Quote:
Originally Posted by pseudoreality
That's a little extreme. You are not going to need $5MM in savings when you are 100. So there can be a reasonable drawdown. Also, younger old people are generally more active and wish travel and such versus older old people (see go, slow, and no-go years). Not that I think you are saying this, but I want to point out that I don't think anyone is entitled to retire at 60. If you save money, fill your boots, but I don't think it is a basic right or anything.
$200k individual pre-tax income is not squarely middle class. According to this CBC article
https://www.cbc.ca/news/politics/can...tion-1.5317206
$120 household post-tax is the very top end of what could be considered middle class at 200% average household income, which would be the equivalent of a single-income household at $200 pre-tax.
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the problem however, is that you don't know how long you are going to live. Once the principal starts to erode, it continues to turn downward and erodes more quickly. If you run out of money, you're screwed. So you need to be able to live off of the income alone, in order to be secure.
As for needing less when older, yes, people tend to spend less as they get into their 80s and beyond. However, there is such a hing as inflation, and $200k, 30 years from now, will not be all that much money.
Also, health costs can increase dramatically.