Posted on 02/20/2011 12:02:48 PM PST by andyk
The 401(k) generation is beginning to retire, and it isn't a pretty sight. The retirement savings plans that many baby boomers thought would see them through old age are falling short in many cases. The median household headed by a person aged 60 to 62 with a 401(k) account has less than one-quarter of what is needed in that account to maintain its standard of living in retirement, according to data compiled by the Federal Reserve and analyzed by the Center for Retirement Research at Boston College for The Wall Street Journal. Even counting Social Security and any pensions or other savings, most 401(k) participants appear to have insufficient savings. Data from other sources also show big gaps between savings and what people need, and the financial crisis has made things worse. This analysis uses estimates of 401(k) balances from the end of 2010 and of salaries from 2009. It assumes people need 85% of their working income after they retire in order to maintain their standard of living, a common yardstick.
(Excerpt) Read more at online.wsj.com ...
Once Barry reaches his goal of turning America into a third world country for his friends at the UN, retirement will become a thing of the past. That’s the plan.
Agree...
If u think it’s short now, just wait until the bottom falls out of the market. It’s coming!
True. Don’t plan on retiring.
I suspect those who have large, extended families will find they have to move in together just for everyone to survive. All able bodied adults will have to work and everyone else will help the family as much as possible.
Those without families or who never had children will have it the worst in the future.
Personally, I think people are planning on retiring TOO early.....most 60 yr olds are really like 45 yr olds 40 years ago.....ya ain’t old!
I have friends, a couple in their early 60’s. They had a paid-for home. About 5 years ago, they sold the home and built a new, bigger one with a mortgage. [I thought they were crazy— and the economy was still good.] The husband’s 401K lost about 60% of its value. She can’t retire, although she’s reached the point where, physically, she needs to. He’d like to retire, but he shouldn’t with the way their retirement income looks. People need to plan for the worst and hope for the best.
LOL. Retirement. That’s a good one!
You make some valid points. I personally am afraid to retire, even though I could based on the old ‘30 and out’. I could collect a full pension but I’m only 50 years old. No way I would feel comfortable that my savings and pension would last for the rest of my life.
Baby Boomers: they grew up little Marxists in the 60’s thinking the world owes them everything because mommy and daddy handed them everything.
So now they’re going to tax their kids to make up the shortfall of their Socialist theories.
Don’t worry: most will vote Obama the next election.
Maybe they can work part time at low-stress jobs.
Retired at 59 with modest income, but the key was zero debt, to include no credit card balances carried forward and no house payment. Unfortunately, from first hand experience in the retirement community I live in "we" are in the minority. Many people service debt to the grave. Of course our government doesn't get it either.
I wish you well and sure you will do fine if you have all your debt retired long before you do.
I think most people under 55 years old will not be able to retire comfortably. They may need at augment their retirement income with some level of continued employment. And if you are 55-60 that you may have to come out of retirement at some time.
The rate at which the Fed is printing money will devalue retirement savings. Medical coverage will be harder to find, even after Obamacare is buried - there will just be too many old people.
Soon there will be enough old people and non-whites to ensure a permanent socialist victory. Look for the wealth transfer machine to go into overdrive over the next decade or two.
“Baby Boomers: they grew up little Marxists in the 60’s thinking the world owes them everything because mommy and daddy handed them everything.”
I sure hope that was sarcasm. All of us kids are babyboomers. I grew up in a large family(6 kids) where my mom stayed home and my dad was a secretary. We got by without extras or vacations and never knew any differently since all of our family friends were in the same situation. We put ourselves through school with scholarships and loans. What are you—like 22?
This retired Boomer finds the government fell short.
My guess from many of the people I know is they have large homes, go out to eat frequently, travel abroad and love their large cars, boats and big screen TVs too much to have saved.
Two rules
1 - Spend less than you make
2 - Always have a plan for when the money stops coming in.
If you do that, you will be better off than those that don’t
There are no guarantees in life, and even the best prepared people are sometimes surprised by what life sends them.
It would just be worse if you are not prepared
Too bad we can’t all be public union pensioners.
Bullshit post of the month; I sure hope you have the ability to realize it.....
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