Same article the OP linked to, different perspective?
CNBC reports that 29% of people over age 55 have no retirement savings or pension.Of those that do, the average is only $104,000.Most of the people on this forum are in much better financial shape .
True enough of course, but the fact remains that it is going to be a huge social issue. 29% is a significant portion of the population.
That 90% of the population will receive SS benefits doesn't solve much either; the average benefit is very close to the poverty level which means a significant number will be below it.
True enough of course, but the fact remains that it is going to be a huge social issue. 29% is a significant portion of the population.
That 90% of the population will receive SS benefits doesn't solve much either; the average benefit is very close to the poverty level which means a significant number will be below it.
Here's the thing I notice about a lot of these retirement articles: they don't tell the whole story. Most of them cite the average 401(k) or 403(b) balances for the groups they're reporting on, and many don't include IRAs in their consideration. Further, they don't look into taxable investment accounts, and few of them consider rental properties and other alternative investments.
Telling the real story may be popular in journalism school. But elsewhere, the goal is selling media, and the way to do that is to pander to every fear and prejudice, and hate on the bad guys du jour.I'm sure that the overall health of American retirement is generally poor, but I wish some of these articles would think to look beyond 401(k)s and tell the whole story.
That's what I wonder about too. Like you, if one looked only at our savings, IRA and TSP balances we'd be considered in bad shape for retirement. But we also have a COLA'd pension and heavily subsidized heath insurance.
That said, I know of several relatives who could be the subjects of articles like that. They'll be living on SS and whatever other assistance they qualify for.
A truly qualified and thorough report would probably be pretty expensive to undertake with all the variables.
Retirement Savings: Introduced over 30 years ago, two primary types
of retirement savings vehicles currently exist: employment-sponsored DC
plans (such as 401(k) plans) and IRAs. For both types, benefits accrue in
the form of account balances, which grow from contributions made by
workers (and sometimes by their employers) and investment returns.
Examples of employer-sponsored DC plans include 401(k) plans, 403(b)
plans, and similar plans for which employers can offer payroll deductions,
employer contributions to employee accounts, or both. Individuals can
also save for retirement through IRAs, which allow individuals to make
contributions for retirement without participating in an employmentsponsored
plan.
Workers and employers who contribute to retirement savings accounts
generally receive favorable federal tax treatment, such as tax deductions
for contributions and tax-deferred or even tax-free returns on
investment.
DC plans and IRAs provide tax advantages, portability
of savings, and transparency of known account balances. However, they
also place the primary responsibility on individuals to participate in,
contribute to, and manage their accounts throughout their working
careers, and to manage their savings throughout retirement in order to
keep from running out of money
Though he/she omitted a link http://www.cnbc.com/id/102729377, the OP highlights that '29% 55 or older have no retirement savings,' which many readers might misinterpret as no source of retirement income. But 90% have some (Soc Sec) income.True enough of course, but the fact remains that it is going to be a huge social issue. 29% is a significant portion of the population.
That 90% of the population will receive SS benefits doesn't solve much either; the average benefit is very close to the poverty level which means a significant number will be below it.
Actually, the other 10% without Social Security might have it better since they're likely the ones who'll get COLA'd pensions which could replace up to 90% of pre-retirement income. My mom has a bunch of co-workers not contributing to their deferred comp plan but can expect pensions of at least 50% of pre-retirement gross income (more like 58% after factoring pension deductions, Medicare, etc).Though he/she omitted a link Most older Americans fall short on retirement savings, the OP highlights that '29% 55 or older have no retirement savings,' which many readers might misinterpret as no source of retirement income. But 90% have some (Soc Sec) income.
So 71% have savings and/or pensions (plus Soc Sec for some number of them), leaving somewhere between 0-10% with nothing at age 55. That gives the 0-10% 10-15 years to secure retirement income in some form, or keep working. Better?
there's pretty good data there to support the premise that a lot of retirees and retirement-age people have a very limited security net.
CNBC reports that 29% of people over age 55 have no retirement savings or pension. .
I agree. 90% of the population receiving SS benefits doesn't solve the problem. I'm sure the majority of those people with no saving have no savings because they were low income workers and will get maybe $1000/mo from SS if that.
Here's the thing I notice about a lot of these retirement articles: they don't tell the whole story. Most of them cite the average 401(k) or 403(b) balances for the groups they're reporting on, and many don't include IRAs in their consideration. Further, they don't look into taxable investment accounts, and few of them consider rental properties and other alternative investments.
If you looked at my and DW's 403(b) retirement accounts, you'd say we have less than $300K saved for retirement, but that's underselling what we consider our retirement assets by more than 50%, and doesn't begin to consider my pension.
I'm sure that the overall health of American retirement is generally poor, but I wish some of these articles would think to look beyond 401(k)s and tell the whole story.
After 4 years (early) retired, I am finding ^ to be one of the biggest challenges. Not that I didn't know in advance, but I'm faced with hanging out with folks way older than me (not a fan) weekdays or not at all. I am sure a few are out there, but I haven't found another retiree even close to my age yet...So I'm expecting to have to find a whole new group of people to associate with. That's the part about these numbers that I find disturbing.
So I guess the point is that while some very low income retirees of today and tomorrow didn't raise children with much better financial outcomes, those that did have somewhat of a safety net.
More than half of the comments I get on my TSP posts say something like "Well, yeah, my sergeant pushes the TSP awfully hard, but I don't want to lock up MY money for over 30 years. I'm getting out next year, and I can't even take my TSP account with me when I leave the military!"Some folks don't like the options available in their 401k and choose to invest in taxable accounts. While I wouldn't do that, I know quite a few folks in the military who don't put money in their TSP (foolishly, IMO) because they're convinced the funds aren't as good as what they can buy through E-Trade, tax benefits be damned.
So maybe good data in this particular article, but again, not telling the whole story.