Two retirement articles

[MrsPete]

I just read two interesting articles online:

http://money.cnn.com/2011/11/16/retirement/age/index.htm?iid=F_Jump

Factoids from this one: 25% of Americans plan to work 'til age 80, which is 2 years longer than the average person will live. Also, it says that the average person thinks he'll need $350,000 to retire . . . but has only managed to save $25,000.

http://money.cnn.com/galleries/2011/pf/1111/gallery.young-retirement-saving/6.html

This one's about young people who are beating the odds and are saving early. The first guy, for example, did have some help from his mom; she started him out with $1000. He has been consciously saving for his retirement since age 18, and he has $25,000 -- the amount the first article says is average for all Americans . . . except that he's only 23 years old. This article makes you say, "Why can't we all do that?"

 

[Swan4Me]

I cant imagine employers keeping workers, in their old highly skilled jobs (lawyers, Doctors, stockbrokers)past late 60's

Sure-you can be a door greeter at Wallyworld, i suppose at 80

 

[Darcy03231]

I cant imagine employers keeping workers, in their old highly skilled jobs (lawyers, Doctors, stockbrokers)past late 60's

Sure-you can be a door greeter at Wallyworld, i suppose at 80

We have several legal assistants at our firm still working and their in they're well into their 70s.

 

[Marionnette]

Two of our receptionists are in their 80's. They aren't too good with the computers but they are never late for work and they actually work while they are there (unlike some of the younger employees who have to be reminded that they are not being paid to text all day).

 

[cookingqueen123]

My father is 84 and still a practicing dentist. He works 12 hours a week and is as busy as he wants to be. I think it keeps him young.

 

[bluesaturn]

The article about the kids saving for retirement was a little odd. The one 18 year old had $300,000 saved, yet all she mentioned is working part time and odd jobs and saving at least $50 a month. I think it's great that she is saving, but I don't know how that would add up to $300K.
I would think that most kids with savings in high school (and earlier) would be using that money for college. So either these kids are having all their college expenses paid (or paying as they go), or their savings is more of a general savings for the future. Either way, saving is a great habit to get into. I did like the bit about the 23 year old though.

 

[RitaE]

The article about the kids saving for retirement was a little odd. The one 18 year old had $300,000 saved, yet all she mentioned is working part time and odd jobs and saving at least $50 a month. I think it's great that she is saving, but I don't know how that would add up to $300K.
I would think that most kids with savings in high school (and earlier) would be using that money for college. So either these kids are having all their college expenses paid (or paying as they go), or their savings is more of a general savings for the future. Either way, saving is a great habit to get into. I did like the bit about the 23 year old though.

I saw that too. $300k over 7 years is pretty awesome but she says part of that is gifts and from her parents. She sounds very accomplished and seems to be a hard worker but I have to think Mom and Dad have been shifting some income into her savings account.

 

[bluesaturn]

I saw that too. $300k over 7 years is pretty awesome but she says part of that is gifts and from her parents. She sounds very accomplished and seems to be a hard worker but I have to think Mom and Dad have been shifting some income into her savings account.

Definitely!

 

[bethy]

I saw that too. $300k over 7 years is pretty awesome but she says part of that is gifts and from her parents. She sounds very accomplished and seems to be a hard worker but I have to think Mom and Dad have been shifting some income into her savings account.

At least she is actually saving it rather than spending it!

 

[yoopermom]

We had this discussion at Thanksgiving, because my DILs (who I love dearly, but have never saved a penny in their lives) are both still working p/t at age 71 with various health concerns. My MIL is waiting patiently for one of the door greeters at the WM she works at to die or quit so that she can get out of the deli, since it's so hard for her to lift 20+ lbs of chicken to be fried, clean out the friers, etc. All the greeters at her store are at least 10 years older than her, and work quite a few hours...

Terri

 

[Ciao Mickey]

I cant imagine employers keeping workers, in their old highly skilled jobs (lawyers, Doctors, stockbrokers)past late 60's

Sure-you can be a door greeter at Wallyworld, i suppose at 80

I know quite a few doctors and lawyers who are in their late 60's/early 70's and they are still quite capable and *all there* if that's what you are implying.

All of my family members who lived into their 90's all died with their minds fully intact. Mentally they were all there, physically they slowed down quite a bit.

Just because you age doesn't mean you turn stupid and stop learning.

