Click here: to donate by Credit Card
Or here: to donate by PayPal
Or by mail to: Free Republic, LLC - PO Box 9771 - Fresno, CA 93794
Thank you very much and God bless you.
Posted on 02/06/2026 4:00:17 AM PST by where's_the_Outrage?
By the time you reach your mid-70s, your financial life often looks very different from what it did a decade earlier. Work is usually behind you, priorities have shifted, and your money is no longer just about growing. It's about sustaining the life you want to live, especially if you're trying to maximize your senior benefits and get the most value out of every dollar you've earned.
If you're 74 (or getting close), this is a natural moment to check up on your retirement readiness and see how your own situation compares to other Americans in the same age range.
Net worth is simply the total value of what you own minus what you owe. That includes things like savings and investment accounts, home equity, vehicles, and other assets, minus any remaining debts such as a mortgage, credit cards, or medical bills.
At 74, net worth often looks different from what it did earlier in retirement. Many people have started drawing down savings, some have downsized or paid off their homes, and others may still be carrying a mortgage.
According to the Federal Reserve's Survey of Consumer Finances, households headed by someone aged 75 or older (the closest public data bucket to 74-year-olds) have an average net worth of roughly $1.6 million. The median net worth, which is a better reflection of the typical household, is much lower, around $335,000.
The gap between these two numbers tells an important story. A relatively small group of very wealthy households pulls the average up, while many retirees have a far more modest balance. If your own number is closer to the median, you're not unusual.
(Excerpt) Read more at msn.com ...
|
|
Click here: to donate by Credit Card Or here: to donate by PayPal Or by mail to: Free Republic, LLC - PO Box 9771 - Fresno, CA 93794 Thank you very much and God bless you. |
My Mom was a teacher and had a decent pension. My Dad worked for the post office and had both health insurance AND a good pension.
My mom had dementia and we had to sell her home—which had been in the family for 147 years. She was in long term nursing care for more than three years.
She passed the week I completed her Medicare application. She died with $1,000 in her accounts. It cost nearly half a million dollars to care for her last years.
We are fortunate that she had the money. But selling her home on a beautiful piece of Vermont lake front broke my heart.
” my income in retirement is more than when I was working”
I assume this is due to good investments on your part?
The real joy is deciding to get my Masters in Ministry and now pastor a small Baptist church in the countryside. Small paycheck and small parsonage, but lovely people and no traffic on I95.The heart is already healing.
The most conservative way to value a pension is through capital mute the yearly benefit amount and divide that by the ten year t bill rate. Example if your pension pays 20000 a year, divide that by the t bill rate os say 4% (.04), 500k. Of course you don’t have the cash and more than likely there is no residual to include in an estate.
When retired, the prime thing to consider is income, not assets like a home. A home is a place to live and while the MTG may be paid, it has expenses to maintaining n maintain plus utilities and taxes.
You can move down here and enjoy East Tennessee while looking across the line into Virginia.
Have her check this out......
“A 76 year old man I know was diagnosed with Parkinson’s about 18 months ago. He is blowing through about $9k/month on assisted living, nursing, etc. Has a good pension, owns three modest homes and is now selling the homes to keep up with the bills. His physical and financial condition is deteriorating rapidly.”
Wow, in Germany he would almost certainly not be “blowing through” $9,000 per month.
In Germany he would have been paying into the Long-Term Care insurance (LTCI) system that covers a significant portion of costs for those with chronic illnesses like Parkinson’s.
While residents still pay out-of-pocket for “room and board,” the average monthly cost for a nursing home in Germany is roughly €3,248 (~$3,500). German law generally prevents the state from coming after a child’s income to pay for a parent’s care. While he might still need to use some assets, the rapid liquidation of three homes is highly unlikely because the state (via social assistance) often steps in to cover gaps if income and insurance don’t suffice.
In Poland it’s not as good - but the private nursing homes would be more in the range of $1,000 to $2,000. If he moved to a state-run home (Dom Pomocy Społecznej), he would pay up to 70% of his pension, with the local government covering the rest if his family cannot afford it. The cost of care is capped by law - there is a legal ceiling on what a resident pays for a state-run nursing home (Dom Pomocy Społecznej - DPS). By law, the resident pays no more than 70% of their income (pension). The remaining 30% of their pension remains in their pocket for personal needs. If the 70% does not cover the full cost of the bed, the local municipality covers the rest, not the resident’s savings
Taken as a whole, including my VA benefits, I think my income (all SS) is better now than when I last worked. I did have a few years with slightly higher income, but one of 4 different employers (owners of the company) screwed that one up. I retired at age 75. Glad to at last be away from the headaches of my job in a service industry. That was for the most part one big headache I would never voluntarily go back to, alth as I had said, there were a few good years that included slightly better pay. I also think I am on the lower scale of SS income, altho am not certain of the guidelines of that payscale currently.
