For those in retirement age and who splurged or was over conservative in your youth....

[disneysteve]

With company pensions a thing of the past, we are all pretty much on our own to fund our retirements. I am already seeing friends 10 to 15 years older than DH and me struggle to live on their Social Security benefits alone because they didn't save. We are going to have a huge senior citizen crisis in our country very soon.

It is already happening. I just read the other day that the bankruptcy rate among people 55-64 is up 66% since 1991 and for those 65-74 the rate is up 204%. For every other age group from 18-54, the rate has fallen between 2% and 78%.

People have been overspending and undersaving for several decades and the effect of that is now showing up as the baby boomers leave the workforce with an inadequate nest egg and a lifestyle that they can't afford to maintain.

 

[Mrs. Ciz]

It is already happening. I just read the other day that the bankruptcy rate among people 55-64 is up 66% since 1991 and for those 65-74 the rate is up 204%. For every other age group from 18-54, the rate has fallen between 2% and 78%.

People have been overspending and undersaving for several decades and the effect of that is now showing up as the baby boomers leave the workforce with an inadequate nest egg and a lifestyle that they can't afford to maintain.

I just read this very same bankruptcy statistic in my AARP magazine. I joined for the car rental discounts, but I’m finding it very valuable over all.

@barkley between lack of pensions, lack of company paid healthcare in retirement and the rising cost of healthcare, retirement for our generation is going to be totally different (and not in a good way) than it was for our parents’ generation.

 

[kymom99]

I just read this very same bankruptcy statistic in my AARP magazine. I joined for the car rental discounts, but I’m finding it very valuable over all.

@barkley between lack of pensions, lack of company paid healthcare in retirement and the rising cost of healthcare, retirement for our generation is going to be totally different (and not in a good way) than it was for our parents’ generation.

I agree. In the past companies offered benefits such as retirement pensions to attract and keep good employees. Now it is more rare for companies to keep employees long term. Loyalty isn't what it once was.

 

[Mrs. Ciz]

I agree. In the past companies offered benefits such as retirement pensions to attract and keep good employees. Now it is more rare for companies to keep employees long term. Loyalty isn't what it once was.

It’s not lack of loyalty that killed pensions. Back in the 70s, companies realized that by shifting the retirement investment risk from the company to the employee, it saved the company tons of money and risk exposure. So companies lobbied to get the laws changed and the 401k was born. Bye bye pensions.

 

[disneysteve]

I just read this very same bankruptcy statistic in my AARP magazine.

Yep. That's where I got it from.

I've also read that the overall debt load of seniors is increasing. Money Magazine did a story on this a few months ago. Average debt by age:
55-64: $108,300
65-74: $66,000
75+: $34,500

The majority of the debt is primary mortgage or home equity. Next is second home debt. Then car loans, education debt (for their children, not themselves), credit cards, and assorted other debt.

 

[disneysteve]

It’s not lack of loyalty that killed pensions.

Correct. Also, the world has changed. The population is far more mobile. It's increasingly rare for someone to stay in the same place, let alone the same job, for their entire career. And with the way companies come and go and merge and fold, even if you wanted to stay in one job it might not be possible. The place I worked for the first 7 years of my career no longer exists, and I had a retirement plan there. When the place closed, I got a lump sum payout that I rolled into an IRA. I was at my next job for 17 years. It is still there but I'm not for various reasons, finances being a major one. I think the job I have now will carry me to retirement but one never knows what might happen.

 

[barkley]

@barkley between lack of pensions, lack of company paid healthcare in retirement and the rising cost of healthcare, retirement for our generation is going to be totally different (and not in a good way) than it was for our parents’ generation.

i totally agree.

the other thing i get concerned over is how spending habits/lack of saving/lack of all you've mentioned is going to impact the adult children of our generation as we age up. i think it's great if someone can afford to pay for everything they want to for their kids but i see too many people putting it in front of securing their own futures. yes-the idea of your child being saddled with horrendous college debt is awful, but will fully funding it yourself come at the cost of having to put the burden of your financial support in later years on your kids? likewise letting an adult child live at home expense free so they can save for their own home-great if you can TRULY afford it but if you're short changing your retirement savings or going into debt for other expenses that you could be paying cash for via reduced food/utility......costs (even downsizing into a home that truly fits YOUR needs vs. anyone elses) then i think again it's a gamble that you might be putting your kids in a tough spot down the line when YOU need financial help.

