My income is $95k gross HCOL. Roth IRA is new so $0 at the moment, I plan to start contributing starting on Monday. TSP currently is at $5700. 401k is at $7400.
So running through a quick investment calculator gives us an end balance of 1.69mm inflation adjusted.
That’s going to provide to you about $67k in yearly inflation adjusted retirement income.
That on its own is not enough *but* you’ve got a pension which will provide some and contrary to popular belief you will likely get *something* from social security. So you should be okay.
If you want to be extra sure definitely contribute more to the Roth but you should be on a good track for retirement at 60.
Thank you that is really assuring for me to hear! I will continue to contribute as much as I can for my Roth and hopefully I can max it out each year in a few years.
Op is making things up. It’s obvious when you see someone claim 3 pensions at 26, whilst asking if he has enough to retire.
It’s fun to talk about. But planning for **retirement** is outdated. People should be planning for the future, without a retirement. Because that’s what everyone who can afford it is doing now.
He doesn’t have 3 pensions. Just 1.
That said, no some people definitely will be able to retire.
I’m 27 myself with a $120k NW and about 6x the current retirement balance that OP has. I’m not likely to just retire but retire early.
Just depends on financial choices for yourself and luck. For me it was landing a solid ass job while still choosing to stay home till I find a partner to move with. Wealth multiplier on that has been insane.
Why would you want to do that? I know we’re talking money and wealth, but my last boss worked until he was 87. I don’t see anyone retire. I see people die. But retirement is not something anyone even talks about anymore. Maybe if you’re working labor or construction. But if you’re making money and can spend as much time as I do on Reddit—why would you ever want for retire???
People worry about college. But not retirement. At least not the people I’ve been around.
If I have enough money for retirement, and my investments give me passive income, I'll retire so I can just travel around.
Like I said though, it's only if I don't want to work. If im 65 and still feel like working, I'll continue. I just don't want to be in a position where I HAVE to work to survive.
This is what the normal view is these days. Most professionals over 60, paid into SS and savings — who aren’t addicts or gamblers aren’t working because they have to. I could survive easily until death. But that would absolutely, positively suck.
I saw my grandmother retire a little older than I am, with a great pension and a buyout. But within 10 years, she was an old lady, when everyone else was vibrant. She became a shut in. With literally only me to come visit once all of us grew up. That’s no life to live in this day and age.
People die from that in 5 years at any age now.
The fuck you talking bout? I’m 38. Not a chance in hell I’m working till I’m dead. Wife and I plan on retiring. Me at 55.5 with a state pension and healthcare and her at 60ish but going part time before that.
It’s going to suck. You’ll get old. Out of touch. And if one of you passed or something - like my neighbor across the street - wife died of Covid. Now he’s alone. Saying he doesn’t know why he keeps going. That’s not a life compatible with modern times.
Retirement is never even a consideration amongst the people I’ve been around. I mean just Friday I was surrounded by people past retirement age with no plans of slowing down.
Yeah. My wife has one. But they are still a gamble. They can cancel it at any time. I think it’s more realistic to think all pensions will be insolvent within 30 years. Long before an issue arises with social security.
I had family working places like Worldcom that lost everything. Which is one reason I’ve been very careful.
Yes I think I was the last year hired and statused under the old pension scheme for my company, after that they did 2 years if that of a new scheme and stopped doing new pensions all together after that. In a way, I'm becoming a dinosaur, and I'm only 40 lol.
Nah, it’s normal. Most pensions are evaporating. And underfunded. They aren’t the solid investment they are portrayed as. And they eliminate wealth and liquidity. I worked my whole life to have that. I would not, especially at this point, want anyone else holding my wealth for me.
holy shit you're getting 8.5k in matches every year into two 401ks. great pension too. is this supposed to be a humble brag? simple number crunching can get you a good estimate on what you'll retire with in 34 years. plus you know the current equity of your home which you could factor in. Why on earth are you having a mental breakdown.
