Ursa Majoris Posted December 8, 2010 Share Posted December 8, 2010 (edited) Apparently middle America never bothered putting anything away for retirement: NEW YORK (Reuters) – The average American has saved less than 7 percent of his desired retirement nest egg and will likely have to keep working in retirement to supplement his income. Middle-class Americans think they need $300,000 to fund their retirement, but on average have only saved $20,000, according to a survey released on Wednesday by Wells Fargo & Co. "Middle class" is defined as those aged 30 to 69 with $40,000 to $100,000 in household income or $25,000 to $100,000 in investable assets and those aged 25 to 29 with income or investable assets of $25,000 to $100,000. "Too many Americans have their heads in the sand in the face of obvious savings deficits," said Laurie Nordquist, director of Wells Fargo Institutional Retirement Trust. "Barring a miracle, a winning lottery ticket or a big inheritance, they're going to be forced to dramatically cut back their lifestyles after retirement." Even those fast approaching retirement age are not well-funded. Respondents aged 50 to 59 have saved an average of only $29,000 for retirement. Consequently, more than a third of respondents believe they will have to work during retirement in order to afford the things they want or just to make ends meet. Many are also still relying on Social Security to fill the gap, though confidence in this funding varies considerably by age. Seventy-seven percent of respondents aged 50 to 59 believe that Social Security will contribute to their retirement income, while only 22 percent of 30-somethings thought there would be enough left in the pot to fund their retirement. The vast majority of respondents admitted they need help figuring out how much money they need to live on in retirement and picking investments for their 401(k)s. But in a negative twist for financial advisers, more than two-thirds said they were not willing to pay for this advice. This puts more responsibility on employers to offer advice and planning tools through their workplace 401(k) plans, said Nordquist. "If people aren't willing to pay for advice they are going to get a more vanilla approach to planning," she said. "But a simple plan is better than no plan." I was thinking of making this a poll to see if this really is the average but there are too many variables e.g. age, etc. Pretty shocking though. Edited December 8, 2010 by Ursa Majoris Quote Link to comment Share on other sites More sharing options...
driveby Posted December 8, 2010 Share Posted December 8, 2010 Apparently middle America never bothered putting anything away for retirement: I was thinking of making this a poll to see if this really is the average but there are too many variables e.g. age, etc. Pretty shocking though. I'm betting a lot of these people are counting on some sort of inheritance. Me - I planning on hitting the Mega-millions lottery any day now. Quote Link to comment Share on other sites More sharing options...
bpwallace49 Posted December 8, 2010 Share Posted December 8, 2010 I have been very aggressive paying down debt, and as a result have not been very aggressive in savings, outside of my company 401K with company match so I really dont have a lot of liquid savings. Next year I will be for all intents and purposes debt free from both mine and my wife's (stay at home Mom) student loans and all other significant debt. . . . when my wife goes back to work next year with all the kids in full-time school, her salary will all be savings. Quote Link to comment Share on other sites More sharing options...
billay Posted December 8, 2010 Share Posted December 8, 2010 I didn't commit to a specific profession until somewhat later in life than most, in large part, because I expect to be working into my 70's or later. I certainly don't have the expectation of hanging up my boots at 65. Obviously, this has impacted my ability to save for retirement as well. God willing, what are you going to do with yourself for the next 20-30 years? Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted December 8, 2010 Share Posted December 8, 2010 "Retirement age" needs to be redefined or adjusted to today's life expectancy as well as the age for qualifying for SS benefits needs to be adjusted. People need to realize they are living longer, so they need to work longer. People also put too much faith in our government to step in and help them out if they make poor spending / savings decisions. I wonder how much higher the savings rate would be if Obama were to go out today and announce that anyone under 40 will not receive SS as a means of retirement income? Quote Link to comment Share on other sites More sharing options...
paulzale Posted December 8, 2010 Share Posted December 8, 2010 Gulp, anyone shocked that middle America thinks 300k is enough to retire on? That wouldn't be nearly enough for a family used to 100k a year to retire on at age 65.... Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted December 8, 2010 Share Posted December 8, 2010 Gulp, anyone shocked that middle America thinks 300k is enough to retire on? That wouldn't be nearly enough for a family used to 100k a year to retire on at age 65.... Yes, I was shocked at that as well. May be they feel that when it gets closer to that time they can downsize and get additional funds from the sale of their homes. They might also think that if they have everything paid for they can live off primarily the interest if they live modestly. Quote Link to comment Share on other sites More sharing options...
paulzale Posted December 8, 2010 Share Posted December 8, 2010 (edited) That is REALLY modest, I mean say you have ZERO debt, collect 1,000 each in SS dollars per month and plan to live until 85, you can take out another 1250 from the retirement savings. You have then 3,250/month to spend before taxes. Health care, food, home/auto insurance, prescriptions, hobbies, rent?, etc. That is if you can really count on SS. Maybe it is doable, but there is zero cushion. Not the life I want to lead in retirement. I really don't think most people plan well, rather they live in the now... ETA Maybe 3,250/month sounds like a lot, but if you work part time or not at all, free time costs money to keep entertained. I know when I take a few days off work I spend way more than when I am at work. Monthly Cable - 100 Rent - 750 Fuel - 200 Insurance - 150 Electric - 75 Gas - 75 Income Taxes - 600 Food - 400 Residual - 900 for health care, prescriptions, grand kids, disposable income.... Edited December 8, 2010 by paulzale Quote Link to comment Share on other sites More sharing options...
redrumjuice Posted December 8, 2010 Share Posted December 8, 2010 Quote Link to comment Share on other sites More sharing options...
wiegie Posted December 9, 2010 Share Posted December 9, 2010 that was awesome! Kind of reminded me of "Deep Impact". Quote Link to comment Share on other sites More sharing options...
evil_gop_liars Posted December 9, 2010 Share Posted December 9, 2010 Drove my chevy to the levee But the levee was dry And them good old boys were drinkin' whiskey and rye Singin' this'll be the day that I die... Quote Link to comment Share on other sites More sharing options...
