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Well who da thunk it?

Howie52
Course the seven deadly sins sound like simply not planning.
And you can probably replace "baby boomers" with "everybody".
And the problems of living on next to nothing have existed forever
for a large and wide portion of the population - in and out of retirement.

Pity the poor retirement financial planning industry which keeps writing the same
articles once or twice a quarter to frighten and try to motivate those who read
the articles and have a dime or two socked away.
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About half of those who make it into their early 60s will live past 85. How they’re going to get by without savings is anyone’s guess.

If they can't afford food, shelter or medical care then maybe it's a problem that fixes itself?
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Lets hope they all vote.
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No. of Recommendations: 2
Well who da thunk it?

Howie52
Course the seven deadly sins sound like simply not planning.
And you can probably replace "baby boomers" with "everybody".
And the problems of living on next to nothing have existed forever
for a large and wide portion of the population - in and out of retirement.

Pity the poor retirement financial planning industry which keeps writing the same
articles once or twice a quarter to frighten and try to motivate those who read
the articles and have a dime or two socked away.
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No. of Recommendations: 2
In a nutshell, based on their numbers, about 11% have at least $500,000 saved for their retirement. That’s hardly a king’s ransom, but it may have to do.

The remainder don’t even have that.

Nearly half don’t have any retirement savings at all. None.



These are the people who will have to work until full retirement age so that social security will be enough (maybe coupled with a pension for a few). That's the trade-off, though. I didn't own a boat, or new cars every two years (currently a 2003 and 2009), or the nicest house of all my coworkers, or eating out often, or....

I worked it so I never had to miss out on 401k matching money. Yeah, skimming 10% off the top every single month wasn't convenient, but I knew I wanted FI eventually. If Big Brother decides I need to pay more to compensate those who didn't save, I'm going to want to know where my boat is or my new car or free restaurant food.
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Yikes. Good times ahead. About half of those who make it into their early 60s will live past 85. How they’re going to get by without savings is anyone’s guess.(=(((


Their retirements will probably look somewhat like my mom’s. Squeaking by on Social Security, doing kind of ok during the early retirement years: doing some part time jobs here and there—some temp work now and then, some pet sitting for friends—with no big vacations or anything but enjoying projects at home, gardening, taking the dogs to the park with friends, etc. Her early retirement was a bit lean, but not bad, especially because she never made a lot of money or had spendy habits. And she lives in a very low COL area.

But the later years got a bit tougher. Her car got wrecked and there was no money to replace it. Not such a bad thing because she had to stop driving a few years later because of health reason, though I think if she had a car, she would haven driven longer. The AC went and had to be replaced. The house needs repairs that are going undone. Her health declined and while Medicare and supplements paid for most stuff, one drug that really helped her wasn’t covered—she got medicine, but not in the form that really helped the most (taking pills 10x a day: covered. Skin patch of the same medicine: not covered, and costs about $350 a month).

Gaps started to show up here and there, and things started to pinch. When you can’t drive, you have to rely on others, and when you don’t have extra money, your kids start to fill in the gaps. (If you’re lucky!).

Right now—20 years after she retired—is when my mom could really use the extra money to buy herself some comforts and things that are expensive and I can’t afford to pay for: help during the day, home companionship, wheelchair ramps and grab bars and widened doorways and a more accessible bathroom in her home.
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TheBreeze: I worked it so I never had to miss out on 401k matching money.

I confess: The 401K saved my bacon (and maybe my eggs.) I had a hard time not spending, but the 401K kept money safely out of reach. By time I didn't have a 401K I put the money into a mutual fund. The temptation to spend was minimized because it was an awful lot of money, and it represented my future. With that as a base, I was able to add to my nest egg along the way. But without that big lump in the 401K it would have been harder.

CNC
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TheBreeze: I worked it so I never had to miss out on 401k matching money.

I confess: The 401K saved my bacon (and maybe my eggs.) I had a hard time not spending, but the 401K kept money safely out of reach. By time I didn't have a 401K I put the money into a mutual fund. The temptation to spend was minimized because it was an awful lot of money, and it represented my future. With that as a base, I was able to add to my nest egg along the way. But without that big lump in the 401K it would have been harder.

CNC



Some people will look at that and say, "Ha! What a lack of willpower to not be able to resist spending that money," but in reality, it's recognizing that we're not immune to the foibles and weaknesses that are human nature. Some biases are worse for each of us than others, but lack of self-awareness is rarely an advantage.
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Let's keep in mind the median household income in the US is $61,372. And they keep telling us that household incomes are flat while cost of living continues to rise.

Sure we all know some people with good incomes who seem to spend whatever they get their hands on. But I think we know half the population struggles to make ends meet. Saving is difficult.

Getting people out of poverty is a reasonable goal. Raising household income is another matter. Training for a better job must be the key.

They talk about the days before Social Security when your retired neighbor worked odd jobs for some spending money. He would cut your grass for a few dollars. Or was glad to shovel snow or wash windows, etc. Those days may be coming back.

Now that pensions are going away, many will be working as long as they are able and many will be working part time or whatever in retirement.

Declining birth rates seem to suggest we will need this manpower. Perhaps it will all work out.

Sure we can vote for something better. But can the politicians deliver? You wonder if they have the right answers to the problem. And if so will they ever get them through Congress?
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