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Old 04-24-2015, 08:26 AM
 
Location: Tennessee
23,587 posts, read 17,574,904 times
Reputation: 27677

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Quote:
Originally Posted by DaveinMtAiry View Post
I totally agree with the posts here criticizing the article. Again another alarmist article. Whenever I see figures like $7 million it just screams of writers trying to get attention and clicks. When I saw the figures the first thing I wondered was the age of the respondents.

No doubt Americans are not saving enough, and I have no doubt there is some validity to the $7 million figure. But it's not the entire story.
There are too many alarmist articles, but how many people are earning low wages, muddling along barely making ends meet, much less having enough to retire? The median household income in my hometown is in the low $30k range. How do people at that level, or the half below it, subsist in old age? There's your crisis.
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Old 04-24-2015, 08:30 AM
 
2,014 posts, read 1,254,501 times
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Quote:
Originally Posted by HappyTexan View Post
Well in order for the government to rush in and fix it we must have a crisis first.
Constant MSM articles on the "retirement crisis" will "create" that problem.
Yeah, the 'retirement crisis' is going to be the basis for stealing money from those that actually prepared for retirement and giving it to those that didn't.
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Old 04-24-2015, 08:32 AM
 
Location: Great State of Texas
86,093 posts, read 72,515,954 times
Reputation: 27566
Quote:
Originally Posted by Wanderer0101 View Post
Yeah, the 'retirement crisis' is going to be the basis for stealing money from those that actually prepared for retirement and giving it to those that didn't.

Nah..it's not stealing. It's "pooled resources"
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Old 04-24-2015, 08:34 AM
 
Location: Tennessee
23,587 posts, read 17,574,904 times
Reputation: 27677
Quote:
Originally Posted by Wanderer0101 View Post
Yeah, the 'retirement crisis' is going to be the basis for stealing money from those that actually prepared for retirement and giving it to those that didn't.
I wouldn't be surprised if at some point during a later banking crisis, depositors end up on the hook.
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Old 04-24-2015, 08:34 AM
 
Location: Los Angeles area
14,018 posts, read 17,740,386 times
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Quote:
Originally Posted by Linda_d View Post
...........
IMO, excluding the value of the primary residence and any pension benefits makes many respondents' situations appear much more dire than they may actually be. Secure, defined benefit pensions can easily have equivalent values of $1 million or more, and many people, especially those living in high COL areas, intend to use their equity in their paid off homes for some of their retirement funds.
.............
What you pointed out there leads me to the conclusion that the article was intentionally misleading, because no writer of articles could be stupid enough to think that defined benefit pension plans and home equity are irrelevant to being prepared to retire.

Of course not all defined benefit pension plans are equally generous (some are not generous at all) and the pension amount will depend on several factors such as longevity in the career, age at retirement, and salary amount, but still, in general, even the least generous defined benefit pension plans are a huge factor in retirement, and the most generous allow a very comfortable, almost lavish, retirement.
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Old 04-24-2015, 08:36 AM
 
Location: Jamestown, NY
7,841 posts, read 7,331,482 times
Reputation: 13779
Quote:
Originally Posted by DaveinMtAiry View Post
I totally agree with the posts here criticizing the article. Again another alarmist article. Whenever I see figures like $7 million it just screams of writers trying to get attention and clicks. When I saw the figures the first thing I wondered was the age of the respondents.

No doubt Americans are not saving enough, and I have no doubt there is some validity to the $7 million figure. But it's not the entire story.
The survey made that clear, I thought. The article did not. It was very slanted. Even its $1 million figure is deceiving. The median household income in the US is only around $51k in 2013. A retired individual or husband & wife who gets $40k from retirement accounts (4% of $1 million) plus SS of between $25-30K (or more if spousal benies apply) is going to be making more in retirement ($70+k) than about 60% of most American households currently have to live on now even if they're working.
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Old 04-24-2015, 08:46 AM
 
Location: Cochise County, AZ
1,318 posts, read 835,236 times
Reputation: 2869
Quote:
Originally Posted by John13 View Post
Divorce and/or the downturn in the economy can have a big say in that.

Unexpected job loss at a critical age and most firms not hiring those who are in their 50s can wipe a person out. Maybe people should not stereotype or harshly criticize when they don't really know the details or can't relate to what many older Americans are now going through.
^^This! Losing your home of 25+ years and using up your IRA in trying to keep your home due to the economic down turn. I know the Men & Women retiring single thread is extremely lengthy but many posters fell into similar situations.

Fortunately (or maybe unfortunately?) I won't meet assistance requirements so I will need to live my days frugally but it's still doable.

Definitely sensationalism!
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Old 04-24-2015, 09:10 AM
 
368 posts, read 459,385 times
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Quote:
Originally Posted by Escort Rider View Post
Perhaps I am belaboring the obvious, but the tacit implication of some of the quotes from the article is that if people have made no retirement plan and have no savings whatsoever, that they will have nothing in retirement and will be totally destitute. That thinking ignores Social Security. Someone with 35 years of earnings at more than minimal levels who is able to wait until full retirement age to draw SS retirement benefits will be able to live in reasonable, albeit rather frugal, comfort, even if there are no other savings.

Now I am not arguing that such total reliance on Social Security is a good idea, nor would I be personally satisfied with such a non-plan and its concomitant life style.

So while it is a bit scary and also puzzling that so many people have no plan and/or no savings at all, the picture is not totally bleak either. Excellent rationale for the mandatory nature of SS, which is a real life saver on a societal level.


Frugal for sure!!! I am looking at my SS statement and I've been paying in since 1977 and at my estimated future earnings, retiring at 62 will give me $1238/mo. And at 67 it is $1787/mo. Thats over 10 years away and this years fixed expenses are over $2000/mo with no mortgage or car loan.
And even more sickening, if I get disabled today It's $2228/mo
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Old 04-24-2015, 09:17 AM
 
Location: Tennessee
23,587 posts, read 17,574,904 times
Reputation: 27677
Quote:
Originally Posted by Deelighted View Post
^^This! Losing your home of 25+ years and using up your IRA in trying to keep your home due to the economic down turn. I know the Men & Women retiring single thread is extremely lengthy but many posters fell into similar situations.

Fortunately (or maybe unfortunately?) I won't meet assistance requirements so I will need to live my days frugally but it's still doable.

Definitely sensationalism!
I know probably a dozen Tennesseans back home who either cashed out their retirement savings in one lump sum to try and pay everything off or have had a slow bleed of savings to try and maintain a home or standard of living they can no longer afford with the reduction income from the poor labor market.

People are honestly better off to go bust than sacrifice retirement savings (which are generally protected in bankruptcy) trying to maintain a lifestyle that is not sustainable under whatever the current conditions are.
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Old 04-24-2015, 09:28 AM
 
Location: Cochise County, AZ
1,318 posts, read 835,236 times
Reputation: 2869
I know for a fact that in order to get any type of housing assistance (Indiana), you must use up all of your retirement benefits first. Did I ever qualify for housing assistance - nope, but they did try to help me with Citi$$$Mortgage who wouldn't even respond to me or to them.
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