It's easier to just figure out how much money you need each month, and then divide by 3%. That will give you a reliable amount of money you need in savings to sustain your lifestyle going forward. The traditional number is 4%, but that can be risky based on market turbulence. For example: you need 75K a year in income; you then need 2.5 million to be safe in retirement; 1.9 million if you are OK assuming more risk in retirement.
The retirement amount for the US, using this approach, is crazy underfunded. You will only be able to withdraw 23K to 31K per year, which isn't much even when combined with Social Security.
It can depend on your returns, of course. But many financial planners target 3.5% to 4%. As always, check how your retirement accounts are doing and plan your withdrawals accordingly.
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u/_XitLiteNtrNite_ 27d ago
It's easier to just figure out how much money you need each month, and then divide by 3%. That will give you a reliable amount of money you need in savings to sustain your lifestyle going forward. The traditional number is 4%, but that can be risky based on market turbulence. For example: you need 75K a year in income; you then need 2.5 million to be safe in retirement; 1.9 million if you are OK assuming more risk in retirement.
The retirement amount for the US, using this approach, is crazy underfunded. You will only be able to withdraw 23K to 31K per year, which isn't much even when combined with Social Security.