Why Retirees Are in BIG TROUBLE

[@Rayjack-m9o]

It usually comes down to Choices and decisions that you make or made earlier in life , We live in a free country where you have the right to succeed or fail , I chose to be comfortable so I made the necessary Sacrifices to insure that comfort.

[@maryhobbs4183]

Inheriting money helps and some luck. No divorce, special needs kifs, early death. Seems kinda smug.

[@jennifershanks453]

And then there are the millions of things can can throw a wrench in your plans. I was put out of business when the government took lead out of glazes I used to make tile. I lost everything. For others, it can be an accident, illness, illness of a family member, etc.

[@Patw520]

Same here. Lost everything during the 2008 housing crash. Then again during Covid. Also had sick family members to care for. People who make these comments about making the right decisions live in a selfish bubble. Glad he/she was LUCKY enough to have made decisions.

[@philipem1000]

Don't take this as criticism, everyone has their own situation. I've always been frugal and lived below my means and am comfortable with that but I have retired and live well on my (very average) social security check with money left over for fun. E.G., I took a trip to Spain this year. I hope this example will encourage people to be creative, careful. And it didn't LOOK like it was going to be all that good. I was laid off in 2008 at age 59 having lost $600K in real or prospective retirement funds. What I had saved was decimated; basically I retired with an unemployment check, a $200 pension and two rental homes in another state with mortgages and essentially no equity. I rented in California at the time. So I took a cold hard look at the situation. Not the first time I've been unemployed but reality said I'd be lucky to get a job in two or three years. So the first thing is to figure out how to live for three years at least. I moved to one rental home, short sold the other after holding on for a long time. There was little to no equity but you don't need equity you need an affordable place to live and that qualified since I bought it at a really good price ten years earlier. Between UI (which was extended to a year and then I managed by luck to qualify for a second year, thanks, Obama!) and minimal withdrawals from the IRA (which did recover a bit) I was making ends meet comfortably. Eventually I used carefully planned IRA withdrawals to pay off the mortgage (basically I made sure I would have to pay no or minimal income tax and drew off the largest amount that would keep me under that tax level). It took about five years to get the mortgage paid off. So what began as "cost savings" turned into "experimental retirement" then just plain retirement. I did take SS early of course but I was on the upside of that deal until just this year when I hit 75 -- and I don't need more money now. Frugal: I drive a twenty year old Toyota but it runs like a top and costs me next to nothing to operate. I eat the best food by shopping six supermarkets for bargains and quality food; I have a large freezer to optimize sales. I cut the cable from the beginning and stream my entertainment mostly for free (but if I wanted premium services I'd get them...I can afford it). I buy things on Amazon quite often if they add to my life and are reasonable cost; I also shop at thrift stores for clothes and household items. I live in Arizona so most of my wardrobe is six pair of shorts and a dozen T-shirts and polos. Sketchers are the most comfortable shoes ever and a pair will last me five years. The house does cost: insurance, property tax, utilities, HOA, and maintenance, about $700-800 a month. I set aside money every month for those once a quarter to once a year costs. For an emergency fund I have a HELOC on the house which costs me nothing unless I use it; plus I have my IRA which has now grown to exceed what it was 16 years ago (that's not saying a lot but it's money I never have to touch and barring bad times will end up with my grandkids). I got very lucky with health being good. I had a year of Cobra subsidized (thanks again Obama) and then I was low income enough to qualify for VA Health Care which is the best medical I've ever had. When I hit 65 I did follow VA recommendation and got Part B (Advantage plan) which I have not really used but I found a plan that refunds almost all my Part B premiums. I had some luck. I had done some planning. I did save when I had the money. I live below my means even today. I have to say life is good, retirement is good, and I sleep better than ever at night. Hope this helps someone to see their way through tough times.

[@georgejetson4378]

Thanks for sharing!

[@Simon-je7ko]

It's pretty much everywhere the same problem. People just don't have any idea whatsoever how to manage money.

