What will we need to enable retirement at the age of 62 (or earlier if prepared financially)?
Pension, social security (if it will be there 4 years from now), 401's, savings, other income, etc.
Hopefully retirement will come at or before 62. Anyone interested in discussing how much money we will really need when we retire at or near 62?
One needs to think outside the box. When the market took a turn and there was the chance that my company was doing layoffs for the first time in 65 years I took a long look at my future. I made the decision two years ago to pull $75K from my M.L. account and paid off my home which was my only debt. I now average saving 45% of my income each month without any sense of "giving up" on the things I want to do. Thankfully I didn't lose my job but I don't regret taking the money out and paying off my home. I still have $300K and with the contributions that I'm making I believe that if I continue with my new lifestyle that I'll be alright with SS and the money in my 403(b). If people are realistic we don't need a million dollars in order to retire. Currently I'm living on less than what just my SS will be.
My husband lost his job in Aug. 09. At 63 years of age he could not find another job here in the rustbelt of Ind/Ky. He worked in a steel mill. Needless to say, he took Soc. Sec. Yes, he took a cut. But our story is like many others, only most like us don't want to talk about it.
Two kids through college, illness, etc. We still have a mortgage. I'm still working. He found a minimal pay job in June 10. HOwever, that job provided insurance. He was diagnosed w/cancer January 2011. If he did not have that job we would have lost what little we have been able to accumulate.
I'm tired of everyone out there saying people have to have $500,000 or $1,000,000 in savings and IRA's etc. As far as I am concerned it is a scare tactic so Wall Street can continue to drain us of what we did have before the 2008 crash.
We are doing the best we can in our circumstances. For the rest of you that have great healthcare benefits, thanks to me working and paying taxes, good for you. I am not a public worker and will not have free or near free healthcare for the rest of my life. I will have to work until age 65 for medicare to kick in.
I don't apologize for resenting public workers who draw nearly their working wage as retirement and low cost healthcare. That is the fact, like it or not. Nothing any of you fat cats will make any difference to me. You are living off me and thousands of others like me. You were overpromised benefits and the "rest of us" are paying for you to have a new car every other year, vacations 2 or 3 times a year.
As a public employee for the last 27 years I will retire hopefully with a moderate retirement income of around 50% of my income only because I have been adding to it with supplemental accounts, savings. I don't know where or who your referring to but I for one will not be getting anything close to my annual income when, the Lord willing I retire, and I don't have anything close to $500K
Surely you don't think public workers were not working (and in fact sorking hard and long hours) throughout their lives? I know that I, and members of my family and friends who have worked in the public sector, made quite an effort to qualify for the jobs they worked in, got all the necessary degrees, continuing education while working, taking on additional responsibilities, sometimes working 24/7 due to that responsibility, and watched resources very carefully for decades, paying off purchases, delaying all kinds of gratification throughout those early, youthful years, always living within means. I don't think any of us are "fat cats", because at least in my world we live in modest homes, drive old cars long paid-off, put money in savings monthly and avoid instant gratification purchases. I personally don't expect to be living high on the hog during retirement, and in fact expect to continue working part-time throughout my 60's at least.
I am truly sorry for your predicament, your husband's heartbreaking health situation, and your great hardships. Clearly life has taken a very tough turn for you both, and I am genuinely sorry. Unfortunately your employers did not take the lives of their workers into better consideration. It does not seem fair that the top executives of so many companies are living quite comfortably, even extravagantly, on the money earned by their hard-working employees like you and your husband, who were let go when it was not profitable to their bottom line (i.e., executives' salaries).
Despite all the sensationalist media headlines, many people go in and out of state employment in their careers. The average pension in the CalPERS system, the state of CA, is a munificent $18,000yr. Very few people can get six-figure retirement pkgs - about the same percentage, probably, as those execs who get 'golden handshakes' compared to the many millions of middle-management execs who fear constantly for their jobs.
There's a lot of 'have not' envy. I can tell you that I wasn't union, worked for many different companies, enjoyed what I did and was good enough to pick who I worked for/with. My DH worked 40 yrs, 30 of them as the lowest-paid employee at the agency, and 37 of those years were under idiot managers who didn't know how to do their jobs and were too busy playing office politics with the elected board officials to care about those 'downstream' under them.
He used to stress so much about doing a good job in spite of his co-workers/managers, I believe it directly contributed to his major haemorrhagic stroke at 50. He stuck it out another six years because he knew we needed the financial security of a pension, which few of my jobs ever offered.
And BTW, people who collect government pensions DON'T qualify automatically for full Social Security. Did you know that? Even if they have worked a full 40 quarters elsewhere, if the agency withdraws from SS and starts their own 403b plan, their SS payments are reduced by up to 60%.
To 'resent' the many people who do all the boring, difficult, soul-stealing jobs that keep your state agencies running, is to forget that they are like you - homeowners, parents, and employees. Some are bad, most are good - just like life itself.
Yes, and the less you have earned, the lower your pension is when they do the calculations. That means those furloughed days hurt you not just once, but twice.
So often it goes back to 'cursing the darkness' instead of 'lighting one candle'. These days the easy answer is to blame your troubles on somebody else.
Pension, social security (if it will be there 4 years from now), 401\'s, savings, other income, etc.
Social Security will be fine until 2033 and the only thing needed to secure it for the next thirty years beyond that is to remove the cap from Social Security contributions.
I totally agree with all that was said. We retired not by choice, and unless you add to social security you don't get more $ for waiting. If I'd just started taking social security when I was 62 (when I was "retired") instead of waiting till I'm 65, next month, I would have had the exact same social security payment. I did sub teach and worked for CENSUS but neither generated enough to raise social security.
By loosing more than half of our savings to the stock market and now to 1% CD interest, our hope to keep our house till we die isn't going to happen. Even with it paid off, property taxes and utilities are $14,000 a year and then you have to think of repairs. So if housing bounces back a wee bit, we may sell and just rent the rest of our lives. At least if you downsize, you don't have so much to keep clean and less to watch over! Reduce, reuse, recycle.
I'd planned to sell and retire in a cheaper state but still near the ocean in Oregon or Washington but now that we are grandparents, I want to wait till the baby is able to visit on his own. I hear that Eugene and Ashland are great places to live near rivers and lakes and they have Universities to keep the brain working!
I totally agree with all that was said. We retired not by choice, and unless you add to social security you don\'t get more $ for waiting. If I\'d just started taking social security when I was 62 (when I was \"retired\") instead of waiting till I\'m 65, next month, I would have had the exact same social security payment. I did sub teach and worked for CENSUS but neither generated enough to raise social security.
By loosing more than half of our savings to the stock market and now to 1% CD interest, our hope to keep our house till we die isn\'t going to happen. Even with it paid off, property taxes and utilities are $14,000 a year and then you have to think of repairs. So if housing bounces back a wee bit, we may sell and just rent the rest of our lives. At least if you downsize, you don\'t have so much to keep clean and less to watch over! Reduce, reuse, recycle.
I\'d planned to sell and retire in a cheaper state but still near the ocean in Oregon or Washington but now that we are grandparents, I want to wait till the baby is able to visit on his own. I hear that Eugene and Ashland are great places to live near rivers and lakes and they have Universities to keep the brain working!
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