Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Retiring Boomers Find 401(k) Plans Fall Short
The Wall Street Journal ^ | February 19th, 2011 | E.S. Browning

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 ...


TOPICS: Business/Economy; Government
KEYWORDS:
Navigation: use the links below to view more comments.
first previous 1-20 ... 101-120121-140141-160161-173 next last
To: Magic Fingers

One surprise was a granddaughter who called almost every day to see how things were going. She’s in college now - and such a joy in my life. You learn a lot about people when you deal with a loved one dying. Again, you’re in my prayers.


141 posted on 02/21/2011 12:42:16 PM PST by GOPJ (http://hisz.rsoe.hu/alertmap/index2.php - It's only uncivil when someone on the right does it.- Laz)
[ Post Reply | Private Reply | To 138 | View Replies]

To: jwalsh07
Sorry to hear about the back FRiend.

I have heard it said that getting old ain't for sissies and the some of the Golden years ain't that golden, but ya take it as it comes and be grateful for it.

As to the finances we have done all that we can do from our end. The one thing we can't predict or control is our out of control governments' spending and the Fed printing more and more money which very well could lead to hyper-inflation and then we are all screwed. In that case, see you in the bread lines.

142 posted on 02/21/2011 2:55:09 PM PST by ImpBill ("America ... where are you now?" signed, a little "r" republican!)
[ Post Reply | Private Reply | To 77 | View Replies]

To: andyk
I never got the whole "retirement" thing. Retire from what? Work? What is so bad about having a job?

I've been working since I started delivering newspapers at age 13 and I intend to work until I die. If I had nothing to do but sit around the house all day, I'd die of boredom anyways. And I don't say that because I'm a workaholic. I have plenty of hobbies outside of work and my work helps to fund them.

Not that I intend to stay in the rat race my whole life. When I get into my 60s (I'm almost 50 now) and my mortgage is fully paid off, I'll likely switch careers to something that does not involve as many hours and travel (I think that's called semi-retirement). Maybe I'll do an internet-based business out of the house or become an online columnist (blogger). But I'll do something to bring in an income so that I can pay the bills and anything I get from 401(k) or my other investments will be gravy.

I know people who are "retired" and they all say the same thing, retirement is overrated!

143 posted on 02/21/2011 3:16:07 PM PST by SamAdams76 (I am 20 days from outliving Vince Foster)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GOPJ

I do appreciate your thoughts and prayers. Your granddaughter’s actions must have been a pleasant surprise. Agreed, a real crisis situation brings out peoples’ true colors (or the lack thereof).

My wife’s treatment costs are north of 2M, so unfortunately no amount of savings (given that my income is only moderately above-average) would have positioned me to cover the co-pays and other associated (and non-covered) expenses.


144 posted on 02/21/2011 4:04:40 PM PST by Magic Fingers
[ Post Reply | Private Reply | To 141 | View Replies]

To: Magic Fingers

Your situation is harder than mine - I didn’t mean to be insensitive. If you ever need to talk just post a reply to me.


145 posted on 02/21/2011 7:29:32 PM PST by GOPJ (http://hisz.rsoe.hu/alertmap/index2.php - It's only uncivil when someone on the right does it.- Laz)
[ Post Reply | Private Reply | To 144 | View Replies]

To: Tzimisce

Actually you would be wrong I am a youger boomer and my Mom is still here.She is 68 now.I will be around for a lot longer since I just turned 50 about 12 weeks ago.Not all of us boomers are that much older than you are.I know we will probably not be able to retire not knowing what the cost of living will be 25+ years down the road and the need for dcent insurace will probably keep us on the job as long as we can possibly do it.


146 posted on 02/21/2011 9:17:25 PM PST by chris_bdba
[ Post Reply | Private Reply | To 116 | View Replies]

To: GOPJ; mylife

My pleasure. Here’s a manual that you or someone you know might find useful also. It lays out reasons given by insurance companies and Med D to refuse covering a specific drug and how to appeal.

http://www.medicarerights.org/partd_appeals_manual.pdf


147 posted on 02/22/2011 6:46:05 AM PST by algernonpj (He who pays the piper . . .)
[ Post Reply | Private Reply | To 108 | View Replies]

To: Tzimisce
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.

I nominate this for sickest post of the week.

