[Doofy]

So. I just upgraded to 10.5.8 (from 10.4.11) on my main machine.
Figured I'd check some software out. So, Numbers '09 it is.

..."Retirement Savings" template. Let's assume a university-leaver. Let's take official UK figures.

Age now: 24.
Age at retirement: 60.
Life expectancy: 90.

Desired income at retirement: £30,000 (not unreasonable).
Current savings: £0 (dude has just been to uni).
Rate of return: 4.9% (best UK 5 year deal).
Inflation rate: 3.4% (like it's anywhere near that low in real terms).

Monthly savings goal: £1,334.70 (that's £16,016.40 per year).
Amount of savings in 2046: £2,417,684.

Good luck with that, uni-leavers!

[Atheist]

Retirement... what's that? I'm fully prepared to work till the day I drop.

[turtle777]

Yeah, and which uni-leaver starts saving in his 20ies ?

Most people don't start *thinking* about retirement savings until mid 40ies, and start acting when they are 50.
Far too late. Those few that DO start early will probably invest in things they deem "safe" (link bonds) and be completely wiped out by the time they want to retire.

Bottom line: for most people, what Atheist said will hold true.

-t

[SpaceMonkey]

Originally Posted by turtle777 

Yeah, and which uni-leaver starts saving in his 20ies ?

Me.

Originally Posted by Doofy

Age at retirement: 60.
Life expectancy: 90.

Retiring "early" at 60 ("normal" age in the U.S. is considered 65) is very difficult, no doubt about that. 65 is probably still very difficult, given long life expectancies today.

[The Final Dakar]

The one without student loans.

[turtle777]

Originally Posted by SpaceMonkey 

Me.

Good for you. Make sure you inflation-proof your portfolio.

-t

[imitchellg5]

What 24 year old can stash away £1,334.70 a month?

[Doofy]

Originally Posted by imitchellg5 

What 24 year old can stash away £1,334.70 a month?

Exactly.
And that's with the official 3.4% inflation rate. It's more like 10%+ IRL.

[SpaceMonkey]

Originally Posted by imitchellg5 

What 24 year old can stash away £1,334.70 a month?

If that is the average over your 40 year career in the workforce, presumably you will be saving less than that at 24, and more than that in your peak earning years. Don't forget the possibility of employer matching, as well.

[Laminar]

Are you taking into account pay increases over time? Only a huge loser would stay at starting salary for his or her entire career.

[mduell]

60 is pretty young to retire... work just 36 years and then expect to live off that for another 30?

Originally Posted by imitchellg5 

What 24 year old can stash away £1,334.70 a month?

It's pretty do-able with pre-tax money: max out your 401k ($1375/mo) and stick the other $675 in an IRA.

[turtle777]

Originally Posted by mduell 

It's pretty do-able with pre-tax money: max out your 401k ($1375/mo) and stick the other $675 in an IRA.

Doable for a fresh out ?

The above amounts to following:

Gross salary: $ 65,000
For simplicity, I assume 25% taxes.

To achieve the savings above, that person would have $ 2,356 per month NET left to live off.

The savings would amount to 40% of Gross Income.
Doable ? Yes.

Realistic to save 40% ? Not so sure.

-t

[Sealobo]

with all due respect, that's a ****ed up plan. lol~

[Doofy]

Originally Posted by Sealobo 

with all due respect, that's a ****ed up plan. lol~

Ain't my plan - just the official figures which the masses use put into Numbers' template. I'm already retired.