[@anniesshenanigans3815]

I woke up a few years ago and started saving, albeit not nearly as much as I would like. I have an emergency fund that is good for basic expenses for 6 months barring a BIG unexpected expense. Replacing my vehicle, or the roof, or the A/C system, or any other major repair will deplete that pretty quickly. Before the huge jump in inflation that was not really a concern. So today, I have had to potentially push back my retirement date from 62 to 67. But I cannot continue to work full time. It's killing my body and mind. All of the work injuries I have had are a big reason. I work in healthcare and really enjoy what I do, but the lifting is probably the part that wears me out the most. And today people are so frustrated with our healthcare system ( you can thank big insurance for that) that we are constantly heckled and harrassed by angry patients. So I am really tired of it all. I don't want to do it any longer. "They" have been saying for decades that the trust fund was going to run out, and I do not believe it. Our government might be shady AF but I seriously doubt they will let that happen. They will do what they have done before. Raise the numbers coming in, by tax increases or something similar, raise the retirement age, recalculate the formula for a group far into the future, and move on with other things.. I have ideas as to how it could be improved, but nobody is listening..

[@RuthWomick]

You are definately not alone. I did many things right for retirement but certain life events can make recovery, not possible ie divorce, job loss, health issue, mental affects of losing a child, etc. I used to be critical of those who were not in good financial shape for retirement-no longer! I dont know their circumstances. Im fortunate that my 2nd hubby, should something happen to him, has made sure I have a paid off house and a little something in the bank for unexpected incidentals. However, I still will have some struggles.

[@philipem1000]

Can I suggest you get a HELOC on your house so you have that as an emergency fund; when my Heat Pump died in July in Arizona that is how I replaced it instantly at a low interest rate and later that year the water heater went out. But I made low monthly payments until I could tap the IRA for half in December and Half in January (spread over two tax years so I didn't pay taxes on the withdrawals.) I'm sure you've thought of seeking disability payments. If you look elsewhere on tese comments I have related my own saga with forced retirement in the worst economy since the Depression and you might get some ideas from how I managed to make that work out. Good luck!

[@firefeethok_tui2355]

@@philipem1000heloc is a terrible idea. The rates are outrageous, she would lose money every month paying interest and likely end up spending it. Terrible idea.

[@RuthWomick]

A divorce in 2008, raising 2 littles and the 3 family pets 100% alone ie zero help from ex, made me get a very late start. Ive always lived lean and mean and been a worker bee, working multiple jobs. Once you have lost everything, you always live w the mentality that the house of cardss can come tumbling down again. My 2nd hubby and I work closely together on our money and that is refreshing. I somehow, connected w a Chas Schwab person who has been very pro active helping me w my very small $8000 that I invest in my Roth. Good video!

[@philipem1000]

Good work! I made a "forced retirement" in 2008 at 59 work. I posted my own story on these comments which might give you some ideas.

[@jburch1544]

It's amazing how boomers/gen x's work 40 to 50 years and have little to no retirement savings. That's on them, no lack of opportunities, but hear lots of excuses

[@bbmw9029]

Whether people feel they have enough money for retirement has absolutely no bearing on whether they actually do have enough money for retirement. There some hard cold math involved that a lot of people haven't wrapped their head around. If you have a few hundred grand in a retirement account, you may think you're good, but that has to last a long time (as much as 25 years or more), and given how prices are rising, and the precarious nature of Social Security (cuts are probably coming), if you don't have into the seven figures, chances are you'll run out, and at a time when working will just not be an option.

[@susanhardin5182]

Lets start teaching kids in high school about saving for retirement. It was never discussed as a kid

[@makdaddy8399]

My mother in law is 83 and still working 40 hours a week. In her early 60's she was broke every payday. She still is. Can't buy enough garbage she doesn't need.

[@lucken13]

Retired at 59, 2 years ago! I have 2 actual retirement pensions and not 401K! 401K’s evolved in the 90s, allowing many companies to dissolve their retirement pensions!!!!

[@ericheth5218]

My father taught me very well when I was 16. He said he’ll match 4% what I put into my savings that I can’t touch and I had a different savings to do what I want to do with it.. set alarm 51 now and I probably could retire in five years and don’t worry about anything I really think it is how you’re raised with money or about money to be teach how to do it really.

[@rustykatt3870]

Wow, adults over 55 are the fastest growing segment of the homeless population, and that is expected to triple by 2030 ( 5 years from now).

[@lorenecarden6312]

Let's talk about taxes. Taxes, particularly real estate taxes for homeowners are absolutely outrageous and takes a huge chunk of the income. That's one reason the homeless population age is increasing.