 

[cornflake]

Yeah, it's actually the skilled/educated careers that keep workers long past "retirement" age, and in which workers often want to stay. Not many factory workers or welders or construction workers or whatever in their 70s, nor do many people who hold those jobs want to keep doing them that long.

Plenty of lawyers, drs, professors, artists of all sorts, etc., that age that love their work and wouldn't want to stop.

 

[eliza61]

I just read two interesting articles online:

http://money.cnn.com/2011/11/16/retirement/age/index.htm?iid=F_Jump

Factoids from this one: 25% of Americans plan to work 'til age 80, which is 2 years longer than the average person will live. Also, it says that the average person thinks he'll need $350,000 to retire . . . but has only managed to save $25,000.

http://money.cnn.com/galleries/2011/pf/1111/gallery.young-retirement-saving/6.html

This one's about young people who are beating the odds and are saving early. The first guy, for example, did have some help from his mom; she started him out with $1000. He has been consciously saving for his retirement since age 18, and he has $25,000 -- the amount the first article says is average for all Americans . . . except that he's only 23 years old. This article makes you say, "Why can't we all do that?"

Because in a nutshell as a general rule the young do not have the "20/20" hindsight that we have and really I'm not sure I want them too.

I'm one of those who didn't really start saving until I got married and into my 30's. Now I didn't go into debt (outside of my student loans) because I was born during a time when you saved for what you wanted. We didn't have young adults running around with Credit cards.
What I did do was spend my money. I traveled extensively, by the time dh and I had our 1st kid we had pretty much been all over the world.
Now of course, it's a different world but would I trade in my 20 and early 30's to have a couple more thousand in the bank. NOPE.

Now my kids are in college and working part time. Hopefully "the old guy" and I have taught them the value of living within their means and saving but do I want them to not do any thing and sit at home in order to save for with they are 70? Again, no I do not. I want my kids to experience a vacation with their buddies.

It maybe because I use to volunteer with the elderly and of all the "regrets" they shared with me, 99% of them seem to be of the "wish I had done more" with my life or a lot of them are regrets about not taking better care of themselves. Very few expressed regrets about not saving more money.

its a balancing act.

 

[eliza61]

I cant imagine employers keeping workers, in their old highly skilled jobs (lawyers, Doctors, stockbrokers)past late 60's

Sure-you can be a door greeter at Wallyworld, i suppose at 80

Also don't assume the walmart greeter is there because they need the salary to live off of. I know one of them and he does it because he wants to stay active. He's a widower in his 70's and loves working at Walmart. He claims he gets to meet people, work with young people (which he claims keeps him young) and meets "the ladies"

not sure I would want to do that but for a lot of elderly, jobs keep them healthy and happy for a long time.

 

[crisi]

Because in a nutshell as a general rule the young do not have the "20/20" hindsight that we have and really I'm not sure I want them too.

I'm one of those who didn't really start saving until I got married and into my 30's. Now I didn't go into debt (outside of my student loans) because I was born during a time when you saved for what you wanted. We didn't have young adults running around with Credit cards.
What I did do was spend my money. I traveled extensively, by the time dh and I had our 1st kid we had pretty much been all over the world.
Now of course, it's a different world but would I trade in my 20 and early 30's to have a couple more thousand in the bank. NOPE.

Now my kids are in college and working part time. Hopefully "the old guy" and I have taught them the value of living within their means and saving but do I want them to not do any thing and sit at home in order to save for with they are 70? Again, no I do not. I want my kids to experience a vacation with their buddies.

It maybe because I use to volunteer with the elderly and of all the "regrets" they shared with me, 99% of them seem to be of the "wish I had done more" with my life or a lot of them are regrets about not taking better care of themselves. Very few expressed regrets about not saving more money.

its a balancing act.

But you CAN balance the act.

I started putting retirement money away at 21 when I qualified for a 401k. I bought my first house at 20. And by 30 I'd been to most countries in Europe, Thailand, China and Japan. By the time my kids were born, we had six figure retirement accounts - by the time they were in elementary school, the mortgage was paid off. And my kids have been in four countries other than the U.S. (not including Epcot ).

Today's seniors are expressing regrets about money that previous generations didn't. Previous generations were more likely to get pensions in addition to Social Security - and have fairly limited wants. Todays seniors want a retirement with travel and activity. They don't want a reduced standard of living. And that takes more money than they think it will. "Doing more" today often means "spending more."

 

[MrsPete]

My father is 84 and still a practicing dentist. He works 12 hours a week and is as busy as he wants to be. I think it keeps him young.

