No! You’re not.
I stumbled on this year old article and was intrigued, especially given the real problem is lack of sufficient retirement savings and the fact I push for a 100% base income replacement target.
They key word here is comfortable. How each of us defines comfortable varies greatly. I define it as living the way you want to live and not fretting about money each month. It also means one is prepared to handle financial emergencies of all types.
I submit that you cannot do that on half the income you had just before working – unless of course, you have a million dollars stashed away in addition to an income stream.
Why Are People Saving Too Much?
There are a variety of reasons why people save too much for retirement.
Erroneous rules of thumb
For years, the rule of thumb has been to replace 70 to 80% of your working wages to live comfortably in retirement. However, Blanchett’s analysis found that some retirees can actually live quite comfortably on a little more than half of their working income and inflation has a much smaller effect on retiree spending.
So, who is right? Well, one of the difficulties with figuring out how much to save for retirement is wading through the different kinds of advice. So much of what you read is a one-size-fits-all formula with so many unknowns and a lot that is not relevant to YOU. Figure out how much YOU need.