Super Saver Status For Retirement Savings

[Harpy Eagle]

44% Of Americans Reach 'Super Saver Status' For Their Retirement Savings — Are You Among Them?

Many Americans are increasingly concerned about the retirement crisis threatening their savings and planning. However, 44% of Americans, referred to as "super savers," are on the right path toward a successful retirement. Don't Miss: Are you rich? Here’s what Americans think you need to be...

finance.yahoo.com

Recent research from the Transamerica Institute shows super savers contribute more than 10% of their salaries to their retirement plans. The study reveals that 56% of those surveyed are saving less than 10% of their income, while the other 44% have reached "super saver" status by contributing 11% or more. The study also found that 29% of those surveyed contribute more than 15% toward retirement.

Super savers come from all age groups. Gen Z takes the lead at 53%, while 44% of millennials and boomers can be considered super savers. Gen X follows last, with 40% of their group in the super saver category.

I am surprised it is as high as 44%, but it is a good sign for the future. People are getting serious about it.

It is a lesson we have ingrained into our children, our daughter is 29 and has been putting money into a retirement account for 4 years now. If I could go back in time and change one thing, it would be to start saving for retirement much sooner.

 

[1srelluc]

My wife and myself really salted away money in our retirement accounts and it payed off big for us.

Nobody is coming to help you so you better look after you and yours in your prime earning years.

 

[Harpy Eagle]

My wife and myself really salted away money in our retirement accounts and it payed off big for us.

Nobody is coming to help you so you better look after you and yours in your prime earning years.

12 years ago the only retirement savings we had was my Marine Corp pension. But we have been working hard to make up for that since then, putting close to 20% of our income into our 401k and Investment account. By 65, 5 years from now, we will have more than enough when you take into account we will both have a pension from the Govt so they both get COLA.

 

[1srelluc]

12 years ago the only retirement savings we had was my Marine Corp pension. But we have been working hard to make up for that since then, putting close to 20% of our income into our 401k and Investment account. By 65, 5 years from now, we will have more than enough when you take into account we will both have a pension from the Govt so they both get COLA.

Yep, that is the way to roll.

I have two pensions (Dupont and VDOC) but I knew that both had to be augmented (besides SS) to retire in comfort.

A couple hundred (or whatever it is now) spent with a financial adviser every few years is money well spent.

 

[Harpy Eagle]

Yep, that is the way to roll.

I have two pensions (Dupont and VDOC) but I knew that both had to be augmented (besides SS) to retire in comfort.

A couple hundred (or whatever it is now) spent with a financial adviser every few years is money well spent.

I moved most of my 401k into a semi-self directed IRA this year so I could have more investment options. Still putting money in the 401k and might just let it ride till I retire or might move it once a year. Have not decided yet. We have a financial advisor that runs the IRA but makes no changes without my approval and I can tell him what to do with it if I choose to, which I have not yet. I am paying a professional for a reason.

 

[1srelluc]

I move most of my 401k into a semi-self directed IRA this year so I could have more investment options. Still putting money in the 401k and might just let it ride till I retire or might move it once a year. Have not decided yet. We have a financial advisor that runs the IRA but makes no changes without my approval and I can tell him what to do with it if I choose to, which I have not yet. I am paying a professional for a reason.

I don't know why folks don't invest in a financial advisor. They will buy overpriced coffee every day but won't look to their financial well being thinking that they can do it on their own....Well maybe they will do just OK but for the most part they will ever realize the full value of their savings/investments.

I was lucky as mine was my Uncle for 30+ years till he retired/sold the company and recommended another one who he had trained who has his own company now.

 

[WorldWatcher]

Wife and I both didn't start depositing in our 401K's until we were about 38. Small at first but religiously we did two things:

• We evaluated our 401K deductions when we did out annual taxes, upping the amount a little bit that we'd never really notice in the monthly budget.
• Whenever either of us got a raise, part of the raise was diverted to the 401K deduction under the premise that money you never saw was money you'd never miss.
• Finally, there were a few times where I got a bonus for special project/implementation work. When those came down I'd arrange with payroll so that half the bonus when to 401K and half was received in a check. (Happed only like 5 times in 25 years.)

OK, that's three not two, shoot me.

My wife often worried because we started so late, but now that we are nearing retirement she come to be more confident as we are not the normal retirement profile she was using as a gage. That profile was SS and 401K distributions. But in our case we have (each) SS, Military Retirement, and a Small Pension. That's 3 small revenue sources that add up to a comfortable retirement without touching our 401K.

The 401K will basically be out travel bucket list funds.

WW

 

[Harpy Eagle]

Wife and I both didn't start depositing in our 401K's until we were about 38. Small at first but religiously we did two things:

• We evaluated our 401K deductions when we did out annual taxes, upping the amount a little bit that we'd never really notice in the monthly budget.
• Whenever either of us got a raise, part of the raise was diverted to the 401K deduction under the premise that money you never saw was money you'd never miss.
• Finally, there were a few times where I got a bonus for special project/implementation work. When those came down I'd arrange with payroll so that half the bonus when to 401K and half was received in a check. (Happed only like 5 times in 25 years.)

OK, that's three not two, shoot me.

My wife often worried because we started so late, but now that we are nearing retirement she come to be more confident as we are not the normal retirement profile she was using as a gage. That profile was SS and 401K distributions. But in our case we have (each) SS, Military Retirement, and a Small Pension. That's 3 small revenue sources that add up to a comfortable retirement without touching our 401K.

The 401K will basically be out travel bucket list funds.

WW

That sounds a lot like where we stand except I was 48 before we started.

As a numbers geek I have all sorts of spreadsheets for our retirement planning and always estimate on the low side. But we should be able to live comfortably on just our pensions and SS with the 401k/IRA just for extra things like longer trips and the like.

 

[WorldWatcher]

That sounds a lot like where we stand except I was 48 before we started.

As a numbers geek I have all sorts of spreadsheets for our retirement planning and always estimate on the low side. But we should be able to live comfortably on just our pensions and SS with the 401k/IRA just for extra things like longer trips and the like.

On average for both my wife and I, our Defined Benefits income will be about 80% of our current working salaries being replaced by SS and Pension.

However I gage two things:

• Gross Income (not IRS "Gross income", but household gross).
• Disposable Income (after certain items off the top how much is left over to pay bills. Bills include Federal/State Tax, Property Tax, food clothing, utilities, etc.)

So when I look at salaries, those "certain items off the top are":

• 13% Rule (which is our SS, Medicare, and employee contribution to pension plan)
• 401K Deduction
• Mortgage P & I (Principle and Interest only).

When we transition:

• 13% Rule goes away as there is no SS, Medicare, or pension contribution.
• 401K Deduction goes away because - well - we aren't working
• Mortgage is low enough we can just pay off the house if we choose or keep the sub $500 P&I if we decide to keep it. Depends on what we decide to do with our "Emergency Fund" which isn't part of our retirement plan.

The way it works out:

• Pre-Retirement, we currently "live" on 43% of our salaries with Military Retirements then added in. At this point the reality is that our Military Retirements are funding out 401K's.
• Post-Retirement out disposable income increases to 150% of current disposable income without touching 401K's. Meaning we will have more disposable income in retirement than when working.
• That does not include 401K's. If we take basic annuities from the 401K for lifetime income, that figure goes to about 170%.

I will note we really were able to gear up 401K contributions in early to mid-50's once our two kids were done with college.

WW