what happens when someone retires without any savings?

[pwd72s]

"You really don't need to begin saving for retirement before you reach sixty. At that point, simply save 250 percent of your income each year and you'll be able to retire comfortably at seventy." -Jonathan Pond

[Rick Lee]

My current 401k has a note at the top of the page when I log in and it says at my current rate of savings, I'll have a retirement income of $48k per year. Luckily, I have another IRA and my wife has both too. My folks just completed their first year with both of them retired and are living on about 1/4 of what my dad made when he was still working. They'll be fine, but they really, really saved and invested well and they're still trying to not spend more than 1/4 of my dad's previous income. I hope I can get there.

[Tobra]

Originally Posted by Aurel

Isn`t this description what is happening to America as a whole? This is more than an individual issue. The whole system of over borrowing has caused the economy to be where it is now, but still the govt. wants to borrow more...

Just so

[porsche4life]

To summarize. They're Focked.

[widgeon13]

The problem is that there are millions of people doing the same thing so bottom line is we are all F'ed.

[Schumi]

I could never see not working- at least not for an extended period of time unless I was in my 80's or more...

My father is retired, and for the life of me I don't actually know what he does all day. Works around his house, goes and helps out friends with odd jobs and what not. I don't get it.

'Retirement' for me would be not working and doing all the stuff I'd always wanted to do while younger but couldn't because of the bills. Unfortunately that kind of behavior would drain a retirement fund quickly, so thus I would probably work part of the year to fund vacations.

My parents don't have this problem (of draining their retirement funds) as they never go anywheres on vacation, ever.

:-/

[austin552]

Maybe he's playing the lottery.

[einreb]

Several anecdotal examples...

http://www.nytimes.com/2005/06/19/national/19retire.html

I used to focus on saving a ton for retirement. I still put it away, but I'm starting to see the beauty of needing less.

[tabs]

All the little saver ants are gona have the big ole green grasshopper make their retiresments WORTHLESS...

If you plan on retiring in 10 or more years...it just ain't gona be pretty.

Look at the numbers..

$20,000,000,000,000.00 in debt. If C&T and HC get through there won't be a vibrant economy. You will be standing in line to see a MD, You will be living in low rent housing, you will be standing in line for food, and electricity, gas and water service will be subjet to "brown outs"

Someone tell me why it ain't gona be so?

[widgeon13]

Because it's all going to be over on Dec 21, 2012!

Don't worry, be happy.

[Aurel]

Here is how I see retirement: 20 or 40 acres with a pond or two, living off the land growing tomoates, fishing, hunting and fixing old cars in my 6 car garage.

I could buy this place for cash already, and have cash left over from the sale of my NJ house. And I wouldn`t care living in the middle of effen nowhere (but my wife would...).

(private lake/pond) real estate Homes for sale in Bernhards Bay NY 39 Acres With 2 Private Ponds! property properties, lakefront, waterfront

[KNS]

Aurel,

Sounds wonderful but the property taxes are going to be a killer.

[Aurel]

Originally Posted by KNS

Aurel,

Sounds wonderful but the property taxes are going to be a killer.

Property taxes are $2,500 a year. I could live with that, and much better than the $8k+ I am paying now in NJ.

[BRPORSCHE]

I start my first 401k oct. 1st. Can't wait to never cash it out.

[Joeaksa]

There is a reason why I am buying (cash) a good sized piece of land out in the middle of no-where that has its own water, solar/wind powered where you can survive on your own for almost no money.

With my three 401k's (which were combined a few years ago) (and thank God they have now started rebounding), cash that I will have when I sell my house and savings elsewhere I could almost retire now. Am coming up on 57 and if I can work another 4-5 years can retire. Am planning on spending the time restoring old cars, motorcycles and airplanes. Taxes on the place are $400 right now, so workable.

Am not planning on Social Insecurity being here to support me, especially after the announcement on the news today.

The Associated Press: Early retirements strain Social Security system

~~~~~

Early retirements strain Social Security system

By STEPHEN OHLEMACHER (AP) – 3 hours ago

WASHINGTON — Big job losses and a spike in early retirement claims from laid-off seniors will force Social Security to pay out more in benefits than it collects in taxes the next two years, the first time that's happened since the 1980s.

The deficits — $10 billion in 2010 and $9 billion in 2011 — won't affect payments to retirees because Social Security has accumulated surpluses from previous years totaling $2.5 trillion. But they will add to the overall federal deficit.

Applications for retirement benefits are 23 percent higher than last year, while disability claims have risen by about 20 percent. Social Security officials had expected applications to increase from the growing number of baby boomers reaching retirement, but they didn't expect the increase to be so large.

[vash]

Originally Posted by Aurel

Here is how I see retirement: 20 or 40 acres with a pond or two, living off the land growing tomoates, fishing, hunting and fixing old cars in my 6 car garage.

I could buy this place for cash already, and have cash left over from the sale of my NJ house. And I wouldn`t care living in the middle of effen nowhere (but my wife would...).

(private lake/pond) real estate Homes for sale in Bernhards Bay NY 39 Acres With 2 Private Ponds! property properties, lakefront, waterfront

exactly! we are in the same boat. my wife would freak.....

[Don Ro]

Originally Posted by vash

...but i guess it really isnt my problem.

You're right.
Good news for you.

[Dueller]

I'm counting on my wife's children to support me in my old age. Won't THAT be a great plan for me

[gatotom]

retire.........no, my truck doesn't need new tires

401's thats a funny one also, I am sure those of you who actually have something in one, you took a hard hit and also your bubble might have popped, duh, fancy that.

At 61, am I worried, ahhhhhhhhhh last time I checked, I did wake up this morning and after sitting thru a wkend of CE, here I am.

My words of wisdom for all you grasshoppers, pay attention to the details............
float like a butterfly, but sting like a bee.

After being self employed for most of my adult life, basically living by the sword, I can't imagine not always making money, its so easy, why would anyone worry about that one??????

Can I retire if I want, yes but why?????? I can do anything I want, in fact I have been doing everything I wanted all my adult life.

Are there compromises, absolutely but the last time I checked, working for someone else, isn't that a huge compromise?????

Dueller, what do you think Social Security is??????????

[aigel]

Originally Posted by gatotom

401's thats a funny one also, I am sure those of you who actually have something in one, you took a hard hit and also your bubble might have popped, duh, fancy that.

If you are anywhere close (within 5-8 years) of retirement, your investments should be fairly low risk to avoid market variations messing up you retirement plans. This should be staged, the closer you get. Yes, you could lose out on a rally, but you'll also miss out on a big hit, like we just had.

George