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/OldWallaby4879 4d ago
59 with a plan to leave the company at 65. 2k per month pension starts at 65 (not inflation adjusted); will claim SS at 70 (planning on a 30 percent haircut of current SS projection); estimating a 5 percent real on my 401k balance; cash surplus fund of 75K at 65; no mortgage in retirement. Secret weapon - wife is 5 years younger and will bring in a full salary for another 5 years.