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Bad News for Boomers?

Started by markvcostello3, 11/17/2011 02:01PM
Posted 11/17/2011 02:01PM Opening Post
I saw this on the internet.

http://finance.yahoo.com/news/25-americans-expect-wait-until-181500675.html

Personally, we (my wife and I) have a good bit more saved than the $25,000 mentioned in the article but probably not enough to retire at 65 or 66. It's a combination of (1) me not saving enough for retirement at that age, (2) my company replacing its pension program with a retirement balance plan and cash retirement plan (I've contributed some to this account), and the economy going to pot starting in 2008....

Mark Costello
Matthews, NC, USA

"I hear you're mechanically inclined. Did you ever do anything with perpetual motion?"

"Yeah, I nearly had it a couple of times."
Posted 11/17/2011 03:09PM #1
I've mentioned this many times before here. You can take what you give the government in SS taxes (roughly 13 cents of every dollar you earn), invest it in a moderately conservative vehicle, and retire at the "real" retirement age with much more monthly income than the government will pay you in SS benefits. AND the money is YOURS TO KEEP.

David E
Posted 11/17/2011 04:13PM #2
What company is going to employ them until they are 80? Getting a job gets a lot harder starting as early as 50. I don't see that getting any easier.
Posted 11/19/2011 11:22AM #3
$25,000. That's pathetic. How many months will that last? Not more than 6 months here in CA. Wait until inflation hits that $25K savings hard, especially now that our economy has passed below the debt saturation transition line. Well, it's tough to save money as household purchasing power continues to decline, decade after decade. Even when women entered the workforce in huge numbers to help families compensate, household purchasing power continued to decline and it gets harder to save every year. And now with civilian employment ratios at 1970's levels with no end in sight, it's even harder to get household income up to savings-enabled levels.

The people that I know who have solid retirement outlooks fall into two groups:
1) Government workers, set for life with 80%+ salary levels and health care. The double-dippers are in great shape, taking luxury vacations to exotic locations.
2) Decent incomes combined with extreme frugality, everything they own comes from garage sales at 10 cents on the dollar, and vacations mean camping out.

From what I can tell, the 1%'ers that I am familiar with don't have two real nickels to rub together and I suspect that most will be working until 80, but they are usually workaholics and thrive on challenges and will always figure out how to make enough to live well.

The smart guys married school teachers. Best of both worlds.

The .01%'ers, of course, are set. But they are a fringe group.

If you're in the middle three quintiles and don't have a government job or a union pension, good luck trying to save money for retirement. It's hard damn work.