What some think about their retirement.

[MichaelB]

There aren't many studies that compare financial awareness and readiness among the generations, but I found two:

Wells Fargo https://www08.wellsfargomedia.com/d...its/insights/2014-millennial-study-report.pdf
Transamerica https://www.transamericacenter.org/...arch/tcrs2014_sr_three_unique_generations.pdf

These studies are ongoing, so comparisons with previous years are also among the conclusions. I would say they seem to point to a different conclusion than the one voiced in this thread.

One is that 80% of employees with retirement plan options take advantage of them.

Four out of five workers who are offered a 401(k) or similar plan participate in that plan. Participation rates are highest among Generation X (84 percent) and Baby Boomers (81 percent) with Millennials (71 percent) lagging behind them. Workers are contributing 8 percent (median) of their annual salary into their plans. Contribution rates are highest among Baby Boomers (10 percent median) with lower rates among Millennials (8 percent) and Generation X (7 percent).

Another conclusion is that Millennials are aware of the need to provide for their own retirement.

Millennials understand that retirement for their generation will look different than for their parents and they expect to share more of the burden of retirement income themselves.

 

[Ally]

I retired June 5th and one of my favorite work friends has decided to retire. When I heard, I called her at work and said "CONGRATULATIONS!!" She is single and said she just wants to sit at home and read books for 6 months and get over the stress. I told her that her new favorite day will be Monday. She said all the people who thought she was crazy for never wasting money and saving all she could would be envious. I'm so excited for her and look forward to hanging out some.

Both of us worked for a nonprofit and so never had huge salaries, but with planning, it's possible to make it work. It amazes me that folks with double my salary don't save and can't retire.


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[ExFlyBoy5]

I have a good friend that I went to HS with. Long, LONG story short, he owns his own auto shop. He does pretty well for himself but spends it much faster than he brings it in. Just today he posted pictures of his shiny, new RV and said something along the line of "I got a great deal and couldn't say no!!!" I asked him if he was just that bored (he also has a brand new pontoon and has no less than 5 "project cars") and he told me NO WAY...I AM SUPER BUSY! When I pressed him more, he just said, "Well, I deserve it and I got a great deal".

So many folks feel like they "deserve" material possessions and think that by "getting a great deal" makes him financially savvy. When they finally realize that when you SPEND money (no matter how much you 'saved'), that's not SAVING money?

 

[EastWest Gal]

What I deserve is to spend the whole day at home with a good book and a pot of tea, wearing my robe. That's way less work than taking care of too many things.


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[Calico]

I retired June 5th and one of my favorite work friends has decided to retire. When I heard, I called her at work and said "CONGRATULATIONS!!" She is single and said she just wants to sit at home and read books for 6 months and get over the stress. I told her that her new favorite day will be Monday. She said all the people who thought she was crazy for never wasting money and saving all she could would be envious......

Congratulations to you and your friend for reaching your goal! It sometimes takes a lot of discipline to stick to a plan in the face of criticism/judgement from others.

I get a lot of grief from my coworkers because I bring my lunch every day; take staycations instead of traveling; don't buy new clothes and shoes and purses with every paycheck (I invest in new clothes and shoes once every 5 years); drive my cars for 15-17 years; don't buy the latest electronic gadget/toy every six months, and so on. According to them I am not "fun."

I take the money that would go to all those things and put it in my "freedom fund." When I walk away in a few years with no financial worries, I'm 100% sure that will be all the "fun" I need!

The first thing I will do - just like your friend - is sit and read anything I want for months on end. Heaven!

 

[Calico]

What I deserve is to spend the whole day at home with a good book and a pot of tea, wearing my robe. That's way less work than taking care of too many things.

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Now that is a perfect day!

 

[Mulligan]

This seems like a universal human characteristic that has existed at all times and places, so I think the modern American phenomenon of inability to save for retirement must be attributable to other things unique to our present culture, economic system and/or government.

My thinking aligns with Karen's post above. But I agree there are other forces at work both at the individual and macro level. Just heard on radio today that barely 70% of men and 58% of women of working age were actually working or actively looking for work. Men have been dropping since records were started in 1940s. Women are on the downslide too after peaking over 60% in recent times. So at a macro
level you have less people working (in their working years) than last generation, and stagnant adjusted for inflation family income for several decades and it does become harder to save in that regard also.


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[hnzw_rui]

I get a lot of grief from my coworkers because I bring my lunch every day; take staycations instead of traveling; don't buy new clothes and shoes and purses with every paycheck (I invest in new clothes and shoes once every 5 years); drive my cars for 15-17 years; don't buy the latest electronic gadget/toy every six months, and so on. According to them I am not "fun."

Lol, we have DB COLA pension but majority of my coworkers (a lot of whom are Chinese immigrants) are also tightwads who brownbag their lunches so this is pretty much par for course. One of my supervisors (definitely a MND) retired at 62, receives a comfortable pension and is finally enjoying his savings by going on $10-20K cruises and vacations 2-3 times a year.

I'm actually the one who has new electronic gadgets/toys every year. Not really big on clothes, purses, shoes, cars, etc, so tech and books are where my money goes.

 

[Danmar]

Yes, this is a common, long term observation. Most people really don't have a clue about retirement issues. I have resigned myself to basically ignoring them and ensuring I spread the "gospel" to people and relatives I think can benefit from my advice. Hard to suppress the smugness though.

Here's another question. Do you think low cost of living locations have more of these clueless people than Other areas? Probably not.

 

[growing_older]

Similar story - I had a co-worker who was convinced that he only had to save $1M by his early 30's and then could retire on the interest. He did, but guess what - that was in the early 1980's with sky-high interest rates. 5 years later, back to work.

