Retirement- here Is No Scenario Where This Ends Well

[Geaux4it]

Is it to late?

-Geaux

There Is No Scenario Where This Ends Well | Zero Hedge


ia Jim Quinn of The Burning Platform blog,

Luckily, the average American is so bad at math they can’t read this chart and understand the implications. They remain willfully ignorant of their plight. After a lifetime of working, the median Boomer household has managed to accumulate $12,000 of retirement savings

hat means that 50% have even less than $12,000 for their retirement. These 55 to 64 year olds are up shits creek without a paddle. No wonder the percentage of over 55 people working is at an all-time high. Every age bracket has been living in a land of delusion.

The entire country has bought into the ”live for today” mantra.

 

[Mr. H.]

I'll die broke, but happy. That's always been in my cards.
I'm here to make sure my kids get a good start in life. So far that's playing out rather dandily.

 

[Osomir]

Is it to late?

-Geaux

There Is No Scenario Where This Ends Well | Zero Hedge


ia Jim Quinn of The Burning Platform blog,

Luckily, the average American is so bad at math they can’t read this chart and understand the implications. They remain willfully ignorant of their plight. After a lifetime of working, the median Boomer household has managed to accumulate $12,000 of retirement savings

hat means that 50% have even less than $12,000 for their retirement. These 55 to 64 year olds are up shits creek without a paddle. No wonder the percentage of over 55 people working is at an all-time high. Every age bracket has been living in a land of delusion.

The entire country has bought into the ”live for today” mantra.

I like that the author cited himself as the source for the information in his "mathematical graph".

I can't say that I place a lot of faith in a graph that is self referencing and comes from someone who decided to name themselves after a mentally ill character from a movie.

 

[squeeze berry]

many people have most of their equity tied up in a house

when the real estate market crashed they lost their retirement savings so to speak.Many figured on selling their house for a profit and downsizing. I'm not certain the real estate market will ever recover, at least not anytime soon.

I see houses for sale on about every block and some sit empty, yet developers keep building

 

[Toro]

So true.

I was a stock broker and I was shocked at how many people, people 40-50 years old you'd think were successful, who had $10k or $20k in the bank.

People habitually under-save.

This is why we need some form of social security, even if it's not the current regime.

 

[Flopper]

This is certainly not encouraging news but you have to be careful when an author's focus is very narrow. Maybe an average of $12,000 of retirement savings is correct but keep in mind there are as many different financial situations as there are people. Many people by the time they reach retirement age have significant equity in a large home which they no longer need, investments outside of their retirement, have other sources of income that will continue through retirement, have limited life expectancy because of health issues, have inheritances, plan to continue working past retirement age, etc.....

 

[SteadyMercury]

I'm not certain the real estate market will ever recover, at least not anytime soon.

I see houses for sale on about every block and some sit empty, yet developers keep building

It won't reach 2006 levels for a long time, but a recovery as definitely been chugging along. In same areas home values have risen dramatically (over 30% in one year for Phoenix) and houses are actually hard to find with a strong seller's market.

 

[SteadyMercury]

I can't say that I place a lot of faith in a graph that is self referencing and comes from someone who decided to name themselves after a mentally ill character from a movie.

Hah I saw that too... source: author's own analysis of 2010 SCF.

Pew recently did a study on the effects of the recession on boomers' median net worth, it was interesting as it segmented boomers by age group and included gen-x for comparison:

Have many boomers failed to save adequately for retirement? Of course, perhaps most. But it isn't anywhere near as dire as that article implying most have less than 12k to their name.

 

[Flopper]

many people have most of their equity tied up in a house

when the real estate market crashed they lost their retirement savings so to speak.Many figured on selling their house for a profit and downsizing. I'm not certain the real estate market will ever recover, at least not anytime soon.

I see houses for sale on about every block and some sit empty, yet developers keep building

I have a retired friend who is single and has no retirement savings and only social security and a small military retirement. He has a home on the ocean with a half million in equity. He leads a very simple life and gets along OK.

The most important resource for a many retirees is often Medicare.

 

[whitehall]

Social security is a joke and IRS agents will soon be carrying guns. What does that tell you about the future? Nothing good.

 

[Geaux4it]

I can't say that I place a lot of faith in a graph that is self referencing and comes from someone who decided to name themselves after a mentally ill character from a movie.

Hah I saw that too... source: author's own analysis of 2010 SCF.

