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Workers Failing to Save Enough for Expected Retirement Lifestyle

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November 05, 2009 – Comments (2)

http://www.marketwatch.com/story/workers-failing-to-save-enough-for-expected-retirement-lifestyle-wells-fargo-study-finds-2009-11-05

This piece summarizes a survey of pre-retirees – those in their 50’s – and young retirees – 55 - 70.  No surprise, we’re not saving enough for retirement.  Nothing really new here, but it’s a decent rundown of how some of us in the geezer/near-geezer class are preparing for retirement.  Some highlights:

While pre-retirees surveyed expect to need $800,000 for retirement, they have saved only $300,000”

“People have been overly optimistic about their investment returns.”

The most surprising points:

“Less than half (40%) wish they had been more proactive about educating themselves about retirement preparation.”

“Half (49%) of pre-retirees wish they had started saving for retirement earlier in life.”

I don’t know how this survey was conducted, but I absolutely do not believe those last two percentages are that low.  I crossed the half century mark last year – everyone I know near my age wishes they had started saving and learning earlier.  I suspect the average age in Fooldom is quite a bit lower than the group in the survey and it's good to see so many here with an interest in investing getting started early. 

My guess is very few will reach my age and say, ‘darn, I should have waited longer to start saving and investing’ or 'I put away too much.'

Fool On!

Russ

2 Comments – Post Your Own

#1) On November 06, 2009 at 12:01 AM, KamranatUCLA (29.40) wrote:

I am 38...burried in Student and car loan. I rent my place which is $1500 a month. I live in L.A. I have to pay back taxes. And now I am laid off.

It's survival time and with that in mind I can't even think about saving.

When those people say that wish they had educated themselves earlier in life they had the opprtunity to save. My generation doesn't.

And people are wondering why home prices are crashing...because my generation has NO MONEY...The genertaion before us have messed up everything for us and they don't give up until they die or untill we all go down.

Like those jeezers in congress and senate who still kiss the oil companies asses.

So in my assesment I think homeprices will still go down in price and stocks will be stagnant.

 My generation is very pessimistic...we are not having kids or getting married (cause no money) and with lower birth rate you can expect home prices to come down even more.

There you go. You should feel good your 50.

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#2) On November 06, 2009 at 1:02 AM, Teacherman1 (42.67) wrote:

As a member of the "Geezer" generation who is still working (because I want to, not because I have to), I have followed a very simple and straight forward system handed down to me by my grandmother.

Don't live above your means. 

Always pay yourself first by saving at least a little in the down times and more in the up times.

Learn to put off instant gratification. You will usually find you didn't really want it any way.

If you are going to have a loss, make it an opportunity loss. It's cheaper than the real thing.

There are many unexpected occurances in life. Expect them and deal with them accordingly. They won't last forever. 

Although she wasn't a formal financial advisor, I have found her advice to be worth more to me in the long run, than any I have seen or heard put forth by all the experts.

I also keep in mind the simple but also profound words from one of Kurt Vonnegut's  many excellent novels.

"This too will pass"

Have a good evening. 

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