23 July 2012

Horsing Around with Retirement

Charleston, S.C.

You could tie a horse to a horse, of course.

In other news... I had a conversation with my daughter on our vacation about pensions and retirement. It hadn't dawned on her that working as I do in a non-profit hospital, I don't have a pension. We are encouraged of course to set money aside into managed accounts and a tiny portion is matched by the health system. She has worked for the county and now is in a university position. I explained that she may well be able to retire before I do.

Just for fun I plugged some numbers in one of those nifty and depressing retirement calculators. What a relief to discover that it will all work out after all as long as I follow their advice:

  • Increase contributions to 132.89% of your income
  • Increase your rate of return before retirement to 26.58%.
  • Reduce your required income at retirement to 41% of your final year's income.
  • Delay your retirement until age 94.

Oh. That should work.