it's fine-lots of adults financially help out their parents but it can be hard...........really hard. thankfully circumstances were such i was never in that position but i know others who would have much preferred to have taken on student loan payments that they could have paid off in a set monthly payment for even decades vs. finding out almost always in a high stress emergent situation that mom and dad haven't been making it on their savings for years b/c they had little to none to begin with and now need SUBSTANTIAL financial help. so to afford this the grand kids now don't get ANY financial help from the parents for THEIR educations and the parents aren't able to fund THEIR retirement savings so what were phenomenally great intentions on one generation's part to help their kids out puts those kids and the kid's kids in a potentially much worse financial position.

 

[robinb]

it's fine-lots of adults financially help out their parents but it can be hard...........really hard. thankfully circumstances were such i was never in that position but i know others who would have much preferred to have taken on student loan payments that they could have paid off in a set monthly payment for even decades vs. finding out almost always in a high stress emergent situation that mom and dad haven't been making it on their savings for years b/c they had little to none to begin with and now need SUBSTANTIAL financial help. so to afford this the grand kids now don't get ANY financial help from the parents for THEIR educations and the parents aren't able to fund THEIR retirement savings so what were phenomenally great intentions on one generation's part to help their kids out puts those kids and the kid's kids in a potentially much worse financial position.

BTDT, bought the t-shirt. I took over my mom's finances when she was hospitalized. She had a ridiculous amount of debt and was only pulling in $1800 per month in VA Benefits and Social Security. Who the heck gives a woman with a fixed income a $20,000 line of credit? It felt good years later paying them 50-cents on the dollar as part of her probate.

In many ways my mom was lucky. She had Tricare insurance (my dad was active duty military when he died) that picked up the slack that Medicare left behind. Otherwise, it would have been much, much worse.

 

[tvguy]

It’s not lack of loyalty that killed pensions. Back in the 70s, companies realized that by shifting the retirement investment risk from the company to the employee, it saved the company tons of money and risk exposure. So companies lobbied to get the laws changed and the 401k was born. Bye bye pensions.

Another issue is some people plan on Social Security as their retirement. Social Security is designed to be a SUPPLEMENT to your retirement savings or pension, not your entire retirement. Although, our Social Security at full retirement age in 5 years will be very close to our take home pay working. The benefits are pretty generous, and we won't have the commute costs we have now.

 

[Mrs. Ciz]

Another issue is some people plan on Social Security as their retirement. Social Security is designed to be a SUPPLEMENT to your retirement savings or pension, not your entire retirement. Although, our Social Security at full retirement age in 5 years will be very close to our take home pay working. The benefits are pretty generous, and we won't have the commute costs we have now.

401ks were also supposed to be supplemental as well. They were never intended to take the place of pensions, which are 1) professionally managed and usually out perform 401ks and 2) are annuitized to provide monthly retirement income as long as the retiree (or often the spouse) lives. People jumped on the 401k bandwagon when the markets were exploding. They thought that kind of growth would go on forever, but it didn't. Tons of people lost money. With pensions, even if the market went down, the pension was still safe. The company had to pay out regardless. And now, unless retirees put their retirement funds into annuity products, they have to worry about outliving their 401k balances.

I am envious that your SS income will pretty much match your working income. Mine won't due to a 15 year hiatus spent caring for my children as a stay at home mom/part time worker. As soon we are done with college expenses (2.5 more years), I am upping my 401k contribution from 15% to 30% or more. DH, while in much better shape that me 401k wise, is going to do the same. I HAVE to catch up!

 

[Forum Jumper]

Funny, I was just thinking about this a few days ago. I wish my parents had shared more about their finances as they aged.

My Dad passed on some years ago, unexpectedly. They didn't have life insurance for him and I felt that, if they had told me they couldn't afford it, I would have helped them with the expense. Now, I am about the age he was then and our life insurance policies have jumped from around $500 per year to $1,800 per year!! DH has developed health issues and we can't afford his life insurance and he can't get a new policy. Who knew that would happen?

