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View Diary: Americans' Retirements Are in Tatters. What Does That Mean? (129 comments)

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  •  Several factors that retirement pundits miss (11+ / 0-)

    For better and worse.

    1.  The investment industry posts humongous numbers for "what you need to retire" that  scare people into doing nothing more than anything else.  In reality, anybody who can match their Social Security check at 65 from other sources isn't going to starve.  

    2.  0.85% interest on savings isn't going to last forever.  No plan to save for retirement, individually or collectively, can survive unless savings interest goes up.

    3.  Those of us born in the late 1950s and after aren't going to live as long as our parents.  No food, no exercise, too many drugs, too much stress.

    4. Health care is a bubble, just like Dutch tulips, suburban houses, and Internet stocks before it.  It is both a financial and willingness to be poked and prodded issue.  Nobody who hasn't been in an intensive care unit in the past year needs to see doctors every ten days.  

    5.  We are dealing with large-scale obsolescence in suburban housing, not a cyclic downturn.  The value boomers expect to get for suburban houses may not be there.

    We have grave issues with retirement of the baby boom generation and those slightly younger.  Much of the commentary on the subject isn't helpful.  

    •  Obviously bad food (0+ / 0-)

      ...and not no food!!!!

    •  #1 (6+ / 0-)

      I always get a kick out of those retirement calculators.  They all start with: What is your gross income?  Then to keep 80% of that gross in retirement I must save 33% of my income.  

      Stop.the.bus.  How is it that I must live on 77% of my income now because I'll need 80% in the future?  Kind of self-defeating.

      Plus factor in the lower cost of housing (paid off house), the fact I won't be saving into my 401(k) and Social Security.  I think I can manage on less than 80% of my current gross income for retirement.  

      Those who cannot remember the past are condemned to repeat it. George Santayana

      by RAST on Sat Jun 22, 2013 at 12:45:59 PM PDT

      [ Parent ]

    •  Rising College Costs also a Factor (4+ / 0-)

      Colleges expect that parents will forego putting away money for retirement and pull equity out of their house if their lucky enough to have any to cover tuition costs. We are currently caught in the same dilemma that many parents are facing. Either drain our requirement or saddle our child with huge college loans.

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