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I think the "million or starve" retirement rule was started by the investment firms. They want you to save 1 million and then NEVER use it? Well, I've did the best I could, when I retire I will use what I have and then, if I spend it all, live off of whatever my wife and I get from s.s. being maxed out at age 70.
Do the best you can, have fun doing it, and good luck, Rg
The situation doesn't seem to be getting better. When looking at my generation's retirement need, the total saving needed go over $1 million for a comfortable requirement.
However, I myself won't be retiring for another 30 years plus. Which mean according to most retirement calculators I need about $1.5 million to retire. Even worse is if I decide to exclude Social Security benefits since they might disappear, it will be over $2 million.
Just considering fact everyone over 65 years old in 30 year needs to be millionaire if not multi-millionaire to retire comfortably sounds highly impossible to accomplish.
Honestly, in 30 years from now I think saving ratio of 65 years will be about same. With about 1/3 not having any saving and even worse potentially no social security benefits.
To me it seems like it will be an economic disaster for retirement age people when vast majority of them won't be able to retire!
Don’t the calculators mean 1 million in total assets? This would include home, property, investments, etc.
You have to invest to achieve growth. You can’t just squirrel money away.
This is actually where the heart of my future concern.
Honestly, my parents live of social security and a small pension.
Problem for me is likely I won't have either. Definitely not a pension, and it highly likely social security will long gone by then.
So, I am definitely going need millions it looks like!
But from my calculation the best hope to reach that is getting 10% year over year return in the stock market
That 10% is quite high, which why I am being pessimistic in this post. What people going do in future when social security can't be counted on and they don't have enough money? Are there going be millions of semi-disabled (elderly) going homeless instead into nursing homes?
One thing you can consider, is, when you retire, get a place that has rental potential (convert a basement, or a room with separate entrance, or whatever), or add that to your existing place, if you plan to retire without relocating. That will pay for your maintenance and repair costs, and property taxes. That will take those expenses off of your nest-egg balance sheet, so that your home is self-sustaining.
and what happens to them?? the article says half the baby boomers are already in retirement and they seem to be living. so how are they doing it?
The problem with these "you need a gazillon dollar" stories is that it they are used as fear factors.
One person's fear factors are another's wise planning. The way some boomers are managing these days, is by scrambling for part-time jobs. I see them selling tickets at the local multi-plex, offering customer service at the local pharmacy, repairing computers in their garage, and running a part-time business selling refurbished computers. Some are part-time driving instructors, others have part-time receptionist jobs. Others--and this is a fast-growing trend--are postponing retirement until 70, so they can get the maximum SS benefit. I know one, who has a part-time job cleaning people's Air B & B's. Others just figure, that when/if they get old and infirm, and their money runs out, they'll fall back on 3rd-rate nursing homes that run off of people's SS checks.
People who have very good SS income will do better, as long as SS lasts, but the COL increases will probably be cut back in frequency, or eliminated, possibly. The younger Boomers haven't even joined SS yet, except for those who took the early option, and the reduced monthly amount that comes with that.
I think the "million or starve" retirement rule was started by the investment firms. They want you to save 1 million and then NEVER use it? Well, I've did the best I could, when I retire I will use what I have and then, if I spend it all, live off of whatever my wife and I get from s.s. being maxed out at age 70.
Do the best you can, have fun doing it, and good luck, Rg
Exactly. People are staying in the workforce as long as they can, but too many are being forced out at a relatively young and productive age, still. As the qualification ages for SS get pushed back into higher ages, nobody's explaining how those people are supposed to live, in the meantime, if they get booted from their jobs, then can't get hired elsewhere, due to age discrimination. Some are forced to dip into their retirement prematurely.
Get a house paid for. Do it as soon as you can. 30 year mortgages are a stone around your neck that will get heavier as you age.
Amen. We built (as in drove every nail, not HAD it built) both the houses we've lived in since 1975. Equity from the first built the second. Did have a mortgage on the land of the current, but it was paid off in 1991.
We're retired quite comfortably with maybe 1/2 mil in savings we not only don't spend, we actually add about 20% of retirement income too each year. Retirement income is wife pension, and 2 SS......about 65k/yr.
The situation doesn't seem to be getting better. When looking at my generation's retirement need, the total saving needed go over $1 million for a comfortable requirement.
However, I myself won't be retiring for another 30 years plus. Which mean according to most retirement calculators I need about $1.5 million to retire. Even worse is if I decide to exclude Social Security benefits since they might disappear, it will be over $2 million.
Just considering fact everyone over 65 years old in 30 year needs to be millionaire if not multi-millionaire to retire comfortably sounds highly impossible to accomplish.
Honestly, in 30 years from now I think saving ratio of 65 years will be about same. With about 1/3 not having any saving and even worse potentially no social security benefits.
To me it seems like it will be an economic disaster for retirement age people when vast majority of them won't be able to retire!
In the real world, more than half the people who retire in the U. S. don't have any saved money and no income other than Social Security.
Excellent advice. Paying off a home can home can help too.
One of the most important things of all, paying your house off, making extra payments. That alone can put you on easy street. I cashed out on my $125k townhouse in Las Vegas last May, bought a mobile home in a senior mobile co-op park for $31k, put $10k into it to fully rehab it, and that included a Mini-Split @$4800. And I'm in a dream location where I don't even need a car, walking distance to 2 grocery stores, bus line in front of the complex! Worrying I'd never make it to 60YO I did all my foreign and domestic travels much earlier in life and I'm puzzled as to where I'd even travel to today!
The situation doesn't seem to be getting better. When looking at my generation's retirement need, the total saving needed go over $1 million for a comfortable requirement.
However, I myself won't be retiring for another 30 years plus. Which mean according to most retirement calculators I need about $1.5 million to retire. Even worse is if I decide to exclude Social Security benefits since they might disappear, it will be over $2 million.
Just considering fact everyone over 65 years old in 30 year needs to be millionaire if not multi-millionaire to retire comfortably sounds highly impossible to accomplish.
Honestly, in 30 years from now I think saving ratio of 65 years will be about same. With about 1/3 not having any saving and even worse potentially no social security benefits.
To me it seems like it will be an economic disaster for retirement age people when vast majority of them won't be able to retire!
Your numbers are way off. Depending on what you can live on annually, a couple would need nearly two $million today.
That would allow over $100K/yr assuming normal retirement age. Soooooo many variables here. Can't even guess what would be needed 30-years from now.
You must get a great paying career, save and invest SMARTLY, and seek advice from a paid proven advisor.
You only get one chance to get it right.
Good luck!
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