RetirementI skimmed CNNMoney.com’s article, “Millionaires in the making”, earlier today.  Sure, it’s important to live below your means.  However, there is a fundamental problem with featuring potential millionaires.  Becoming a millionaire is no longer enough by today’s standards.

Determining how much you need for retirement depends on life span and cost of living.   Using the CNNMoney Retirement Calculator, will bring this assertion to life.   So, I decided to enter the Rodrigueses retirement needs based on the following parameters:

  1. Their current age is 27.
  2. Their annual income is $174,000.
  3. Their retirement age is 40.
  4. Their post-retirement annual income is 80%.
  5. Their life expectancy will be 85 years old.
  6. No pension or social security income.

Guess what?  They will need more than $4.173 million.  This is not too far off for the average person.  Instead of trying to become a millionaire, most people need to think about how they’re going to save between $5 – 10 million in order to maintain the same living standards.

If this is not a practical goal for your current situation, then there’s always the choice to retire in a foreign country where the cost of living standard is lower and your US dollar will go further such as places in Asia, Central America or South America.