Retirement? What's that?

[Deleted]

www.marketwatch.com/story/many-of-us-wont-be-able-to-retire-until-our-80s-2011-06-09
Many of us won’t be able to retire until our 80s
You’ll probably have to work much longer than you anticipated

By Robert Powell, MarketWatch
BOSTON (MarketWatch) -- We all think it’s a panacea. If you don’t have enough money saved for retirement, you’ve got a few ways to close the gap between what you have and what you need in your nest egg: Save more, invest more aggressively, and/or work longer.

Well, it turns out that working longer is indeed an option, according to the Employee Benefit Research Institute latest study. The only problem is that the latest research shows that you’ll have to work much longer than you anticipated. In fact, many Americans will have to keep on working well into their 70s and 80s to afford retirement, according to the study, titled “The Impact of Deferring Retirement Age on Retirement Income Adequacy.”

What’s more, it’s even worse for low-income workers, according Jack VanDerhei, one of the co-authors of the study. Those who earned (on average over the course of their careers) less than $11,700 per year, the lowest income quartile, would need to defer retirement till age 84 before 90% of those households would have just a 50% chance of affording retirement.

Those who earned between $11,700 and $31,200 will need to work till age 76 to have a 50% chance of covering basic expenses in retirement. Those who earned between $31,200 and $72,500 will need to work to age 72 to have a 50% chance and those who earned more than $72,500, those in the highest income quartile, catch a break; they get stop working at age 65 to have a 50/50 chance of funding their retirement.

So what can be done to make sure you have enough income in retirement? Well, the sad truth is that not working is no longer an option and working past age 65 is fast becoming a fact of life, at least for those in the lowest three income quartiles.
MORE...


****Better be nice to the little kids, because they are going to work until they die when they grow up..****

[billisonboard]

***Better be nice to the little kids, because they are going to work until they die when they grow up..****

Heck, I will feel fortunate if I am able to quit working when I die. All my calculations put my retirement at 6 months beyond that date.

[dancinmama]

It seems like the majority of the baby boomers did not save enough for retirement. Can someone explain this to me?

I told DH a few years ago, that our children would be competing with us for jobs and that is exactly what is happening.

[Deleted]

Retirement is bad for your health anyway.

[Deleted]

Things are sure changing. No more Grandmas and Grandpas playing with the kids on the beach, unless they are rich?? It didn't used to be that way..

[diamonds]

I have always accomplished more when I worked and was on a schedule. Too much procrastination and worrying when one has too much time on their hands. Of course, I'm a typical Virgo and decided my avatar should have been the statue of the thinker....lol. Or maybe it's just having a plan "B"?

[Deleted]

You're right, Di. I just get depressed because things are SO bad, and I am almost well enough to start looking for a new job, very worried about that.... now there is really no SS, and soon to be a really old age to even qualify for what I paid for.... I lost all my retirement plans to the ex that held the money in order to keep my kids... really questioning many things now, and not enjoying the thought of the future at all. I wish now I had stayed married to the abusive son of a bitch... ahh, hindsight..
I hope ALL women, men, whatever, have a plan B that is theirs alone, just in case..

[Deleted]

It's good to see you here, Di. Really good.

[deziloooooo]

Guess I had a plan B..seems all I know where I live, had a plan, a plus b, plus C....actually never had the internet and chat rooms to wast time on so had to work on plan a , plus plan b, plus plan C plus...

[jkapp]

My dad retired for a few years but drove my mom nuts - he went from a workaholic type schedule to nothing...he definitely wasn't prepared mentally for it. Now he works during tax season and does a few other jobs (for his church and such) to keep himself busy.

So retirement, while something of a cultural life goal in our society, isn't always the way to go for everyone.

[Deleted]

I wish I was about 10 years older, OR 10 years younger. Either would be fine with me.

[Deleted]

MY Dad retired after 30+ years at IBM with a good pension. Started up a process serving service with my step brothers, that he loves. At 78 he is healthy and going strong. I just wonder if those days are behind us now? Even the working 30+ years for one company, the loyalty, stability, etc. All of that seems to have shifted in a huge way..

[Deleted]

Jun 10, 2011 15:28:23 GMT -5 @krickitt said:

I wish I was about 10 years older, OR 10 years younger. Either would be fine with me.

The grass is always greener.

[Deleted]

Jun 10, 2011 15:31:17 GMT -5 @krickitt said:

MY Dad retired after 30+ years at IBM with a good pension. Started up a process serving service with my step brothers, that he loves. At 78 he is healthy and going strong. I just wonder if those days are behind us now? Even the working 30+ years for one company, the loyalty, stability, etc. All of that seems to have shifted in a huge way..