[@andrewrivera4029]

F the doom and gloom, it’s a symptom of old age, unfulfilled dreams, personal limitations put on us by ourselves friends family and society. I told my wife the plan in our early 20’s to save and invest for retirement, we were working class but saved continuously til retirement at 53 years young now at 59 our stock portfolio is up despite us drawing 500k out so far and our real estate investments have more than doubled while retired. It can be done kids!

[@kerrylouden4833]

You should have mentioned to younger people to give up on Starbucks and start saving because 65 is right around the corner!

[@rustykatt3870]

Hi Kerry. That is a good thing to remember. I take a flask of instant coffee and have probably saved $1,000 per year. I used to buy coffee from the shops. Good luck to us all ✨😊✨.

[@davelorenz3285]

There’s five ways to be poor in the US: 1. Marry more than once or twice. Divorce costs $. 2. Become addicted to drugs, alcohol etc. (You May as well crawl under a rock) 3. Spend compulsively. Have to impress others 4. Chase rainbows. Try to get rich quick money schemes. 5. Run with the wrong crowd and spend time in the big house. Get it? Got it? Good!

[@ronmexico5908]

How does a sane person not save and expect to have enough money later to retire?

[@ronkirk5099]

I'm 74 and started collecting SS retirement when I was 62 (retired at 54) so I've already taken out as much as I have paid in and I'm lucky enough to have resources even if SS ends tomorrow. The only thing I worry about is the coming GOP economic sh*t storm they are about to unleash which could result in a major currency devaluation. If that happens, we are all screwed.

[@rickiejacobs5910]

Didn’t have any savings for retirement. My wife just retired last year at 58 after 25 years for Iowa Department of Corrections. I retired back in 2020 for health reasons. I have my SS and a small pension from public schools system. So we have a combine monthly gross income of $5500 a month. Still a little tight after expenses but it is working.

[@jivefive99]

As long as work continues, SS will have income. Perhaps smaller benefits but there will always be SS.

[@Humandriver5280]

Even with matching, our 401Ks are a joke. Here you go, kids. Have some casino chips. Don't retire at the wrong time.

[@todddunn945]

How much you need in savings is totally dependent on what your retirement income sources are. For example, I have a pension which along with social security more than meets all my needs. I also own my house and have zero debt. So, while some savings would be a plus I don't actually need any savings. I do have some savings, but I add to them every year instead of drawing them down. If I didn't have the pension it would be a different story.

[@thomasmoshier3920]

I retired this year at 65 with a 403b balance of 2 million. I put just 10% in retirement savings each pay period for 30 years. You don’t have to be smart. You don’t have to make a lot of money. But you do have to persevere. We’re all responsible for our own retirement. People will sacrifice the future for instant gratification. It happens all the time.

[@cappyjack3070]

Adapt, overcome, persevere!!!

[@andrewrivera4029]

Yup, it’s called delayed gratification. Most people cannot do it.

[@rjm7166]

@@andrewrivera4029 Delay until you’re too old to take advantage of it. Hooray! I don’t blame young people who don’t want any part of this donkey system.

[@danbooher5843]

You can't buy ur way into heaven though, brag on. 😢

[@andrewrivera4029]

@@rjm7166 you don’t know me, I did delay gratification and still retired at 53.

[@RandyWilson-qp3wc]

I’ve checked numerous times and because of my credit score they treat you like a bum 😮

[@JoeSmith-jd5zg]

I spent much of my 20s, 30s, and 40s living in roach-infested hell holes so I wouldn't have to spend my 50s and beyond living in roach-infested hell holes. Anyone now who's in their 60s or older who's having a hard time who went on fancy vacations, bought fancy cars, or the American nightmare of buying a house you can't afford when they were younger and now they're saying hey I need a handout, well they can go to hell. They had their hand out which are those fancy vacation while I was swatting cockroaches. Let me ask you this, did they sacrifice their fancy vacations and give a hand out to me because I was living in cockroach-infested hell holes? So don't they dare ask me for a handout because they were irresponsible. They had their fun so now they can reminisce about how fun it was when I did not have fun. Any yeah I know, you can say "But I had unexpected expenses!" Oh...you were the one, I heard about the one person that had unexpected expenses and now i know who it is.... News flash: We ALL have had unexpected major expenses.

