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 ...
It reads like prep for Obama to seize these piddly 401’s and give everybody a union retirement at say 30% of their income. You won’t need heat, housing or anything else to be in the gulag. That 80-85% is what the teachers get before they double dip. Many make far more in retirement than they did while in the system. I won’t say teachers and working when unions are involved.
Watch your back closely.
While that has been generally true (but not always) in the past, if you study the demographics of the 2008 election, I think you'd see that Obama had overwhelming support from those in the college-aged bracket of 18-24. People too young to have experienced being in the workforce, but yet old enough to vote.
I am a baby boomer.
I was raised in a blue collar family.
I worked picking beans, berries from age 10.
I was paying rent by at age 18.
I was married and had a baby at 19.
After my divorce, (I got NO child support) I put myself through a BS and MBA while working FULL TimE and getting NO help from anyone, (I took advantage of my employer’s tuition reimbursement program) except a few months of housing from my Mom.
I have NOT travelled extensively...to Paris when I was 25...paid for by ME.
I am a conservative.
Get over to DailyKos or the other liberal boards and LECTURE THEM!
“Maybe they can work part time at low-stress jobs.”
That’s what I’m hoping to do. The know-it-alls hereon who pontificate about paying off debts and being able to live on bread crumbs when they retire apparently never had a wife with huge, ongoing medical bills (despite good health care coverage) then got cancer themselves. Blowhards.
I am by no means a financial expert, but being debt free is at the top of my list, and I am at age 51.
No one can plan for poor health.
Medical will wipe out savings in a flash.
You really need to watch your mouth son. If you called this 52 year old a “commie” to my face only one of us would leave the room. Same goes to the hundreds of thousands that post on this forum.
You need a new gig. It ain’t here.
You’ve got to start saving in your 20s, it makes a huge difference.
you were in under VEAP I assume?
“Down size and move someplace inexpensive, you can enjoy yourself and do all the things you wanted to do while still being comfortable.”
Good idea if your house is paid off. If not, many would be looking at taking it in the teeth given the current real estate market.
What a load of broad-brush unadulterated crap.
Unworthy of posting on FR.
So? What's your point?
Most people start working at age 22 or so. If they work till they are 60 that's 38 years. Isn't that enough if they can retire?
“No one can plan for poor health.
Medical will wipe out savings in a flash.”
Exactly. But the blowhards keep blowing.
Yes, The dreaded VEAP.
wasn’t it with max contribution a max of like 9600?
Yes the current market stinks.
It probably depends upon your defition of “retirement”....I guess I’m thinking more of people CHANGING their work at what USED to be retirement....part time, less physically demanding, etc....but, IF people mean going golfing and lazing around....I just think it’s bad for your health and not so great for your economy.
They must be talking about gov’t union employees. We are getty for early retirement with about 65% providing BO does snatch our 401Ks and they don’t tank again.
I dont recall.
Uncle sugar would mach your contribution.
It think I was making $600 a mo back then.
Who had money for that?
Some fellows who never left the ship managed to make it work for them.
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