Anyone depressed about having to delay retirement due to inflation/stock market? (grandparent, community)

[Threestep2]

Originally Posted by otterhere

You're probably not as depressed as those of us who retired right before this hit us and are now helpless to do anything about it. At least you can keep working in the job you currently have and presumably somewhat like that pays well versus having to become a Walmart greeter or flip burgers in order to make ends meet. Inflation, the falling stock market, and the crazy real estate market also dashed quite a few of the retirement hopes and dreams we worked toward for so many years. I'd say be thankful you're still working!

What keeps you from going back to work?

[Kosh55]

Do this ONE THING to secure retirement:
Ensure you can live off of Social Security
Otherwise you are living beyond your means
Plan now to spend money at the next high in the market to make this happen

We withdrew much of my IRA last year
Bought:
Solar panels to run our newly built tiny house (750 ft w.h huge wrap around deck)
Nissan Leaf electric car
Two E-Bikes
Built an illegal studio cabin for a possible future tenant
An old RV for camping or to rent out
DIY solar is the way to go

We live off-grid on $2100 Social Security. 25 min from a larger city in a Forest Recreation District Camping area with rivers.
Studio cabin will easily rent for $600 a month

We consider ourselves retired though we work p/t June-Aug earning 10k a yr.
4k to IRA ,6k to cash emergency fund. We DO NOT live off of that 10k.

Make changes now then you won't have reason to worry in the future

[Kosh55]

Originally Posted by nicet4

I will retire and it hit me line a ton of bricks just this week!

I work from home 50% of the time and this week I am caught up and maybe I worked a total of one hour but that is about it. I love not having the stress work brings into my life!

I'm DONE!

I will turn 74 in a couple more months and I am going to retire after working full time from 1966.

We have some retirement savings but nowhere near what many think we should have. We have enough to give us $600/month for the 30 years but that is about it.

Our biggest source of retirement income is from social security and what I did was wised up and didn't start taking benefits until after my 69th birthday figuring it was simply investing for retirement.

My wife and I together enjoy a combined social security of $4,500 which will climb to almost $4,900 if we get an 8.6% COLA increase. From the $4,900 take out our Part B premium and we feel we can live comfortably on social security alone if we had to.

For our retirement budget we don't figure anything in the way of IRA or savings money. Anything from IRA's or investments will be saved for any future emergencies.

Just this week I changed internet/cable television providers and my monthly bill dropped from $202 to $97 and I even got faster internet. For television we have a streaming service and while we are getting used to it I think it will work out just fine.

When I stop work I will change cell phone service and research has shown me my cell phone will drop from $246.30 to around $120.00 for two phones. That's over $200 in savings just between internet/cable and cell phone service.

We've discovered Aldi's for food and once I do retire there is absolutely no reason to be a two car family.

Working on the spreadsheet budget a lot now and it is amazing how well we should be able to live on less than what we get.

Congratulations! How exciting for you guys
It's amazing when you are not working (or near retirement) how you can actually *think* to save money. And you know you can live on SS alone so that is key. Plus expenses in retirement, for most people, imho, are lower than during the working years.

[Wile E. Coyote]

Originally Posted by leastprime

For wife and I, it is a reasonable assumption to live 90+. We may not like it but it is prudent to assume 90+.

current age 72/75
Father died nearly 4 years ago, @99.5yr. Veteran.
Mother died 8 years ago, @97.5
FIL @90, veteran.
MIL @95.
Both sides are longlived families.

Bought deferred annuities at 59/62, 2008. More annuities upto 2018.
All parents then +88.
Our deferred annuities optimized theoretically at 10years (GLWB Variable with guaranteed stepups)(no longer available in that form). Theoretically, our annuities' cashvalue depletes at ~14-17 years or ~85-88, from first withdrawal (these are hybrid annuities and we 'withdraw' and not annuitize).
We also have a set of deferred Fixed-index GLWB annuities that theoretically run to $0 at ~10years, age 80.
If we live past live past the theoretical mortality dates, we will be money ahead, non inflated money...
Regardless of the Market.

As one poster said, "too complicated" and "would never buy one" and "would never recommend them to anyone. "

YMMV
YAMV

Statistically speaking a couple almost has to plan for one of them to hit early 90's.

And, geesh, yeah... You can see how that longevity affects people's planning processes.

[marino760]

Originally Posted by Wile E. Coyote

Statistically speaking a couple almost has to plan for one of them to hit early 90's.

And, geesh, yeah... You can see how that longevity affects people's planning processes.

I don't understand this. Statistically, only 4% of the population lives to be 90 or older. Of course a couple where both people are already over 65 has a greater percentage of one of them reaching 90 but overall it's only a little more than 4% of the general population.

