Vanguard: Retirement Income Among Wealther Retirees

[target2019]

After skimming the original paper, I think the authors should have included the distribution of what they defined as wealth among the participants. I think the survey wanted to capture certain demographics, and not leave out retirees who are down the road, and may have depleted all but 100K of investments. I tried to find email for the authors, but couldn't. I think the article is scholarly enough, but I'd really like to see a distribution graph of wealth and income so I could get a better sense of who they are talking about.

 

[HillCountry]

It is a good paper. I think the author mentioned this is intended to be a base for future survey.

I am just curious which group I might belong. My NW is kind of equally distributed between taxable, retirement account, real estate, and business.

 

[523HRR]

It is shocking to me that only one third of retired households aged 60 - 79 in the survey had financial assets of $100K. How can that be?

 

[travelover]

It is shocking to me that only one third of retired households aged 60 - 79 in the survey had financial assets of $100K. How can that be?

Uh, because most of us here represent the end of a very long tail on a distribution curve?

 

[foxfirev5]

Lot of truth in the article. Our pensions form a very nice retirement income. Having done the 62/70 SS strategy and now collecting spousal at 66 and my full age 70 benefit (close to max) our investment income is being added to and not drawn down. Many pension recipients also went down the 401/403 route and have three solid legs on their retirement stool. Especially those coming out of high income areas. Would love to see research comparing investment wealth of pensioners vs non pensioners could be surprising.

Having a great deal of experience with mega corp pensioners vs their decendants, I would also love to see the research. Living in Michigan I saw many rather well to do auto pensioners live pretty well and the kids got nothing in the end. Very few if any had the foresight to form a three legged stool. They simply lucked into a two legged program which supported their lifestyle. Perhaps this was right and part of the plan but not my style. Furthermore I don't even know if this applys to today's environment.

Personally I benefited from a pension being frozen in the early 90 's. Turbo charged 401k contributions and the big run up in equities enabled me to be at a point now where I live my my mothers mantra of " live off the divies and interest only" and don't touch what goes to the kids. Just sayin.

 

[TuborgP]

My experience is that the three legged stool and wealth transfer to family is correlated with education level? The finial perspective of friends and neighbors can play a role. Peer pressure and keeping up with the Jones can be profitable if they are financially wise.

 

[foxfirev5]

My experience is that the three legged stool and wealth transfer to family is correlated with education level? The finial perspective of friends and neighbors can play a role. Peer pressure and keeping up with the Jones can be profitable if they are financially wise.

These were mid level to VP management that I referenced. You naturally assumed they were uneducated workers

 

[TuborgP]

No I didn't know about your experience I was talking about mine and more neighborhood and youth activity oriented than work. Neighborhood because it really involved a family perspective of both spouses.

 

[travelover]

.........Living in Michigan I saw many rather well to do auto pensioners live pretty well and the kids got nothing in the end..............

Sounds good to me. The purpose of retirement funding is not to set up the kids for life, it is have a secure and happy retirement, then die.