Pew recently did a study on the effects of the recession on boomers' median net worth, it was interesting as it segmented boomers by age group and included gen-x for comparison:

Have many boomers failed to save adequately for retirement? Of course, perhaps most. But it isn't anywhere near as dire as that article implying most have less than 12k to their name.

One may have an asset reflecting an amount that could be less than value. I think the chart in the first post reflects net cash savings whether traditional savings or 401. Not sure all assets are considered. Nonetheless, seems kind of low

-Geaux

 

[SteadyMercury]

I was guessing the graph from first post it was just retirement accounts, which might fall under a very narrow band of IRAs, 401ks and such, but who knows he didn't details much about he arrived at his numbers. Many boomer age people (especially older) have a lot of their was in savings vehicles as simple as bank CDs, savings accounts, or govt bonds which depending on one's view might not be considered retirement accounts.

Interesting thread though, thanks for mixing things up in here a bit.

 

[percysunshine]

This is why it is a good idea to have 8 kids, and rely on guilt to have them support you in old age.

 

[Flopper]

This is why it is a good idea to have 8 kids, and rely on guilt to have them support you in old age.

Hate to break the news to you, but many parents are supporting their kids as adults, many of them into middle age. Kids today don't expect to support their parents.

 

[Geaux4it]

This is why it is a good idea to have 8 kids, and rely on guilt to have them support you in old age.

Hate to break the news to you, but many parents are supporting their kids as adults, many of them into middle age. Kids today don't expect to support their parents.

Factual indeed

-Geaux

 

[editec]

Is it to late?

-Geaux

There Is No Scenario Where This Ends Well | Zero Hedge


ia Jim Quinn of The Burning Platform blog,

Luckily, the average American is so bad at math they can’t read this chart and understand the implications. They remain willfully ignorant of their plight. After a lifetime of working, the median Boomer household has managed to accumulate $12,000 of retirement savings

hat means that 50% have even less than $12,000 for their retirement. These 55 to 64 year olds are up shits creek without a paddle. No wonder the percentage of over 55 people working is at an all-time high. Every age bracket has been living in a land of delusion.

The entire country has bought into the ”live for today” mantra.

YOu really think that Americans are spendthrifts?

Most people never make enough money to save doodle squat, amigo.

Once again we find people BLAMING the victims of the macroeconomy.

 

[SteadyMercury]

I dunno, one could contend that most people who spend money on things like Starbucks, eating out, having a car that is more than the bare minimum required to comfortably and safely commute, having a smart phone with a data plan, buying cigarettes or alcohol, etc. all make enough money to save more than they do.

 

[Flopper]

It's pay me now or pay me later. Some choose to have it all now and nothing later, some choose the opposite. Those that can find a balance between the two extremes have a better life.

 

[Luddly Neddite]

I will forever be grateful to Aunt Mabel and Uncle Bob who taught me to always pay myself first. I lived with them for a time and learned to take 10% of every pay check or income and sock it away. From my aunt, I learned to always put a bit of cash away for easy access and from them both, I learned that the only debt worth having is for real property.

I admit that there were times when I rolled my eyes at the old folks but they were children of the Great Depression and, in time, their advice "took". There have been times when I had to dip into the money I swore I would never touch but I found I really liked having that security.

I know people my age who have nothing and make minimum payments of a fistful of credit cards. We're not wealthy, not by a long shot but we have no debt and these days, that's almost the same thing as being rich. If we can't pay cash, we don't buy it and we recently bought a car for cash. Even our three properties are paid for.

We have one up for sale and its interesting that the people who have wanted to buy it cannot qualify for a loan and want us to carry the paper.

 

[Flopper]

I will forever be grateful to Aunt Mabel and Uncle Bob who taught me to always pay myself first. I lived with them for a time and learned to take 10% of every pay check or income and sock it away. From my aunt, I learned to always put a bit of cash away for easy access and from them both, I learned that the only debt worth having is for real property.

I admit that there were times when I rolled my eyes at the old folks but they were children of the Great Depression and, in time, their advice "took". There have been times when I had to dip into the money I swore I would never touch but I found I really liked having that security.

I know people my age who have nothing and make minimum payments of a fistful of credit cards. We're not wealthy, not by a long shot but we have no debt and these days, that's almost the same thing as being rich. If we can't pay cash, we don't buy it and we recently bought a car for cash. Even our three properties are paid for.

We have one up for sale and its interesting that the people who have wanted to buy it cannot qualify for a loan and want us to carry the paper.

Neither a lender nor a borrower be, good advice for most folks but not necessary good advice for a business or a nation.