People feel unprepared for retirement due to lack of pensions
20 posts across 6 communities in the last 30 days; 70% from r/personalfinance.
“Throwaway because I feel like I could easily dox myself. Mid 40s. Decent job. Only debt is 60k left on mortgage at 4%. LCOL area. Total monthly expenses are very low ~$3000, but I spend a lot on various hobbies. Yearly take home is a bit variable. I have a day job with $250k…”
“Except if your county/city goes broken My dad worked for a city that went broke in the Great Recession of the 00s. He’d retired 3 years prior, and his AMAZING pension (90% of his salary) was at stake. The union kept most of the pension, but lost a lot of the benes, including the…”
“I don't understand why people feel they need around $6.5M or more to retire. Why stay in a high-cost-of-living area once you're retired? I associate those places with ambitious, career-focused people, and I'd wonder whether I'd feel out of place if I said I'd spent the day…”
Multiple users express anxiety about insufficient retirement savings, with one suggesting finding a job offering a pension as a solution. This indicates a desire for employer-sponsored retirement plans and highlights the impact of missing out on such benefits.
SOURCES (25)
“I retired after just turning 49 5 years ago. I wouldn’t give back those years for any amount of money (less than about 40m). My former Company is in distress and I could buy of back for 10% of what I sold it for. Not…”
“I don't understand why people feel they need around $6.5M or more to retire. Why stay in a high-cost-of-living area once you're retired? I associate those places with ambitious, career-focused people, and I'd wonder whether I'd feel out of place if I said I'd spent the day drinking coffee in a cafe. I'd also question paying a premium while still worrying about neighborhood safety and homelessness. For people planning to stay in a HCOL city after retiring, what makes it wo”
“you have no savings, a daughter on the way, bad with finances, and you're planning on retiring with 40k? Am I missing something? [re: Just turned 27 and took a buyout from my job to retire early receiving 40k after taxes]”
“All...so like everyone else, I got unexpectedly laid off. I just turned 58, not married and have 1 child who is 24. I had planned on retiring at 59.5/60 but am wondering if this is a sign to do it now but just need that push. Here are my numbers ( and yes completely understand I am VERY blessed but when you have worked since you were 21 it is still scary to not have a paycheck.) I have ...200k in a roth ira. 2.2m in a trad ira. 90k in a brokerage. 70k in cash. My house is paid off and I live in”
“How close to retirement are you? If youre more than 10 years out go 100% SPY or VTI and chill. You'll be fine. If you get a crash that just means your future is on sale and buy more then chill more. [re: How to diversify if you can’t buy a house?]”
“You will likely be working til 70. Get company match on 401(k). Forget the house. Cheap apartment for the next 10 years til alimony is done. Pay off credit cards by the end of the year (get 401(k) match today). Build emergency fund to enough to pay cash for new car plus 6 months expenses including alimony. [re: Starting Over from Scratch at 56 - Need Advice on Retirement, Saving for a Home, and budgeting]”
“You will be more stable in the long term to save for retirement as you have about 20 more years to work and save up. Keep renting. [re: At 49, should I buy a house or keep renting? I’m scared of making the wrong decision]”
“That's wild, you basically tripped over a retirement plan while waiting for your car [re: Where was the most random place you stumbled into an opportunity?]”
“I can retire at 54 with an unreduced pension, but will work until my kids are finished their post secondary. Most likely will retire ~60”
“I am in WI and can retire at 57 but I am going to try to make it until 60 as my pension will be more then. I am currently 51 and will turn 52 in April. I will hopefully have insurance through my husband until i qualify for medicare. Shit can happen though so there is no guarantee and I may have to teach until 65!”
“Hi everyone, getting ready to pull the trigger soon at 53. I have 6.3m in invested assets and a paid off house. Would love to hear stories of what it has been like for those that have retired in a similar situation without around 6m and how much they spend monthly with hopefully no worries. Thank you as always everyone for your great insights! submitted by /u/financialfreedom26 [link] [comments]”
“My wife and I are 42 with a paid-for house, no kids. It costs us $24k per year to run our household at a minimum (property tax, insurance, groceries, gas, utilities, maintenance) and we spend $36k per year on discretionary/travel. Running estimates with the ACA calculator, we figure we'll need another $15k for medical premiums and out-of-pocket costs, around $5.5k in taxes based on how our withdrawals will be structured between pre-tax, Roth, and a brokerage, and around $7k as a buffer for r”
“Throwaway because I feel like I could easily dox myself. Mid 40s. Decent job. Only debt is 60k left on mortgage at 4%. LCOL area. Total monthly expenses are very low ~$3000, but I spend a lot on various hobbies. Yearly take home is a bit variable. I have a day job with $250k salary and a side hustle that can net another 200-400k a year depending on how much I want to work and what jobs come in. It's entirely possible that it could all dry up so I can't risk quitting day job to do it full”
“So long story short. My retirement is completely pension based. My pension covers everything from my mortgage, bills etc. i do not need any other form of income My dilema……. I still invest money weekly. However im at a point to start thinking. Do i leave my kids with as much loney as possible. The biggest lump sum i can achieve. Or do i buy thing like schd have a smaller lump sum however i can pass the oassive income onto them If i go the schd route id like to have at least 150k in passive incom”
“So you're saying the people who charge a pretty penny for this information won't have a job very long?”
“Except if your county/city goes broken My dad worked for a city that went broke in the Great Recession of the 00s. He’d retired 3 years prior, and his AMAZING pension (90% of his salary) was at stake. The union kept most of the pension, but lost a lot of the benes, including the lifetime free health care. Which happened exactly as my mom was in the middle of stage 4 cancer treatment. So…”
“Key questions. How long do you think you will stay? What does the pension benefit look like? At what age are you eligible? How is the benefit calculated? Is it indexed to inflation? What does health insurance for life look like? What is the cost? When do you become eligible? What does the benefit look like under Medicare?”
“Have you spoken with a planner? Do you know how much you’ll need in retirement? Quantifying some of those numbers will help with the anxiety.”
“That doesn’t match their living expenses at all and also probably isn’t very realistic on their income.”
“What will your pension benefit be if you left it in there till retirement? You should not be raiding retirement funds to buy a home at the peak of a real estate bubble.”
“Does your employer offer a pension or pension matching? Can you find a similar paying job that does offer one of those? I'm behind too, but I have a bit more in my 401K and I got a job recently that has a dedicated pension that I don't have to worry about. Aside from that, what's your home worth. Worst case scenario, you sell your home at retirement and use that money as an income fund for your retirement. It's the least ideal option because you'll need to then pay rent and h”
“I tried to keep this as brief as possible and it’s still too long. But it’s laid out pretty well. My spouse and I will soon be 62. We both work for government and we’re both eligible for a pension. The pension payout is based on your average pay times the number of years of service. Because I have about half as many years on the books, but about twice as much pay, each additional year that I work provides a more dramatic increase than it does for my spouse. We both will get Social Security (of c”