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Old 03-15-2015, 12:57 PM
 
48,516 posts, read 83,955,483 times
Reputation: 18050

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Its clearly not a real study and even the professor lumps everyone in same bunch; as they say. Anyone retired any length of time knows that isn't true at all among retirees. Most do not work until the drop even tho its been project even in the past.
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Old 03-15-2015, 01:11 PM
 
685 posts, read 564,907 times
Reputation: 1004
Quote:
Originally Posted by djplourd View Post
Scary retirement income reality Bankrate, Inc.

Short article but some good points in it.

Issues:
Social Security full retirement age is rising
Medicare premiums are going up
More Social Security benefits are taxed

Steps to Take:
Work longer
Put off claiming Social Security
Save more
Tap your home equity

The only thing I didn't like was the chart on suggested retirement savings targets. I've never seen retirement savings goals shown this way.
I take Bankrate.com with some grains of salt. They're there to advertise and sell products.

Prices are skyrocketing and it's indicated in the article. If things cost more, how the heck do people
save more. I had been paying off a loan on a new HVAC system. It was paid off last year and any
money I'm no longer paying to the loan company pays for medical insurance, and living. My earned
income is going down because prices are climbing.

The government is allowing this to happen. It's no longer a matter of saving, it's how not to continue to be ripped off by the government and I don't know that will ever happen.
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Old 03-15-2015, 02:30 PM
 
33,046 posts, read 22,067,502 times
Reputation: 8970
Quote:
Originally Posted by djplourd View Post
Scary retirement income reality Bankrate, Inc.

Short article but some good points in it.

Issues:
Social Security full retirement age is rising
Medicare premiums are going up
More Social Security benefits are taxed

Steps to Take:
Work longer
Put off claiming Social Security
Save more
Tap your home equity

The only thing I didn't like was the chart on suggested retirement savings targets. I've never seen retirement savings goals shown this way.

Another good reason to allow the purchase of tiny properties.
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Old 03-15-2015, 02:33 PM
 
33,046 posts, read 22,067,502 times
Reputation: 8970
Quote:
Originally Posted by rdflk View Post
Do we really need a study to know this. If you can't afford to retire or need more money in retirement...work longer. If you want to save money...live below your means, or cut your expenses. No &#(@ Sherlock. Thank goodness my taxes dollars didn't pay for that "article."

??? And if you are unable to work longer? Or you're living at poverty level, how do you live below your means? If you're paying half your income to rent a room, how do you reduce expenses?
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Old 03-15-2015, 03:26 PM
 
Location: Tennessee
23,592 posts, read 17,582,380 times
Reputation: 27682
Quote:
Originally Posted by bUU View Post
Yes, those numbers seem a bit low, and they're arrayed rather simplistically.
I made $54,500 officially gross last year. That's almost $440k. Many, many people have far less than that by retirement.
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Old 03-15-2015, 03:28 PM
 
71,651 posts, read 71,777,271 times
Reputation: 49241
Quote:
Originally Posted by freemkt View Post
??? And if you are unable to work longer? Or you're living at poverty level, how do you live below your means? If you're paying half your income to rent a room, how do you reduce expenses?
why do you always ask us to solve your problems ? i can never figure out your asking us questions and then when you get answers telling us why they are the wrong answers.
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Old 03-15-2015, 03:40 PM
 
33,046 posts, read 22,067,502 times
Reputation: 8970
Quote:
Originally Posted by mathjak107 View Post
why do you always ask us to solve your problems ? i can never figure out your asking us questions and then when you get answers telling us why they are the wrong answers.

Didn't you mention that most retirees weren't able to retire on their terms?

Why do people casually suggest 'solutions' that are not feasible for many?
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Old 03-15-2015, 04:00 PM
 
71,651 posts, read 71,777,271 times
Reputation: 49241
then why keep asking ? it wasn't an unfortunate event in your life that did it - it was your entire life , your choices , your path .
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Old 03-15-2015, 05:23 PM
 
Location: Grove City, Ohio
10,135 posts, read 12,390,523 times
Reputation: 13984
Two things; work beyond fra if you can and "live down".

I'm 66 and not collecting ss yet because it is my hope I can make to 70.

The math is simple; for every year I continue to work putting off social security I will receive $200/month for $2,400/year in my social security payment. How much additional savings would I have to have in my IRA to withdraw $200/month indexed to inflation for the rest of my life?

At age 70 1/2 you must withdraw 4% every year or get hit with a penalty so we'll use that as a benchmark.

To withdraw $200/month, which is 4% of my IRA savings, I would have to have an additional $62,500.

To withdraw $800/month, which is 4% of my IRA savings, I would have to have an additional $250,000.

What makes ss more attractive to me is it is indexed to inflation.

Look at it this way if you worked earning $70,000 that "additional" value of $62,500 that you would eventually get would be equivalent to earning $140,000 starting at age 62 and saving $62,500 of that which, after all the taxes, wouldn't leave you with an excess amount to live on.

We're all different and there isn't any right answer but what would you rather have; a guaranteed $800 tax free for the rest of your life or $250,000 in an IRA and forced to take 4% or $800/month for the rest of your life?

Husband and wife both collecting. At age 70 the husband would receive $3,000 while the wife would receive around $1,125 which is roughly 50% of what her husbands fra benefit would be. Together they receive $4,125 for $49,500 annually. Their estimated federal income tax on that would be $0.

Assume this couple saved $250,000 at age 70 1/2 they would have to withdraw 4% or $800/month.

If both took ss at their fra their combined ss would be $3,375 for $40,500 annually and they would receive an additional $9,600 ($800*12) in their IRA withdraws for a total income of $50,100.

The estimated federal income tax would also be $0.

In my part of the country if two people have a home that is paid for and can't live will on a tax free $50,000/year then they have a spending problem and not an income problem. In my part of the country $50,000 after tax is equivalent to nearly $70,000 in wages and if you can't make it on that I am not about to cry a river for you.

And then there is morning down. I never thought I would do it but I'm looking at a condo because at age 70 it's really the only thing that makes sense for me. Yeah, I might have a HOA fee of $150/mo but I spend that now for a yard service to do my yard.
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Old 03-15-2015, 05:38 PM
 
Location: Whereever we have our RV parked
8,795 posts, read 7,710,113 times
Reputation: 15086
They left out the most important and IMHO, easiest solution. Cut back on your lifestyle. Smaller home, cut out eating out and cook some more. Quit buying more clothes, shoes, jewelry, and other toys. Start living below your means now.
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