One-third of Americans only have $1,000 saved for retirement

[Mai72]

http://finance.yahoo.com/news/ameri...ved-for-retirement-ebri-report-134741117.html

What happens if your old, you have $100 dollars to your name, and you can't work anymore?

Will the people who saved diligently, have to pay for the people who didn't or weren't able to save for retirement?

D:

 

[HamburgerBoy]

Death panels, plz.

 

[Colt45]

I suppose you'd collect the SS you'd been paying into for 40 years.

 

[cuafpr]

wow, even i have more than that... not a ton but more.. most people i know had theirs wiped out in the past 4-8 years... between job less and a shitty economy accounts were drained just to get by after assets were sold off.

 

[AViking]

If these numbers are right though we're going to have a majority of Americans living just above poverty in retirement.

I've seen numbers thrown out like that Americans are short about 25% of what they need to survive and that there are expectations that SS benefits will drop by 20%. That's pretty catastrophic.

An American bank had a poll where they said that 35% of Americans will never retire and will work until they die or are too sick to work. Should be interesting to see what jobs millennials are working when they're 80. I hope they're all ready to be walmart greeters.

Americans between the ages of 55-65 making up to $150,000 a year only have an average of like $170,000 in their retirement account. Combine even that with SS and you're looking at some really poor people.

 

[mikeford]

Numbers are likely worse, old people aren't working at McD and Walmart to be social. Plenty have health or other issues late in life and retire broke or in debt.

OTOH I know people that have put 5% to 10% all of their lives into decent investments choosing a frugal lifestyle and some of them are doing very well.

 

[wabbitslayer]

Will the people who saved diligently, have to pay for the people who didn't or weren't able to save for retirement?
D:

people who work diligently are already forced by the gov't to pay for the people who don't or (supposedly) aren't able to, so it's not like this will be any different.

 

[Sho'Nuff]

Will the people who saved diligently, have to pay for the people who didn't or weren't able to save for retirement?

You think that doesn't already happen? What do you think social security is?

 

[Sho'Nuff]

I suppose you'd collect the SS you'd been paying into for 40 years.

ROFLMAO.

Not to be sardonic, but if SS is around in 40 years I will be SHOCKED!

 

[Sho'Nuff]

An American bank had a poll where they said that 35% of Americans will never retire and will work until they die or are too sick to work. Should be interesting to see what jobs millennials are working when they're 80. I hope they're all ready to be walmart greeters.

Another problem with having an older workforce is that people who do not retire may be occupying jobs that younger people would have inherited. This is likely to lead to increased unemployment among the young, a significant issue. Spain's current economy is evidence of that fact.

 

[Jimzz]

ROFLMAO.

Not to be sardonic, but if SS is around in 40 years I will be SHOCKED!

It will be around but the retirement age will go up and payouts will be the same while everything cost more.

Me and my wife plan as though SS will not be there. If it is then a extra Corvette or trips for us.

We should have a net worth of 1million by the time I hit 40 with no debt. That's our goal right now. Then move to a lower cost of living area and retire early.

 

[Sho'Nuff]

It will be around but the retirement age will go up and payouts will be the same while everything cost more.

Me and my wife plan as though SS will not be there. If it is then a extra Corvette or trips for us.

We should have a net worth of 1million by the time I hit 40 with no debt. That's our goal right now. Then move to a lower cost of living area and retire early.

Wife and I have basically the same plan but are a tad further along the curve than you. Congrats on having a plan and executing. Lets pray that the government doesn't decide to tax all those tax advantaged retirement products into which they lured everyone to invest.

 

[IndyColtsFan]

Wife and I have basically the same plan but are a tad further along the curve than you. Congrats on having a plan and executing. Lets pray that the government doesn't decide to tax all those tax advantaged retirement products into which they lured everyone to invest.

I think they'll just keep kicking the can down the road, as is par for the course for politicians looking to keep their seats.

 

[Jimzz]

I think they'll just keep kicking the can down the road, as is par for the course for politicians looking to keep their seats.

Those politicians, federal, get a Pension after just 6 years so they already have their plan. ()

 

[Exterous]

http://finance.yahoo.com/news/ameri...ved-for-retirement-ebri-report-134741117.html

What happens if your old, you have $100 dollars to your name, and you can't work anymore?

Will the people who saved diligently, have to pay for the people who didn't or weren't able to save for retirement?

