Posted on 03/04/2024 3:49:10 AM PST by where's_the_Outrage?
The financial landscape for many Americans is far from secure, as recent studies shed light on the alarming state of savings at life’s end. According to a report from the National Bureau of Economic Research, a significant portion of Americans – 46% to be exact – exit life with a sobering financial snapshot: $10,000 or less in their savings accounts. This revelation strikes at the heart of the retirement crisis narrative, contrasting the security of pension plans and Social Security benefits with the harsh truth of inadequate personal savings.
The study followed seniors from 1993 to 2008, revealing a complex financial situation among retirees. It was observed that individuals who were married when they retired but became single due to the death of their spouse typically left behind a median annual wealth of $600,000. This can be partly attributed to the combined incomes from pensions and Social Security. On the other hand, single seniors had a more challenging financial scenario, with many living on less than $20,000 per year and exhausting their savings to below $10,000 by the time of their death. James Poterba, an economics professor and co-author of the study, pointed out that the financial status of the elderly is diverse, and making broad generalizations is not appropriate.
These findings are underscored by additional insights from The Motley Fool Ascent survey, which reported a median savings account balance of just $1,200 among Americans in 2023, a marked decrease from $4,500 the previous year. The data, mirroring Federal Reserve statistics, reflects the financial strain experienced by a majority of Americans, with 71% holding $5,000 or less in savings. Forty-one percent have $500 or less.
(Excerpt) Read more at msn.com ...
Dying penniless represents great timing and a hell of a budget.
>> Dying penniless represents great timing and a hell of a budget.
“Solvent to the very end, but the check to the funeral home bounces.” :-)
I have just enough to last me until I die, if I time it right.
Why the concern?...Woke liberals don’t have enough inheritances with fat wealth horded away in them to tax and steal from?
Putting aside tgat social security was arguably a lame-brained pyramid scheme, Senator Joe Biden’s law to tax social security income from the retired elderly should give anyone the picture of how the government, particularly democrats,? rips off the elderly and Americans in general
Anyone paying attention, that is, which is about 0.5 percent of we the people.
Property taxes are the killer which also raises rent to ridiculous levels if you dont own/mortgage a house. New York for example, I’ve heard of people paying $30,000 a year just in property taxes alone. That is INSANE!!! On the other hand why anyone would retire in a blue state is beyond me.
I pray and hope to achieve the same.
Exacly. Who is concerned about this? Greedy entitled relatives? The government not getting the inheritance tax?
“On the other hand, single seniors had a more challenging financial scenario, with many living on less than $20,000 per year and exhausting their savings to below $10,000 by the time of their death.”
The difference in financial security between married and single seniors, as outlined in the article, is striking. While married couples may benefit from combined incomes that provide a buffer against financial hardship, single seniors, especially those who have lost a spouse, face a much harsher reality.
I am among those who are single, having lost a spouse. Fortunately, I have a 401(k) plan and an additional pension to sustain me through my retirement. Many couples anticipate reaching retirement together, that does not always happen.
“standard goals should be a paid for home in a low property tax area and not just SS as income.”
I did all that. I saved and sacrificed so I wouldn’t be a burden when I got old.
Paid off my property at 45! Saved every cent, remodeled my home so it could accommodate my disabled body and had my kids set up well for their future. Two wildfires and homelessness and having a tyrant government breach a dam and destroy the rest later, it’s all gone. Homes prices have tripled in 3 years. I’ll never be able to go home or Have a decent home in a familiar place to die in..
WHat good does it do to die with money in the bank. The government is going to take half of it. Better to die broke so you starve the beast ...
In my Upstate NY neck of the woods there are people paying almost 10K in annual property taxes on existing homes worth around 200K.
People are having a helluva time selling nicer homes because buyers don’t want to assume the property taxes.
And since NYS cost shares Medicaid with counties, if folks thing the property tax burden is unaffordable now...
You ain’t seen nuthin’ yet...
I think I would rather die with debt than money in the bank.
Not sure just where I sit, but I live off Social Security; in other words, it meets my Normal needs from month to month. I have an emergency fund; guess you could call that a savings.
For someone on S.S. what should you expect? In my best year, I made about $34000 & that was probably in ‘01. I retired in ‘13 & most of the years from around ‘01 forward, the paychecks were “downhill” from there on until retirement. So what would be a proper retirement fund under those conditions? Added to this, I know many folks who get a smaller S.S. check than I do. I live singly & simply,own my own house, & drive an old car. I’d listen to any advice someone offers.
Die painlessly
The amount of cash on hand when the second part of a couple passes should be minimal because you should have transferred the bulk of your assets to your children if possible. Our plan is to be renting our family estate from our boys as they will become co-owners of our accumulated assets which are even now being transferred to them in increments.
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