If you are over 50, how much do you have saved for retirement? anonymous of course

[MillauFr]

but life happens.

And Disneyland calls....

 

[jen7233]

I didn’t vote because I’m not over 50, but my experience is the exact opposite of yours. No one in my family planned for retirement and they are all financially troubled. My aunt asked all the grandkids to give my grandmother $100/mo because she spent all of her money and left herself with bills she couldn’t pay. My dad had to borrow money from us to fix his teeth recently because he failed to save for retirement. He walked around without teeth, omg, for weeks. Who does that?! I have learned what not to do from all of them.

Lol, when I saw the question/statement about teeth. My mother does that! I have the same reaction though, why?! I've tried to ask her many times as well as her sister has, but she won't budge. But, she does have false teeth already so doesn't need to be purchased, but refuses to wear them or her glasses, also has dementia though.

 

[jen7233]

I didn't vote as we aren't yet 50, but have just about crested the hill (late 40s). OP, I think to say you want to see if you're on target with everyone else, is impossible to even capture, because how everybody lives and their expenses are all different. I'm not worried about retirement, we have pensions and health insurance. Yes, they are government pensions, but if the government collapses and doesn't pay, well then that's a whole other set of concerns for us and the future of the country. However, aside from pensions and on to investments, for me $500,000 doesn't mean I feel set and done and we invest until we can't. I'm just not worried, that is all. I don't know what the future brings more than any other.

 

[sam_gordon]

I thought this link was pretty cool (found it from the link posted earlier about average 401k across the country):

https://www.bankrate.com/calculators/retirement/401-k-retirement-calculator.aspx

 

[amberpi]

Don't feel sad for me! I am 50 and plan to keep working as long as I am healthy and happy. Granted, my full time job allows me about 4 months off, so there is time to travel and pursue other interests, but I find working outside the home fulfilling. I stayed home with my kids for 5 years and it was great, but this is my time to do what I want. If things change, I will retire and find volunteer work.

My mom has never had to work. She loves it. She teaches, but this year she is finally hanging it up, mainly to see the grandkids more and to play more tennis. My dad still works part time, he's a CMO, but he decides when he goes in the office. I've got retirement in the bag and consult when I want, its a good life

 

[cabanafrau]

HAHAHAH. We're dissers. Each and every one of us all have a million at least. Kids are paid up at Harvard or some other Ivy league school and a new wing is being named after us soon.

Everyone here lives in Lake Wobegon, too?

 

[disney junky]

This is such a variable for most people. I have a pension. I am SS eligible but I'm delaying it for now. I invested in real estate a few years ago and have income from that. So I have and will have a steady stream of passive income without touching my retirement savings. That's the plan at this point. We live in an area where we can live comfortably. Our lifestyle has always been fairly modest, though we do splurge on a couple trips a year.

I think part of the question should be how much debt do you have? If you are debt free entering retirement, that impacts your monthly outlay. My in-laws are in their 80's but still have a mortgage, and I suspect, took out a home equity loan to pay for their late model Caddy. But they constantly complain about money.

You could have a million dollars, two million dollars in retirement savings but still have a negative net worth.

 

[tzolkin]

Most people I know of by the time they retired have their house paid off and have a pretty good amount of Social Security (2000-2500) plus a pension.

I think this is part of the difference. Most younger people I know are not counting on Social Security and none of them have a pension. So not saving is simply not an option.

You mention that people without savings are getting by just fine, but I know many retired people who are in a lot of debt and/or living with their children because they can’t afford to live off SS. (Average is around $1400)

 

[mnrose]

Everyone here lives in Lake Wobegon, too?

I actually DO live in Lake Wobegon. Well, a few miles from there. On a different lake. All the children are above average. LOL.

 

[mnrose]

I think this is part of the difference. Most younger people I know are not counting on Social Security and none of them have a pension. So not saving is simply not an option.

