So, at 31, if I have 22k in my 401(k), and make 18k a year contributions at 7% with a 75% employee match up to 5%, I would have over 3 million in it at 66. This also ignores a) the 18k being risen, and b) the catch up after 50. Still, let's just say 3 million is the balance.
If I were to theoretically take all that (since I would also have savings of my own, a pension, SS) and buy a perpetuity, how much would I get?
Well, I have no idea of the rates on perpetuities and can't seem to find anything easily on Google, so I'll just say 7% to match the S&P's typical performance:
X/.07 = 3,000,000 -> X = $210,000 annually (for simplicity's sake)
Bringing back to today's value, assuming 3% inflation -> $210,000 / (1.03)^34 = $76,869
So, unless I messed up, in (probably) a worst case scenario, I can get $76,869 in today's dollars annually when I retire, forever? Meaning, I'm completely financially secure (and then some) before I even factor in other investments and annuities?