Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Those currently retiring though still have pensions. The trend though is future retirees won't have company pensions and SS just might replace that steady income stream. I don't think a 401K can replace a company pension plan based on what I've read about balances and financial astuteness of your typical American worker.
Most don't. And it would appear DB pensions will become more scarce for future generations.
Quote:
According to the Bureau of Labor Statistics (BLS) about 22 percent of full-time private industry workers recently got a defined pension benefit.
That compares to 42 percent in 1990.
“In the public sector, defined benefits are still the norm, so governmental employees like teachers and police officers get it. Very few private sectors do,” Monahan said.
According to BLS, 92 percent of full-time government employees got pensions in 2011.
a couple waiting to collect until 70 with max work credit history can get close to 70k.
Really right now just under 80K closer to the 80 than 70 if they are both maxed out in benefits. We have discussed this before but many folks are challenged in being able to retire when they want to is because they don't have a realistic dollar amount as a target. They often have no target and the dollar amount for them is what it is because their target is aged based and not income based. The new paradigm is the increase in those having retirement time forced on them.
a couple waiting to collect until 70 with max work credit history can get close to 70k.
Quote:
Originally Posted by TuborgP
Really right now just under 80K closer to the 80 than 70 if they are both maxed out in benefits. We have discussed this before but many folks are challenged in being able to retire when they want to is because they don't have a realistic dollar amount as a target. They often have no target and the dollar amount for them is what it is because their target is aged based and not income based. The new paradigm is the increase in those having retirement time forced on them.
I'd guess one thing that many don't plan for is the passing of one's spouse. It can cut income in half. For me, I'm planning on maximizing income to my spouse once I'm gone. It won't be 100%, but it will be well above 50%. The tax hit, going from married to single, will be a shocker too.
Yup and that is independent of pensions etc etc. Again as in most things it is related to regional income levels and life events. Consider the couple that meets in grad school with the one who dropped out of high school and what the differences could be for them in 45 years. Let the grad school couple be in a high income area and have highly marketable skills compared with the dropouts in a rural area in the Mid West.
I'd guess one thing that many don't plan for is the passing of one's spouse. It can cut income in half. For me, I'm planning on maximizing income to my spouse once I'm gone. It won't be 100%, but it will be well above 50%. The tax hit, going from married to single, will be a shocker too.
That has been core for us also to maximize for the surviving spouse with me taking SS at 70 and taking survivor options on each pension. Leaves the surviving spouse based on current amounts at age 70 well into six figures. The pension reductions and delayed SS on my part are well worth the security.
I have decided, to retire at 40, I need to have a monthly cash inflow of $5000 (after taxes), a paid off house, paid off cars.
Recently rented out a property for a monthly rent of $2500. And I am on my way to rent out another for about $ 7000 / month. Once all is said and done.
Concept of retirement is very much there. The age has moved.
That's FAR from typical. In point of fact, it will be moving the other way as people can't maintain employment that long and have to take SS earlier.
That also assumes SS can maintain it's benefit levels.
Quote:
Originally Posted by TuborgP
Really right now just under 80K closer to the 80 than 70 if they are both maxed out in benefits. We have discussed this before but many folks are challenged in being able to retire when they want to is because they don't have a realistic dollar amount as a target. They often have no target and the dollar amount for them is what it is because their target is aged based and not income based. The new paradigm is the increase in those having retirement time forced on them.
That's FAR from typical. In point of fact, it will be moving the other way as people can't maintain employment that long and have to take SS earlier.
That also assumes SS can maintain it's benefit levels.
You don't have to work until 70 just delay benefits to age 70. I am close to maxed out and stopped working at age 59 and had well over 35 years of work history. A number of which were over the salary cap for payroll taxes. Depending on the area of the country folks maxing out at the income cap is not all that uncommon if salaries in that region are higher than the norm. I get my benefit statement each year and just mark the time on the calendar until. My wife has high benefits higher than then national average and she started collecting at age 62. Her age 62 benefits are well over the national average and she had well over 35 years when she retired at age 59. Even college grads and those with masters who started their career by age 24 will have 35 years in by age 59. The trick is not the work history as much as being able to delay until age 70. The advantage of working beyond 35 years is the ability to replace your lower earning years with maximum earning years.
That's FAR from typical. In point of fact, it will be moving the other way as people can't maintain employment that long and have to take SS earlier.
That also assumes SS can maintain it's benefit levels.
Just because something isn't the typical reality doesn't alter the fact it is their reality along with many others
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
