Retirement expense
I think there are as many ways of looking at this as there are people doing it -- including those having their hand out for your savings.
I like CT golfer's thinking.
I hadn't tried a three-year average and in most industries these past three years, the numbers are skewed by layoffs, pay cuts and making full-timers only part-time.
After I talked to Social Secutity in November, set it up with Medicare Part B and 15% for income taxes deducted, I looked at my take-home from all guaranteed sources vs. my take-home during the last almost two years (actually about 21 months, since I was cut down to part-time) and found my after-tax retirement income will be 97% of my former take-home income. That, and the knowledge that I was able to get by with plenty to spare on that lowered working income, gave me the confidence I would be OK in retirement.
Echoing some others' comments, though, it wouldn't/couldn't have happened without being totally debt-free, including paying off the house. No credit card balances (last time a balance lasted more than 1 month: 1991), no car payment (bought the last two for cash) and no mortgage (paid off 13 months ago) make the future look doable.
Add in a $0 premium Medicare Advantage plan and I entered retirement after leaving the office last Friday night with a good outlook.
Hope I'm right!
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St. Louis; Southern Illinois; Lake City, FL; Jacksonville, FL
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