San Francisco, CA
Congratulations for continuing to work and for saving and doing some planning before jumping into retirement. Believe it or not, only 44 percent of Americans have tried to calculate how much they need for retirement.
The answer to whether or not $200,000 is adequate for retirement is really dependent on various important factors like:
-- Your guaranteed retirement income (how much you will receive from Social Security, pensions and/or lifetime annuities)
-- Your retirement expenses... Some people can retire with very little in assets because they live a very very modest life... Others require literally millions of dollars in savings to support themselves in retirement.
Home equity, your health, supplemental health insurance to cover out of pocket expenses like long term care and other factors will impact the answer to this question. The typical household approaching retirement has less than $100,000 in financial assets. So you are ahead of many, but you should also know that experts estimate that the average lifetime out of pocket healthcare cost for a 65 year old couple is around $200,000... So your nest egg might only cover healthcare.
A good way for you to get a personalized answer to this question about when you can retire is to use the NewRetirement Retirement Calculator.
You tell the system about your income, expenses and assets and it will tell you:
-- When you might run out of money (using both pessimistic and optimistic assumptions about inflation, investment returns, etc...)
-- How much money you should ideally have saved
-- How and when you might need to draw down your savings
-- Your net worth will change between now and up to 10 years past your expected longevity
-- Ideas for improving your overall financial situation
We wish you all the best!
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.