This is quite honestly the harsh reality that I think many of you least factor into retirement withdrawals...
It goes beyond saving enough to sustain a 20-year annuity that pays $100,000/year throughout retirement for you and your spouse combined, but that this payout could be worth $25K per year in today's dollars. You see the majority of Americans are not conscious of how much really needs to be saved to live today's lifestyle.
DB pension plans did factor this in, however. And my grandma who is living nicely on a pension that pays $50-60K and subsidized by Medicare,
If had a 401k in the 1930s would have been contributing $10/month into the fund
At retirement she would have built the 401k balance up to a few hundred thousand dollars ...to live on for 30 years
It goes beyond saving enough to sustain a 20-year annuity that pays $100,000/year throughout retirement for you and your spouse combined, but that this payout could be worth $25K per year in today's dollars. You see the majority of Americans are not conscious of how much really needs to be saved to live today's lifestyle.
DB pension plans did factor this in, however. And my grandma who is living nicely on a pension that pays $50-60K and subsidized by Medicare,
If had a 401k in the 1930s would have been contributing $10/month into the fund
At retirement she would have built the 401k balance up to a few hundred thousand dollars ...to live on for 30 years
Been saving so long that amount saved isn't worth what it would have been back then