Originally Posted by
galaxy flyer
]To add, the classic answer is one can withdraw 4% of the 401 money each year with about an 80-ish% probability of not running out of money. If interest rates stay where they are, make it 3%. The other classic answer is replace 70% of your pre-retirement income in retirement. The 415 programs were not designed to replace pensions, it just worked out that way.
You're taking the risk that, over your career, the principal will grow--A LOT.
In timbo's example, you'd need about 3.5 mil to replace 200k in final year income. 200,000 x .7 = 140,000. 3,500,000 x.04 = 140,000. The Scotch low light in KIX DL Lounge is ON.
GF
I'd like to see, and fully expect, our contribution to go up. I also don't know any DL pilot that doesn't contribute anything in addition to the company contribution. I personally "match" the company contribution. But in any case, I also don't think its a retirement crisis if you can't pull out 200K a year from your nest egg forever. The house should be paid off by then, easily, and no one should still be on the hook by then for any more 150K art's history degrees with a minor in feelings while Junior is waiting tables or camping out in some Occupy College Street demonstration with his "degree".
I'm all in favor of us getting significantly more than we are currently getting. But no one should ever look at it like they're "unable to retire" on less than 3.5 million.