In addition, medical expenses have been increasing far faster than the rate of inflation. Your overall tax rate may not drop very much or at all and you may live longer than you think. Today, people in their 50s and 60s are generally healthier than previous generations, and life expectancies have been increasing. Currently, if you are 60 years old, you can expect to live another 25 years. That requires a lot of money.
Time is one of the most powerful tools in achieving financial independence.
The sooner you start to accumulate assets and plan for your retirement years, the less money you will need to set aside each year in order to achieve the same goals. You should begin discussing and setting specific goals for your financial independence at least 20 years ahead of time. You can always make adjustments, but it is better to begin planning early. My Wisconsin Retirement Pension is all I need. This is assuming a straight life annuity that does not provide any survivor benefit.