The reality has been far from the expectation. First, even with the modest inflation rate of 3% we have experienced over the past 30 years, prices will have quadrupled during your working years. A commodity costing $10 at age 25 will cost around $40 at age 65. This means it would cost four times the amount to retain the same life style at retirement as it did in your twenties. Second, the tax rate has come down and instead of paying less taxes at retirement, most people will be paying higher taxes. Instead of paying the taxes on the smaller amount of the money invested, they are paying taxes on the original contribution plus the growth.
The following examples are based on the following criteria: A male non-tobacco user aged 30 in good health, planning on retirement at age 65, and living to current predicted actuarial age of 85. Your specific situation will differ based on your current age, age at retirement, and time of death, but your results will be similar.
For a free consultation and to learn more about tax free retirement options, please contact me at 909-714-1830 or at firstname.lastname@example.org.