We have had a very good health insurance package throughout our adult lives and we didn't realize, when we were young, just how affordable it really was. Now, health insurance coverage for just one of us is $1,000 per month with a $6,500 per year deductible! Who knew that would happen??

We took multiple trips to WDW/USO over the 18 years we had children living at home. I now wish we hadn't. I just assumed that our financial responsibilities would always remain the same. In addition, the house and the vehicles would have been paid off long before retirement.

I wish I had known, more, of what was coming in the future but I missed that crystal ball, I guess.

 

[tvguy]

401ks were also supposed to be supplemental as well. They were never intended to take the place of pensions, which are 1) professionally managed and usually out perform 401ks and 2) are annuitized to provide monthly retirement income as long as the retiree (or often the spouse) lives. People jumped on the 401k bandwagon when the markets were exploding. They thought that kind of growth would go on forever, but it didn't. Tons of people lost money. With pensions, even if the market went down, the pension was still safe. The company had to pay out regardless. And now, unless retirees put their retirement funds into annuity products, they have to worry about outliving their 401k balances.

I am envious that your SS income will pretty much match your working income. Mine won't due to a 15 year hiatus spent caring for my children as a stay at home mom/part time worker. As soon we are done with college expenses (2.5 more years), I am upping my 401k contribution from 15% to 30% or more. DH, while in much better shape that me 401k wise, is going to do the same. I HAVE to catch up!

Well, unless you are in the public sector, pensions have always seemed like a joke to me. My wife and I have been in the work force since 1975 and neither of us have ever worked for a company with a pension. So from the beginning of our adult lives we knew any retirement money we would have would be what we saved. My mom's pension for working 40 years was $400 a month, her SS was $1260.
Don't be envious of how close to my take home pay my Social Security is. That's just a sign of how pathetic our take home pay is after taxes!

 

[monica9]

I can't even imagine. I thought I knew Disney pricing pretty well, but that was a huge sticker shock to me and so not worth it! An expensive lesson, but at least I've learned I never need to do it again. Our other table service meals for 8 with multiple courses were around $250. Tigger is adorable, but not $200 adorable!



Even our very, very Italian in-law was willing to admit it was "pretty good, for Florida pizza"

Can you get it delivered to your resort?

 

[pearlieq]

Can you get it delivered to your resort?

Yes! The Flippers Lake Buena Vista location does offer delivery. I'm not sure of their entire range, but they're in the Crossroads Shopping Plaza, so I'm sure anything in the Disney Springs area should be covered. They do get pretty busy, so allow plenty of time.

 

[Summer2018]

curious if those who have grown children and now retired age regret splurging or being over conservative with their money while they were younger and had young families.
I am always told by family to save my money and I don’t have to go on a vacation every year or stay at a deluxe. Is it out of our means.....somewhat but not really. A $400/night room is not but a 550/night room kind of is. They I started thinking, will that extra $$$ spent really have an impact if it’s a resort I’ve always wanted to stay? Will having to stay in a double bed over a king bed on vacation really make a difference? It does for us. It might mean a restful sleep vs restless which will mean a more comfortable vacation. I have friends who have been saving for a house for such a long time that they keep putting off Disney but really want to go and their kids are getting older. My husband and I would go for the vacation and save a few extra months for the house. I just think of all the people who get diagnosed with terminal illnesses or die in accidents and they never had the oppprtunity to make the memories they wanted to. I don’t want to regret anything and I love the memories I have on vacation with my children.
So, do you regret the way you were looking back now? What would you have done differently?

Life is short.

I lost both of my parents to cancer. My sister is brain-damaged from being in a coma for several months last summer. My brother is battling cancer and is currently in the hospital with Legionnaires Disease.

My only regret is that I didn't discover the magic of WDW sooner. We go every couple of years, and after years of staying Value, we only stay Deluxe. We have fallen in love with the Polynesian. In April, we are flying first class to Arizona to see family and then on to California to Disneyland for six days.

We are living now and making the most of every single day that we are alive.

