People who don't save for retirement

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What are people who don’t make enough to live supposed to do? It’s a privilege to save for retirement. It really is.

Asian American here. I was a child of immigrants. DH and I support my parents and his mom. We know many adult Asian Americans supporting their elderly parents. It is actually quite common.

Do you feel resentful about this? Genuinely curious.

No, I’m not resentful at all. They moved to this country and did the best they could. I always had housing and food. It isn’t like they spent frivolously and wasted money. They just never had money.

I’m surprised at Americans who seem to be able to turn their backs on their family.

Same. And just as bad are the ones who feel resentful. My father died young leaving my mother with teenagers and a paid for house. Once I had kids she babysat and wouldn’t take a dime. She would stay at our house on weekends when my husband and I went away. I would leave cash for her and the kids on the table but she never used it. She would come over early before the kids got out of school and would do the laundry, make the beds. And So much more. She’s older now and I’ll be there for her whatever it takes.

I think sometimes adults forget what their parents did for them. Or they will pick some rough times in their childhood to use as excuses not to help. They sleep better when they put the blame on someone else.

Your mom sounds amazing and I can understand why you want to help her in return. But in my experience this is far from the norm.

Many of us have to pay for that kind of help so we can maintain our careers. All that money your mom wouldn’t accept is more money you have to help her out someday. But most dual working families are trying to use their money to make their lives manageable, have no emergency family backup for anything, no one to come do their laundry.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What are people who don’t make enough to live supposed to do? It’s a privilege to save for retirement. It really is.

Asian American here. I was a child of immigrants. DH and I support my parents and his mom. We know many adult Asian Americans supporting their elderly parents. It is actually quite common.

I know. I wish more people would do that. We see the Asian families shopping and they are almost always three generations. It helps the elder to be healthier and happier.

I think this depends on the younger people having enough money to do this, though. I worry about my parents and especially my disabled adult sibling who lives with them, in a very small town with few jobs hundreds of miles from DC.

We bought our current home thinking it would be a starter house, so we definitely weren't planning for an "aging in place" setup. We don't have a shower on the first floor, 3 beds and only the tiniest one with no closet on the first floor. We really definitely can't fit 3 more adults who all have their own larger bedrooms in their big rural home. But we also can't just quit our jobs and go live with them.

I do worry about this. They're not interested in moving or downsizing. We can't afford a huge house or early retirement to go move to their small town where we only know them. So what's the strategy here?

[Anonymous]

Anonymous wrote:I will be working until I die. I can't afford to retire. That's for rich people.

That is ridiculous. I had 70k of student debt in 1999 with only an undergrad degree (thanks mom and dad for not paying the EFC, which forced me to take out private high-interest loans).

I was dead broke and deep in debt at 21 years old. I had 70k of debt and earned 26k. I worked three jobs for 13 years to pay that debt off.

Guess what? When I was 21, I decided I was NOT going to be poor or struggling when I was old. I started saving for retirement at 21. I am a career nonprofit worker. I am 48 now and have more than $1 million in my retirement accounts. I have other money in home equity and in a brokerage.

Time counts more than anything. Retirement is NOT for rich people alone; it is for people who invest and play the long game. Tiny amounts add up after 25 years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I used to manage a couple of people who worked way too long because they had to. One issue affecting both of them was having to give half their pension and/or SS to an ex after divorce. I think this affects many people and leaves them with much less in old age.

SS is never given to an ex, at least not directly.
Maybe it’s used to cover their settlement agreement amount but they need to go to court and review it.
Workaholics or those who are afraid to become irrelevant if they stop working often use it as an excuse.
They either “have to pay their ex wife” or “have to support their young adult kids”.

Not true. If you are married at least 10 years before you divorce and do not remarry, you may be entitled to your ex's social security. My sister deliberately waited until year 11 to separate for this reason (this is in Virginia).

