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Location: Born in L.A. - NYC is Second Home - Rustbelt is Home Base
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OP...you write about the 'well to do,' but what about the average Joe or Jane? They average person wont retire cause they can never afford to retire. They will work at McD taking orders or Safeway bagging and living out of their car. If there in NYC, don't have a car, they can at least be close to the food supply...
Now, I'm not joking. All you have to do is to look at the trend in the US. Homelessness is skyrocketing. No one can afford the rents unless they make tons of $. Now they are talking about getting rid of all social services and giving everyone a universal allowance...maybe $10k to $13K a year. You may be able to rent a small place in the Rustbelt or have 6 roommates in NYC.
As the OP mentioned some people have saved up. But stats show most Americans have little or nothing saved for retirement..it all goes just to live.
Nearly half of all working-age families have zero retirement savings.
Well, this is just how things worked out in our world. I mean with globalization, China, India, robots, greed...something has to give.
Google: David R. Shackelford’s retirement party
That should bring you to my post: I wonder what America will look like...100 years after Frank
I have some photos in the post comparing the 1950's to 2016. It is a nsfw post, so can't post the link here. It is amazing how things changed so much in the US in such a short time.
I was talking to an intern that expects to make $300K+ a year. His wife 'to be' makes $100K in the medical field. A retired vet was injured and is getting $ from gov and other sources and makes near $80K a year. So, some will do OK.
Last edited by slackercruster; 12-14-2016 at 12:35 PM..
When pensions were still a thing people felt more comfortable to retire because they had the security of a lifelong income stream. That used to open up positions for the younger workers. Nowadays people have to work as long as possible to stack their 401ks and get more from SS.ple
In the near future the only people who will be able to retire are wealthy people or those who are forced into retirement due to medical issues, or being "aged out" of their industries.
What will people who are not wealthy, and either have medical issues or "aged out" of their industries use for health insurance if Medicare either no longer exists by then or has a ridiculous age limit that most people won't reach?
I do not know any boomers who had a 6 figure salary for 2-3 decades. Some of the people I know who did well and made 6 figures had their own businesses and were only making that amount of money for a temporary period, certainly not for 2-3 decades. The bottom dropped out and their clients dwindled down due to the economy. Get real--the economy has not been good to many boomers in private businesses or in the public sector. Only people in academia and government can afford to retire. Many boomers have gone through major career changes because their original careers tanked. I know many people who had to retool themselves and restart at the bottom in other fields. I know people who were laid off not once but multiple times, not due to job performance but corporate cutbacks. Due to retooling themselves with additional education and paying bills out of their savings when they were laid off, many people depleted their 401Ks. I know one woman who had to deplete her nice sized 401K due to unforseen expenses, husband unable to work, etc. They had to declare bankruptcy at least once.
The idea that boomers all made 6 figures for 2-3 decades and socked it all away and have millions in 401K plans but are unable to retire, that is just plain ludicrous.
I do know there are a certain percentage of boomers who did very well and were able to retire. They have 2nd homes, travel extensively, wine and dine, and seem to live very well in retirement. But that is few and far between, and most of these people were in top professional jobs where they did not incur layoffs and were able to move up the ladder. Many people work very hard and work for many, many years in their professions, but they cannot move up the ladder and then many positions are eliminated in corporate cutbacks.
I really don't see the point of this thread at all. The person who started the thread is obviously not a boomer. But whatever. The reasons why boomers haven't retired are so obvious to most of us that it's not even worth continuing this thread, IMO.
I know plenty of boomers who made the equivalent though. Not specifically six figures for 30 years, but significantly better in terms of purchasing power than today such that they were able to put way more aside for retirement, along with stock options and other benefits. Example, a house that cost in the $20K (yes, TWENTY thousand) in the 70s would sell around $250K today. The family buying that house back then was making about $15K a year. The equivalent young couple buying that $250K house is making maybe $50K. Cost went up over ten times, yet income only went up a little over three times.
That is the problem facing young folks today. I researched the pay history of my job. In 1980 it paid the equivalent of six figures in inflation adjusted terms. It doesn't pay anywhere near that today. Inflation adjusted it pays about 30% less.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Quote:
Originally Posted by tnff
I know plenty of boomers who made the equivalent though. Not specifically six figures for 30 years, but significantly better in terms of purchasing power than today such that they were able to put way more aside for retirement, along with stock options and other benefits. Example, a house that cost in the $20K (yes, TWENTY thousand) in the 70s would sell around $250K today. The family buying that house back then was making about $15K a year. The equivalent young couple buying that $250K house is making maybe $50K. Cost went up over ten times, yet income only went up a little over three times.
That is the problem facing young folks today. I researched the pay history of my job. In 1980 it paid the equivalent of six figures in inflation adjusted terms. It doesn't pay anywhere near that today. Inflation adjusted it pays about 30% less.
Look at your Social Security Benefit Estimate Statement, and it shows how much you made every year since you first got a SS card. Mine starts off at age 14 when I made $1.75/hour part time, with a peak in 1993 when I quit a good job to open a business, that peaking in the late 90s, then I started here in 2009 and am now at the highest ever, but when I retire at 68-70 it will have only been 8-10 years in six figures.
Our first home in 1978 cost $50k, it's now worth $720k according to Zillow. We couldn't afford it now.
Most people Don't have enough money to retire unless you have a pension. The 2007-009 recession didnt help. At my old job two year ago, my Delivery driver was 67 year old, working two job just to pay bills.
I do not know any boomers who had a 6 figure salary for 2-3 decades.
Do you have a doctor? A dentist? An accountant? The local building contractor? The president of the company you work for? If they're over 60, they've all probably been making a six-figure salary for two decades, unless you live in a very low-income part of the country (where a high five-figure income goes pretty far).
One other thing that occurred to me: for the people who are able to retire but choose not to: in an odd way, the ability to retire reduces the need to retire, since knowing that you can walk away from a job at any time makes it a lot less stressful.
This is very true. I was eligible to retire at 55, but I decided to stay two more years because a) I was working on a pretty interesting and unique project for my field, and I wanted to see it through to the end, and b) I had gotten a promotion and a significant raise with regard to that project, and waiting would increase my pension enough that it was worthwhile.
It was a difficult though rewarding couple of years what with long hours, weekends, needing to be available for emails and conference calls even when on vacation, and a crazy-ass boss, but I knew I was still on by choice and that if I wanted to, I could walk away with three weeks notice to the retirement system.
Most people Don't have enough money to retire unless you have a pension. The 2007-009 recession didnt help. At my old job two year ago, my Delivery driver was 67 year old, working two job just to pay bills.
I don't think I would even go to the doctors at that point if something happened. That sounds like a miserable existence.
Most people Don't have enough money to retire unless you have a pension. The 2007-009 recession didnt help. At my old job two year ago, my Delivery driver was 67 year old, working two job just to pay bills.
The only people who are going to be able to retire comfortable are those who had very high incomes like a doctor, or have a traditional defined pension plan. The average working stiff will be stuck working until they drop over.
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