How much into retirement when one person SAH?

[Cheerio]

I work and DH is a SAHD for the time being. He worked for almost seven years and paid into a defined benefit plan. When he worked, he made about 40% of what I make.

I have a pension at my job and I also contribute 12% to my 401(k) and my company contributes 6%.

We opened a Roth IRA for DH a few years ago and have been fully funding it every year since and will continue to do so.

Between the 401(k) and the Roth IRA, we are currently contributing 17% of our income to retirement. Do you think that we should be contributing more? We don't have a lot of extra money right now because we hadn't planned on having DH SAH, but DS has some health issues that require it. We both plan on DH going back to work at some point and I know at that time we will be putting much more into retirement. I just don't want him/us to get too far behind that we can't retire.

[Deleted]

If you can live on one income now, why couldn't you do it in retirement? I don't think you need to save more. When DH goes back to work, then your income and contributions will go up. I guess it depends how your lifestyle now compares to your target retired lifestyle.

[SJ]

With the limited picture you have painted for us, I would say you are probably doing just fine.

I think I would be comfortable with 17% going to retirement, with another pension and 6% employer match on top of that.

It was smart to open/max your DH's Roth IRA.

[Deleted]

We've always done 18% of gross income (including matching). We still do, its just a lower income.

[sillygoosegirl]

I think 17% is fine (it's really 23% with the match, right?--if so, even better). If/when he returns to work, you'll need to save more (a higher percentage) for retirement, to make up for these years, but that shouldn't be a problem since you'll also have a bigger HHI to take it out of. If he doesn't return to work, it's only natural that you'll only be replacing your income in retirement, so saving 17% of should be fine. Assuming you weren't already way behind on retirement before he became a SAHD. Actually, I'd look at some retirement calculators, but if anything, I'd guess you are saving more than you strictly need to.

[Cheerio]

Dec 19, 2012 13:27:46 GMT -5 @msstarry said:

I think you are doing well. Saving 15% of your own income to me is my rule of thumb when it comes to retirement savings. Having an employer match on top of it is cake. You are already teaching yourself how to live on less so I don't see a reason you would need to save a higher percentage when you SAH.

although if you have a SAHP it often is best to have a better than average emergency fund because job loss may hit your family harder.

We do have a larger-than-average emergency fund because I know that it would be catastrophic to lose my job as the only earner in the household with a child with health issues.

[Cheerio]

Dec 19, 2012 13:31:27 GMT -5 sillygoosegirl said:

I think 17% is fine (it's really 23% with the match, right?--if so, even better). If/when he returns to work, you'll need to save more (a higher percentage) for retirement, to make up for these years, but that shouldn't be a problem since you'll also have a bigger HHI to take it out of. If he doesn't return to work, it's only natural that you'll only be replacing your income in retirement, so saving 17% of should be fine. Assuming you weren't already way behind on retirement before he became a SAHD. Actually, I'd look at some retirement calculators, but if anything, I'd guess you are saving more than you strictly need to.

Yes, it's 23% of my income with the company match.