Sounds like my older daughter's orthodontist. He's THE ortho in our town, and he's spent a lifetime building a good practice. Now he has a younger ortho who does most of the work for him. He himself works just a few hours a week. He does all the new-patient appointments, and I don't know what else. I know he took three weeks in Hawaii for last Labor Day. He "plays" all he wants, yet keeps his hand in the business.

That's probably an extreme example. He owns the business, and he has a unique skill set that makes him more valuable than the average worker. Additionally, his work isn't physically demanding -- not in the same way as a factory worker. He really is in a position to write his own ticket.

 

[MrsPete]

The article about the kids saving for retirement was a little odd. The one 18 year old had $300,000 saved, yet all she mentioned is working part time and odd jobs and saving at least $50 a month. I think it's great that she is saving, but I don't know how that would add up to $300K.
I would think that most kids with savings in high school (and earlier) would be using that money for college. So either these kids are having all their college expenses paid (or paying as they go), or their savings is more of a general savings for the future. Either way, saving is a great habit to get into. I did like the bit about the 23 year old though.

Yeah, I wonder what job has allowed her to earn so much. Perhaps she's a model or something like that? I do suspect that much of her savings is from parental gifts.

 

[MrsPete]

Because in a nutshell as a general rule the young do not have the "20/20" hindsight that we have and really I'm not sure I want them too.

I'm one of those who didn't really start saving until I got married and into my 30's. Now I didn't go into debt (outside of my student loans) because I was born during a time when you saved for what you wanted. We didn't have young adults running around with Credit cards.
What I did do was spend my money. I traveled extensively, by the time dh and I had our 1st kid we had pretty much been all over the world.
Now of course, it's a different world but would I trade in my 20 and early 30's to have a couple more thousand in the bank. NOPE.

Now my kids are in college and working part time. Hopefully "the old guy" and I have taught them the value of living within their means and saving but do I want them to not do any thing and sit at home in order to save for with they are 70? Again, no I do not. I want my kids to experience a vacation with their buddies.

It maybe because I use to volunteer with the elderly and of all the "regrets" they shared with me, 99% of them seem to be of the "wish I had done more" with my life or a lot of them are regrets about not taking better care of themselves. Very few expressed regrets about not saving more money.

its a balancing act.

You're totally right about the 20/20 hindsight thing.

I personally wish I hadn't been forced to work so hard during college (I don't mean classwork -- I mean I wish I had not been forced to work at paying jobs so much during college); however, that was my world. I didn't have financial support from anyone. If I could go back in time, though, I'd do exactly the same thing. Although it was tough, it was the right choice.

I do see one flaw in your comment about the elderly and their regrets: The people who are NOW elderly grew up in a different world. They have pensions, they are collecting Social Security checks. Today's 20/30-somethings aren't going to have those same benefits when they themselves are elderly -- they're going to be living off whatever savings they've accumulated; without the safety nets available to today's elderly, tomorrow's elderly may find themselves more regretful over financial matters.

 

[MrsPete]

Also don't assume the walmart greeter is there because they need the salary to live off of. I know one of them and he does it because he wants to stay active. He's a widower in his 70's and loves working at Walmart. He claims he gets to meet people, work with young people (which he claims keeps him young) and meets "the ladies"

not sure I would want to do that but for a lot of elderly, jobs keep them healthy and happy for a long time.

I don't know that I believe that -- I'm sure it's true for some people, but I wonder if it's not a matter of, "I've gotta work, so I might as well adopt this I want to do it attitude."

Speaking only for myself, I can think of plenty of ways to stay active and meet people without forcing myself into a workday schedule. When I retire, I want to do more with my church, to expand some of the things I do in the community now . . . but I also look forward to having more control over my time. I want to be able to say that my husband and I are taking an RV trip for the first couple weeks of next month, so I won't be available to help with whatever project's going on at church. I want to be able to say, "It's raining this morning, so I'm going in to the library an hour later." I might take a seasonal job here and there, but I don't want to be tied down to other people's schedules once I retire.

 

[kamik86]

I think the saving when your young this partially depends on if you got a decent job right away and managed to stop from spending everything at first.

I started saving at 22 when I got this job, I have been here for 2.5 years now and have 20K saved. I could have done much more... but I wanted to have fun with it and spend some too, which is why I also own DVC.

Now I'm almost done with Grad school and my focus will shift over a bit more to paying off my student loans, but my 401K savings rate will remain the same.