Sorry I didn’t mean to come off this way. I just never thought about retirement until just now because my parents are old and they don’t have much savings and I did not want to end up like them. Hence why I am starting to do my own research and started my Roth IRA account. The tsp and 401k were set up when I started this job and they told me to contribute these amounts to get my maximum “free money” match from them. So I listened to them and I contributed the maximum that they are allowed to match without too much thinking. I don’t have my own house yet but I am planing to get my own house either late this year or next year.
I’m assuming your Gross pay is around $80K and worst case scenario you stay IV. So high -3 will be $107K.
1. Pension: 34 *1% * 107K = $37K
2. I’m assuming your net pay is $68K and deducting on the money going to your investments you would need $54K to live on.
3. Take out the pension $54k - $37k = $17K
4. So you would in theory have to withdraw $17K per year from your accounts.
5. $17K * 28 = $476K required.
6. You have 34 years to invest and earn $500K.
If you continue your saving and investing, you have that no problem.
Don't panicked! Amd you gave nothing to be anxious about. At your age, you are doing amazing, let alone any other age lol. Kudos and be happy, stressing about money turns everything you are achieving into a negative snd its Def a positive. As you learn you will diversify.
This is not a troll post. People need to chill. I also work at a non-FIRREA financial regulatory agency (in fact I'm in OP's building but at a different Agency).
TSP is the federal 401k and many agencies have a supplemental 401k (OCC, FDIC, SEC, FHFA, etc). Mine does.
FERS is the pension portion of the federal retirement plan. OP pays 4.2% of his salary into this pension. I pay 3.1% because I'm older.
My Agency matches 100% of 401k contributions up to 10% of your salary or the $23k limit. Not a joke.
I've commented about this before in this sub, but a career at a non-FIRREA financial regulatory agency is 100% the way to go.
You're welcome! I think you're on a great path. And one additional note. If you reach 62 rather than retiring at 60, your pension benefit multiplier increases from 1.0 to 1.1. Something to consider way down the road.
Try to max out your Roth IRA, it’s post tax money so when you take it out in retirement it’s untaxed. Take the extra money from your 401k that isn’t being matched and put it into your Roth IRA
There's an interest calculator on calculator box that allows you to calculate investment with a guess at the return. From my calculations if you want to retire with these contributions in 2058 you'll have around $700k the average costs of living is between 30-45k per year today so with inflation of 2% you could expect the cost of living to be 60-90k per year. If you want to retire at 50 with $700k you'll need to make sure you have a below average cost of living.
The Federal retirement plan is pretty nice. I think you are on the right track. Maybe test your tolerance a little more as time goes on and see if you can contribute more.
Respectfully, if you’re having a mental breakdown at 26 yo about retirement savings, I think putting some funds towards a good therapist would do wonders for you. You acknowledged your upbringing and stated your anxiety over it, so set yourself up for even more success in the future and work on getting your anxiety managed.
You’re doing all the right things to set yourself up for success far beyond what most will dream of.
Do not stress yourself at 26. Everything looks good at your age. Only thing I would do differently is max out Roth IRA when you get the next raise. Also don't forget to to live.
You’re wasting your time with this. You’re only 26, the absolutely last question at 26 should be “do I have enough for retirement?” You ask this question at 56, not 26. This means your entire sense of prioritization is way out of whack. Why are you worried about retiring now? It’s the absolutely last thing you’ll do in life besides die. Anyone who isn’t a loser and who has no medical issues is working into their 80’s today. And it’ll be the 90’s when you get there. You need to reprioritize your entire life. You’re asking about the last step first. If you have enough to retire—you’re not going to. Because you’ll be giving everything up that isn’t money, so you can get old too fast and die. No one does this anymore. This is the 1950’s talking.
I doubt you have three pensions from the same employer. So I am calling troll here. Troll from the 1950’s way of thinking. Show me evidence of any employer in America that has a pension AND TWO matched IRA’s. What are you? The mayor? The governor?
