We will foot the bill on this one

[camberiu]

Guess what? All those people are spending their money on nice cell phones, latest cars and iPods because they know someone else will take care of them when they get old. Namely: Us.


http://money.cnn.com/2007/04/10/pf/r...ion=2007041108

[HFWR]

Not if I get old first...

[gandalf42]

"30 percent of workers said they thought they would need to have a nest egg worth less than five times their current income to live in retirement, while 27 percent thought they needed between five and 10 times their income in savings. All but the lowest earning men should have 12 times their income just before retirement, estimates EBRI. "

So 57% of folks don't know what they need for retirement in spite of all of the free calculators out there?

We live in a strange society.

[teejayevans]

Without knowing what each person's circumstances, aren't these
surveys pointless. If I was going to work till 65 and had a pension
that replaced 75% of my income, I wouldn't need any savings either.
Tom

[camberiu]

If it was a random and representative of the population survey (I think it was), then we can say for certainty that the majority of workers in the US do NOT have pensions and that should be reflected by the survey.

[CCdaCE]

Quote:

Guess what? All those people are spending their money on nice cell phones, latest cars and iPods because they know someone else will take care of them when they get old. Namely: Us. CNN Money URL

Nothing changing then, most of us already pay taxes, Medicare, SS, etc.

-CC

[tryan]

Well, a good great pension and SS and 25k in savings is MORE than you need.

But for the rest of us ... I like this one:

Quote:

recommends that you aim to replace 80 percent of your net pre-retirement income - that is, your gross pre-retirement income minus what you contribute to retirement savings annually.

Seems to forget that your tax bracket will be at least cut in half ... details, details.

[Mwsinron]

I know sure as hell the DW and I dont spend near 80 percent of our income. LBYM :P

[Cut-Throat]

Quote:

Originally Posted by camberiu Guess what? All those people are spending their money on nice cell phones, latest cars and iPods because they know someone else will take care of them when they get old. Namely: Us. http://money.cnn.com/2007/04/10/pf/r...ion=2007041108

Actually I think this is great! - With less assets people will be forced to keep working to keep up their standard of living. This means more demand for capital will equal higher returns. More old people working is less demand on the Social Security system as well as more money flowing into it.

Think about the opposite situation and tell me what you'd rather have? Everyone over the age of 50 are Milliionaires, have plenty of capital - all living below their means - all planning on withdrawing from SS the age they hit 62. Economy collapses because of LBYM..................

Be careful what you wish for?

I think the future looks very bright - and I am happy to be one of the few that has some assets.

[Mwsinron]

Exactly. We need people out there spending to their limit and keep on working to purchase things! Its the capitalist way!

[NinjaPigeon]

I can't believe people honestly think 5 times their income will be enough to retire on. Are they planning on dying within several years of retirement? Or are they that clueless of the state of social security? How many pension plans will still be around in twenty years? They seem to be getting converted to DC plans more often than not nowadays.

It should be noted that the people who believe they need that little are also the ones who spend every dime they make. Those dollars are gonna be stretched awfully thin!

[samclem]

This is one of my favorite parts:

"Sixty-two percent surveyed said they expected to receive a pension when they retire, even though only 41 percent of them said they knew of a pension they or their spouse had coming."

Maybe the other 21% of the respondents intend to find and take a job a job with a defined benefit plan before they retire, bit they haven't done it yet?

[bosco]

Quote:

Originally Posted by samclem This is one of my favorite parts: "Sixty-two percent surveyed said they expected to receive a pension when they retire, even though only 41 percent of them said they knew of a pension they or their spouse had coming." Maybe the other 21% of the respondents intend to find and take a job a job with a defined benefit plan before they retire, bit they haven't done it yet?

it's called 'magical thinking.' you see it in many arenas. many people outgrow it when they reach adulthood. many don't.

[chinaco]

Quote:

Originally Posted by camberiu Guess what? All those people are spending their money on nice cell phones, latest cars and iPods because they know someone else will take care of them when they get old. Namely: Us. http://money.cnn.com/2007/04/10/pf/r...ion=2007041108

We have been footing the bill... SS is a pay as you go system, so is Medicare and Medicaid. The only problem with the boomers is the ratio of worker to non-worker has tipped scales. This problem will be solved in 4 ways.

1) Legal Immigration will increase significantly over the next 10-15 years to get more wage earners and tax payers in the system.

2) SS may wind up with a progressive tax put on it (i.e., means test). If you earn above X you are in the 33% tax bracket. This may also happen to Medicare... The premiums are progressive depending on earnings.

3) LTC being funded by Medicaid (which could break the system). Will be more available via group plans and new LTC alternatives that keep people out of nursing homes longer will emerge (new forms of assisted living).

4) Drugs prices will be negotiated by Medicare.

[teejayevans]

Quote:

Originally Posted by Cut-Throat all living below their means - all planning on withdrawing from SS the age they hit 62. Economy collapses because of LBYM..................

Thanks for spelling out the acronym, all this time I thought I was
"live beyond your means"
Seriously, we need the editor to substitute for the acronyms, just like you can
spell check today, but the phrase is given instead of NIMBY for example. I've yet to figure
out DW (dumb wife?) and some of the others. Think of the new people who
don't have million posts to their credit.
Tom

[REWahoo]

Quote:

Originally Posted by teejayevans Thanks for spelling out the acronym, all this time I thought I was "live beyond your means" Seriously, we need the editor to substitute for the acronyms, just like you can spell check today, but the phrase is given instead of NIMBY for example. I've yet to figure out DW (dumb wife?) and some of the others. Think of the new people who don't have million posts to their credit. Tom

Tom, the forum has it's own version of a 'secret decoder ring'.

http://early-retirement.org/forums/i...p?topic=5392.0