D:

There are two very important things to know about this study:
1) They do not count money in defined benefit funds. So anything in a company pension, certain types of trusts, annuities etc is not captured by this '$1000'
2) They got their answers via phone polling. IE people got a call from a complete stranger who asked them how much money they had\were worth. I am highly doubtful that most people would both know off the top of their head and answer truthfully\completely.

Not to be sardonic, but if SS is around in 40 years I will be SHOCKED!

Why? Although I wouldn't base my retirement planning on it being around there is no real reason that it won't be. Even at current levels it will still be able to pay out ~75% of promised benefits and requires only small\minor changes to fix that shortfall.

You should be far more concerned about health care and long term care costs

 

[highland145]

Those politicians, federal, get a Pension after just 6 years so they already have their plan. ()

Too bad all Americans don't know this tidbit.

 

[Oldgamer]

http://finance.yahoo.com/news/ameri...ved-for-retirement-ebri-report-134741117.html

What happens if your old, you have $100 dollars to your name, and you can't work anymore?

Will the people who saved diligently, have to pay for the people who didn't or weren't able to save for retirement?

D:

This isn't surprising because wages have gone down and become stagnant in America while the top 1% wages and profits are up. At this point most American's just don't have the ability to save anymore. I know many people who are living paycheck to paycheck. Any major financial issue or crisis can put them in the "red" and potentially send them to the streets.

It is a sad affair when American's are fighting for the right to get paid decent wages that allow the ability to save money and pay basic needs.

 

[AViking]

Although I don't think SS is going anywhere a 25% reduction in benefits is rather huge for many people. My grandmother's retirement was mostly SS and without my family helping her she would have been stretched very thin. A 25% reduction in SS pretty much ensures a mass exodus to the midwest.

 

[HOSED]

Ironic footnote, my grandfather worked in a US govt. job until the early 70's and Social Security was OPTIONAL (he was too smart to pay in). Of course he did not need color TV, a large home, fancy car. Once I got out of the workforce all totaled I make more money per month compared to when I worked as a PC tech. BUT I do not waste money on cell phones, cable TV's, fancy autos, vacations, eating at restaurants, etc.
I use coupons, comparison shop, and have other less "moral" ways of saving/making money.

 

[Kaido]

What happens if your old, you have $100 dollars to your name, and you can't work anymore?

Soylent green option

 

[Wreckem]

Those politicians, federal, get a Pension after just 6 years so they already have their plan. ()

They are vested after 5 years(as are ALL federal employees).

If they only serve 6 years their pension would be $870 a month.

$870 a month is chump change when most people in Congress are millionaires.

 

[manimal]

Wife and I have basically the same plan but are a tad further along the curve than you. Congrats on having a plan and executing. Lets pray that the government doesn't decide to tax all those tax advantaged retirement products into which they lured everyone to invest.

We had a similar plan and were almost there when we were both 39 then my wife got pregnant and we ended up having triplets.. Now our retirement at 45 is just a pipe dream. I love our kids and wouldnt go back but damn triplets are expensive..

 

[Wreckem]

Although I don't think SS is going anywhere a 25% reduction in benefits is rather huge for many people. My grandmother's retirement was mostly SS and without my family helping her she would have been stretched very thin. A 25% reduction in SS pretty much ensures a mass exodus to the midwest.

Those over a certain age will not see a reduction.

Any reduction will be younger generations to bare.

In reality Social Security is easy to "fix" indefinitely. It is Medicare that is the problem. The reason SS hasn't been fixed is because you have Republicans who don't want to fix it, they just want to gut it.

 

[CLite]

Numbers are likely worse, old people aren't working at McD and Walmart to be social. Plenty have health or other issues late in life and retire broke or in debt.

OTOH I know people that have put 5% to 10% all of their lives into decent investments choosing a frugal lifestyle and some of them are doing very well.

I'd like to point out that by default people put 12.4% of their earnings into retirement (social security), assuming they are making <$110k'ish. This includes employer contribution obviously.

 

[Wreckem]

Ironic footnote, my grandfather worked in a US govt. job until the early 70's and Social Security was OPTIONAL (he was too smart to pay in). Of course he did not need color TV, a large home, fancy car. Once I got out of the workforce all totaled I make more money per month compared to when I worked as a PC tech. BUT I do not waste money on cell phones, cable TV's, fancy autos, vacations, eating at restaurants, etc.
I use coupons, comparison shop, and have other less "moral" ways of saving/making money.

Well that is because he was under the Civil Service Retirement System. So yeah he didn't need Social Security because he had a glorious pension.