Posted on 05/09/2024 8:04:04 PM PDT by Cronos
Cathy R., 63, has a master's degree and has worked all her life, though she's very worried for her future.
The clerical worker in Minnesota has struggled to rise up the ranks throughout her career. She said she's earning a salary similar to some entry-level positions despite nearly three decades in her current role. She's nervous that even though she's eligible for a pension in a few years, it won't supplement Social Security payments nearly enough to live comfortably.
"I can't afford life while working. How can I even think of retiring?" the St. Paul, Minnesota resident said.
...Cathy grew up in Minnesota and attended the University of Minnesota, after which she enrolled in law school. She worked full-time as a legal secretary at the Attorney General's office while in school part-time at night.
She said the job didn't work out, as her supervisor disapproved of her leaving an hour early each day to attend classes. Law school didn't pan out after two years, and she was laid off from her government position. She still had loads of student loan debt, and she took jobs in Minneapolis as a legal secretary at different law firms.
After a decade, she hadn't climbed the corporate ladder at any firm, so she returned to working for the state government to attempt to make more money and not lose benefits. She worked at the Department of Revenue in the mailroom, then got a job as an administrative assistant for the state's college system, which she kept for about 25 years.
Because she worked for the college system, she received free tuition for a degree, so she obtained a master's in public administration shortly before the pandemic.
...Many peak boomers also fall into the growing category of ALICE, which stands for asset-limited, income-constrained, and employed.
(Excerpt) Read more at businessinsider.com ...
Personally IMO, the only degrees worth anything are professional in nature: engineering, medicine, hard science, etc. A degree in "studies" (e.g. Negro studies, Homo studies, Female studies, Climate studies) isn't worth as much as a bucket of warm spit.
Here’s part of the problem:
Tax Burden by State
https://wallethub.com/edu/states-with-highest-lowest-tax-burden/20494
Minnesota is #7 most heavily taxed state. Financial decisions also depend on where you choose to live.
Lots of bad decisions by this Cathy.
Her state pension will be nice.
A masters in public admin
She can’t make ends meet!!
Ya right
Honest, steady work, but I suspect there is more to the story here (husband, children, bankruptcy, divorce.)
Why didn’t she marry and get a permanent room mate and financial life partner?
“’Generation Jones’ is the cohort born roughly between 1955 and 1965, sandwiched right between the Baby Boomers and Generation X.”
They pretty much missed out on the cultural change of the Boomer era, and its perks, but caught much of the improvised educational drek intended to patronize the boomers. For them, Gen X was like a breath of fresh air.
“Master’s in public administration...shortly before the pandemic.” So she got it in 2019 when she was 58. Pretty hard to get a good ROI on a new degree that late in life.
I feel sorry for her, but there’s a bell curve distribution for success in life and earnings. Sounds like Cathy is at the left end of the bell curve.
Not everybody gets to grab the brass ring in life.
Your children aren’t going to have to pay inheritance tax. My mom died with a little more than 250k. No tax. We take what we can in MN and be grateful. “Sir, can I have another!” Monty Python reference.
I fall in this age range. I have arranged my job so I only do the things I like, and I can do it mostly from home.
Why would I give that up?
I could retire, but why would I? What is the advantage?
I have lots of vacation time, a good salary, and excellent benefits. They will have to carry me out of my office feet first, many many years from now.
Born in 1959.
Got a degree in philosophy.
First 10 years had my own bicycle shop.
Two years here and there.
Moved to NM and spent 25 years as a scientist doing radiation effects testing
Semi retired to manage a shooting range.
Retired and wife and I are quite comfortable.
I learned that if you’re not rich, don’t have nay debt and be careful with your money.
You may already be kicking in $2/day for folks like “Cathy”.
In my law practice I regularly see people in their late 50’s/early 60’s with hundreds of thousands of dollars in Student Loan Debt - essentially all of which is taxpayer guaranteed - and little or no assets. Several years ago I met a prospective client who had $588k in student loan debt from undergraduate, medical school and two master’s degrees which he earned post MD while waiting to get accepted into a residency program. He was never accepted, for whatever reason, and earned about $1200/month as a tutor when I spoke to him. His loans were coming out of deferment at that point and the minimum payment was starting at $8,100/month.
That story was the largest excess in student loan indebtedness until I encountered someone with a $756k balance after having paid off 8% of her student loan balance over some long stretch of time. Just as I began consulting with her, she let me know that DOE had sent her a letter announcing the forgiving of that balance. She was happy to offload that on the back of the taxpayer.
That is the record for now, but what may be lurking ahead? There seems to be no upper limit n the total indebtedness possible under federally guaranteed loan programs.
She has a long term career as a clerk and remained a single woman, she lacks some of the qualities that would have broken her out of the pack of the old story of a grey unmarried man with a boring career and retiring with a pension and SS.
I think this has long been the normal lot in life for working slugs and would seem completely normal in 1960 America, as it is she will have dual income and should live a retirement that is comfortable and modest and average and normal.
It is a little late for her overly high expectations for retirement to suddenly become the focus of her thoughts.
Do you suppose she has a Master’s Degree, in underwater basket weaving?
If you have a garden and a library, you have everything you need.
Chatty Cathy should not have got a masters in basket weaving and spent less than 1/4 of the cost on a viable trade school and made a good living. I have no degree of any kind and retired at 54 from the military and finished to full retirement at 60 flying medivac. Then again I did not waste money to keep up with the Jones. I bought what I could afford, sold and upgraded as we went. Live debt free in a $600K+ home and drive Lincolns, so does she and have that slinky diesel pickup truck to boot. I feel no pity on her mistakes.
Not the best degree. Especially if this lady is only relying on that rather than actual experience, job hunting skills, and networking. Degrees are not job guarantees.
Masters is specified in the article .
…
Probably wasted all her money on expensive coffee, eating out daily , and or a bad habit like smoking or drugs.
Any one of those can rob you of a million over a lifetime. More than one multi-millions.
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