What size pension fund is needed in retirement?

[fuddly]

Ball park, what you think?

[molonski2]

I'm not from USA , I don't know how your system works..

I reside OS , and make a living via distributions / dividends from my investments , both inside and outside Superannuation fund , the benefits of the using the SMSF , is that anything coming out is tax free , where the fund still gets the franking credits.

I work off a total asset base somewhere between 2.5 and 3.00 mill , but that's only in AUD $ of course , and includes leased property that's what really pumps the asset base number , yet I only look at the yield. I can make enough this way , far from rich , but enough without taking a state pension. Its not like USA where if I made 70 , I would just get it , like Warren Buffet , and Aussie Paul Hogan , both ( obviously ) have plenty.

[fuddly]

Myself I'm in Europe

So do you contribute monthly?
What is your monthly contribution round figures?
Do you plan to increase that closer to retirement?

[molonski2]

Technically , Im still working , but I dont have to go to work , I will be transferring a sizable amount this year ( financial year ) , and I just let the dividends roll..

[molonski2]

You are UK?

[fuddly]

Euro country

[fuddly]

It sounds great you only use dividends
That continues forever?
Or you start into the capital?

[fuddly]

It's like rental income?

[fuddly]

Are you saying state pension in USA is better than Australia?

[molonski2]

If you make 70 - 100% it is , Australia is too small , all is means tested.

[molonski2]

No use of Capital , is certainly the goal.

[artgorgeous]

Its not an easy question. Depends on what comfort you expect to live in.

IIf you don't have much, go to warm and cheap country and spend your time there.

For example, In Ukraine you would need to spend around $500 monthly assuming you have your own house and dont need to pay rent, to live in decent comfort. So, probably if you retire at 60 and expect to live like up t 80, you need $500*12*20 = $120000 multiply that by 1.4 to adjust for 20 year inflation = 168000 and probably add 20k - 40k for unexpected expenses, so roughly 200k for 20 years.

For US i would probably multiply that by 3 or 5.

This would be just to purely spend money without any investments whatsoever. Of course you can invest some in property and live on %.

[ushagomez]

My dad thinks GBP 1 million is reasonable.

[zagor]

Depends on a lot of things. If you own your own house and live where property tax isn't outrageous, you can get by with less. If you are subject to rental inflation then you need to account for that. In the US now I've read you need to accumulate 1.7-1.9 million US $ for a reasonable retirement.

[exitseven]

I used to think a million dollars would be enough, After we have had almost 3 years of Bidenomics I would have to say 2 million if worst case scenario he ends up stealing another election.

[Anonymous]

My father had £40k pissed most of it up the wall and has £250 a month in income plus state assistance and still needs help to balance the books

I don't plan to live long enough to retire but theoretically probably £6M today in an annuity to survive comfortably

[slatyb]

Where do you want to retire?