Money Magazine: "Retirement Savings: Will $4 Million be Enough??"

[unblock]

12. the point is that even those at the top end of the 99% worry about the same thing

we all worry about outliving whatever retirement savings we've managed to save in our working years.

you have to be REMARKABLY rich in order to have enough to not really worry about that -- they're putting the peg at $4 million. i'm used to hearing the peg at $2 million, but with interest rates so low they may have a point.

if you have no savings, you're stuck living on social security.
if you have a bit of savings, you can supplement it by drawing down your savings, "hoping" to die before you run out, or at least, if you do survive, you drop down to living on just social security.

but even $1 million in the bank isn't nearly as much as it sounds. with interest rates negligible, taking out an extra $50,000 per year will run out in 20 years. that can make the different between living on about $30,000 (at max benefits) per year to $80,000 per year. certainly a nice jump, but hardly ridiculous. plus it runs out in 20 years. if you're used to making that kind of money or more, it's "not enough".


the real point is that most of us are in the same boat, worrying about largely the same things. having enough to maintain a familiar lifestyle in our golden years. those starting out retirement with even a million or two in savings should be seen as ON *OUR* SIDE, as opposed to those with vastly more savings. THOSE are the ones living on a very different planet.