An average of $355k is scary, when these folks are approaching the age when more and more will need tons of healthcare AND long term care.
+++++++++++++++++++++
It is low but not scary. Once on Medicare with a decent earnings history that’s enough to make it to the end with life expectancy around 78.
I thought I had it all handled...I had all the ambulatory equipment for my disaster of a body, paid off my home, owed no one.
Until the Almeda fire took everything. I had my insurance papers on my desk and had been trying to call for 2 weeks to increase coverage for the big remodel I completed..new roof, paint, flooring...even propane fireplace for when electric goes out. I was on low income tax deferral on my home, so they took all my insurance money.
You don’t think about the fact you will have to repay every cent plus interest and penalties.
I made a huge mistake giving away much of my “wealth” to my kids...I wanted to see them enjoy it.. that included cars, a vacation home on acreage, a building lot, travel trailer, thousands of dollars...
Living out of your car is expensive..it was during covid shutdown..no motels. I paid $100 one night for a room without running water! I was everyone’s target. I finally got $25,000 from The Federal government then 2 years later Biden attached my social security checks for 2 years to collect $10,000 in interest. I had already written them a check for the $25,000! That destroyed my credit..now I can’t even rent!
Now, I’m stuck, sick and unable to drive out in the boonies without any heat, most of my savings is gone and the kids got theirs and disappeared.
Funny thing is, you’re both correct.
The two best things we did were pick up acreage north of Atlanta in the path of growth and invest in PM 20 years ago and hold it.
And who is paying for Medicare/Medicaid?
That’s my point. I am looking at this from a “macro” view. Individually, people might be able to limp across the finish line. But the “value” of their net worth is going to be sucked up into healthcare costs as if with a large vacuum.
In the end, Gen X and the Millenials are going to be stuck with a bankrupt “system” and infrastructure that is just worn out from the demographic bubble that is working its way through the system.
I came along at the end of the boomer generation. Our schools were literally threadbare because of the shear number of people who preceded me during the 50’s and early 60’s. The same thing has happened to every stage of their lives. the job market was tight as we all entered the system and worked our way through. Now we are seeing in things like primary care docs and decent “re hab” facilities (re-hab for broken hips...not drugs.)
I am not a “boomer hater.” That stuff is stupid. However, I am very aware of the demographic process we are seeing. After we pass through it, things will eventually get better for our kids and grandkids. But it is going to suck for the next ten years or so.
On a “micro” level, I have a net worth that should last me quite a while. On a “macro” level, I would hate to be our kids.
My retirement plan is to keel over in my home office.
Pensions (3), Social Security (2) and liquidating one of my troublesome retirement accounts. The key in retirement is to not “make” money in your retirement accounts. You should be skimming off your gains and converting them to cash. IOW your net worth (minus house) should not increase. Your job in retirement is to spend money.
It’s why I have 5 music streaming services for my stereos and constantly looking to upgrade it.
I did check up on the scale of SS payments & I am about “midrange” as far as what I receive. I might add I have no debts except the usual monthly garbage every homeowner has. I drive a 20+ year old car & live what I would call “rather frugally”. I also provide shelter only for another vet I am related to.
My Mom lived in an Assistant Living facility, in Massachusetts, for 10 years.
After taking fall ,they refused to take her back until she was mobile. She wasn’t mobile before the fall. At that point I decided it was time for her to move to a nursing home as her saving were quickly dwindling. The Assisted Living facility was up to $13,000 a month.
At the nursing home we started the process of applying for Medicaid and the woman helping me through the process said that she would probably die as soon as she began Medicaid. She died the day before the application was approved. She was one month past her 100th birthday.
Assisted Living is a ripoff as far as I’m concerned. She got much better care in the nursing home.
How wonderful!
yet, the younger generations are salivating over all that inherited $$
I’m self employed but I see the “trained monkey” pov of the guy who works for someone else
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.