 

[barkley]

Another issue is some people plan on Social Security as their retirement. Social Security is designed to be a SUPPLEMENT to your retirement savings or pension, not your entire retirement. Although, our Social Security at full retirement age in 5 years will be very close to our take home pay working. The benefits are pretty generous, and we won't have the commute costs we have now.

Well, unless you are in the public sector, pensions have always seemed like a joke to me. My wife and I have been in the work force since 1975 and neither of us have ever worked for a company with a pension. So from the beginning of our adult lives we knew any retirement money we would have would be what we saved. My mom's pension for working 40 years was $400 a month, her SS was $1260.
Don't be envious of how close to my take home pay my Social Security is. That's just a sign of how pathetic our take home pay is after taxes!

dude you MUST be getting slammed tax wise-the max anyone individual can get for ss in 2019 is $2861 a month (and that's before they take out your medicare premiums).

 

[barkley]

BTDT, bought the t-shirt. I took over my mom's finances when she was hospitalized. She had a ridiculous amount of debt and was only pulling in $1800 per month in VA Benefits and Social Security. Who the heck gives a woman with a fixed income a $20,000 line of credit? It felt good years later paying them 50-cents on the dollar as part of her probate.

In many ways my mom was lucky. She had Tricare insurance (my dad was active duty military when he died) that picked up the slack that Medicare left behind. Otherwise, it would have been much, much worse.

there must be lots of companies that do b/c when we went to clean out mil's place when she passed i found dozens and dozens of credit cards-squirreled all over the place (drawers, inside books, under the silverware holder...). i thought that by forwarding her mail we would be able to get a handle on anything that was owed but we finally threw in the towel and went to a local credit reporting agency, explained the situation and they pulled a report on her. that then triggered the question of how come she was getting billed for accounts we couldn't find listed on the report. come to find out when fil had passed YEARS earlier mil had just never notified and kept some of his accounts that she had authorized user cards for open (reporting agency said w/some companies even when an account holder pops up on the social security death index so long as someone is still paying the bill they don't ask any questions about subsequent charges). i want to say excluding late fil's cards mil probably had at least 50K in available credit (all extended over maybe a 3 or 4 year period) at her passing (also on a very fixed income with little to no savings)-thankfully she had utilized very little of it which i also settled for pennies on the dollar.

 

[tvguy]

dude you MUST be getting slammed tax wise-the max anyone individual can get for ss in 2019 is $2861 a month (and that's before they take out your medicare premiums).

That is hundreds less than my take home pay per month. I haven't been able to itemize since 2000. I think I am getting slammed on taxes, but in reality, most of the deductions I used to have like a mortgage required me to spend way way way more than the tax benefit they provided, so I am money ahead now. I'm not paying $1,100 a month mortgage anymore, so I probably have lots $300 tax reduction, but that just means I am $800 ahead of the game when you look at the bottom line.

 

[natfrac]

When the kids were at home and I was a single mom, I took them to Disney every year. More often than not, it was going to Anaheim,staying in a nearby hotel and eating dinner offsite. That was probably more than I could afford, but it was important to us. Now that I'm nearing retirement age, I'm playing catch up with my retirement savings and I'm perfectly ok with that. It's just money and I'm so glad for the special trips I had with the kids. Life is short.

 

[disneysteve]

People jumped on the 401k bandwagon when the markets were exploding. They thought that kind of growth would go on forever, but it didn't. Tons of people lost money.

To be fair, many of the people who lost a ton of money weren't properly diversified. You can't be 100% stock when you're 55 years old or more and then be shocked when there's a correction and your balance drops. Fortunately, there are a lot better resources now for people who aren't all that investment savvy to get a more reasonable portfolio. Things like target funds, for example, are an easy way to get instant diversification that adjusts the risk down as you age.

Another problem is folks who panicked when their balance dropped and sold everything rather than waiting a year or so for things to recover, which they did very nicely. There needs to be far better financial education in our schools so that people understand how things work and how best to invest for retirement over a career lasting 4 decades followed by a retirement lasting 3 decades. It isn't something that most people are equipped to do on their own without significant guidance.