Posted on 07/09/2024 3:40:08 PM PDT by Libloather
Gen Xers are edging closer to retirement age and realizing that their 401(K) won't go the distance, an alarming report shows.
A survey reveals that 55-year-old Americans have typically saved less than $50,000 for their pension — far below the $446,565 that's recommended at this stage.
Nearly a quarter of them expect to be cash-strapped and plan to turn to their children for support.
More than a fifth said they'd likely need to move in to their kids' spare room or basement as a 'silver squatter.'
Prudential, a finance group, surveyed the oldest members of Generation X, or people born between 1965 and 1980.
They are now entering their pre-retirement years, giving them about a decade to bank more savings before waving goodbye to their workplaces for good.
Many are worried about Social Security cutbacks eroding what's left of America's safety net.
Caroline Feeney, CEO of Prudential's US Businesses, said many 55-year-old women had 'especially precarious' finances as they entered the 'critical 10-year countdown to retirement.'
She urged Gen Xers to look at their 401(K) and rethink plans so they're able 'to live not only longer, but better.'
The rule of thumb for 55-year-olds is to have about eight times their annual salary saved in their retirement accounts.
Instead, the median savings are $47,950.
Only one in five 55-year-olds have saved the recommended $447,000 or more, researchers found.
Many say they've struggled to put money aside throughout their careers thanks to the dot-com bubble burst, the housing crisis, the global pandemic, and surging inflation.
(Excerpt) Read more at dailymail.co.uk ...
Each succeeding generation in America is going to be more heavily in debt than the prior generation. Expecting to be relying on your children is not going to work out as crushing taxes are needed just to maintain government interest payments, and skyrocketing medicare and social security payments are needed to covering the ballooning number of elderly. And with the children/women ratio sinking ever lower below replacement rate, there will be fewer and fewer working age adults to pay for it all. Immigration is the current stop-gap, but as conditions improve in the source nations and the immigrants realize they are being expected to foot the bill for all the above, expect immigration to start drying up in a few years. That’s when the real fun will start.
Silver squatters? That’s a gross misuse of the word squatter.
Er.... my bad.... danger zone.
How can anyone ever retire ?? It means you have no passion in life. Look at the world’s most successful people. They keep doing what they love doing to the last day of their lives despite the millions, billions, trillions in their bank.
So let's say you use the 4% rule in retirement and take out $40,000 your first year on a million dollar 401k.
You still have $960,000 left and if you get a 5% return on that, you end the first year with $1,008,000 despite taking out the $40,000.
$40,000 might not seem like a lot to live on but even with a mediocre Social Security check of $2,000 a month (most will make more), that's a $64,000 income - which is slightly more than the U.S. average $59,228 salary as of 2024.
Toss in a part time job for pocket change and you are living pretty well in retirement. Not the golf club retirement people fantasize about but you won't go hungry.
Are these the same people who put their babies in day care at 6 weeks old? Because …good luck with that.
While living with our kids is not our plan, we are so very blessed with three children who would make that possible if it became necessary.
Our kids are well into the middle portions of their lives; well settled, well employed, and with their own families already set.
Truth is, we are settled, too. We are living within our budget, using only Social Security and two pensions. We don’t have to touch savings, 401k monies, or other savings vehicles.
It’s certainly do-able.
We don’t travel the world (no interest), and we don’t live a high life (we eat out less than 10 times a month).
Contentment comes from out home, our small farm, and our critters.
It’s not impossible, regardless of what these talking heads say.
People retire who can’t work a 50+ hour a week job anymore. Also, many have had a crummy job, not a vocation or exciting career. Retirement is the chance to do something else.
Also, many who were busy during their own children’s childhood want to see their grandchildren grow up.
My husband and I recently retired. We are volunteering and waiting to help with grandkids. We anticipate making room in our home for older family members that are loveable but broke.
Passion in life for work? No, we are not Elon Musk. But contentment and purpose? Oh, yes. We have it.
55-year-old Americans have typically saved less than $50,000 for their pension”
Wow. And that’s after what should be 30+ years of a work history. *smh* Hope your kids are kind to you...
After tax you get about 30,000 of that
The Democrats say that Social Security is the ticket!
Losers. They spent all their money on vacations and cars and boats.
Why have to move in with parents? Don’t any of these people have homes of their own? Born in 1965, work a full career, and have nothing to show for it? I don’t buy it.
I’m sure you’ve heard this before, but would you consider moving from LA? Or encourage your kids to move to the more affordable flyover country? It might be time.
I believe in family and see nothing wrong with this, per se.
I’ll be all in on the “John Dillinger” Retirement Plan.
“Reach for the ceiling!!! No funny moves or I’ll let you have it in the belly!”
This isn’t necessarily a bad thing, if sensibly agreeed to by all.
A few generations ago, families frequently stayed together.
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