Retirement: A third have less than $1,000 put away

[supernova72]

Quote:

Originally Posted by Ready Just another reminder of how unprepared our country is for retirement. According to USA Today, 69% of the working population, and 66% of the retired population have less than $50K in savings. While it does not address what percentage may have a DB plan, we can assume that over the next couple of decades the percentage with a DB plan will continue to diminish, leaving nothing but social security and government aid for people to live on. It certainly builds a strong case for means testing down the road on social security, unless we come up with a better plan before we need to go there. Retirement: A third have less than $1,000 put away

I recently read that the average 401K balance reached a new high of $110K at the end of 2013. So for about 30 seconds I felt good about me being higher than that. Then it hit me…don't use $110K as a benchmark because Americans have under saved! Eek!!

[Al in Ohio]

The Social Security Admin does in depth studies on theses percentages and I read the one published for 2013. The figures they give by age group indicated much higher net retirement savings than those quoted in this article. I've read quite a few other articles from non government sources on the subject also recently and these figures by USA today are far lower than any of those as well. I frankly find these too unrealistic to believe. If someone cold called me with that question I'd never give them a hint to my actual retirement worth. Plus the target group quantity was pretty small.

[ChiSaver]

57% of all statistics are made up.

[Theduckguru]

Quote:

Originally Posted by Ready Just another reminder of how unprepared our country is for retirement. According to USA Today, 69% of the working population, and 66% of the retired population have less than $50K in savings. While it does not address what percentage may have a DB plan, we can assume that over the next couple of decades the percentage with a DB plan will continue to diminish, leaving nothing but social security and government aid for people to live on. It certainly builds a strong case for means testing down the road on social security, unless we come up with a better plan before we need to go there. Retirement: A third have less than $1,000 put away

The US has had a trade deficiet for 50 years. Until the country corrects this, the American idea of a quality retirement is gone for the majority of the population.

[Moneygrubber]

I dont think means testing is required, maybe IQ testing. So many of my co workers have 2 ski mobiles, a boat, second home, third car, etc etc. I have none of that crap but millions socked away to retire at 53. Let them play with their toys...

[Turboslacker]

Quote:

Originally Posted by Moneygrubber I dont think means testing is required, maybe IQ testing. So many of my co workers have 2 ski mobiles, a boat, second home, third car, etc etc. I have none of that crap but millions socked away to retire at 53. Let them play with their toys...

But means testing won't take into account the value of all their toys. Your investments and cash will be. And thus redistribution from savers to spenders via taxation and benefits will likely occur much more in the future. Spend it while ya can!

[mathjak107]

Quote:

Originally Posted by Al in Ohio The Social Security Admin does in depth studies on theses percentages and I read the one published for 2013. The figures they give by age group indicated much higher net retirement savings than those quoted in this article. I've read quite a few other articles from non government sources on the subject also recently and these figures by USA today are far lower than any of those as well. I frankly find these too unrealistic to believe. If someone cold called me with that question I'd never give them a hint to my actual retirement worth. Plus the target group quantity was pretty small.

that survey really is based on a very small sampling of the public. only a few hundred thousand folks are surveyed for those wealth figures.

with something as variable as worth it is impossible to draw any real conclusion about what anyone has.

i can give all my money away and get an annuity that pays 200k a year and come up pennyless in that survey.

it really is flawed.

[bUU]

Yet, even despite the concerns about its source data, its conclusion is chillingly accurate regardless.

[ziggy29]

Quote:

Originally Posted by bUU Yet, even despite the concerns about its source data, its conclusion is chillingly accurate regardless.

Yes, there are way too many people who are well established in their careers (say, folks over about 35-40) and no good DB pension plans that have insufficient personal savings, but I still wish they would report responsibly about these studies and surveys to reflect that many of these people are younger (under 30) and are more likely to be saving for a home purchase than retirement -- and that many people who have robust DB pensions waiting for them don't need to have a huge personal retirement savings stash to pull it off (though the more they have, the more wiggle room they have if things don't go according to plan).

And even those who do have DB pensions waiting for them in the future, especially if they are under about 50-55 years old, they probably need a Plan B with personal savings as there is a reasonable-to-good chance the goalposts will be moved on them before they actually reach retirement and their pensions won't be as generous as is currently stated to them.