148 posted on 02/22/2011 6:55:05 AM PST by SeeSac
[ Post Reply | Private Reply | To 10 | View Replies]

To: Hoodat
If that person took 12% of their income and invested it in something yielding 5% (compounded quarterly), and did so from the age of 25 to 65, they would have over $300,000. If that same person lived to be 85, they would have enough money to draw $2100 per month for 20 years.

In order to make comparisons, you need to bring the $300k back to present value which would make it about $120k then amoratize the $120k over the expected lifetime of withdrawals and the dude is lucking to get $600 a month (present value) and then if he lives longer his payments end.

149 posted on 02/22/2011 7:06:38 AM PST by SeeSac
[ Post Reply | Private Reply | To 32 | View Replies]

To: Tzimisce
The younger you are, the less likely you are to vote. The elderly have the highest turn out rates at the polls. Now I know the Obama talking points were all about the young vote - but like everything else this administration says, it's a lie.

The elderly voted for McCain over Obama.

150 posted on 02/22/2011 7:08:18 AM PST by SeeSac
[ Post Reply | Private Reply | To 36 | View Replies]

To: Tzimisce

Hey kid, got any Grandparents? Who paid for THEIR SS checks? Not you, honey. ‘Twas the Boomers. And guess what? It’s time for you pay us.

Live with it, Sweetie.


151 posted on 02/22/2011 7:42:51 AM PST by EnquiringMind
[ Post Reply | Private Reply | To 112 | View Replies]

To: EnquiringMind
Hey kid, got any Grandparents? Who paid for THEIR SS checks? Not you, honey. ‘Twas the Boomers. And guess what? It’s time for you pay us.

Live with it, Sweetie.


I see you are no stranger to senility....
152 posted on 02/22/2011 10:48:01 AM PST by Tzimisce (Never forget that the American Revolution began when the British tried to disarm the colonists.)
[ Post Reply | Private Reply | To 151 | View Replies]

To: mylife

good point....my misscue!


153 posted on 02/22/2011 1:19:58 PM PST by CRBDeuce (here, while the internet is still free of the Fairness Doctrine)
[ Post Reply | Private Reply | To 78 | View Replies]

To: richardtavor
. Therefore, I will not depend on the government,

Ditto without the 'therefore'....words for the young to live by! I also planned to not depend on the 35-40 yr company I worked for, fully expecting it to 'go bankrupt' as most union companies do. Amazingly they're still going ... but so far I'm even w/ their pension. Bottom line...rely on ... yourself!

154 posted on 02/22/2011 1:42:50 PM PST by CRBDeuce (here, while the internet is still free of the Fairness Doctrine)
[ Post Reply | Private Reply | To 83 | View Replies]

To: Tzimisce
I see you are no stranger to senility....

Senility? Nope, but pay up, son, til it hurts.

155 posted on 02/22/2011 7:33:05 PM PST by EnquiringMind
[ Post Reply | Private Reply | To 152 | View Replies]

To: EnquiringMind
Senility? Nope, but pay up, son, til it hurts.

As I said: The "Me" Generation is a very fitting name for the Boomers.
156 posted on 02/22/2011 8:40:32 PM PST by Tzimisce (Never forget that the American Revolution began when the British tried to disarm the colonists.)
[ Post Reply | Private Reply | To 155 | View Replies]

To: Tzimisce

Awwww, Boo Hoo.


157 posted on 02/22/2011 9:01:49 PM PST by EnquiringMind
[ Post Reply | Private Reply | To 156 | View Replies]

To: EnquiringMind

And p.s. - I’ve paid my dues, for many years. Your turn.


158 posted on 02/22/2011 9:05:43 PM PST by EnquiringMind
[ Post Reply | Private Reply | To 157 | View Replies]

To: SeeSac

No, those figures were in real dollars - not nominal dollars. The 5% return is 5% above the rate of inflation. This individual will not be making $10/hr for forty years without getting a raise.


159 posted on 02/23/2011 4:55:44 PM PST by Hoodat (Yet in all these things we are more than conquerors through Him who loved us. - (Rom 8:37))
[ Post Reply | Private Reply | To 149 | View Replies]

To: Hoodat
The 5% return is 5% above the rate of inflation.

Please tell me where I can get continuous investments each month for the next 20 years that will yield 5% above inflation. I have my 401K and IRA's in cash right now.

160 posted on 02/23/2011 5:31:39 PM PST by SeeSac
[ Post Reply | Private Reply | To 159 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-20 ... 101-120121-140141-160161-173 next last

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.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson