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 ...
“IMHO too many people are lulled into economic crisis by believing that Social Security and Medicare will sustain them in retirement.”
No kidding! There are so many seniors in their 70’s and 80’s still working because they over spent in their prime earning years.
Another phenomenon, equally worse, one our financial adviser warned us about, are those with a 401K/IRA blow their wad the first few years of retirement. We know one such person. He blew through his IRA in 2 years and is now suffering as a low income person. After decades of hard work these people feel they deserve to live it up and by motor homes, new vehicles, expensive home upgrades and travel. This bunch I do not pity for they are too stupid to do simple financial planning.
Well,you can be damn sure that 95% of Rat Party voters die broke...and Rat Party Headquarters is doing their best to ensure that members of the middle class and working class do as well.
Death and taxes.... that’s really a shame.
Old guys give their money away to relatives and charities long before they pass. No one wants to give the State a dime of their hard earned money, if they can possibly help it.
He was always *very* good to my Mom (she drove Cadillacs and shopped on Worth Avenue in Palm Beach) and was very good to his kids...particularly my sister (who has two disabled kids).
He left behind what some would call a noteworthy estate which we have all used wisely. None of us have spent it on booze,drugs,hookers,lottery tickets or Rolls Royces.
I get the impression the majority of those that post on Free Republic, have quite a bit of money. They may not think it’s quite a bit of money, but to me, they are rich. I reached $40,000 one year. That was the most I ever made my life. Yet I was able to buy a brand-new car, buy my own house, and go on trips. I have always been good at budgeting.
That is the real story of the article. Nursing care will bankrupt most people and this story says 46%. Can’t have 2 nickels if you want taxpayer Medicaid. Won’t matter much longer SS and Medicare are broke Ponzi schemes.
My mom passed away with enough for her funeral expenses in the bank (the price of her funeral, obeying her wishes for what she wanted, and keeping everything as low as possible was still $21,000, with us being wincingly frugal...unreal and frankly, price gouging by the funeral industry). She left a couple thousand for my sister and I, and gave all of her other possessions away before she died. Except for the exorbitant funeral expenses, I think she did it right.
Widows, otoh, tend to die rich. “median savings of 600,000.”
Unstated was the place the 46% lived. I will guess that most of the 46% live in the city states and had no assets to speak of their whole life.
It is a feature of taxes and the state repossessing your wealth if you require medical care or end up in a home somewhere.
I wonder if World Markets are ready for the Euro type American population that doesn’t have the money and breaks the coffers. The kids today are not supporting themselves and won’t have anything to give back to the state - the State Run Medical Repossession Complex will not thrive. Thus the death pills on the heels of the Abortion pills are in works.
Maybe Americans who have house need to get a corporation or some type of recognized generational wealth legal documets draw up to pass property on to their loved ones.
I like the idea of BTC on a Ledger Drive for each of the kids;)
Yes, it does. I know of several Purposeful Medicaid Spenddown arrangements.
My wife and I have no children and getting close to retirement. We have no children, significant savings and retirement plans…and it is our plan to have as close to $0 in the bank when we leave this mortal coil.
IMHO,the best estate plan is to plan on spending it all. The trick is timing. You don’t want to run out of money before you go.
If I knew ahead of time when my wife and I will die our last check would bounce. But I don’t, so we will have to leave a substantial portion of our estates to our adult children (rather than giving more to our kids and grandkids while we are alive).
“the security of pension plans and Social Security benefits”
BWAHA HAHAHAHA!!!
Stopped reading right there.
My dad, a WWII/Korean/Vietnam Vet with a degree in Mortuary Science and worked for Morgue at one time said no funeral. We cremated him for $1200 (he had my mom cremated and kept her remains), gave a memorial luncheon at the Golden Corral (his favorite place to eat), and then both my parents remains were put in a vault at a Veteran’s Cemetary. Very efficient and affordable.
I told my wife to use that as a model for me and don’t spend money on a funeral.
However, I did have one request, at the luncheon set up my kegerator so people could get a cold one, have a podium and microphone where people could get up, give a toast to me by telling the worst joke they know, or the funniest story they remember about me, preferably both.
***by believing that Social Security and Medicare will sustain them in retirement. ****
My dad died at 70 years of age. I figured I would do the same so retired at 62 to enjoy life till that time.
Now I am 77 and still going fairly strong. I had no problems paying bills on my SS and retirement income until Biden got in. Now I am pinching pennies cutting costs where I can.
That was kinda my thought.
Great post. My mom, bless her (died at 101 just a few months ago) took out a $5,000 life insurance policy when she was in her early 60s thinking it would cover everything when the time came. She paid on it for all those decades...do the math! She was frugal and had saved for a few decades and she asked me when she was near the end if her life insurance policy would handle all the costs. I told her ‘don’t worry about it, it’ll be fine.’ She said, “Well, if it doesn’t, use what’s in savings.” Took all but a few thousand. I plan to be cremated, no funeral, no service, and will be buried in my mom’s plot. I am appalled at the costs. To add insult to injury, the guests who came paid thousands for personal flowers...which the cemetery demanded we took with us as the group disbursed. All...that...money for nothing.
Interestingly by the time I was old enough to care the calls were a dime and today there are no payphones but the point remains.
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