Social security is federal. It has nothing to do with the states. After a 10-year marriage, anyone is entitled to their ex-spouse's social security if their own is not higher.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Some keep working, which must get really hard at some stage.

This. My 67-year-old cousin just relocated and is looking for office work, which she's not finding. She thinks she'll have to apply to work in supermarkets. I don't understand how this is sustainable. If social security and savings are not enough for her now, will they be enough when she physically can't work anymore?

My DS16 works at a supermarket and several of his co-workers are in their 60s. They often work two jobs. Maybe at a restaurant and also at the supermarket. They’re on their feet all day, every day and stretching to make ends meet. He’s learned a lot of lessons from those coworkers.

I mowed grass and did some manual labor during hs and college. Worked with older folks and realized early that I had to save/invest for my retirement as soon as I got my first job after college. I knew there was SS benefits for retired working people but I did not count on it. It is a wonderful journey in life as you leverage your labor to financial freedom. Slow and easy, $$$ invested for decades doesn't disappear in a market crash or Presidential tantrum.

This!! Living a bit more frugally in your 20s and 30s means an easier path to retirement. Those who choose to do that tend to do better

+1 we're in a great position for retirement, and a huge part of that is that DH maxed out savings in his 20s-early 30s. We cut back on savings during the little-kid years, and then ramped back up (+college savings). But the biggest contributor is the growth from that first decade.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I will be working until I die. I can't afford to retire. That's for rich people.

That is ridiculous. I had 70k of student debt in 1999 with only an undergrad degree (thanks mom and dad for not paying the EFC, which forced me to take out private high-interest loans).

I was dead broke and deep in debt at 21 years old. I had 70k of debt and earned 26k. I worked three jobs for 13 years to pay that debt off.

Guess what? When I was 21, I decided I was NOT going to be poor or struggling when I was old. I started saving for retirement at 21. I am a career nonprofit worker. I am 48 now and have more than $1 million in my retirement accounts. I have other money in home equity and in a brokerage.

Time counts more than anything. Retirement is NOT for rich people alone; it is for people who invest and play the long game. Tiny amounts add up after 25 years.

Yes!!!

You look at your income and build a budget around it that includes savings (for retirement, college, vacations, EF, etc) and then you live within your means. If you want more, you find a better paying job (and you might need to take courses or something to do that). But it's your life and you have choices. But not saving at all because you "don't make enough" is not a smart choice.

[Anonymous]

I find it very interesting to read why people didn't invest. Just heard from someone who said they had emergencies. Comes out, their emergencies is just regular life and thing happening to most of us.
Still didn't get them to say why they never invested.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I will be working until I die. I can't afford to retire. That's for rich people.

That is ridiculous. I had 70k of student debt in 1999 with only an undergrad degree (thanks mom and dad for not paying the EFC, which forced me to take out private high-interest loans).

I was dead broke and deep in debt at 21 years old. I had 70k of debt and earned 26k. I worked three jobs for 13 years to pay that debt off.

Guess what? When I was 21, I decided I was NOT going to be poor or struggling when I was old. I started saving for retirement at 21. I am a career nonprofit worker. I am 48 now and have more than $1 million in my retirement accounts. I have other money in home equity and in a brokerage.

Time counts more than anything. Retirement is NOT for rich people alone; it is for people who invest and play the long game. Tiny amounts add up after 25 years.

Yes!!!

You look at your income and build a budget around it that includes savings (for retirement, college, vacations, EF, etc) and then you live within your means. If you want more, you find a better paying job (and you might need to take courses or something to do that). But it's your life and you have choices. But not saving at all because you "don't make enough" is not a smart choice.

Well, duh. Not everyone has the ability to find a better paying job. For example, I'm a teacher and a single parent. I already work in the highest paying district with the lowest cost of living. I am at the top of the pay scale. I earn more money by tutoring and working summer school. I still barely get by. I can't afford to take any courses or certifications to find a better paying job. I also don't have the time for that as I have a kid 24/7/365.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I will be working until I die. I can't afford to retire. That's for rich people.

