What happens to people who saved nothing for retirement?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have about $150k and am 46. I will never retire. I'll work until I drop dead.

You can give up, but I don't think 46 is the time to do that. I'm 45 and only have 250, but I'm cautiously optimistic. We've paid off all of our debts (except mortgage). I just started maxing out my 403(b) for the first time in the last two years (of terrible returns) and plan to keep doing so. I will do the catch up contributions when I turn 50 in a few years. It adds up. My husband is about the same. We won't have a pension, but are finally at a decent earning (260 total pretty evenly split), out of daycare years, and saving as much as we can after paying off substantial school loans. We need to be careful with our approach to kids college, but I think we have every reason to believe we can have a normal middle class retirement in 20 years if we focus on catching up.

Your kids can attend affordable colleges. Search for merit---it exists at almost every level (unless your kid only has a 2.5gpa in HS). Find one that you can afford with what you have saved/kids can earn in a summer with minimal loans. Your retirement is more important.
Also, if your kids are ready in HS, have them do DE and earn their AA while in HS. It is basically free (typically only the cost of books and transportation to get to the CC). So your kid can graduate HS with their AA for free and only need 2-2.5 years to get their BA/BS (might be 3 if Engineering). Cuts way down on college costs

[Anonymous]

My MIL lived off of social security with help from her children. My husband sent her $500 a month and would pay for her prescriptions when she was in the Medicare "donut hole," and his sister helped her with her monthly housing cost. She lost her job in her late 60s and keeping working wasn't really an option afterwards. Her health was not great and her job was already very physically taxing on her before she was let go.

When she had a medical crisis she moved to a Medicaid-paid nursing home because there was no money available for her care in another setting. My husband and his sister could afford sending her a few thousand dollars a year but not the huge costs that in-home care would be.

[Anonymous]

I live next to an apartment complex full of seniors and most of them are foreigners.
I’ve made a friend there and according to her they all live very frugally, their housing is 30% of their SSI, they get free groceries and meals delivered, and they save and leave cash to their kids. I think some of the income is their home care support hours where they get kickbacks from whoever acts as their caretaker (sometimes it’s their kids). I also think their kids help them out a bit.

[Anonymous]

Anonymous wrote:I have nothing. 60 and divorced. Working and earn 40k salary. I hope to inherit at least 2M from my parents (healthy and mid 80’s now). That’s all I can hope for. And I suppose I will collect my ex husband SS if he dies before me. (Married 25 years).

You will get 50% of his SS benefit amount as your own benefit too. When he dies it will be even more

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have about $150k and am 46. I will never retire. I'll work until I drop dead.

You can give up, but I don't think 46 is the time to do that. I'm 45 and only have 250, but I'm cautiously optimistic. We've paid off all of our debts (except mortgage). I just started maxing out my 403(b) for the first time in the last two years (of terrible returns) and plan to keep doing so. I will do the catch up contributions when I turn 50 in a few years. It adds up. My husband is about the same. We won't have a pension, but are finally at a decent earning (260 total pretty evenly split), out of daycare years, and saving as much as we can after paying off substantial school loans. We need to be careful with our approach to kids college, but I think we have every reason to believe we can have a normal middle class retirement in 20 years if we focus on catching up.

You own a home, and have a second income via a husband. The two of you can share a one-bedroom POS shack and will have more income than I will, as a single person who rents. You two also earn a quarter of a MILLION dollars a year! I don't break six figures. Enjoy your fancy life.

[Anonymous]

Anonymous wrote:I have about $150k and am 46. I will never retire. I'll work until I drop dead.

Do you want to?

How did you find yourself in this circumstance?

[Anonymous]

Anonymous wrote:This is my ILs and they count on us to pay for everything they need … and want.

Wtf I would not sign up for that! That’s part of getting the potential spouse up front. 20-30 years of funding your in laws?!?

[Anonymous]

Anonymous wrote:There are lots of places where one can live very cheaply off of social security, both in the USA and abroad. My brother lived in Asia on nothing but social security and had no assets or savings yet was doing fine financially before he died.

