In most well off areas of the country men live to average age of 81, and women to 84. So if both are retiring at 65 then you find that men need to save up for 16 years of retirement, and women need to save up for 19 years of retirement. Granted you probably want to have a buffer for if you live longer, but just on that basic calculation women should save 20% more on average than men for retirement. Assuming the life-expectancy gap doesn't close and people don't start living longer in the future.
Just a question around FIRE and SS... Well, two questions. The first is, how do FIRE followers calculate SS at all, as I assume their goal is to retire well before 62 even? And also, how likely is a FIRE follower to have a significant SS payout? Since SS is based on years of contribution (highest 30?) and you get less the sooner you take it, I would think FIRE followers might be on the lower side of SS checks. They might not have 30 years (or at least a high 30 years) if they are looking to retire early. Also, I would think they would be more likely to take SS as early as possible. As the average SS check is somewhere around $1,700/month, I would think a FIRE follower might be better to assume their check would be lower than that. Would it be better to assume something like $20K/year for SS if someone is a FIRE follower? And they still have to figure out how to make the budget work until 62 if the take SS as early as they can.
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In most well off areas of the country men live to average age of 81, and women to 84. So if both are retiring at 65 then you find that men need to save up for 16 years of retirement, and women need to save up for 19 years of retirement. Granted you probably want to have a buffer for if you live longer, but just on that basic calculation women should save 20% more on average than men for retirement. Assuming the life-expectancy gap doesn't close and people don't start living longer in the future.
That's a huge disparity.
Just a question around FIRE and SS...
Well, two questions. The first is, how do FIRE followers calculate SS at all, as I assume their goal is to retire well before 62 even?
And also, how likely is a FIRE follower to have a significant SS payout?
Since SS is based on years of contribution (highest 30?) and you get less the sooner you take it, I would think FIRE followers might be on the lower side of SS checks.
They might not have 30 years (or at least a high 30 years) if they are looking to retire early.
Also, I would think they would be more likely to take SS as early as possible.
As the average SS check is somewhere around $1,700/month, I would think a FIRE follower might be better to assume their check would be lower than that.
Would it be better to assume something like $20K/year for SS if someone is a FIRE follower? And they still have to figure out how to make the budget work until 62 if the take SS as early as they can.