Belt, suspenders, duct tape, super glue, Velcro and two pair of pants.
What could possibly go wrong!
Asteroid! Not much else of an earthly nature, though.
Belt, suspenders, duct tape, super glue, Velcro and two pair of pants.
What could possibly go wrong!
I've seen similar reports before, from a variety of sources, and I have not seen any reports stating that "practically everyone ages 55 to 65 have enough in retirement savings to live on for 30 years", so I'm inclined to believe the report.
I realize that it is probably overkill, that we could retire sooner and that we will probably die with a large chunk of unspent assets, but it helps me avoid worrying about these things. As I learned long ago, plan for the worst and hope for the best. Once you've done everything in your own control, relax and enjoy the ride.
Belt, suspenders, duct tape, super glue, Velcro and two pair of pants.
What could possibly go wrong!
And therein lies the problem, at least for those of us in our fifties now. Just when a lot of us were expecting to finally break through and start the "end of our working life when we finally made decent money", it didn't happen: Suddenly, if you're over fifty, you're no longer revving up the engine of retirement savings but instead looking for a job, and happy - happy - to find something paying 20% less, 30% less, 40% less, maybe even 50% less.It wasn't easy for me to do this, and I did most of it toward the end of my working life when I finally made decent money.
Back when I started work, the manager who hired me gave me the heads up about the game I was entering. He basically told me engineering should be treated like a sports career, don't count on reaching full retirement age. Fortunately I had my job issues early on, so FI was in the cards from the get go even though most people thought it not worth the sacrifice.And therein lies the problem, at least for those of us in our fifties now. Just when a lot of us were expecting to finally break through and start the "end of our working life when we finally made decent money", it didn't happen: Suddenly, if you're over fifty, you're no longer revving up the engine of retirement savings but instead looking for a job, and happy - happy - to find something paying 20% less, 30% less, 40% less, maybe even 50% less.
The metaphorical grasshoppers will always be with us. And, yes, it may impact our own lives by driving means testing of social security, reducing pension security, tanking the equities and real estate markets and things like that. But rather than worry, I try to plan around those eventualities. Thus, our own plan, which is within a few years of being implemented:
1.) Does not assume any reduction in spending from our current level, except for not saving or paying the mortgage anymore. There is plenty of fat in that budget, so we could cut back if we really needed to;
2.) Does not rely on receiving one penny from Social Security;
3.) Does not rely on any inheritance;
4.) Does not rely on extracting any of the equity from our house;
5.) Can be paid for by pension income alone or by a 4% draw on our stash.
I realize that it is probably overkill, that we could retire sooner and that we will probably die with a large chunk of unspent assets, but it helps me avoid worrying about these things. As I learned long ago, plan for the worst and hope for the best. Once you've done everything in your own control, relax and enjoy the ride.
And therein lies the problem, at least for those of us in our fifties now. Just when a lot of us were expecting to finally break through and start the "end of our working life when we finally made decent money", it didn't happen: Suddenly, if you're over fifty, you're no longer revving up the engine of retirement savings but instead looking for a job, and happy - happy - to find something paying 20% less, 30% less, 40% less, maybe even 50% less.
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Business used to understand that our maturity and experience justifies our higher salaries. I think business understands now that that was actually never true - that maturity and experience beyond a certain point is worth comparatively marginal amounts, rather than the comparatively more significant amounts that used to feed that phenomenon you outlined, making decent money toward the end of your career, enough to save for retirement. While I think that a lot of my contemporaries definitely could have saved more for retirement by now, given the opportunities they had previously, at this point, the game has changed, and the ability to do that going forward is going to be much more limited for real, rather than just out of lack of will, as you alluded to.
To those referred to in the last sentence, what we have saved is a fortune. And I do, at times, wonder if it's enough. I guess it's all relative.
Sometimes just wondering if you will have enough is enough motivation to keep on LBYMing and watching your retirement stash grow and grow and grow.
The contributors here are in a select minority. I often wonder how many folks find this place, lurk a bit, then realize how ill-prepared they are, and never/seldom post out of embarrassment, fear, or reality check.
Tyro
I could fit that mold, but after getting by just fine in my ill-prepared state for almost 13 years, I am no longer embarrassed or afraid to talk about it. I figured out the big balances most people deprive themselves to attain during their working years are fine for those who earn six figure incomes, but assets are not the key to a happy retirement in my opinion, the much more critical figure is cash flow. As long as the dooms day prophets don't get to say, "I told you so" if and when the Social Security system ever does really fail, I am going to keep on enjoying a carefree life without suffering anxiety every time we take another trip.
Whenever I see data like this, it just raises my concerns about how much social security a lot of us will see. One of the proposals which is particularly irksome to me is to set a minimum payout that everyone will receive regardless of what they paid in. SS is so incredibly skewed already to those who have contributed the least.