How much does one need to retire?

[essguy_]

Money is freedom so the more the better. If you are banking on a foreign country then you need to do your homework there too. If you’re going foreign because of expense, it might not be great if you forget things like healthcare, stability, etc. Is the medical system socialized? If not can you acquire private coverage? Having just had an elderly relative finish an extended hospital stay this has really hit home. Not to get too morbid but If you’re old and you have a stroke - what are you going to do? Where and how will you live? Even in Canada this is a huge problem. There are gaps in elderly care that you can drive a transport truck through and this is Canada. In other countries it’s worse. Personally, if I ever get incapacitated, I hope I have enough energy to crawl out onto an ice floe in the Spring but YMMV. If you don’t have the money you might end up sitting in wheel chair with bedsores on your ass and day old shit in your diaper 24/7/365.

Catastrophic illness is another. What if you get cancer? Fly back to Canada? Then what?

Money is freedom. Since this is TERB - If you’re worried you won’t have enough the first step would be to retire from the hobby NOW and delete your account to remove temptation.

 

[Elagabalus]

It’s less about how much you need and more about how little you can spend.

I think at $5 a meal, just 3 meals a day adds up to $250,000 over a typical retirement.

$2 million is my goal. Some might call it a stretch goal. I

 

[superstar_88]

How bout those who are retired chime in. At what age did you retire and how did you know it was time?

 

[Smallcock]

Use the 4% rule.

How much do you need to live on every year.

For example, if you want 10k a month divide 120k/4% and you get $3m

This.

 

[shack]

It really does depend on lifestyle choices.

It's not only lifestyle.

We've been shown formulae and calculations but nobody has brought up contingency plans/funds.

A new car during a retirement is not unreasonable. But bigger problems would be emergencies or long-term illnesses that are not covered, to you or close family members. That can be verrry expensive. And what happens to your savings if there is a big downturn in the economy or the value of your property if the bubble ever bursts.

These are just possibilities but if they do happen, then the $900,000 that someone else proposed can be blown away like a puff of smoke in a hurricane. Expect the unexpected.

 

[Butler1000]

It's not only lifestyle.

We've been shown formulae and calculations but nobody has brought up contingency plans/funds.

A new car during a retirement is not unreasonable. But bigger problems would be emergencies or long-term illnesses that are not covered, to you or close family members. That can be verrry expensive. And what happens to your savings if there is a big downturn in the economy or the value of your property if the bubble ever bursts.

These are just possibilities but if they do happen, then the $900,000 that someone else proposed can be blown away like a puff of smoke in a hurricane. Expect the unexpected.

Absolutely. When I go I will have a $100,000 us fund available as well as repatriation insurance.

In the main though it's about consistent income and knowing what your fixed costs will be. Balancing pensions, other income sources, and drawing down RRSP savings in balance to taxes and income needs.

And making damn sure you are debt free before going.

 

[onthebottom]

It's not only lifestyle.

We've been shown formulae and calculations but nobody has brought up contingency plans/funds.

A new car during a retirement is not unreasonable. But bigger problems would be emergencies or long-term illnesses that are not covered, to you or close family members. That can be verrry expensive. And what happens to your savings if there is a big downturn in the economy or the value of your property if the bubble ever bursts.

These are just possibilities but if they do happen, then the $900,000 that someone else proposed can be blown away like a puff of smoke in a hurricane. Expect the unexpected.

I’m sure this is true in Canada as well, when you retire in the US you are put on Medicare, or if poor/destitute Medicaid. At that point the federal government and state share in the cost of whatever medical care you need.

 

[harryass]

one cent left in ur bank account before ya crook.

 

[shack]

I’m sure this is true in Canada as well, when you retire in the US you are put on Medicare, or if poor/destitute Medicaid. At that point the federal government and state share in the cost of whatever medical care you need.

I am not sure if everything is 100%. While my sister was battling cancer there were some very expensive drugs not covered, if it weren't for her supplemental insurance. I have none of that.

 

[Sophia Sinclair]

The proposed formulas are interesting and new to me. Are they taking inflation into account? That $5 meal may be $15 by the time I retire. This is my biggest concern. How to factor inflation into the equation.

 

[superstar_88]

The proposed formulas are interesting and new to me. Are they taking inflation into account? That $5 meal may be $15 by the time I retire. This is my biggest concern. How to factor inflation into the equation.

$5 meals for the rest of your life is a very meagre lifestyle. I have $15 lunches almost daily.

 

[Butler1000]

The proposed formulas are interesting and new to me. Are they taking inflation into account? That $5 meal may be $15 by the time I retire. This is my biggest concern. How to factor inflation into the equation.

Calculate 2% per year compounded to your retirement.

Or to make it easy say add 25% for every ten years.

 

[Sophia Sinclair]

$5 meals for the rest of your life is a very meagre lifestyle. I have $15 lunches almost daily.

I was playing off Elagabalus's aforementioned example.

 

[Sophia Sinclair]

Calculate 2% per year compounded to your retirement.

Or to make it easy say add 25% for every ten years.

Thank You!

 

[essguy_]

re: inflation. If you’re hoping to retire to a foreign country, make sure you’re not planning your retirement using North American inflation projections. As an extreme example: Venezuela, where hyperinflation reaches 6 (yes, SIX) figures over the summer. That’s why I said you need to factor in stability. I.e. Geopolitical risk.

If you are really worried about retirement savings can you really afford to hobby? That’s preachy sounding but given the thread topic and some of the responses it’s an important question.