We all know that we should try to save as much as we can for retirement. But what happens if that’s not enough?
That’s what one person asked on Quora, a questions-and-answers site. And retirees answered, saying they retired when they thought they were ready, only to find out years later that they weren’t. One person said the question was a bit unfair, given the numerous factors involved in money management, such as low income, a serious illness or a divorce. “Try to think of someone you know, who from age 21 to 60, never experienced a significant financial reversal. I can think of no one,” she said. The thread began last year but was recently shared in a Quora newsletter.
See: Where did baby boomers go wrong? This generation isn’t financially prepared for retirement
These are what some other retirees had to say:
• One person said he retired 15 years ago, at 62 years old, after building up a small reserve by selling antiques, magic props and art, as well as equity in his home. He can’t get the equity back in his home because he doesn’t earn enough to make regular payments, and even though he still sells magic collectable equipment, paintings and antiques, sales are slow and online selling is difficult. He hasn’t missed any payments in years, but there are things he can’t afford, like printer repairs and a hard drive and proper plumbing repairs. “Compared with many, however, I am well, regularly fed and have a roof over my head,” he said. “I oft wonder where a 76 year old can get employment that will not hasten their physical downfall — and check regularly in the help wanteds. Little of no luck there.”
• Another person shared a story: She used to visit her grandmother in West Virginia who lived in an old coal mining camp and had water drawn from a spring 100 feet away from the house. She said her best friends had grandparents living with them because they couldn’t afford to live on their own. “My own grandmother received financial help from some of her children but even then she received surplus government food (no food stamps at that time).”
• Others warned readers, especially young ones, to take it seriously. One retiree said he retired in 2009 and realized he had to get frugal quickly. He said you can’t count on the government, and that the later you start the harder it will be to save enough (especially if your health deteriorates like it does for many). He was preparing to get married this year, to someone younger than him who can work for another decade or so. “Today I’m 67, and I don’t worry about the next month or the months after, but I cannot do any of the wonderful things I expected or wanted to do in my retirement, not on my own,” he said.
Also see: Why retiring in America has become less attractive
Saving, or investing, for retirement is a difficult task, but one that has shifted to employees’ shoulders in recent decades. Earlier this month, a MarketWatch article about saving for retirement in your 30s went viral after readers were outraged that one study cited suggested people have twice their salary saved by the age of 35. The unfortunate truth: Many Americans don’t feel ready for retirement. About half say they’ll be financially comfortable in retirement, according to a recent report by analytics and advice firm Gallup, and 46% said they don’t think so. Other studies found similar results, such as one in three Americans having less than $5,000 saved for retirement and one in five having no savings at all, according to a recent Northwestern Mutual survey of more than 2,000 Americans 18 and older.
There’s good news though. People who did think they’d be comfortable in retirement usually ended up correct. About 54% of 50- to 64-year-old nonretirees in 2002 to 2004 said they’d have enough money in retirement, and 77% of them (now between 65 and 80 years old) did, Gallup found.
Source : MTV
