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I had a co-worker that was like that.
Put 3 kids through private college, paid for 2 weddings for his sons (the girls' families didn't have money), took lavish trips and then wondered at 64 why he had no money saved. He did live life to its fullest and it cost him dearly.
He was amazed that I was taking an early retirement and didn't need to work anymore.
I do think that not enough people have enough money for retirement but I also think some people are "scared" into saving too much for retirement... Looking around at NORMAL everyday retired people who DON'T WORK anymore, none of them have 1 million dollars saved up but if you read the many journals out there, 1 million is not even enough... these people are fine... you don't need 1 million (although, it would be nice if you did) to retire...
My question is, how many of that 31% did have retirement savings before the crash of 2008 gutted it? (assuming that "savings" encompasses any type of product: savings account, IRA, 401K, pension plan) How many of that 31% lost their jobs during the worst of the recession and have not been able to replace that level of income, thus having to draw on and erode their original retirement savings either mostly or completely?
What I'd like to see is what percentage of that 31% did have retirement savings AT ONE TIME but through factors other than irresponsible spending they no longer do. Versus what percentage of the 31% never bothered to address their retirement income needs at all.
My question is, how many of that 31% did have retirement savings before the crash of 2008 gutted it? (assuming that "savings" encompasses any type of product: savings account, IRA, 401K, pension plan) How many of that 31% lost their jobs during the worst of the recession and have not been able to replace that level of income, thus having to draw on and erode their original retirement savings either mostly or completely?
What I'd like to see is what percentage of that 31% did have retirement savings AT ONE TIME but through factors other than irresponsible spending they no longer do. Versus what percentage of the 31% never bothered to address their retirement income needs at all.
If you are 64, lost your job and plowed through your retirement savings then you surely didn't have enough saved to begin with.
It's no secret the Americans aren't great savers and this is just for short term savings.
Less than 5% I believe is what Americans save.
Retirement savings is probably on very few radars.
Now going into debt to get what you want now..that's what most people do today.
I went through life just fine and never had a million dollars so why would I have it when I retire? It's a question I've always had. I didn't live the life of a millionaire all my life now all of a sudden I can? It's just puzzling to me. I know what they are saying....investments etc worth a million but still?????????? Beyond the reach of every day working folks and single moms!
you don't need 1 million (although, it would be nice if you did) to retire...
Although I despise those scare-tactic "retirement minimums" articles as well, I do think it depends a lot on where you live in retirement. If you're in one of the higher COL parts of the country you may indeed need close to $1mil to fund a 30-year retirement for a single person, given todays abysmal interest rates and assuming that you don't want to subject your investments to the vagaries of the market.
If you are 64, lost your job and plowed through your retirement savings then you surely didn't have enough saved to begin with.
True, and if on top of that your retirement vehicles were gutted by the recession, you are toast.
My retirement investments got a double whammy: First by the Gulf oil spill (the majority of it was in BP, which before Deepwater was $106/share and paying a handsome dividend four times a year; it bottomed out at $29/share and they suspended dividends entirely for almost 3 years afterward -- the highest it's ever crawled back up to has been about $54/share just this year and now with the Russian sanctions it's down in the mid-40s) and then by the recession in 08. Which just goes to show that no matter how much you have, it might not be enough if the 'right' combination of wrong things happen.
Maybe that's the whole point of the $1Mil articles: In order to save "enough", one has to save many times MORE than what would be "enough".
We have been through this discussion before. I wonder what percentage of the non-savers has a secure pension adequate to live on in retirement. That would make a HUGE difference, although I am not advocating that people with pensions do not (ideally) need savings as well.
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