I bet if he retired he wouldn't be as healthy.

[diamonds]

Jun 10, 2011 15:19:23 GMT -5 @krickitt said:

You're right, Di. I just get depressed because things are SO bad, and I am almost well enough to start looking for a new job, very worried about that.... now there is really no SS, and soon to be a really old age to even qualify for what I paid for.... I lost all my retirement plans to the ex that held the money in order to keep my kids... really questioning many things now, and not enjoying the thought of the future at all. I wish now I had stayed married to the abusive son of a bitch... ahh, hindsight..
I hope ALL women, men, whatever, have a plan B that is theirs alone, just in case..

Krickitt: Thanks for the nice words, I gave you a karma star on the other board. I have always admired your spunk and I am having the same hindsight as my ex wasn't abusive, just a roaring alcoholic and I guess I thought I would be 30 forever. He was super-successful and know he is very well off now, as he was a CEO and had a great savings plan. He is down in Scottsdale and would have been nice to retire there. I never thought the economy would fall as low as it is and yes, it is quite a big worry for many of us.

[Deleted]

Di----- All we can do is hang in there. I taught my daughters well, though. I hope and pray they make their own way, as well as their way with their partners.

[diamonds]

krickitt: I'm sure they will do just fine. It is different out there now as the moral decay of our basic principles are gone. I was lucky to be raised with values and respect, but nowdays, the family unit is not the same.

[Deleted]

Well, it turns out that working longer is indeed an option, according to the Employee Benefit Research Institute latest study. The only problem is that the latest research shows that you’ll have to work much longer than you anticipated. In fact, many Americans will have to keep on working well into their 70s and 80s to afford retirement, according to the study,

Don't you have to wonder exactly how they did this study? Since each individual is different I sure wonder about it. It's not a study that you can really average either because you don't know how long everyone will live. Interesting, but I'm guessing that it was done over the phone & since I never answer those questions for real, I doubt it's accuracy.

[Deleted]

I wish I was about 10 years older, OR 10 years younger. Either would be fine with me.

Krickett hire about 4 teenagers to live with you for a year. I'm pretty sure that will age you much quicker than normal.

[Deleted]

Deal is, Archie.. I don't disagree, but fact is he had the capital to leave the job and start something he loves BECAUSE of the job. Is that even an option these days?

Could be, tex. I just found the article...

[Deleted]

LOL, tex!! I have 2 19 YOs, a 21 YO, 25 YO, and a 2YO in my home. I'm either 21 or 80.. varies from day to day!!!
;D
Thx for making me laugh!!

[Angel!]

Is that even an option these days?

Yes, if people bothered to save. But, most choose to live for the moment, which will cost them in the future & often means they have to work until their 80.

It is all about choices & priorities.

[billisonboard]

The History of Retirement, From Early Man to A.A.R.P.
By MARY-LOU WEISMAN
Published: March 21, 1999
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IN THE BEGINNING

In the beginning, there was no retirement. There were no old people. In the Stone Age, everyone was fully employed until age 20, by which time nearly everyone was dead, usually of unnatural causes. Any early man who lived long enough to develop crow's-feet was either worshiped or eaten as a sign of respect. Even in Biblical times, when a fair number of people made it into old age, retirement still had not been invented and respect for old people remained high. In those days, it was customary to carry on until you dropped, regardless of your age group -- no shuffleboard, no Airstream trailer. When a patriarch could no longer farm, herd cattle or pitch a tent, he opted for more specialized, less labor-intensive work, like prophesying and handing down commandments. Or he moved in with his kids.

ELDER HOSTILE

As the centuries passed, the elderly population increased. By early medieval times, their numbers had reached critical mass. It was no longer just a matter of respecting the occasional white-bearded patriarch. Old people were everywhere, giving advice, repeating themselves, complaining about rheumatism, trying to help, getting in the way and making younger people feel guilty. Plus they tended to hang on to their wealth and property. This made them very unpopular with their middle-aged sons, who were driven to earn their inheritances the old-fashioned way, by committing patricide. Even as late as the mid-18th century, there was a spate of such killings in France. In 1882, Anthony Trollope wrote a futuristic novel, ''The Fixed Period,'' in which he foresaw retiring large numbers of old men to a place where they would be encouraged to enjoy a year of contemplation, followed by a peaceful chloroforming. But this was hardly an acceptable long-term strategy.