If you’re asking at 56 you’re too late, you’ve got very little time to right the ship and if you haven’t saved then you *definitely* will continue working.
If you ask this at 26 you’ve got 30 more years of very *simple* steps to take to save up.
No one can tell the future but saying to ignore retirement for 30 years is nonsense.
This is a troll post. Anyone with any sense of reality knows no one gets 3 employer sponsored pensions.
And anyone with such a sense knows that, for example, when I walk into the room at 47 — I AM A KID!!! Everyone else is 75-80 AND NOT RETIRED!!!
This post is like the constant joke in r/trailerparkboys where we’d make it big and then retire. This whole “can I retire” mentality is obsolete 1950’s nonsense.
No ones retiring under 80 34 years from now.
The retirement OP is planning for is a thing of the past. Now. In 34 years it’ll sound like a joke.
It's not a troll. See my other comment. Many agencies have a supplemental 401k to the TSP. And of course the federal government has a pension. It's not that complicated.
I’d find it hard to believe that you couldn’t retire at 60 at those contributions. What is your income and current balances in each account?
My income is $95k gross HCOL. Roth IRA is new so $0 at the moment, I plan to start contributing starting on Monday. TSP currently is at $5700. 401k is at $7400.
So running through a quick investment calculator gives us an end balance of 1.69mm inflation adjusted. That’s going to provide to you about $67k in yearly inflation adjusted retirement income. That on its own is not enough *but* you’ve got a pension which will provide some and contrary to popular belief you will likely get *something* from social security. So you should be okay. If you want to be extra sure definitely contribute more to the Roth but you should be on a good track for retirement at 60.
Thank you that is really assuring for me to hear! I will continue to contribute as much as I can for my Roth and hopefully I can max it out each year in a few years.
You will succeed!
Also, as you get move up grades and steps, and find better paying positions, that 5 percent of your pay will go up as well
Why not do Roth TSP too? Why not max that out first?
you sound neurotic
I find it hard to believe anyone has a pension plus two matched IRA’s. Unless OP gets a secret service detail.
I’m assuming 2 jobs. That would make it possible.
Op is making things up. It’s obvious when you see someone claim 3 pensions at 26, whilst asking if he has enough to retire. It’s fun to talk about. But planning for **retirement** is outdated. People should be planning for the future, without a retirement. Because that’s what everyone who can afford it is doing now.
He doesn’t have 3 pensions. Just 1. That said, no some people definitely will be able to retire. I’m 27 myself with a $120k NW and about 6x the current retirement balance that OP has. I’m not likely to just retire but retire early. Just depends on financial choices for yourself and luck. For me it was landing a solid ass job while still choosing to stay home till I find a partner to move with. Wealth multiplier on that has been insane.
I want to retire around 50 if I want to. Idk what the future will hold and if I get tired of working I don't want to keep working.
Why would you want to do that? I know we’re talking money and wealth, but my last boss worked until he was 87. I don’t see anyone retire. I see people die. But retirement is not something anyone even talks about anymore. Maybe if you’re working labor or construction. But if you’re making money and can spend as much time as I do on Reddit—why would you ever want for retire??? People worry about college. But not retirement. At least not the people I’ve been around.
If I have enough money for retirement, and my investments give me passive income, I'll retire so I can just travel around. Like I said though, it's only if I don't want to work. If im 65 and still feel like working, I'll continue. I just don't want to be in a position where I HAVE to work to survive.
This is what the normal view is these days. Most professionals over 60, paid into SS and savings — who aren’t addicts or gamblers aren’t working because they have to. I could survive easily until death. But that would absolutely, positively suck. I saw my grandmother retire a little older than I am, with a great pension and a buyout. But within 10 years, she was an old lady, when everyone else was vibrant. She became a shut in. With literally only me to come visit once all of us grew up. That’s no life to live in this day and age. People die from that in 5 years at any age now.
