Have You Saved Enough for Retirement If Your Life Culminates in Decades of Escalating Misfortune?

"It's easy to put off saving for retirement, to tell yourself that you'll deal with it later. After all, you have so many expenses right now. But, the younger you are when you start saving, the more compound interest can help you reach your goals. And research shows that you need five hundred million-plus dollars to retire comfortably if the final thirty to sixty years of your life become an unrelenting series of disasters, each more horrible than the last."

"If your company offers 401(k) matching, the bare minimum you should do is set aside the percentage of your paycheck that they'll match, and put it into a retirement account. That's free money! So if your employer will match three per cent, find a way to invest that three per cent. As a retiree, you'll be on a fixed income. That puts you at the mercy of rising costs, and even in the best of economies you should expect some inflation."

"Being permanently excluded from the workforce for reasons that are not provably age discrimination may be dispiriting, but, as long as you've set aside four per cent of your seven-figure salary, you may think you'll still be able to retire in style. Indeed, it might seem that way until, just after you come to terms with your unemployability, your house is carried away by a large drone with claws, like in one of those arcade games at the bowling alley."

Starting retirement savings early leverages compound interest to grow long-term wealth. Employer 401(k) matching should be captured as free money by contributing at least the match percentage. A practical minimum contribution recommendation is four percent of salary. Retirement income will likely be fixed and vulnerable to inflation and unexpected job loss, so additional savings provide needed resilience. Even high earners face the risk of extended disasters that can dramatically increase required retirement assets. Preparing for catastrophic events and housing loss may necessitate saving well beyond minimal contributions to maintain financial security.

Read at The New Yorker