A friend is planning on retiring by 50. She asked me how much money she should have in her retirement account in order to retirement.

I gave her two scenarios: (1) with a retirement pension and (2) with no pension.

So, if she has a pension, I told her she needed enough in her retirement account to have the interest cover the difference in the pension and her usual lifestyle expenses.

If she doesn't have a pension, then she needs to have enough in her retirement account so that the interest provides her usual living expenses.

I'm thinking about $1,000,000 in savings; plus $3100 in pensions, would be a reasonable expectation.

What do you think?

How would anyone know?

What are her usual lifestyle expenses? That will make a difference.

At 1,000,000 in savings without a pension, that will give here a yearly taxable income of 40,000 (if invested in a bank).

Is 40,000/yr satisfactory for her?

What is she currently making now? What does she need to live off?

Hi,
Yes, a million dollars, drawing interested giving somewhere around the $40,000 a year interest income would be good.
But, Does this include buying Health Insurance? That can be around $800 per month, for a "private" policy.
Does she pay a mortgage on her home?
There are many considerations, and she really needs to know her monthly expenses when she retires.
Both these answers so far indicate having to know how much she will need per month, or per year, to live on.
I do wish you and she the best.

Heck I could retire on the 3100 a month and be making more than I am now. So it is a matter of life style. If she normally jets to the mountains for the weekend this isnot enough

If she lives a normal middle class life that should be enough and more.

All you have shown is the payout, not the amount that she believes she needs to pay her current bills and life style.

Excellent points, thank you.

She received some property in a divorce settlement about 12 years ago that she is selling. She should clear about $1.25 million, which she will then invest.

She will be retiring from the military, so will have a pension that nets about $3100 monthly, and of course- almost free health care. She currently nets about $4700.

Her car is paid for; her mortgage is $882/month. No children. No extravagant habits other than taking a one-week cruise every year. Season tickets to the Globe in San Diego. Season passes to the Zoo.

I wish I could be so secure.