What is the average retirement nest egg?

Question

How much does the average retiree have saved with there 401k, investments, and other savings.

Answer 1

The median (meaning the middle household) savings of persons nearing retirement age (age 55-65) in the U.S. appears to be around $308,000 and consists of $83,000 in home equity, $91,000 in pension accounts, and $134,000 in other financial assets.  Is this enough to fund a decent retirement?  I seriously doubt it.  It is usually recommended that you spend no more than 5% of your financial asset balances per year.  So (91000 + 134000) x .05 gives you an annual before tax income of $11250 or less than a $1000 a month.  I don't count the home equity because I am assuming that you want to keep living there.

Answer 2

Nowhere near enough.  Unless you wish to live in a cardboard box you need a million or more depending on your life style.  Medical bills and everyday living expenses increase when you are retired.  More free time and eager to do all the things you waited for.  Start saving at least 10% if not more.

Answer 3

Not enough.