The financial section of the msnbc.com website has posted a range of amusing and alarming answers to the question: “How big should your retirement nest egg be?”
An individual net worth of $3 million or $4 to $5 million as part of a couple. This assumes a pleasant residence in the Bay Area (where I currently live and plan to retire), which is paid off and a second rental home paid off, which provides cash flow. This may still be too modest since I plan to retire in 20 years. Also assumes the potential to live until 90 and not working at all for the 30 years between 60 and 90.
– Barbara, Fremont, Calif.
Unless my six numbers come up, I’m screwed.
– Daniel C., Albany, N.Y.
I believe that most people ready to retire are more worried than they need to be about their financial situation. What counts is not how much of a nest egg you have accumulated or even how much your pension is, but how well you can adjust to less money coming in. In other words, it’s not how much you make but how much you spend that matters. I have been retired for 12 years and find that my expenses are less than I had planned for. So, forget the gloomy forecasts and enjoy your retirement!
– Serge P., Albany, N.Y.
The concept of retirement is a relatively new one in the history of man, an invention spawned pretty much by big companies trying to retain loyal employees. Not that the idea was a bad one, but the idea has come and gone. I plan to “work” in some fashion until I can physically no longer do so. By “work” I mean generate some type of income. However, if I HAD to name a figure for retirement, I would have to say $1 million might do it, as that would generate an income of about 50K a year, and I could live frugally on that amount.
– Greg, Houston.
Much, much more here…