[@Sylvan_dB]

See The Grasshopper and the Ant. They've made their bed.

[@vinrod34]

58, working till I die.

[@philipem1000]

If so it's sad. May I suggest you look on these comments for my own story of being forced to retire in the worst economy since the Depression at age 59. It may give you some ideas for how to make things work out better.

[@Gratefulwon]

Sell the red sports car, get a prius.

[@TeslaRules1856]

My wife is retiring in two years at age 61, thanks to having a state pension, but will work part time for some extra income till 65. I will have to work until 65 to save more, to keep my wife and youngest daughter on my company medical insurance, and to pay off our mortgage. That last part, owning our home with no mortgage, is a big deal. Almost as big a deal as our modest 401K, Pension and SS we will have. We are busy fixing up a few things now in our home - new roof, windows, plumbing upgrades, before I retire and pay it off. Oh lastly, my elderly MIL lives with us because she has nothing but SS, no savings, no investments, no home, nothing ! Our youngest kid is still with us now and then has 4 years of college for us to help with. Sandwich generation. We are expecting a recession to hit, along with more inflation, in the next 2 years, also possible cuts to health insurance and other things we rely on.

[@rustykatt3870]

Tesla- best of luck. You and your wife are working hard, and we wish you the best! Good luck to you and to us all ✨😊✨.

[@lindawilson8434]

I think it will be worse than a recession The rich will just get richer Sickening

[@daves-selfie-wilderness-raves]

In the book 'The Richest Man in Babylon' by George S Clason, it outlines The 5 Laws of Gold, in which it advises that you consistently save 1/10th of your total income and invest it wisely.

[@Over50tv]

Hey Dave! I read the book and loved it. I also shared it with my oldest daughter. Thanks for mentioning it here.

[@RonaldCanales-s9r]

Ss funds are to run out 2033 not 2035

[@stevemelton4388]

They will tax more or raise the age

[@Over50tv]

Yes, latest I've heard is 2033.

[@georgejetson4378]

Your commentary is a doom and gloom and misleading. While what you’ve stated is true that the SS trust fund will run out of money by 2035 unless remedial action is taken soon, many will understand you to mean that they will not receive any SS benefits when in reality their full benefit would be reduced by ~17%.

[@jaybarr3307]

Despite the Democrats best efforts to break my bank, I'm going to retire in the next year come hell or high water.

[@elviscobb5922]

Surely you’re not expecting any Social Security or Medicare.

[@pensacola321]

🤡

[@robertwalker5521]

If both 'hell' AND 'high water' attack you.... your final chapter will arrive quickly.

[@pensacola321]

I will bet that your mommy and daddy never called you "smart."

[@dianabehr3169]

So the new GOP gov't will save you?! 😂

[@rjm7166]

Sorry for the multiple comments, but I love the fear mongering regarding the Social Security trust fund. Why do we never hear about the fund that pays out endless welfare running out of money?Why do we never hear about the fund that produces money for foreign countries running out of money? Why do we never hear about the trillion dollar military running out of money? Nope, it’s only poor and working class taxpayers who get threatened.

[@dianabehr3169]

You'll see, Trumpster!

[@MargaretWest-m8u]

Retirement is more challenging now than it used to be. I've focused on saving rather than investing, and currently, I have about $400K. With inflation on the rise, I’m considering investing in stocks, but I’m not familiar with effective market strategies.

[@ToreyLanez]

Are you planning to retire before 59? That's the key factor for me. I transitioned to cash-flowing assets because I wanted to retire early.

[@FrankJaaay]

Given the current pressure to prepare for retirement, I highly recommend seeking guidance from a financial advisor. This will help you make more informed investment decisions.

[@Toni__Michelle]

How can I find a trusted financial planner like yours?

[@FrankJaaay]

I consistently recommend Rebecca Lynne Buie as my top choice. She is well-known for her expertise in financial markets and has an impressive track record. I highly endorse her services.

[@HotManP-l5g]

I looked her up and found her webpage. I’ve already sent an email and scheduled an appointment. Thanks for the recommendation!

[@billcarlson1730]

Well, if you don't have enough savings for retirement, it's your own fault. You could have worked 2 jobs like many of us have saving one income for retirement and living off the other.