42 percent of adults are not saving for retirement

[gcgang]

Did you ever ask them what they are going to do when they can't work anymore (by choice or not by choice)?

They will depend on people like us who have sacrificed to bail them out.

 

[aja8888]

They will depend on people like us who have sacrificed to bail them out.

Possibly, but more than likely they will be looking at their children to take care of them. Lots of times, that does not work very well.

 

[OAG]

Must be relying on the "Free everything" movement. Hope not but...………….

 

[travelover]

Yippee! Another opportunity for us all to pat ourselves on the back for being so smart and hardworking and to cluck our tongues at those irresponsible others that drag down society.

 

[Offgrid Organic Farmer]

42 percent of adults are not saving for retirement

I know this is not a surprise for most on this board, but I thought it was an interesting statistic and it serves as a reminder of just how different we are compared to many.

Not surprised here.

I served on Active Duty for 20-years. A career field where we only need to stick with it for 20 years and we get a pension. But, ...

Less than 1% of career military actually plan on retiring after they get their pension.

They mostly assume that they can get a corporate job to support their families until they reach 65.

 

[kgtest]

Not surprised here.

I served on Active Duty for 20-years. A career field where we only need to stick with it for 20 years and we get a pension. But, ...

Less than 1% of career military actually plan on retiring after they get their pension.

They mostly assume that they can get a corporate job to support their families until they reach 65.

I never assumed a shelf life past 50 Civi or DoD. Just never really knew what it took to be able to meet that date.

I remember a fellow airman walking to work (and sometimes hitching rides) from our barracks. I thought it was odd most had a car, but he was adamant he was not going to buy a car until he had enough cash. My car was 5 years old and paid for so I wasn't too concerned but he knew what he was doing. He hooked up with a cutie right away and they were always ridin around together lol.

Me, I was pushin the rev limiter all over Vandeberg lol. Did have a bit saved after my honorable, seems you didn't need to spend much when the military paid per diem, housing and had cheap gas (and booze) right on the base.

 

[Offgrid Organic Farmer]

... Did have a bit saved after my honorable, seems you didn't need to spend much when the military paid per diem, housing and had cheap gas (and booze) right on the base.

For most of my Active Duty career, I was buying a collection of apartment complexes, one at each duty station.

 

[redduck]

Know many residents in my state (FL) that don’t save for retirement but take several cruises during the year and spend thousands of dollars during Black Friday weekend...

I have neighbors like that as well. Most of mine in that boat (literally) have pensions. Sad thing is that when one partner passes, and one pension goes away...

Yeah, but the partner who dies first apparently has a great retirement.

 

[ckelly78z]

Did you ever ask them what they are going to do when they can't work anymore (by choice or not by choice)?

They claim that with their lifestyle, they won't make it to retirement. I believe them.

 

[ownyourfuture]

They will depend on people like us who have sacrificed to bail them out.

There it is, in black-and-white.

 

[Teacher Terry]

Many pensions have a survivor benefit.

 

[daylatedollarshort]

I grew up in a low income household so I have empathy for people who don't have the income and planning skills to save more. As adults DH and I been fortunate to make enough to save for early retirement. But we have also been surprised at the number of couples we know who went broke despite two relatively high white collar incomes simply from living above their means. I think part of the reason we still choose to LBOMs is we don't want to end up like some of them.

 

[youbet]

Yippee! Another opportunity for us all to pat ourselves on the back for being so smart and hardworking and to cluck our tongues at those irresponsible others that drag down society.

+1

As soon as the thread opened, the direction was predictable! Gosh, ain’t we FIRE-types superior?

 

[brett]

There are many people who are there by no fault of their own. They went through the real estate crunch and then the downsizing. They used up part of their retirement funds simply to get by. It should have been the start of their high earning years.

When they finally found employment it was at a much lower level of pay. So part or all of their assets have been depleted and they are just getting by. That certainly does not make me feel good, smart , or superior. Just thankful that it did not happen to me.

They are not saving for retirement because of lifestyle choices. It simply happens to be their circumstances.

 

[ckelly78z]

Many pensions have a survivor benefit.

I will be taking the 100% survivorship option on my pension, so my wife can live to be 95 comfortably. I might not make it past 75 with all of my health issues.

 

[brett]

America’s middle class is shrinking and has been for the past few years. My guess is that the rate of shrinkage will grow. Post secondary education and medical costs are growing at a rate much faster than inflation.

The ‘new’ economy is upon us. Fewer and fewer people will be able to leave high school and secure a high paying union job for life with benefits and a retirement plan. More and more will be faced with lower paying jobs in the service sectors. It is why education is more important today than ebpver before. Just a pity that most of our political leaders are tying to trade on the past instead of looking toward the future.