That is ridiculous. I had 70k of student debt in 1999 with only an undergrad degree (thanks mom and dad for not paying the EFC, which forced me to take out private high-interest loans).

I was dead broke and deep in debt at 21 years old. I had 70k of debt and earned 26k. I worked three jobs for 13 years to pay that debt off.

Guess what? When I was 21, I decided I was NOT going to be poor or struggling when I was old. I started saving for retirement at 21. I am a career nonprofit worker. I am 48 now and have more than $1 million in my retirement accounts. I have other money in home equity and in a brokerage.

Time counts more than anything. Retirement is NOT for rich people alone; it is for people who invest and play the long game. Tiny amounts add up after 25 years.

Yes!!!

You look at your income and build a budget around it that includes savings (for retirement, college, vacations, EF, etc) and then you live within your means. If you want more, you find a better paying job (and you might need to take courses or something to do that). But it's your life and you have choices. But not saving at all because you "don't make enough" is not a smart choice.

Well, duh. Not everyone has the ability to find a better paying job. For example, I'm a teacher and a single parent. I already work in the highest paying district with the lowest cost of living. I am at the top of the pay scale. I earn more money by tutoring and working summer school. I still barely get by. I can't afford to take any courses or certifications to find a better paying job. I also don't have the time for that as I have a kid 24/7/365.

First, I think teachers should be paid much more

But you went into the profession knowing he pays scale and limits. So you have to live accordingly and within a budget that includes saving for retirement and college for your kids. And yes perhaps tutoring outside and in summers as you can make a lot that way. But you knew what teacher pay was heading in. So you have to live a teacher lifestyle not a tech lifestyle.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I will be working until I die. I can't afford to retire. That's for rich people.

That is ridiculous. I had 70k of student debt in 1999 with only an undergrad degree (thanks mom and dad for not paying the EFC, which forced me to take out private high-interest loans).

I was dead broke and deep in debt at 21 years old. I had 70k of debt and earned 26k. I worked three jobs for 13 years to pay that debt off.

Guess what? When I was 21, I decided I was NOT going to be poor or struggling when I was old. I started saving for retirement at 21. I am a career nonprofit worker. I am 48 now and have more than $1 million in my retirement accounts. I have other money in home equity and in a brokerage.

Time counts more than anything. Retirement is NOT for rich people alone; it is for people who invest and play the long game. Tiny amounts add up after 25 years.

Yes!!!

You look at your income and build a budget around it that includes savings (for retirement, college, vacations, EF, etc) and then you live within your means. If you want more, you find a better paying job (and you might need to take courses or something to do that). But it's your life and you have choices. But not saving at all because you "don't make enough" is not a smart choice.

Well, duh. Not everyone has the ability to find a better paying job. For example, I'm a teacher and a single parent. I already work in the highest paying district with the lowest cost of living. I am at the top of the pay scale. I earn more money by tutoring and working summer school. I still barely get by. I can't afford to take any courses or certifications to find a better paying job. I also don't have the time for that as I have a kid 24/7/365.

I’m very sorry for all of this. I think most jobs under 150k are meant to be dual income household type jobs. Neither dh nor I could afford to live on our own

[Anonymous]

There are a number of people I know who didn't save too much for retirement, but their parents saved well. They inherited the parents savings and real estate. If it wasn't for the parents frugality, they would have not money for retirement at all. Their retirement plan is their inheritance.

[Anonymous]

Yes because they have no consequences they just have the govt save them with ss.

[Anonymous]

Anonymous wrote:I find it very interesting to read why people didn't invest. Just heard from someone who said they had emergencies. Comes out, their emergencies is just regular life and thing happening to most of us.
Still didn't get them to say why they never invested.

