Re:Mr. Money Mustache’s retirement (sort of) plan
by icebraining on Monday February 22, 2016 @05:42AM
(#11149895)
That's only if you make the heroic assumption that expenses are static. From expenses related to ageing itself (increased need for healthcare, possibly even moving to an assisted care facility) to the particular conjuncture during old age (for example, in my country many unemployed adults and their children are living with the help of the pensions of their parents), I would avoid assuming that.
This holds true not only because the money you save goes to fund your future retirement, but also because your retirement income doesn't need to match your current income, only your current spending. So if you save 40% of your income, you need your retirement savings to produce 60% of your income; if you save 70% of your income, you only need your retirement savings to produce 30% of your income. That means you both increase your savings rate and decrease how much savings you need before retirement.