You mention that people without savings are getting by just fine, but I know many retired people who are in a lot of debt and/or living with their children because they can’t afford to live off SS. (Average is around $1400)

My MIL is barely making ends meet on her SS (which is around the 1400 mark). It's tough. And, she makes it because her children help her. My BIL has set her up with a nice little cash business in the summers (she sells bread at a seasonal park in Minnesota...BIL owns a bread store and will not sell "day old" bread in his store, but it is perfectly fine from a quality perspective....she picks it up at the end of the day, freezes it and sells it for a fraction of the retail price....win, win, win). She gets a nice boost from that. Other BIL does all her car work for her, so she rarely outlays to keep her 1993 car going. And, we bought her a single level (no steps) patio home, for which we charge her only minimal rent (basically to cover the cost of property taxes and insurance). Without those things, she'd REALLY be struggling financially. She complains constantly about how "poor" she is. I think she's one of the lucky ones because her kids help her make it work WITHOUT having to lose her independence and have her own place.

She's frugal now because she has to be. I've known her for well over 40 years, however, and she used to spend like a drunken sailor. She was the WORST saver ever. And, despite being a well paid pharmacist, her total savings over her working career was way less than 100K. What little savings she has she uses for major expenses that come up, such as needing a new set of tires for her vehicle, etc. No "vacations" and her "luxury" is being able to eat out every few weeks.

 

[Snowflakey]

Just want to add that I believe you guys here on the DIs are an exception to the rule. I know of no one that retired with maybe more than 100,000 in savings including their 401(k). Everybody I know, Including myself in the future, Does not or will not have close to 500,000 date for their retirement. You guys must’ve been making a lot of money over the years, had a great companies that matched very high and an advantage of great years in the stock market. Most people I know of by the time they retired have their house paid off and have a pretty good amount of Social Security (2000-2500) plus a pension. .

I agree with the above. That is pretty much how it is with everyone I know. House will be paid off, we will have fairly good social security and a pension. I also have a 401K but no way will it be near a million or even 500K.

My parents are divorced and both live off of SS and a pension. They live just fine

 

[cabanafrau]

I actually DO live in Lake Wobegon. Well, a few miles from there. On a different lake. All the children are above average. LOL.

I fully expected most people would when I opened the thread -- not in the few miles away in reality that you do, of course. The former is to be expected on the internet after all. I know of another travel site where I am completely fascinated by the pretentious offerings of one of the regular participants because it seems so very important to him to convey his message, no matter what kind of information is being discussed. Recently he about blew my eyebrows off my face when he upped the game to the umpteenth level and started dropping mentions of private islands and the like, attempting to slyly imply he's not only traveled at that level, but that it's actually routine for him. All I can think is, buddy, how are you going to top that when the shiny newness wears off?

 

[lifesavacation]

Lol, when I saw the question/statement about teeth. My mother does that! I have the same reaction though, why?! I've tried to ask her many times as well as her sister has, but she won't budge. But, she does have false teeth already so doesn't need to be purchased, but refuses to wear them or her glasses, also has dementia though.

Don't even get me started on the teeth. My husband thinks my dad planned a visit to our house without his teeth because he knew I would be mortified enough to give him the money to get them fixed. Five thousand dollars and a year later, he has new teeth and I'm still waiting to get paid back.

 

[china mom]

I agree with those that said that there are too many variables to have a set amount that you should have int he bank.

My mother had her pension, Dad's survivor pension, Social Security and rental income from two paid off houses. Her monthly income was almost $8,000. She had PLENTY of money.

She moved in with me for medical reasons. I never had to dip into her 401K but that was partially because she didn't last long once her health took a drastic downturn. I was paying about $2400/mo for caregivers but had to bring in more help when she really took a turn. Paying for caregivers alone was about $7,000/mo in the end - and that was only about 12 hours of coverage a day M-F.

 

[mjkacmom]

I agree with those that said that there are too many variables to have a set amount that you should have int he bank.

