California
Related: About this forumThe new "magic number" for retirement in California: $1.47 million?
Americans magic number for retirement savings is at an all-time high $1.46 million to retire comfortably, according to responses from Northwestern Mutuals 2024 Planning & Progress Study.
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California adults surveyed in the study named a slightly higher magic number, believing they will need $1.47 million to retire comfortably. But that may seem a smaller than expected difference given the states notoriously high cost of living.
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While the Northwestern Mutual studys magic number is based on what people say they need, other studies have looked at retirement costs and financial planning guidance to come up with a data-based magic number, or at least a magic formula.
A recent LendingTree study found that a person would need more than $1 million to retire with an average lifestyle in just over one-third of U.S. metros. The study looked at estimated annual retirement costs, and applied the 4% rule (which says spending in your first year of retirement should equal 4% of your savings) to come up with how much someone would need in each U.S. metropolitan area to retire.
More (paywall): https://www.sfchronicle.com/california/article/magic-number-retirement-19393925.php
Highlights (from the link):
Different findings in reports ($1 million versus $1.46 million) may point to the fact that people have a hard time judging what they will need and spend in retirement (and overestimate for it)
A LendingTree study found it would take an average of $1.37 million to retire in San Francisco -- almost 40% higher than the national average ... and the largest amount among all U.S. metro areas.
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More is better, IMO. There's no way to guess where social security and medicare benefits will be headed should repukes ever gain control of government. Heck, SCOTUS could invent some way to dismantle everything tomorrow.
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Abnredleg
(712 posts)Our house is paid for and our cars are relatively new so we dont have much in the way of costs. You dont want to be retiring with a mortgage.
jimfields33
(17,887 posts)My bills have gone up a thousand a month without a mortgage. Homeowners and automobile insurance being the worst. Add the insane prices of food and electricity, its definitely worthwhile paying off the mortgage before retirement. Save save and save even if it hurts. The future is totally up to each individual and how they handed their finances.
Auggie
(31,575 posts)quaint
(3,141 posts)A few glitches, primarily due to really bad eyesight necessitating having everything delivered, plus, as noted, higher and higher homeowners and earthquake insurance.
However, not everyone has the opportunity to purchase a home, and I would have great difficulty surviving if I was 75 and had to pay rent. Rent would have no doubt eaten my IRA by this point.