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 ...
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.
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.
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!
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.
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.
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.
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
I nominate this for sickest post of the week.
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.
The elderly voted for McCain over Obama.
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.
good point....my misscue!
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!
Senility? Nope, but pay up, son, til it hurts.
Awwww, Boo Hoo.
And p.s. - I’ve paid my dues, for many years. Your turn.
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.
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.
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