I am lucky enough to have a pension as a teacher, which I pay into each month. I also have a 403(b) that I put about $220/month into right now. I am starting a Roth IRA, which I plan to max out each year, as long as I can. (Though the Roth may end up going toward a home down payment).
Here's my question: How much do I need to save for retirement? I know there are calculators, but since I will have a pension I have a hard time figuring out how much extra I should save. Anyone know a good calculator that can account for this? Or a formula? A rule of thumb? Your two cents?
I'm thinking about 750K is the minimum I'll need to retire comfortably. I'm making my plans for retirement as if my pension and social security won't be there, although I think they both probably will. I just don't want to depend on either.
ReplyDeleteI've calculated that if I start maxing out my Roth at age 29 until 65, I should have enough to be in semi-retirement by 65, full retirement by 75.
Consider 15% of your income spread over your 403B & roth IRA. Start by filling up your roth and then put whats left in your 403b. Do this on a per paycheck basis and you should be fine.
ReplyDeleteI agree with TeacHer, don't depend on pension.
Have you talked with a financial advisor? They have access to all sorts of software that allows you to calculate best & worst case scenarios and spits out a number. Without that, we'd probably have no real "direction"... :)
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