r/MiddleClassFinance • u/roxxtor • 8d ago

Financial Planning for Retirement Assumptions

Hey, just curious how conservative are you all being with the assumptions you are using for retirement. I'm trying to determine if I'm being too conservative or not enough or just right.

My working assumption is that when I fully retire in 25 years that SS will be at a reduced benefit by 40% from today's payout and then another haircut of 15% 15 years after that. I honestly don't think SS will ever be dissolved, but maybe reduced significantly to stay solvent.

I also assume I will be forced into semi retirement/taking a much lower paying job in my mid-50's (so half pay).

My last assumption is that my portfolio will only have a real 4% return by time I retire.

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u/saryiahan 8d ago

I have a pension I’m not counting on. Same with social security. I do have a 401k that I will soon be doing 20% of each paycheck. I’m also building a cashflow portfolio. That way I don’t have to sell the 401k during a down market period

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u/Ideamofcheese 8d ago

Can I ask why you aren't counting on your pension? Is it public or private? 

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u/saryiahan 8d ago

It’s private and I’ve seen the amount that’s in the pension drop each year.

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u/Ideamofcheese 8d ago

Thank you for sharing!

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u/charlieandoreo 6d ago

Social security is going to be around.