[Wile E. Coyote]

Originally Posted by marino760

I don't understand this. Statistically, only 4% of the population lives to be 90 or older. Of course a couple where both people are already over 65 has a greater percentage of one of them reaching 90 but overall it's only a little more than 4% of the general population.

There's a lot of articles on this....


The SOA's data suggests that a 65-year-old male today, in average health, has a 35% chance of living to 90; for a woman the odds are 46%. If our two 65-year-olds live together, there is a 50% chance both will still be alive 16 years later, and that one will survive 27 years. That's just assuming average health

[elnrgby]

Originally Posted by Kosh55

Do this ONE THING to secure retirement:
Ensure you can live off of Social Security
Otherwise you are living beyond your means
Plan now to spend money at the next high in the market to make this happen

We withdrew much of my IRA last year
Bought:
Solar panels to run our newly built tiny house (750 ft w.h huge wrap around deck)
Nissan Leaf electric car
Two E-Bikes
Built an illegal studio cabin for a possible future tenant
An old RV for camping or to rent out
DIY solar is the way to go

We live off-grid on $2100 Social Security. 25 min from a larger city in a Forest Recreation District Camping area with rivers.
Studio cabin will easily rent for $600 a month

We consider ourselves retired though we work p/t June-Aug earning 10k a yr.
4k to IRA ,6k to cash emergency fund. We DO NOT live off of that 10k.

Make changes now then you won't have reason to worry in the future

Ensure that you can live off of 75% of your projected inflation-adjusted soc security (because that could be all you might get after 2033). For me, it really matters only to be able to live in one of the large cities that I like, which is taken care of (I fully own small condos in more than one city, and I could live in any one of them spending on housing, depending upon which one I choose to keep, 10%-30% of my 3/4 projected soc security check). Another 15% of the ss check would go on health insurance expenses, and less than 10% on food. Maintaining the condos (which I could reduce to one condo if needed) & solid health insurance is my only real mandatory expense; I don't eat out, I don't eat meat, I don't eat much in general, I don't own a car but walk or use city transportation when needed, I never buy clothes any more since I have full closets, and I get all the entertainment/mental stimulation from my own books & media, the public library & the internet. I like to travel, but that is not absolutely mandatory; I could cut it out if needed.

[Wile E. Coyote]

Originally Posted by elnrgby

Ensure that you can live off of 75% of your projected inflation-adjusted soc security (because that could be all you might get after 2033). For me, it really matters only to be able to live in one of the large cities that I like, which is taken care of (I fully own small condos in more than one city, and I could live in any one of them spending on housing, depending upon which one I choose to keep, 10%-30% of my 3/4 projected soc security check). Another 15% of the ss check would go on health insurance expenses, and less than 10% on food. Maintaining the condos (which I could reduce to one condo if needed) & solid health insurance is my only real mandatory expense; I don't eat out, I don't eat meat, I don't eat much in general, I don't own a car but walk or use city transportation when needed, I never buy clothes any more since I have full closets, and I get all the entertainment/mental stimulation from my own books & media, the public library & the internet. I like to travel, but that is not absolutely mandatory; I could cut it out if needed.

I just love elnrgby's lifestyle!

I think my SS statement says 79% (but, it's subject to change).

The reason I think it is unlikely to happen is because of the impact it would have on the economy (for basic things like groceries, utilities, etc.). I think the Macro Economics will be taken into account. I think it is more likely they means test it first and that people whose only income is SS is a lot less likely to be impacted. But, there might not be enough accountants in the world to accurately do the means testing and for that reason some arbitrary percentage may be used overall.

But, then, what do I know for sure?

[kavm]

Originally Posted by marino760

I don't understand this. Statistically, only 4% of the population lives to be 90 or older. Of course a couple where both people are already over 65 has a greater percentage of one of them reaching 90 but overall it's only a little more than 4% of the general population.

It is called conditional probability. You need to look at the population of 65 year olds and see what are their chances to living to 90. Going by Wile E. Coyote's numbers - The conditional probability of a 65 year old male living to 90 is 35%; 46% for females.

So, the probability of both dying before 90 is (1 - 0.35) * (1 - 0.46) = 0.351 = 35.1%. So, the probability of one or more of them being alive at 90 is 1-0.351 = 64.9%.

[ddeemo]

Originally Posted by matisse12

So many people who post in Retirement forum think they will live into their 90's.

A good number even think it is the norm to live into one's 90's.

rampant wishful thinking.

Most of the males in my family lived into late 80s and females over 90, DW's family similar timeframes - while I or DW might not make it into our 90s, still need to plan for it so that is the reality.