Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Another retirement horror story
Old 07-13-2010, 02:58 PM   #1
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
Another retirement horror story

Here's an article that basically says that 50% of the population is going to run out of money in retirement. Kind of old news given the level of saving and debt in the US. There is just a major disconnect with retirement and personal finances, we've done away with DB plans and expect a family to save $1M to retire while most have significant debt. Factor in that many people have lost equity in their homes and dont even have the option to downsize to access some of the equity.

Many Americans will run short in retirement: study - Yahoo! Finance=
__________________

__________________
nun is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-13-2010, 04:29 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Purron's Avatar
 
Join Date: Nov 2007
Posts: 5,584
It is sad. Sad for the people who won't have enough money and sad for those of us who will have to support them.
__________________

__________________
I purr therefore I am.
Purron is offline   Reply With Quote
Old 07-13-2010, 05:18 PM   #3
gone traveling
 
Join Date: May 2008
Posts: 3,864
Quote:
Originally Posted by Purron View Post
It is sad. Sad for the people who won't have enough money and sad for those of us who will have to support them.
Aren't you just the bluebird of happiness?
__________________
Westernskies is offline   Reply With Quote
Old 07-13-2010, 05:26 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,619
Those are the same 50% of the retired population that ran out of money 10, 20, 30, 40, ... years ago. They always existed. They will always exist.
__________________
LOL! is offline   Reply With Quote
Old 07-13-2010, 06:06 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Sep 2009
Location: Hong Kong
Posts: 1,574
The more stories I read like this, the more I favour the Australian model with its comparatively high level of mandatory contributions by employer and employee and its flexibility.
__________________
Budgeting is a skill practised by people who are bad at politics.
traineeinvestor is offline   Reply With Quote
Old 07-13-2010, 07:01 PM   #6
Recycles dryer sheets
 
Join Date: Mar 2005
Posts: 242
What about those of us who did the best they could and HAD $1M and now don't. Those of us who are screwed are just waiting around to not be.
__________________
Sparky is offline   Reply With Quote
Old 07-13-2010, 10:35 PM   #7
Recycles dryer sheets
Pete's Avatar
 
Join Date: May 2008
Posts: 350
The game just wouldn't be as fun or interesting if victory was guaranteed.
__________________
Pete is offline   Reply With Quote
Old 07-14-2010, 08:20 AM   #8
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,539
I see this happening for a lot of relatives. One airhead SIL says "Oh, we'll have DH's National Guard pension".

Yeah, right. That might buy groceries if they live off rice and beans with a little Alpo thrown in for flavoring.

This is the same one who has bought three new cars in the last five years.

This is one of the reasons I feel soooo lucky I picked the career that I did, with an employer that is one of the few with zero unfunded pension liability.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 07-14-2010, 08:28 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,418
I have had engineer friends making $150K whose wives expect to maintain the same lifestyle on SS.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is online now   Reply With Quote
Old 07-14-2010, 09:29 AM   #10
Thinks s/he gets paid by the post
Major Tom's Avatar
 
Join Date: Nov 2009
Location: SF East Bay
Posts: 3,129
This Yahoo Finance article could almost be an Onion article. It is stating the obvious. Many people do find a way to manage though. One of my co-workers in the last job I worked at retired from a modestly paid retail job recently at the age of 62. He had worked the majority of his life in modestly paid jobs and was now existing on SS alone.

I saw him a couple of times in the year or so after he retired and although he said that money was tight, he was very happy because he had all the time in the world to do what he wanted. He had started creating pieces of art again.
He was the same guy, just a little more relaxed and happy looking.

So how did he survive on what must have been a fairly low SS check? He was living in a room with the same room-mates he'd shared with for years in a city with rent control. He had a long-term partner, so they were probably sharing the rent on that one room between them. He was as happy as a bug in a rug.

I'm a little envious of those who are good at sharing living spaces. If I were that good, I could fully retire today.
__________________
Major Tom is offline   Reply With Quote
Old 07-14-2010, 11:38 AM   #11
Thinks s/he gets paid by the post
 
Join Date: Oct 2006
Posts: 3,820
I'm not sure that this is just a future issue.
Quote:
In 2007, ... Social Security was the major source of income (providing at least 50% of total income) for 53% of aged beneficiary couples and 73% of aged nonmarried beneficiaries. It was 90% or more of income for 21% of aged beneficiary couples and 44% of aged nonmarried beneficiaries. Total income excludes withdrawals from savings and nonannuitized IRAs or 401(k) plans; it also excludes in-kind support, such as food stamps and housing and energy assistance.
The "excludes 401k" sounds like a big deal, but remember the people over 65 in 2007 were more likely to have DB pensions than 401k during their working lives.

Skimming the paper here http://www.ebri.org/pdf/briefspdf/EB...4_RRR-RSPM.pdf it looks like they are doing a lot more than a simplistic "everyone should have $1 million", but I still wonder about their assumptions. It does not appear that they actually sit down with people and look at their entire family and financial situations. IIRC, there are some researchers at the Un of Wisconsin who did a pretty careful look and came up with a more optimistic result.
__________________

__________________
Independent is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Another Emergency Room horror story FinallyRetired Health and Early Retirement 21 07-19-2009 01:43 PM
Another financial advisor horror story Sarah in SC Other topics 10 04-11-2007 10:44 AM
Another advisor horror story JustCurious FIRE and Money 54 12-01-2006 07:57 PM
Another financial advisor horror story... wildcat FIRE and Money 49 11-09-2006 05:12 PM
Annuity Horror Story...Again mickeyd FIRE and Money 6 09-28-2006 09:57 AM

 

 
All times are GMT -6. The time now is 10:57 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.