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... And is $1 million enough to retire on? Practically what probably matters is "how many years do you have to work to take care of your basic needs after you

... And is $1 million enough to retire on? Practically what probably matters is "how many years do you have to work to take care of your basic needs after you retire, and how does this change if you (a) have medical problems (b) want kids (c) [add your other variants of ordinary life choices people should be able to make]"

refurb 2y ago
** ... And is $1 million enough to retire on?** More than enough. The vast majority retire on less and have comfortable retirements. Despite the narrative, Social Security pays out quite a lot and isn’t going insolvent any time soon. The average payout ($1,900) is more than double that of Canada ($850). A retired couple would have almost $4000/month in monthly income. Add on top a paid off home, Medicare eligibility, and Social Security, most people retire with a few hundred thousand, which is very comfortable in most of the US.
- harimau777 2y ago
  The big problem is transportation. Many retired people can no longer safely drive. That means that if they don't live someplace with solid public transportation then their quality of life drops. Unfortunately, all of the places in America with decent public transportation are expensive.
  - hollerith 2y ago
    If only there were a service that people who are too old to drive could use to buy a ride where they need to go.
    - db48x 2y ago
      Man, there’s a startup idea right there.
- Tempest1981 2y ago
  Are you assuming great health? Or rapid death? Nursing home care runs $8k/mo or more per person. And low-end ones can be sketchy... you hear horror stories. That $4k/mo won't be enough as you head into your 80s or 90s. Also consider inflation over 3 or 4 decades.
  - refurb 2y ago
    Do you feel an $8k/month private nursing home a luxury? What I’ve noticed is what Americans consider “bare minimum” is pretty luxurious. “I’m not even middle class” means buying a single family home in the most expensive coastal cities, multiple international (Mexico and Canada don’t count) per year, a couple SUVs less than 5 years old, lots of toys, plus $5M when they retire at 55. Of course most people can’t afford that. That’s upper class in the US.
  - master_crab 2y ago
    ”Also consider inflation per 3 or 4 decades.” Social Security has COLA (Cost of Living Adjustments). It tracks with inflation over time.
jandrewrogers 2y ago
Almost certainly, yes. Many people live on far less than that and retirees have their income augmented by a government pension (i.e. Social Security) which is quite generous by global standards. This is all eminently achievable by the average American living an average life with kids and whatnot, many do. Making better than average life choices provides a lot of insurance against bad luck over the long run. An under-appreciated point that extends far beyond the financial is that Americans have an anomalously high amount of optionality in life.

refurb 2y ago

** ... And is $1 million enough to retire on?** More than enough. The vast majority retire on less and have comfortable retirements. Despite the narrative, Social Security pays out quite a lot and isn’t going insolvent any time soon. The average payout ($1,900) is more than double that of Canada ($850). A retired couple would have almost $4000/month in monthly income. Add on top a paid off home, Medicare eligibility, and Social Security, most people retire with a few hundred thousand, which is very comfortable in most of the US.

harimau777 2y ago
The big problem is transportation. Many retired people can no longer safely drive. That means that if they don't live someplace with solid public transportation then their quality of life drops. Unfortunately, all of the places in America with decent public transportation are expensive.
- hollerith 2y ago
  If only there were a service that people who are too old to drive could use to buy a ride where they need to go.
  - db48x 2y ago
    Man, there’s a startup idea right there.
Tempest1981 2y ago
Are you assuming great health? Or rapid death? Nursing home care runs $8k/mo or more per person. And low-end ones can be sketchy... you hear horror stories. That $4k/mo won't be enough as you head into your 80s or 90s. Also consider inflation over 3 or 4 decades.
- refurb 2y ago
  Do you feel an $8k/month private nursing home a luxury? What I’ve noticed is what Americans consider “bare minimum” is pretty luxurious. “I’m not even middle class” means buying a single family home in the most expensive coastal cities, multiple international (Mexico and Canada don’t count) per year, a couple SUVs less than 5 years old, lots of toys, plus $5M when they retire at 55. Of course most people can’t afford that. That’s upper class in the US.
- master_crab 2y ago
  ”Also consider inflation per 3 or 4 decades.” Social Security has COLA (Cost of Living Adjustments). It tracks with inflation over time.

jandrewrogers 2y ago

Almost certainly, yes. Many people live on far less than that and retirees have their income augmented by a government pension (i.e. Social Security) which is quite generous by global standards. This is all eminently achievable by the average American living an average life with kids and whatnot, many do. Making better than average life choices provides a lot of insurance against bad luck over the long run. An under-appreciated point that extends far beyond the financial is that Americans have an anomalously high amount of optionality in life.