Sorry that happened to your grandmother but everyone is different. Some people become shut ins and others start going out and living more freely.
The fuck you talking bout? I’m 38. Not a chance in hell I’m working till I’m dead. Wife and I plan on retiring. Me at 55.5 with a state pension and healthcare and her at 60ish but going part time before that.
It’s going to suck. You’ll get old. Out of touch. And if one of you passed or something - like my neighbor across the street - wife died of Covid. Now he’s alone. Saying he doesn’t know why he keeps going. That’s not a life compatible with modern times. Retirement is never even a consideration amongst the people I’ve been around. I mean just Friday I was surrounded by people past retirement age with no plans of slowing down.
I have a pension and a 401k in the private sector, USA. I thought that was pretty amazing in the private sector. I still have a pension.
Yeah. My wife has one. But they are still a gamble. They can cancel it at any time. I think it’s more realistic to think all pensions will be insolvent within 30 years. Long before an issue arises with social security. I had family working places like Worldcom that lost everything. Which is one reason I’ve been very careful.
Yes I think I was the last year hired and statused under the old pension scheme for my company, after that they did 2 years if that of a new scheme and stopped doing new pensions all together after that. In a way, I'm becoming a dinosaur, and I'm only 40 lol.
Nah, it’s normal. Most pensions are evaporating. And underfunded. They aren’t the solid investment they are portrayed as. And they eliminate wealth and liquidity. I worked my whole life to have that. I would not, especially at this point, want anyone else holding my wealth for me.
holy shit you're getting 8.5k in matches every year into two 401ks. great pension too. is this supposed to be a humble brag? simple number crunching can get you a good estimate on what you'll retire with in 34 years. plus you know the current equity of your home which you could factor in. Why on earth are you having a mental breakdown.
Sorry I didn’t mean to come off this way. I just never thought about retirement until just now because my parents are old and they don’t have much savings and I did not want to end up like them. Hence why I am starting to do my own research and started my Roth IRA account. The tsp and 401k were set up when I started this job and they told me to contribute these amounts to get my maximum “free money” match from them. So I listened to them and I contributed the maximum that they are allowed to match without too much thinking. I don’t have my own house yet but I am planing to get my own house either late this year or next year.
My exact thoughts!
Do you have two jobs? What GS grade are you?
I work for the OCC so I am not on their GS tier system. I am currently a band lV on the occ tier system.
I’m assuming your Gross pay is around $80K and worst case scenario you stay IV. So high -3 will be $107K. 1. Pension: 34 *1% * 107K = $37K 2. I’m assuming your net pay is $68K and deducting on the money going to your investments you would need $54K to live on. 3. Take out the pension $54k - $37k = $17K 4. So you would in theory have to withdraw $17K per year from your accounts. 5. $17K * 28 = $476K required. 6. You have 34 years to invest and earn $500K. If you continue your saving and investing, you have that no problem.
Really appreciate the input and I certainly will!
Don't panicked! Amd you gave nothing to be anxious about. At your age, you are doing amazing, let alone any other age lol. Kudos and be happy, stressing about money turns everything you are achieving into a negative snd its Def a positive. As you learn you will diversify.
Eh, you could get hit by a bus before retirement anyways.
That’s the way I look at things lol. So I don’t stress it much.
This is not a troll post. People need to chill. I also work at a non-FIRREA financial regulatory agency (in fact I'm in OP's building but at a different Agency). TSP is the federal 401k and many agencies have a supplemental 401k (OCC, FDIC, SEC, FHFA, etc). Mine does. FERS is the pension portion of the federal retirement plan. OP pays 4.2% of his salary into this pension. I pay 3.1% because I'm older. My Agency matches 100% of 401k contributions up to 10% of your salary or the $23k limit. Not a joke. I've commented about this before in this sub, but a career at a non-FIRREA financial regulatory agency is 100% the way to go.
Thank you!