My mother had her pension, Dad's survivor pension, Social Security and rental income from two paid off houses. Her monthly income was almost $8,000. She had PLENTY of money.

She moved in with me for medical reasons. I never had to dip into her 401K but that was partially because she didn't last long once her health took a drastic downturn. I was paying about $2400/mo for caregivers but had to bring in more help when she really took a turn. Paying for caregivers alone was about $7,000/mo in the end - and that was only about 12 hours of coverage a day M-F.

Caregivers eat up retirement saving quickly. My dad had about 800,000 in retirement, plus a $600,000 home, but when my mom died, he needed a full time caregiver. He had about $300,000 when he passed 3 1/2 years later. He got SS and a partial pension, but even without the caregiver, he couldn’t have lived on his income (gas/electric/oil, home owners insurance, property taxes, landscaper, $500 a month supplemental health insurance, cable, dental, food...). That $300,000 was about to be used to get him into a private pay assisted living home (that was the minimum they’d accept).

 

[firefly_ris]

Recently he about blew my eyebrows off my face when he upped the game to the umpteenth level

This turn of phrase has been one of the highlights of my afternoon, I'm going to have to use that soon.

 

[longboard55]

Its more than just savings, you need to have expenses in control. House is paid off, no car loans and we have solar panels, and since we live in that 'gawdaful' California with prop 13 very low property taxes. Also nice holding in DVC which saves a lot on vacations.

We are probably over prepared. We will be having fun.

 

[tvguy]

I think this is part of the difference. Most younger people I know are not counting on Social Security and none of them have a pension. So not saving is simply not an option.

You mention that people without savings are getting by just fine, but I know many retired people who are in a lot of debt and/or living with their children because they can’t afford to live off SS. (Average is around $1400)

Debit is the problem. My mom's Social Security check was $1,250. Her house had been paid off for 25 years when she retired, her car had been paid off 9 years. She did have to spent $10,000 on a new roof on her house and buy a new car for $12,400 in the 28 year was retired before she passed away. Other than that, her monthly expenses were under $700 a month. But she and my dad had a saying.....both living through the depression....."if you can't pay cash, you don't need it, no matter what it is"

 

[Pea-n-Me]

Caregivers eat up retirement saving quickly. My dad had about 800,000 in retirement, plus a $600,000 home, but when my mom died, he needed a full time caregiver. He had about $300,000 when he passed 3 1/2 years later. He got SS and a partial pension, but even without the caregiver, he couldn’t have lived on his income (gas/electric/oil, home owners insurance, property taxes, landscaper, $500 a month supplemental health insurance, cable, dental, food...). That $300,000 was about to be used to get him into a private pay assisted living home (that was the minimum they’d accept).

Wow! I don't think people realize the cost of medical care, either at home or in a nursing home or assisted living facility! Especially in a high COL area or if you want quality care. Mom fractured her hip a few months back and was in rehab for five weeks. She was lucky to make it out of there, she was so sick. Massive UTI (more like urosepsis) and an infected surgical site in another area. Thankfully when we got her home we were able to get her the medical help she needed (!) and she was finally able to bounce back. DD (a nursing student) and I (a nurse) are caring for her pretty much full time now. I've had many people tell me she's still here because of the good care we've given her, and I'm beginning to believe it's probably true. I don't think our family realizes what it would cost if we had to pay out of pocket for care. She would not be able to manage things if she was living on her own at this stage.

 

[QueenIsabella]

Medical care is the big "what if". I can see why for some people, if you have a healthy pension or two, actual savings amount is less of a big deal. For others, (like us), there's one teeny, tiny pension (I think it'll be $140/mo, once DH hits 65), so retirement savings was a must. We started young, saved religiously, didn't touch it. We consider our large amount to be there to cover a "million dollar disease". We may get lucky and not need it, in which case, the kids will one day inherit. But, having known many people who have to spend months and years either fighting cancer or Alzheimer's makes us want to play it safe. We were also both raised to believe that Social Security probably wouldn't be there for us.