Yes, while some have true emergencies, most do not. If you have good health insurance thru work (and most of the people we know do), then a medical emergency isn't really "that much", when your max OOP is $7K for a family and you are making $200K+, you should already have an emergency fund at that income level. Yet some we know don't have much saved, yet go on multiple vacations yearly, and dine out/ubereats/etc. Those are not emergencies, and if they cut back, they would have a fully funded EF, so that nothing is really an emergency, as that's what EF is for. (oh and for medical, you budget yearly and assume you might hit the OOP, or at least assume 60-70% of your OOP. If you do that, it shoudln't be an emergency

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I will be working until I die. I can't afford to retire. That's for rich people.

That is ridiculous. I had 70k of student debt in 1999 with only an undergrad degree (thanks mom and dad for not paying the EFC, which forced me to take out private high-interest loans).

I was dead broke and deep in debt at 21 years old. I had 70k of debt and earned 26k. I worked three jobs for 13 years to pay that debt off.

Guess what? When I was 21, I decided I was NOT going to be poor or struggling when I was old. I started saving for retirement at 21. I am a career nonprofit worker. I am 48 now and have more than $1 million in my retirement accounts. I have other money in home equity and in a brokerage.

Time counts more than anything. Retirement is NOT for rich people alone; it is for people who invest and play the long game. Tiny amounts add up after 25 years.

Yes!!!

You look at your income and build a budget around it that includes savings (for retirement, college, vacations, EF, etc) and then you live within your means. If you want more, you find a better paying job (and you might need to take courses or something to do that). But it's your life and you have choices. But not saving at all because you "don't make enough" is not a smart choice.

Well, duh. Not everyone has the ability to find a better paying job. For example, I'm a teacher and a single parent. I already work in the highest paying district with the lowest cost of living. I am at the top of the pay scale. I earn more money by tutoring and working summer school. I still barely get by. I can't afford to take any courses or certifications to find a better paying job. I also don't have the time for that as I have a kid 24/7/365.

I’m very sorry for all of this. I think most jobs under 150k are meant to be dual income household type jobs. Neither dh nor I could afford to live on our own

So women should stay with their spouses who cheat, abuse them, etc?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I will be working until I die. I can't afford to retire. That's for rich people.

That is ridiculous. I had 70k of student debt in 1999 with only an undergrad degree (thanks mom and dad for not paying the EFC, which forced me to take out private high-interest loans).

I was dead broke and deep in debt at 21 years old. I had 70k of debt and earned 26k. I worked three jobs for 13 years to pay that debt off.

Guess what? When I was 21, I decided I was NOT going to be poor or struggling when I was old. I started saving for retirement at 21. I am a career nonprofit worker. I am 48 now and have more than $1 million in my retirement accounts. I have other money in home equity and in a brokerage.

Time counts more than anything. Retirement is NOT for rich people alone; it is for people who invest and play the long game. Tiny amounts add up after 25 years.

Yes!!!

You look at your income and build a budget around it that includes savings (for retirement, college, vacations, EF, etc) and then you live within your means. If you want more, you find a better paying job (and you might need to take courses or something to do that). But it's your life and you have choices. But not saving at all because you "don't make enough" is not a smart choice.

Well, duh. Not everyone has the ability to find a better paying job. For example, I'm a teacher and a single parent. I already work in the highest paying district with the lowest cost of living. I am at the top of the pay scale. I earn more money by tutoring and working summer school. I still barely get by. I can't afford to take any courses or certifications to find a better paying job. I also don't have the time for that as I have a kid 24/7/365.

First, I think teachers should be paid much more

But you went into the profession knowing he pays scale and limits. So you have to live accordingly and within a budget that includes saving for retirement and college for your kids. And yes perhaps tutoring outside and in summers as you can make a lot that way. But you knew what teacher pay was heading in. So you have to live a teacher lifestyle not a tech lifestyle.

What’s a tech lifestyle? I live within my means. No vacations, buying used clothes, no new anything. The pay freezes have made it unaffordable.