Retirement: Where do you stand?

Discussion in 'Economy' started by iamwhatiseem, Nov 6, 2010.

  1. iamwhatiseem
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    iamwhatiseem Gold Member

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    It is a deadly serious question. And one unfortunately few Americans think about until it is too late to really prepare for a successful retirement.
    (Successful retirement meaning all monetary needs during retirement are met)

    Read anywhere really - things likely to happen to SS:

    1) NRA (Normal Retirement Age) that was lifted in 1983 from 65 to 67 will be raised again.
    2) Benefit amounts will drop for future retirees..as an example people 35 and under will receive substantially less than comparable benefits today. (virtually certain)
    3) SS taxes will rise. (virtually certain)
    4) The long term future of SS is that it will be reduced to supplementary purposes only to pair with other savings plans.

    -----------------------------------

    Other items...
    1) People are getting married later, having children later and living longer.
    All of these dramatically affect the chances of successful retirement.
    a) Getting a home later means prolonging mortgage payments deeper into prime earning years.
    b) Children later in life means fewer prime earning years that can be concentrated on retirement savings.
    c) Obviously living longer means greater amounts of funds necessary to reduce the chances of having to live in poverty in the last years of life if you didn't or couldn't plan for it.

    2) And this is a BIG one...People spending future earnings to satisfy todays desires for material items and luxuries.
    Because companies everywhere are getting out of the pension business, and reductions in SS benefits - people who do not plan well (or at all) for retirement will suffer terribly in their golden years. We have all seen them - people over 70 years old working part-time jobs and not out of choice, but necessity. This scenario will dramatically increase due to the fact that retirement now and perhaps forever depends on voluntary savings plans - and perhaps no modern nation on earth is as poor as Americans are at saving money for any reason.

    Retirement should be a golden reward to be looked forward to; but unfortunately for many Americans it will be something that is dreaded.
     
  2. antagon
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    antagon The Man

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    i'm a bit off the reserve as it comes to retirement. i'll probably rely on sale of assets or on proceeds or sale of my business and property to retire. or i'll just retire on the property and grow my own food if i really fuck it up. its difficult for me to justify saving up money at the moment. maybe that will change when i'm closer to retirement age... when it's too late like you say.
     
  3. Epsilon Delta
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    Epsilon Delta Jedi Master

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    Agreed on all points, all of those things will occur and everyone is scrambling as to what to do about it. I certainly have no answers.

    I honestly haven't though about retirement at all. Then again, I'm 22, so I guess that's normal, hahaha. Assuming the retirement age is gonna probably be raised to 70 in most places, it'll be the year 2058 when I retire.

    Now THAT's weird to think about.
     
  4. uscitizen
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    uscitizen Senior Member

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    Anyone who counts on SS for their main income for retirement is in bad shape, even now.

    The real question for future retirees will be medical care. Will Medicare still be available?
    Unless you are a government employee you can count on your emnployer not providing retirees with medical care. Most of the few employers that still offer retiree medical coverage cut it off when you qualify for Medicare.
     
  5. iamwhatiseem
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    iamwhatiseem Gold Member

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    Thank you - excellent point and one I meant to include.
    My company is dropping retirement coverage after 2020. (Which means me)
     
  6. Midnight Marauder
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    Midnight Marauder BANNED

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    At age 42, I retired with enough cash to see me through for at least 40 years, if I stay spartan and frugal. Been five years already, and doing very well. In fact, my meager income off of little side projects almost pays the expenses. Almost.
     
  7. uscitizen
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    uscitizen Senior Member

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    Yep One serious hospitalization with no Medicare/insurance and there goes your home you paid for for 30 years.
    And living on SS how can you even afford rent?
     
  8. iamwhatiseem
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    iamwhatiseem Gold Member

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    Dangerous game friend.
    You are assuming your business will still be of value years from now. There is not only of course no guarantee of this (something I am sure is not loss on you) - but depending on the type of business - it will likely be worth little decades from now.
     
  9. uscitizen
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    uscitizen Senior Member

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    Retire and grow you own food? Heck I am not even 67 and I am in a wheelchair. How could I grow my own food anymore?
    I do miss gardening though.
    btw I am finiancially secure.
     
  10. iamwhatiseem
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    iamwhatiseem Gold Member

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    At 22, despite what the extremist will tell you, it is not really necessary to think about retirement - other than - knowing that you will before you are 30.
     

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