalent employer defined pension plans are among posters here. I didn't have one when I was with a private law firm and have one with my current employer (and would have one with prospective employer). I'm really just now starting to grasp how much they mean.

[anonymous_saver]

I am 24 and my plan is to retire between age 50-55, no later. I have saved at least 25% of whatever I earned since I first received money (including birthday cards and such) to go towards my retirement. So I plan on living on my savings from 50-66. Then at 66 I would start receiving my pension (the benefit would be reduced if I took it out earlier), and at 67 I potentially will have social security. I would then still use my savings but just take out lower amounts. I currently work at a University and only see myself leaving this job for something at a local school system (which would keep me in the same pension plan).

[disneysteve]

For me, any retirement prior to age 59 needs to be "income/.03".

Once I hit 59, "income/.04" works just fine.

That makes sense now. I'm going on the income/.04 plan to retire at 62, so you and I are on the same page.

[jIM_Ohio]

I was wondering how prevalent employer defined pension plans are among posters here. I didn't have one when I was with a private law firm and have one with my current employer (and would have one with prospective employer). I'm really just now starting to grasp how much they mean.

I had one which I rolled over into an IRA. EDS owned my company for about 13 months, and in that time I earned a pension of about 2k. It has since grown to 3k last time I looked.

[jIM_Ohio]

That makes sense now. I'm going on the income/.04 plan to retire at 62, so you and I are on the same page.

My mortgage will exist at age 40, and should be paid off by age 55. So the .03 is to realize that

a) I might not be debt free
b) my wife will need the assets long after I'm gone
c) I will be spending more money because I'll have more time.
d) I am only looking to replace my income
e) by that time my wife will be making more than me, yet I will have saved more. Because my savings is a % of my salary, this complicates things...

If I know a-e better in 5-10 years, I can probably change to 3.5 or 3.75 as initial withdraw rate.

[disneysteve]

I was wondering how prevalent employer defined pension plans are among posters here.

I don't have one.

Personally, I think unless you are a government employee, you probably shouldn't be counting on your pension being what you were promised it would be.

[disneysteve]

b) my wife will need the assets long after I'm gone

Won't your life insurance take care of that one?