Viewing a single comment thread. View all comments

[deleted] OP t1_jegqti5 wrote

Reply to comment by not_falling_down in Is there a time where I can stop saving for retirement? by [deleted]

Congratulations! Reason im asking if I can stop early is because having no kids, I have no one to I will want to leave estate too. Maybe my friends kids if they choose to have any but im not planning on it, greatest outcome would be sum zero

0

not_falling_down t1_jegsmb7 wrote

You are 23. You have no idea what the next four decades will hold for you.

It's better to retire with more than you need than with not enough.

39

SatisfactoryFinance t1_jegrmyi wrote

No kids means no one to fall back on for living or care if you get health issues as you get older, which means you may need more money.

27

paltum t1_jegtk31 wrote

Your life expectancy is not a precise number. You need to plan to be pretty old when you are waving your last dollar. You don’t want to save enough to get to 80 just to find you are good until 95.

The other factor to consider is the potential that the last few years of life can be insanely expensive. If you need help, it can easily cost $100k/yr today. There is no way to know if you need this care or for how long. Long term care insurance might offset this risk.

You also might not collect as much social security as you expect today. It is getting pretty likely that retirement age will be kicked further out. And Medicare may be a lot more expensive, as well. Both of these benefits are going to go under increased financial pressure.

My personal approach is to some day pay off my mortgage and use my home as a store of value to handle a major life change like assisted living.

In other words, you probably want to save enough to cover your expenses in retirement, maybe add a bit to give you flexibility for things like vacations, and have an extra pile to handle massive end of life expenses.

4