Originally Posted by
Lewylewylewy
I think there's some wisdom in that post, Yoda.
I often grapple with concepts of saving now vs living now, and the idea that I won't live as long as trends suggest is something that has crossed my mind before. For example, expectations that we will live longer than our parents, who will live longer than our grandparents, based on data we have on the longevity of our grandparents and great grandparents is silly. Statistics on older generations living longer are due to healthy diets (no NZE:RBD back in those days and it was sunday dinners and veggies every day) and a leap in medicine. I don't think we've had another such leap in medicine and livestyles are much worse (drugs are commonplace, diets comprise of fast food and carbs with very few veggies and fruit).
Regarding saving now vs living now... If you work out how much you'd need to save each year to attain retirement at 65, without a pension... I think most people wouldn't be able to. I even consider myself a pauper with a $100k salary (ok, the situation would be different if I had a spouse on the same salary), when I consider my retirement goals.
But to give my idea of how much you need to retire, I say work out your daily costs. Break these into need vs want.
Need:
house tax money: $60pw = about $10 per day
Assume you've paid your house off, otherwise include rent / mortgage interest payments per day
health insurance = $5 per day
Food per day = $20
$10 per day saved to cover other costs, like insurance on house or repairs to.. I dunno, the car, say, or xmas presents, etc...
Want:
Petrol to go places = $10 per day
To eat out at a café each day = $10 extra on food costs
some activity = $10 per day
$10 per day savings towards an annual holiday
So, I need $45 per day and want an extra $40 a day to do stuff.