Posted by: A. C. Cockerill | August 21, 2012

Question of the Week #35: Women

Question of the Week #35:

How much do you need to save to have a comfortable retirement?

My two cents (but please share yours):

One guideline is to save enough that 5% of that total saved equals your current salary. For example, 5% of $1,000,000 saved is $50,000 per year. Do you agree with this rule of thumb?

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Responses

  1. I think that (basically 20 X current salary) would provide most people a very comfortable retirement–assuming they HAVE a decent salary currently and are able to live within that level of income. Most people I know get by with far less.

    • I agree, Vickie. This also depends on how good of an investor the lady is over the long haul. Cheers, Ashley

  2. My husband is always telling me the best retirement plan is to work as long as you can. LOL Anyway, we do save, more than the recommended amount, but I hope to make money writing eventually and retire from the dayjob.

    • Hi Jolyse, I hope your writing career is very successful for you. And keep saving all you can. Cheers, Ashley

  3. Have to factor in any outside income, such as pension, social security, book royalties, etc. And you should draw enough LESS than the income from your investments to allow growth to offset inflation.

    • Excellent point about taking inflation into account, David. Cheers, Ashley

  4. a recent study here in Canada said that most people are planning to work part time after retirement to augment their income. What I’ve learned is that no matter how much you have, if you divorce late in life, it’s shot. OOPS. i’ll be working until I’m 95 LOL

    • The great thing about writing is that you can keep working after retirement, Louise. Also, it seems like those that do keep working have more purpose in life and are actually happier. So maybe it’s a blessing in disguise. Cheers, Ashley


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