More at: www.nytimes.com/1999/03/21/jobs/the-history-of-retirement-from-early-man-to-aarp.html?src=pm

[Deleted]

Lots of hard working people out here in their 50s or so, angel, that the economy exploded in out faces and wiped out. I was fully prepared to work until I could not work any more. Now that the economy has been wiped out.. what?? People like me that worked their butts off all their lives and don't have a huge wad of money because we are the customer service branch of people-- now we are suddenly WRONG or something?? We never were before, as we drove our cabs, served the food, waited on the 401K class people. The flipping illegals get more respect than we do, and that is no lie.

[Deleted]

Yes, if people bothered to save. But, most choose to live for the moment, which will cost them in the future & often means they have to work until their 80.

So true Angel D! But when the time comes & they can't retire don't forget they will be bitching & moaning how SS & the government let them down because they don't get enough money. They of course will never acknowledge that they knew that SS wasn't ever meant to be all of their retirement & they didn't save anything for it (so it's their fault).

SS was a poorly designed program to start with & then you have to add in the stupidity of people. Sometimes it drives me crazy.

We have some friends that are in their peak earning years. Between the 2 of them they earn enough to be able to afford any house in this town & live very well (they probably make 4 times the average salary in this area). Instead they are supporting their kids & their families & just getting by. She retires in 2 years & he will work until he drops. Right now if they were going to sell their house they would have to put 40 to 60 thousand dollars into repairs (because they have let it go downhill so badly). BTW their kids live in a much more expensive area & are more or less coasting thru life. My wife feels sorry for them. I just look at the situation & think, oh well, you did it to yourself.

[Angel!]

Jun 10, 2011 16:11:50 GMT -5 @krickitt said:

Lots of hard working people out here in their 50s or so, angel, that the economy exploded in out faces and wiped out. I was fully prepared to work until I could not work any more. Now that the economy has been wiped out.. what?? People like me that worked their butts off all their lives and don't have a huge wad of money because we are the customer service branch of people-- now we are suddenly WRONG or something?? We never were before, as we drove our cabs, served the food, waited on the 401K class people. The flipping illegals get more respect than we do, and that is no lie.

The market is only down 20% from it's peak, so escept for those that made poor investment choices, people's 401K's shouldn't be down by more than 20%.

Although I'm confused - if you had no retirement savings, then what got wiped out? What was your retirement plan before the economy crashed? Work until you could work no more? Your article is about people having to work until 80 because they didn't bother to save - sounds like you are a shining example of that. Why should I feel sorry for you given that those were the choices you made? Why didn't you bother to save - and don't tell me you could never afford it because that is a BS excuse, everyone can afford to save a little, most just don't.

[mmhmm]

Jun 10, 2011 15:59:41 GMT -5 Angel! said:

Is that even an option these days?

Yes, if people bothered to save. But, most choose to live for the moment, which will cost them in the future & often means they have to work until their 80.

It is all about choices & priorities.

This is true, up to a point, Angel. Some of those who find themselves in a difficult position now did have good plans. The collapse of S&L due to corruption, the precipitous drop in home values, the banking fiasco ... all these things weren't anticipated, as the average person had no crystal ball to know it was going to happen in time to set up for it. The younger population has a chance to prepare themselves, and I sure hope they take it. Those, however, who were at, or near retirement when the defecation hit the air management system weren't in such an auspicious position. A significant number found their retirement funds dwindling to a pittance before they could blink twice. It's these I feel for.

[wyouser]

And where are those folks today who were praising the shift to the new service oriented economy 20-30 years ago. You remember, the ones saying dont worry about the shift away from a manufacturing based economy. Not to worry about no longer being with a company ones whole working career. Folks dont need defined benefit programs in the brave new world...remember? Oh well, retirement is just a short lived quirk in the history of man. We are just reverting to the historical norm...you work....then you die.

[wyouser]

as far as those who havent saved...nothing has really changed in the last 40 years. They showed us grafs in the very early 70,s that indicated only 3% ever saved enough to be financially secure at retirement. Stats in 2011 from our company show ZERO improvement in that figure.

[Deleted]

There was WORK then, angel!! The work is not there now. I'm not expecting anyone to "feel sorry for me", but I am telling you I worked my butt off in the service industry my entire life that I worked, there was no 401K, I am in a generation of women that hooked their retirement to their husbands.. who failed the family, and now you are talking like we are lazy, made bad choices-- when at the time the choices were the GOOD choices?? What do you expect us to do now? Forget it, I can't have this conversation.