Assume a 40 year old couple have a combined income of 200K, have saved 100,000 for retirement to date, each have a match of 75% of the first 6%, and can both save 18K per year into their 401Ks.
Assuming working until 65 and a 10% annual rate of return they will end up with 5.5 million.
Is that enough?
They could contribute more as limits change, and when catch up contributions kick in. However, with a 4% withdrawal rate, they can take home 220K, with some reductions to their expenses (no more payroll taxes, no more retirement savings, etc...) assume that this is more than enough for a comfortable life.
However, are they better off just taking some money home and using it for non-tax favored investing? Where does the balance lie?