If we squirrel away $360k in the next twenty years (that’s $1,500 a month) and we include our existing savings with our estimated Social Security we’ll have $3,500 a month to live on for twenty years. I cannot be bothered to project what interest could be earned on the principal. Right now we spend about $1,680 on living expenses; I am including phone, TV and internet, as well as housing, food, heat and electricity.
The good news is we’ll be 70 in twenty years and it’s unlikely we’ll last much longer than 10 years beyond that, if we’re lucky. If we’re only going to live until we’re 80, we’ll have $5,164 a month to live on. I’m hoping that will compensate for inflation. I didn’t include the 25% reduction in Social Security benefits effective when we’re 75 in 2037. It shouldn’t impact us overly much.
I am so glad I drank and smoked like a fiend when I was younger thereby reducing my life expectancy. Yet one more instance when I inadvertently did the right thing. The trick is going to be staying healthy enough to spend all the money, we haven’t saved yet, before we die.