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A Gallup Poll of retirees and non-retirees revealed a conflicting perspective. Among non-retires, about 34% thought Social Security would be a 'Major Part' of their retirement finances... while 46% thought otherwise. Among retirees, however, almost 54% said Social Security WAS a 'Major Part', while only 34% said otherwise. Social Security
Remember the old saying, "Life is what happens while you are preparing to do something else?" -- Many young (and older) people today are stressed about what looks like a bleak retirement picture. But, they often don't realize that things have also looked bleak in the past. HOW WELL DID YOU PREDICT YOUR FUTURE RETIREMENT FINANCES --- WHEN YOU WERE AT YOUR CAREER MIDPOINT? --- AND WHAT ADVICE CAN YOU OFFER TODAY'S YOUNG PEOPLE?
I'll start: -- After the 1983 market 'crash', (at 36) We realized that we had pretty much tapped-out our 401K's and retirement savings -- and were going to be lucky to send the kids to college, much less ever retire. Instead of crying about past poor choices, yet continuing to do the same thing, we decided it was time to start saving (and managing our spending) from that point forward. We discovered that if we saved FIRST, we quickly reached the point that we didn't miss the savings part. --- Bottom line, both kids went to good colleges and we retired quite comfortably 2-years ago (me at 61) and now live what most would call 'the good life' (oceanfront condo, travel, golf, etc).... without inheritances, lottery wins or a magic lamp. It simply required managing our lifestyle (after savings) so that we lived within our income, rather than always trying to 'keep-up with someone else's paycheck'
We discovered that if we saved FIRST, we quickly reached the point that we didn't miss the savings part. --- Bottom line, both kids went to good colleges and we retired quite comfortably 2-years ago (me at 61) and now live what most would call 'the good life' (oceanfront condo, travel, golf, etc).... without inheritances, lottery wins or a magic lamp. It simply required managing our lifestyle (after savings) so that we lived within our income, rather than always trying to 'keep-up with someone else's paycheck'
We did the same thing after those scary 70s and 80s, although we had the advantage (and disadvantage) of a military career. My wife and I are now mid 60s, and I retired from a second career a couple of years ago. We now have pretty much the same type of lifestyle you do, ocean front condo, travel, and golf. When I look back at our lifestyle when we were in our 30s and 40s, I would say it was pretty boring, in the sense that we saved first, and put extras last. We never took vacations other than to see family although, being in the military, we were assigned to places we would not otherwise have been able to see (and some we didn't want to see).
We put three kids through college, and never adopted the mentality of trying to keep up with the Joneses -- though I'll admit, at times it was hard to see friends and neighbors enjoying what we considered to be extravagant lifestyles.
I see our society slowly returning to what we went through, now that the economy is in the tank. Young people are again realizing that saving for the future, instead of instant gratification, has long-term benefits.
I must admit, to my embarrassment, that I didn't yet give much thought to retirement finances at my career mid-point. In a sense, I could get by with this lack of attention because I knew that 8% of my salary had been deducted from day one (with an employer match) to provide a defined-benefit pension. I had also, for a few years, had some modest monthly deductions for a tax-sheltered annuity, not because I had done any exact figuring but just because I had a vague sense that it was a good thing to do. Later on, of course, about 10 years out from retirement, I started paying much closer attention and doing some exact calculations. I am no role model as a "fat, dumb, and happy" awareness state at mid-career, but I fear I am not alone either. Fortunately for me, it all worked out spendidly in the end.
I had a great plan in the 80's that was sidetracked more than once by lay offs, market drops, family and health issues. We worked longer than initally planned and adjusted to a lower expense level but still managed to retire with a plan than includes SS (at 70) and Medicare as part of the overall mix.
This is simply a matter a basic financial planning and my only advice it to do it... have a plan, pay attention, and adjust as conditions change.
My plnas wre side tracked by the 70's and 80's recession especially the 70's with its high inflation.It just eamnt that I apllied more later and luckily I never really got into teh debt mnay accumlated like now that is going to hurt not only the recovery but their retirement planning. Teh masive debt accumualted in the pst two decades plus the massive federal debt being created in it is what will most effect this recovery by people.
Mine were way off. I planned on working at the place for the rest of my working life. In 1992 we moved due to my ex-wife being transfered. I was a SAHD for a year. In 1995, we divorced. In 2000 I resigned from my position, my company was being bought and I saw the writing on the wall. I had a new job lined up. In 2002 I remarried. In 2006 I made one final career change. In Jan of this year I retired.
I knew I had a pension from my first employer. In Nov of 2009 I ran some estimations of what I would recieve from my pension, and what I get from SS when I turn 62
I didn't estimate what I would need for retirement years ago, I simply lived far below my means and invested in stuff I knew as the opportunities presented. Being self employed, I knew that any retirement income would be from my own investments rather than a defined benefit plan or similar program. SS would be but a small part of my cash flow planned for retirement, and I didn't take it into account for my planning. My portfolio includes real estate (solely owned and limited partnerships), annuities, and a few stocks in a SEP-IRA.
Having lost most of what I'd put away in my early career years to a divorce, I had to start all over again in my late 30's.
Now, well past the age when most retire, I'm still working but shifting my energy, time, and cash flow to my farm/ranch. There's ample cash flow from my investments to maintain my lifestyle, so I can quit working anytime I'd care to do so ... although a small farm is pretty labor intensive between field crops and greenhouses, and then the livestock operations. We've gotten into doing poultry ... about 75 turkeys this year on the ground, and 150 chickens every two months; USDA processed and sold at the local Farmer's Market. I can't say that the farm/ranch is a real big profit center, but it keeps me busy and gainfully occupied instead of sitting in a rocking chair and watching life go by, waiting to pass away and whining about not having enough money to enjoy life doing whatever ....
I lost about 300K between stocks and the RE crash. Then my marriage broke up and that finished the job. I'm too old to make up for what I lost so all I can do is make the best of what I have.
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