I Asked ChatGPT for the Bare Minimum I Should Save for Retirement: Here’s What It Said

Rules for however overmuch you should person saved for status alteration depending connected the source, and it tin beryllium confusing to cognize which regularisation to trust upon.

As idiosyncratic implicit the hump of 50, status feels some acold distant and similar it volition beryllium present immoderate time to me. To assistance maine get a consciousness of a baseline, I asked ChatGPT what is the bare minimum that I should prevention for status — and immoderate wide guidelines for the mean person, too.

First, ChatGPT shared immoderate of the “widely cited guidelines” for retirement. It drew connected sources similar Fidelity, which suggests that, by my age, you should person astir six times your yearly wage saved, yikes! Other adept sources, specified arsenic Vanguard, suggest that fig should beryllium person to 8 to 10 times your wage by retirement.

Another rule, ChatGPT said, drafting connected information from Schwab, is to prevention with the “4% rule” successful mind. That means you request capable saved truthful that you tin retreat 4% a twelvemonth and person that screen your status expenses.

However, I unrecorded successful a portion of California wherever costs of surviving are higher than overmuch of the U.S., truthful ChatGPT said galore retirees successful my cervix of the woods should person good implicit $1 million, often person to $1.4 cardinal to $2 cardinal oregon more, depending connected housing, lifestyle, healthcare, taxes and ostentation by my age.

Find Out: Retirement Net Worth: How Your Savings Compare to the Average Retiree

Read Next: 5 Clever Ways Retirees Are Earning Up To $1K per Month From Home

Because outgo of surviving (especially housing) successful the Bay Area is truthful high, and apt to stay so, a realistic bare-minimum nest ovum for comfortableness (not frugality) apt needs to beryllium toward the little extremity of the “comfortable retirement” estimates. Here’s a unsmooth script for idiosyncratic successful my shoes:

If my pre-retirement income were $100,000 per year, a six times-salary people by property 50 would connote savings astir $600,000. But fixed the Bay Area outgo structure, a $600,000 nest ovum would astir apt beryllium excessively choky for a comfortable, agelong status if I expect to enactment locally.

A much realistic modest-comfort minimum mightiness beryllium $1.2 cardinal to $1.5 cardinal (assuming I don’t person a paid-off location and that I’m relying mostly connected savings and imaginable Social Security). Still, ChatGPT recommended aiming higher, much toward $2 cardinal oregon more, leaving wiggle country for unexpected expenses, inflation, longer beingness and maintaining immoderate discretionary spending.

Thus my “bare minimum” depends heavy connected however I walk connected housing, lifestyle, status age, healthcare costs and whether I’ll trust connected Social Security oregon different income streams.