I am a little confused on how to calculate TOTAL $ needed for retirement. How do you include pensions and SS (and yes, I believe we have nothing to fear, but fear itself) into the figure?
I have read a lot about having 20x your annual living expenses including taxes as a reasonable goal to have at the beginning of retirement. Let's say that is $100K/year, so I need $2M. However, if I count pensions and SS are $75K/year x20=$1.5M, right there. So I need $500K in investments over and above the pensions and SS or do I need $2M in investments alone. If pensions and SS are for life ,shouldn't they be counted differently. If so, what is their multiple?
Chip