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Yes, some people work until they keel, if they can. And yes, there's senior housing that's subsidized. Also, if you can wait until 70 to collect your Social Security (that age will go up over time), you'll collect more than if you retire at 66. If you continue working, you'll continue paying into the system, too, so it will grow from your own contributions.
I am single, 42, and have some, but not much, money in retirement funds (about $50K). I am in an uncertain place in terms of career and location, and I have some money in savings (about $40K) but anticipate needing it if/when I change careers and/or move. I live simply and well below my means. I have done the online retirement calculators and find the results to be completely overwhelming. Even with my frugal spending habits, I apparently need close to $1 million to retire. There is no way that is going to happen. What do people do - work until they die? Are there retirement communities that have lower rent? I have a very reasonable mortgage that I could definitely have paid off by the time I retire, but the thought of retiring where I live now is crushingly depressing. I want to move, but when looking at the reality of my financial future, I feel stuck.
What do people do? Just save what you can? I have no kids, no debt (except for mortgage). It seems like I am missing something to be in what feels like such a desperate situation.
Given the additional information you provided, you should be fine. Just work on socking away the max for your 401k and Roth. Do the catch-up when you turn 50. Yo'll be surprised how much you can accumulate. Will it be a million? Probably not, but there is nothing magic about that number. It will be enough, and that's all you need. Don't fret about it. Just stay the course... and don't forget to live along the way.
I started getting serious around your age (maybe a couple years earlier), and I am fully comfortable tha I am on track - despite having weathered the recession of 2008.
I started getting serious around your age (maybe a couple years earlier), and I am fully comfortable tha I am on track - despite having weathered the recession of 2008.
Never understood this comment. Did you sell your 401k in 2008?? If not ..then you didn't weather anything. The only people who suffered in that recession are the ones who were ready to retire in the years immediately following. Otherwise your money just rode the wave down and back up....
Me. I work from home, part time. If I didn't work, I'd sit around all day going stir-crazy.
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Cracks me up so many of you EXPECT to live into your 90's. Retire at 65 at the latest ..enjoy your retirement years while you have some health..if you make 90 so be it.
Do you understand risk? No one knows how long they are going to live. If you save enough to live into your 90s and then don't, your children will thank you. If you don't save enough to live into your 90s and then do... well there's always Social Security.
Never understood this comment. Did you sell your 401k in 2008?? If not ..then you didn't weather anything. The only people who suffered in that recession are the ones who were ready to retire in the years immediately following. Otherwise your money just rode the wave down and back up....
Lots of people panicked, so technically those who stayed the course, "weathered the storm;" but I see your point.
even if you were going to retire as we were getting ready to in 2008 it was still a non event . if you didn't sell a vee shaped recovery while even spending down was a non event .
it was scary but a retiree who picked 2008 as their starting year is the same as any other average retiree group this many years in .
a modest drop in the beginning that is extended can be far more damaging . we had to weather that storm in 2008 mentally . which if you had a lot of money invested was a tornado mentally as you tried to stay put in a fire when everyone else is running for the exits .
there is a distinction between weathering the 2008 storm mentally which was very tough vs financially which if you stayed put was a non event
Never understood this comment. Did you sell your 401k in 2008?? If not ..then you didn't weather anything. The only people who suffered in that recession are the ones who were ready to retire in the years immediately following. Otherwise your money just rode the wave down and back up....
I think what people are saying is that they did not panic and sell...
I honestly know some people who did just that... purchased hi and sold low.
I as trying to get them to buy more but they freaked out and the storm took them out. Some people were smart and purchased more or made no moves and thus weathered the storm.
Thanks for the replies. I'm sure I'm missing some things but here goes for a few more points - I didn't include SS because of the uncertainty of whether it will be there. I am only putting $ in savings now because I have some uncertainty in my job and might need it, but as I build up more savings for immediate possible expenses I will invest more. I'm still investing some but not a lot. My employer doesn't match. Second job is impossible because I am an attorney and work a lot of hours already. I make 6 figures now but only spend about $2000/month. You have all pretty much confirmed what I was thinking, which is basically the answer to the question I needed answered - is this the reality or am I missing something. Turns out nope this is it. I definitely can continue working and saving/investing - but I feel stuck, like I can't make any other life choices like change to a career that might be lower paying but more satisfying or move out of this town. How depressing.
Surprised this question hasn't been asked yet. For how long have you been an attorney (earning 6 figures or close) and how did you spend your money in the past?
If you graduated college and law school in your 20s, then I would say your balance sheet looks woefully low, given relative income.
But, if you just started earning 6 figures, either because law school happened later in life or you have spent the last 10 years paying off copious student debt, alimony, etc., then your balance sheet is more understandable. But for someone earning 6 figures and saving half their take home over a long period of time having <$100k in total assets seems low.
I'm mid-50s and just 14 months away from it, and the closer I get, the more confused I am about what to do with my precious resources: time and money. Not that I don't have ideas. Just that I have too many ideas and can't decide! Seriously, isn't there some professional or other who can help people think through this; a retirement counselor? If not, there should be.
That's a point I've thought about too and it's that I basically have no family (or won't by the time I'm old). No siblings, no kids, some extended family in the way of cousins, etc. but I've never been close to them and can't possibly imagine asking them for help if I get sick, etc.
Since I do have a well paying job it's not as if I can't save more- I am saving almost 50% of my take-home pay- it's just depressing because I had hoped to be able to leave my stressful and unfulfilling job and hoped to be able to move out of an area that I don't like. It's not that I expect I will love going to work every day and that everything will be perfect, but I'd like to have some happiness in the job/living situation in the next 20 years. It seems like I have to keep this job to make it work.
I don't totally understand. In the beginning, you said you "live simply and below your means", but here you say you have a "well paying job".
As to not having more money saved up, what gives?
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