Big Country Posted December 9, 2010 Share Posted December 9, 2010 Anyone else think these stats about amount saved may be a bit misleading as they are lumping everyone from age 25 to 69 with their income/investable asset criteria. I think it would be a lot more telling if they broke out the amounts by age group. This article on Yahoo quotes a study that shows that workers in their 60s have an average of 144K in their 401K (this does not include IRA or other retirement savings) and the average worker in their 60's who have been in the same 401K plan for 30+ years has an average of $197K in just their 401K. That is a very different story than the above article stating that those in their 50s have only saved $29K. Quote Link to comment Share on other sites More sharing options...
TimC Posted December 9, 2010 Share Posted December 9, 2010 [/marquee] 5:02...the South secedes...the rest of the country begs to come along...a wall along the Mason-Dixon line begins construction to keep the North out...."Stonewall" Cliaz is named President...Brentastic is named Treasurer of the New Confederacy...Perch is named Secretary of State...SEC=UGA is running around without pants... [/marquee] Quote Link to comment Share on other sites More sharing options...
TimC Posted December 9, 2010 Share Posted December 9, 2010 Drove my chevy to the leveeBut the levee was dry And them good old boys were drinkin' whiskey and rye Singin' this'll be the day that I die... Nothing cool rhymes with Toyota or Honda. Quote Link to comment Share on other sites More sharing options...
millerx Posted December 9, 2010 Share Posted December 9, 2010 Nothing cool rhymes with Toyota or Honda. Honda and Fonda rhyme Quote Link to comment Share on other sites More sharing options...
TimC Posted December 9, 2010 Share Posted December 9, 2010 Honda and Fonda rhyme Like that traitor Jane Fonda....see, I thought so. Quote Link to comment Share on other sites More sharing options...
SEC=UGA Posted December 9, 2010 Share Posted December 9, 2010 Honda and Fonda rhyme But Fonda ain't got a motor in the back of that Honda... Quote Link to comment Share on other sites More sharing options...
SEC=UGA Posted December 9, 2010 Share Posted December 9, 2010 [/marquee] 5:02...the South secedes...the rest of the country begs to come along...a wall along the Mason-Dixon line begins construction to keep the North out...."Stonewall" Cliaz is named President...Brentastic is named Treasurer of the New Confederacy...Perch is named Secretary of State...SEC=UGA is running around without pants... [/marquee] And that differs from most weekend nights how? Quote Link to comment Share on other sites More sharing options...
Big John Posted December 9, 2010 Share Posted December 9, 2010 [/marquee] 5:02...the South secedes...the rest of the country begs to come along...a wall along the Mason-Dixon line begins construction to keep the North out...."Stonewall" Cliaz is named President...Brentastic is named Treasurer of the New Confederacy...Perch is named Secretary of State...SEC=UGA is running around without pants... [/marquee] Lives in Chicago. Quote Link to comment Share on other sites More sharing options...
TimC Posted December 9, 2010 Share Posted December 9, 2010 Lives in Chicago. Dangit...this is going to be one weird looking map then. Quote Link to comment Share on other sites More sharing options...
cliaz Posted December 9, 2010 Share Posted December 9, 2010 [/marquee] 5:02...the South secedes...the rest of the country begs to come along...a wall along the Mason-Dixon line begins construction to keep the North out...."Stonewall" Cliaz is named President...Brentastic is named Treasurer of the New Confederacy...Perch is named Secretary of State...SEC=UGA is running around without pants... [/marquee] I'm down with that. It's been a while since I've been a supreme leader. First course of action, Random Death Day! I will carry a big bag full of all of the names of all the criminals in jail, people who are against me, and people who I simply do not like the way they look, sounds or smell. Each day at noon, I pull a name out and dispatch my secret police to go to them and shoot them in the head. This, of course, will be on pay per-view each day so we can generate money for my regime without raising taxes. Quote Link to comment Share on other sites More sharing options...
millerx Posted December 9, 2010 Share Posted December 9, 2010 Like that traitor Jane Fonda....see, I thought so. Drove my HONDA to the FONDA But the FONDA was dry And them good old boys were drinkin' whiskey and rye Singin' this'll be the day that I die... Unfortunately, she has lived long enough for this to probably be the case. Quote Link to comment Share on other sites More sharing options...
Big John Posted December 9, 2010 Share Posted December 9, 2010 Honda and Fonda rhyme Rhonda Help me Rhonda, get in my Honda. Quote Link to comment Share on other sites More sharing options...
Square Posted December 9, 2010 Share Posted December 9, 2010 Each day at noon, I pull a name out and dispatch my secret police to go to them and shoot them in the head. This, of course, will be on pay per-view each day so we can generate money for my regime without raising taxes. One of my buddies from college always thought we should have pay per view braveheart type wars between all the people in prison convicted of murder. It was hard to say it was a bad idea. Quote Link to comment Share on other sites More sharing options...
Jimmy Neutron Posted December 9, 2010 Share Posted December 9, 2010 One of my buddies from college always thought we should have pay per view braveheart type wars between all the people in prison convicted of murder. It was hard to say it was a bad idea. Not bad... drop them all on a deserted island rigged with cameras and sit back to enjoy some real reality TV. Or we could let rich guys hunt them - we're running out of African rhinos. Quote Link to comment Share on other sites More sharing options...
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