Social security alone is not much people.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The person I hire to take care of me with all the money I saved not having kids, that's who.

AI-powered assistants and humanoid robots will be part of our daily lives and quite affordable.

That is your plan?

[Anonymous]

Anonymous wrote:I have nothing. 60 and divorced. Working and earn 40k salary. I hope to inherit at least 2M from my parents (healthy and mid 80’s now). That’s all I can hope for. And I suppose I will collect my ex husband SS if he dies before me. (Married 25 years).

If you wind up with 2 million dollars in retirement, after earning just 40K yourself, that is like winning the lottery.

(But probably a stressful way to live)

[Anonymous]

It's not difficult to live cheaply if you have no mortgage. And live in a low cost place, which mainly means lower property taxes.

People who are used to higher incomes have no idea how to live simply because they can't imagine a simple life. But if you never had much money, you don't build up the expectations for a nicer lifer and the costs that come with it.

A fixed income retiree used to be a standard outcome for most retired people. It meant living simply on a budget. You didn't travel to Europe or pretty much anywhere other than to visit family, and maybe if you were lucky, a week at a lake or beach. You didn't go to shows and performances. You ate simple meals, you socialized with family and friends, your days were spent watching TV or reading or gardening if you had a modest property, or a little hobby. You're not spending money on commuting or clothes for the office or lunches out. The time passed quickly enough. Then you died.

[Anonymous]

I plan on moving to the country of Georgia.

In 2055 I will still have an outstanding balance on my student loans and I will never pay it. Screw it all. I’m moving to a tiny village in the Caucasus Mountains and living off the land. My retirement savings should be enough to buy a cow and maybe a goat. If I get diagnosed with a serious illness I’ll just unalive myself by skydiving in a Soviet-era parachute or something, or falling off a cliff, at least I’ll go out doing something epic.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have nothing. 60 and divorced. Working and earn 40k salary. I hope to inherit at least 2M from my parents (healthy and mid 80’s now). That’s all I can hope for. And I suppose I will collect my ex husband SS if he dies before me. (Married 25 years).

If you wind up with 2 million dollars in retirement, after earning just 40K yourself, that is like winning the lottery.



Yes. I know I can’t complain and am lucky to have this potential inheritance to fallback on. I hope it works out because I do not want to be a burden to my kids. My ex does not have this luxury. We divorced because of his financial sloppiness (among other things) and he has nothing. I would rather not have to take his SS and I hope our kids aren’t stuck supporting him.

[Anonymous]

Anonymous wrote:I plan on moving to the country of Georgia.

In 2055 I will still have an outstanding balance on my student loans and I will never pay it. Screw it all. I’m moving to a tiny village in the Caucasus Mountains and living off the land. My retirement savings should be enough to buy a cow and maybe a goat. If I get diagnosed with a serious illness I’ll just unalive myself by skydiving in a Soviet-era parachute or something, or falling off a cliff, at least I’ll go out doing something epic.

😆

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We're heading in a few decades toward a situation where there will be many homeless elderly people on the streets, man and women. No one will bat an eye, either. These homeless elderly people either had no children, or didn't value developing strong, close, positive relationships with their children, and are now navigating old age all alone. If you don't have the money, you'll end up on the streets. Elderly care is expensive.

No, we have social programs for elderly people to provide them with a basic standard of living.

Lol, we can't even house our homeless. How the hell do you think we'll have enough beds for all of them when they're old PLUS all the currently housed middle-aged people who will become elderly and too unwell to work and will need housing? Your math isn't mathing.

Taxes. We're not, as a nation, going to let mentally stable elderly people go homeless.

Let's bet on this. If you're wrong, I get to come live at your house, okay? See ya in 35 years, roomie!

I’m the PP. I’m not betting on this. I’ve maxed out my 401k since my first real job @ 22. I do think it’s unlikely we’ll ever remove our safety net for older Americans, and I’m fine with paying taxes to provide it.