This story confuses me a bit. In the early 1980's with sky high interest rates, one might think one could retire with $100,000 in the bank and live off the interest. But $1M saved would have been a fortune. With annual expenses of say $12,000 that million should have been more than enough for a lifetime if invested almost any responsible way.

 

[hnzw_rui]

Yes, this is a common, long term observation. Most people really don't have a clue about retirement issues. I have resigned myself to basically ignoring them and ensuring I spread the "gospel" to people and relatives I think can benefit from my advice. Hard to suppress the smugness though.

I have no one to preach to but I'm definitely thankful for the advice I've received from older relatives and co-workers. They were the ones who made me aware that we had a deferred comp plan in the first place to supplement the DB pension.

Here's another question. Do you think low cost of living locations have more of these clueless people than Other areas? Probably not.

In the current US climate where the prevalent thinking is YOLO, I think it's probably around the same regardless of area. I reckon there are probably plenty of folks relying on SS in their old age. Those who grew up in poor and depressed situations and know that they can't rely on the government for help are more likely to save for their own future.

 

[lem1955]

I have friends who are serial enterpreneurs. They have started, owned and sold many businesses over the last 35 years. They take long breaks between to pursue interests other than working, get an idea for a new business and then go back to working. I admire that lifestyle. It's different from the way many of us toil, toil, toil and then retire, but has much less possibility that they croak before getting in some "retirement" years!

 

[Bamaman]

And as those that failed to save for retirement say: "Welcome for shopping at Walmart."

 

[Amethyst]

Times are really getting hard. Our local Wal-mart no longer has a greeter!

And as those that failed to save for retirement say: "Welcome for shopping at Walmart."

 

[Mulligan]

Times are really getting hard. Our local Wal-mart no longer has a greeter!

We must have too many pilferers at our nearby store as they reinstated Granny and Grampa greeters after a brief hiatus. Personally I believe young "Muscle Heads" should be the greeters and have carte blanche to rough up the offenders in the back room.


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[Senator]

Personally I believe young "Muscle Heads" should be the greeters and have carte blanche to rough up the offenders in the back room.

But only if they stole $25 or more...

According to the internal Wal-Mart document, the new shoplifting policy has changed from “Shoplifter Apprehensions” to “Investigation and Detention of Shoplifters.” In particular, the new shoplifting document explains to Wal-Mart workers that “the guidelines for prosecution of shoplifters have changed: the retail value of the merchandise recovered must exceed $25, and the suspected shoplifter must be at or between the ages of 18 and 65.”

 

[Mulligan]

But only if they stole $25 or more...



According to the internal Wal-Mart document, the new shoplifting policy has changed from “Shoplifter Apprehensions” to “Investigation and Detention of Shoplifters.” In particular, the new shoplifting document explains to Wal-Mart workers that “the guidelines for prosecution of shoplifters have changed: the retail value of the merchandise recovered must exceed $25, and the suspected shoplifter must be at or between the ages of 18 and 65.”

Senator, you are turning me into a softie....Im ok with $25 and over before some cracked ribs occur.


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[Amethyst]

What? People over age 65 can shoplift with impunity?

I'm preparing Mr. A.'s Wal-Mart shopping list!

But only if they stole $25 or more...

According to the internal Wal-Mart document, the new shoplifting policy has changed from “Shoplifter Apprehensions” to “Investigation and Detention of Shoplifters.” In particular, the new shoplifting document explains to Wal-Mart workers that “the guidelines for prosecution of shoplifters have changed: the retail value of the merchandise recovered must exceed $25, and the suspected shoplifter must be at or between the ages of 18 and 65.”

 

[travelover]

"............. the suspected shoplifter must be at or between the ages of 18 and 65.”

Cool! Medicare, SS and impunity! Something to look forward to.

 

[tmm99]

I know a few people (outside the IT circle I was in) who make an honest living but get paid very little. I don't even know how they can make ends meet with their paychecks, much less save money. Knowing how much they make in an hour and how much I used to make in an hour, it is kind of heart breaking.

 

[CaliforniaMan]

I know a few people (outside the IT circle I was in) who make an honest living but get paid very little. I don't even know how they can make ends meet with their paychecks, much less save money. Knowing how much they make in an hour and how much I used to make in an hour, it is kind of heart breaking.

Don't feel too bad, my guess is that many if not most were not working as long or hard as you were studying in school and keeping up your skills afterwards. I have friends too (outside of IT) who are good people, work hard, but make very little. On the other hand, it was their choice. They never took the effort to get the degree, the contractors license, etc. even though they did have the opportunity.

There are some people who have truly been dealt a bad hand, with illness or tragedy in their life, living in war torn or desperately poor parts of the world. These are truly heart breaking. And failures beyond their control. But for most here in the developed world, the only heartbreak is that they chose poorly.

I have told my kids many times that they live in the real world, and as much as they are loved by their family, their only economic value lies in the services they can perform, the problems they can solve, and how much these are worth in the marketplace. So far they seem to have taken that advice.

 

[Walt34]

... and the suspected shoplifter must be at or between the ages of 18 and 65.”

What? People over age 65 can shoplift with impunity?

I'm preparing Mr. A.'s Wal-Mart shopping list!

I'll be preparing mine next spring when I'm 66. Whoo hoo!

 

[Calico]

I know a few people (outside the IT circle I was in) who make an honest living but get paid very little. I don't even know how they can make ends meet with their paychecks, much less save money. Knowing how much they make in an hour and how much I used to make in an hour, it is kind of heart breaking.

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