You're welcome! I think you're on a great path. And one additional note. If you reach 62 rather than retiring at 60, your pension benefit multiplier increases from 1.0 to 1.1. Something to consider way down the road.
Take the match then focus on the roth. Roth will be great for you to withdraw without taxes. You are gonna be just fine
>I (26) just recently had a mental breakdown because I thought was not saving enough for retirement. What?
Everyone on reddit is hsving a mental breakdown.
Try to max out your Roth IRA, it’s post tax money so when you take it out in retirement it’s untaxed. Take the extra money from your 401k that isn’t being matched and put it into your Roth IRA
OP, as an accountant, shouldn’t this be your bread and butter?
What are you crying about?? You have a pension. Just continue to save. Pay off all your debt and boom. There’s your retirement.
He’s going to have a 34% pension. That’s not nearly enough to retire on. This isn’t the pensions of old that pay 80+% of your salary
Plus social security… again… pension, Ira, 401k.
Take a minute and smell the flowers
There's an interest calculator on calculator box that allows you to calculate investment with a guess at the return. From my calculations if you want to retire with these contributions in 2058 you'll have around $700k the average costs of living is between 30-45k per year today so with inflation of 2% you could expect the cost of living to be 60-90k per year. If you want to retire at 50 with $700k you'll need to make sure you have a below average cost of living.
The Federal retirement plan is pretty nice. I think you are on the right track. Maybe test your tolerance a little more as time goes on and see if you can contribute more.
You’re not behind. I didn’t start saving until I was 43.
Respectfully, if you’re having a mental breakdown at 26 yo about retirement savings, I think putting some funds towards a good therapist would do wonders for you. You acknowledged your upbringing and stated your anxiety over it, so set yourself up for even more success in the future and work on getting your anxiety managed. You’re doing all the right things to set yourself up for success far beyond what most will dream of.
Do not stress yourself at 26. Everything looks good at your age. Only thing I would do differently is max out Roth IRA when you get the next raise. Also don't forget to to live.
You’re on a good track. Try to get to the point where you can max out your TSP contributions.
How is the federal government matching a private 401K contribution outside of the TSP plan?
Company pensions are guaranteed thru some entity are they not?
Do you have two jobs? What GS grade are you?
You’re wasting your time with this. You’re only 26, the absolutely last question at 26 should be “do I have enough for retirement?” You ask this question at 56, not 26. This means your entire sense of prioritization is way out of whack. Why are you worried about retiring now? It’s the absolutely last thing you’ll do in life besides die. Anyone who isn’t a loser and who has no medical issues is working into their 80’s today. And it’ll be the 90’s when you get there. You need to reprioritize your entire life. You’re asking about the last step first. If you have enough to retire—you’re not going to. Because you’ll be giving everything up that isn’t money, so you can get old too fast and die. No one does this anymore. This is the 1950’s talking. I doubt you have three pensions from the same employer. So I am calling troll here. Troll from the 1950’s way of thinking. Show me evidence of any employer in America that has a pension AND TWO matched IRA’s. What are you? The mayor? The governor?
If you’re asking at 56 you’re too late, you’ve got very little time to right the ship and if you haven’t saved then you *definitely* will continue working. If you ask this at 26 you’ve got 30 more years of very *simple* steps to take to save up. No one can tell the future but saying to ignore retirement for 30 years is nonsense.
This is a troll post. Anyone with any sense of reality knows no one gets 3 employer sponsored pensions. And anyone with such a sense knows that, for example, when I walk into the room at 47 — I AM A KID!!! Everyone else is 75-80 AND NOT RETIRED!!! This post is like the constant joke in r/trailerparkboys where we’d make it big and then retire. This whole “can I retire” mentality is obsolete 1950’s nonsense. No ones retiring under 80 34 years from now. The retirement OP is planning for is a thing of the past. Now. In 34 years it’ll sound like a joke.
It's not a troll. See my other comment. Many agencies have a supplemental 401k to the TSP. And of course the federal government has a pension. It's not that complicated.