 

[redduck]

They will depend on people like us who have sacrificed to bail them out.

Ah, come on now; doesn't it feel great to be part of the solution and not part of the problem?

 

[NW-Bound]

Ah, come on now; doesn't it feel great to be part of the solution and not part of the problem?

Some people are not part of the solution because they are part of the precipitate.

 

[USGrant1962]

Some people are not part of the solution because they are part of the precipitate.

I blew a little bit of Scotch out through my nose onto the screen.

Said a chemical engineer.

 

[Souschef]

DW has raised my consciousness about those living around us. We live in a +55 MHP, and have a NW > $1M. There are many here that are just making it on their SS.
I do what I can to help them, as many are widows who are victims of their husband's non caring about what happens to them if he dies.
I know in our case, if I go, DW can claim my SS, but that leaves a big gap in income.

 

[USGrant1962]

DW has raised my consciousness about those living around us. We live in a +55 MHP, and have a NW > $1M. There are many here that are just making it on their SS.
I do what I can to help them, as many are widows who are victims of their husband's non caring about what happens to them if he dies.
I know in our case, if I go, DW can claim my SS, but that leaves a big gap in income.

After ER at 55 my DF passed at 59, both of which (55 and 59) were major impetus on my drive for ER (followed by a totally full BS bucket). He was old-school megacorp with a DB pension, and he chose the lower payout to make sure DM had survivor's benefits. DM turns 80 in a few days and is doing great financially with her survivor's pension, SS and savings.

We have healthy IRA/401(k) balances, but as the higher earner I am deferring SS until at least FRA, and probably 70, for longevity insurance for both me and DW.

 

[ckelly78z]

I am taking a full survivorship on my 28 year company pension when I retire in about 8 years. We will get less per month, but for more months than if I waited. I need to ensure that my wife is in good financial shape, due to my health issues. We have sacrificed a bit throughout our lives to have a happy, retirement at an early age.

 

[Mdlerth]

42% of adults also are overweight; are these the same folks?

DF... was old-school megacorp with a DB pension, and he chose the lower payout to make sure DM had survivor's benefits. DM turns 80 in a few days and is doing great financially with her survivor's pension, SS and savings.

We have healthy IRA/401(k) balances, but as the higher earner I am deferring SS until at least FRA, and probably 70, for longevity insurance for both me and DW.

+1 on your dad's plan.

FIREcalc and other simulators give us 100% success as a couple, but I don't intend to leave DW living under a bridge if I punch out prematurely. That's why I'm doing the OMY, maxed her survivor benefits on my DB pension, and delaying my higher earner/more years SS to 70 (assuming I live even that long).

Returning to the OT, it feels like awfully familiar territory. Articles on financial unpreparedness appear regularly, as if they are on a schedule. Looking forward, I expect next week to feature articles on people struggling with their medical bills, followed by the plight of millenials and their student loans. Rinse and repeat.

 

[karen1972]

I have no doubt about the 42% number. I think many think about saving but often things happen which unless you are in that category its hard to understand.

Like if you have less than $5k in your 401k many companies send you a check automatically when you stop working there.. well if you just got layed off and got a check for $2500 from your company, you don't think hey I should roll this over into my IRA, you think OMG I can pay my bills another month until I find something else.

Generational issues play a big part, every time you have a few dollars, there is always a kid/grandkid that is on the edge, car won't start, furnace broke, etc.. its a "it takes a village" type situation and well the village is cumulatively always broke.

And then there is just the fact most people are like, well I'm poor now, how much poorer can I really get.. so why not get at least something for myself now. If you make $15/hr and you save 3%, you are talking $900 a year, that is not going to change their life even 30 years from now...but $900 now could mean a car that doesnt break down every day or an apartment you feel safer in or a family trip to some local water park. clothes from some place other than good will, etc.


And of course a huge group of people that have a very skewed sense of reality.. it always amazes me when every story starts, well I'm 50+, $60k on the credit cards (but hey who doesn't), have a house which I will owe payments on until I'm 80, but I've saved away all this money, like I have almost $20k in my 401k so I'm not doing that bad. They honestly think they are doing great.. like they own their own home, have money in their 401k, so obviously they are doing way better than most.

 

[redduck]

Some people are not part of the solution because they are part of the precipitate.

Had to look up "precipitate." It was a response to the question that I could not anticipate. Learned something today.

I blew a little bit of Scotch out through my nose onto the screen.

Said a chemical engineer.

As I understand it, that's how you can identify a chemical engineer from the rest of the population.


edit to add: I also learned that "engineer humor" is probably an acquired taste.