7 ways retirement is different now

More than ever, workers are having to take responsibility for planning and financing their golden years. Here’s what the not-yet-retired need to consider.

By Dana Dratch, Bankrate.com

 of 9
 of 9

MORE ON MSN MONEY

VIDEO ON MSN MONEY

User Picture
Write a comment...
56Comments
REGAL MAN500
Dec 25, 2012 3:53PM
avatar

It`s not wall street that have robbed people`s retirement.People spend too much.The

Dow is up 61% with Obama.People should read books on investing.The far right doesn`t

say the good things about the economy.

Someone
Dec 25, 2012 3:31PM
avatar

Share the wealth wallstreet.You are the ones that messed up and basicly ripped off your fellow americans. Shame on you, and god knows what you have done to these poor hard working people

Someone
Dec 25, 2012 3:16PM
avatar
This advice only is only written for people making more than fifty thousand plus a year...what you don't consider is a great many people make much less and with out any thing but SS to get them by after 65 or 67. I was lucky and did every thing right and can still find room for a little travel, but what can be done for the rest?  They will not  have any pensions or houses and those that did put a small amount into 401's lost much of it to the players in the stock market that have time to read and keep up with the warning signs of the market dropping. The players and people with investment advisors did not lose much and many were able to make money on the fall of the markets. I believe it was why George Bush wanted everyone to put their SS into the markets....great way for a few to take advantage of the many.
fishinfool5555
Dec 25, 2012 3:09PM
avatar
The biggest threat to anyone's retirement is going to be inflation. The current administration's policy of printing new money, to buy bonds, to pay loans is really starting to devalue the Dollar quickly.  We don't notice it so much now because we are getting things from cheaper and cheaper sources so prices seem to be stable. Unfortunately, there is a finite limit about how cheap those sources can be and we are nearing that limit. Once we hit the bottom of that resource well, we will start to see the inflation monster taking big bites out of everyone's pocketbook.

As a case in point, the value of the US Dollar against the Philippine Peso has dropped roughly 20% over the last four years going from about 50 Pesos to the Dollar down to a bit over 40 to 1 now. The Philippines is one of those source countries that supply the US.  As the Dollar continues to fall against the Peso, they will have no choice but to raise their prices which we will see at our local stores.

As long as we continue to spend money at the national government level that we don't have, this trend is only going to get worse. Unfortunately, it would appear that based on the results of our last election, the majority of voters don't care.

defpotec
Dec 25, 2012 2:05PM
avatar
All the planning in the world does not account for what an economy can do to devastate a retirement. My wife and I retired in 2006 with a decent nest egg, consistent interest income, a paid for house, and a strict budget based on long term needs. Then, in 2007 or so our interest went away, and we had no choice but dip into out principle as cautiously as possible. Within a year, our nest egg had turned into a jelly bean, and even by reducing our budget downward 50%, our long term finances went to utilities, taxes and insurance.

Given the new 'Senior' discrimination trend and the massive gap in our resume's, getting a job is virtually impossible since to retire we moved to a rural community where living expenses are far more affordable that our home in the city. Don't ever assume that your retirement is in the bag, and you can look down on those pitiful souls who did not save. If we had it to do all over again, we would have spent our money while we were both able to enjoy it, instead of giving it all away in funds and investments and getting stuck footing the bill to subsidize the rich and famous  =( 

old timer our forefathers came here so they would not haft to pay high taxes.We pay more than they ever dreamed.
Dec 25, 2012 1:07PM
avatar

old timer  I suggest you learn your history.  Baby bomers that paid social security all these years know that only 7 percent actually went for social security' the rest went to fund other programs. The money was never put in a fund to draw interest. S'S'is the only program that paid for iyself.

 

letsgo21
Dec 25, 2012 12:56PM
avatar
social secrurity is not goin bankrupt !!!! the koch brothers want to get their greedy hands on it and so does congress so they can sqaunder it away !!! social security has trillions of dollars in it and if they get their way say good bye to social security !!!
Joseph Nazar
Dec 25, 2012 12:56PM
avatar
LOL: I knew even before reading the piece that it was going to begin with something like, "This is not your father's retirement." Yeah, you baby boomers are still cool and crazy after all these years, right? (And, of course, some idiot will respond, "Yeah, that's right.") By the way, thanks for screwing up our society for all who came after (and, no, you didn't find it that way, at least not like what you did to it.)
letsgo21
Dec 25, 2012 12:50PM
avatar
401k the new way to screw over your retirement !!! just look at what happned to everyones 401k when the stockmarket crashed...yet they said nothing  can happen to it its guaranteed !!! yea believe the propaganda congress spews though their false teeth and youll regret it !!!
Someone
Dec 25, 2012 12:48PM
avatar

What most people don't realize.. that all of these damn tax.you name

sales tax,homeowners tax,state tax,this tax that tax is whats

killing your retirment,or ANY SAVINGS you might have

taxed to death..why even work or buy anything..

James Herman (James R. Herman)
Dec 25, 2012 12:07PM
avatar
Ask HUD to ban formaldehyde from manufactured housing and then end exclusionary zoning so you are allowed to live in a manufactured home. Do that and you'll be able to buy a home as easily and as cheaply as you can buy a car. Then you'll have a better chance of saving for retirement. Don't have any or more than one child. The earth is overpopulated and just as one can eat him/herself into obesity then so too can one populate him/herself into poverty.
derfy
Dec 25, 2012 11:17AM
avatar
We've been sold out to corporate america by the politicians. They got the politicians on their knees in front of they like prostitutes. Deindustrialize america free trade corporate america takes the business to another land and brings it back duty free. Just to screw the American worker. Wait for the financial collapse w/fiscal cliff and debt ceiling in Febuary. Major civil unrest.
Genesisreader
Dec 25, 2012 11:03AM
avatar

Pensions used to be the way Americans saved for retirements, by pledging allegiance to the companies they helped build. Those, coupled with social security, gave a respectible end of life to our seniors. Now that greed in corporations has taken guaranteed pensions away, unless we work for the House of Representatives, we have the 401k replacements, that bob and sway every time the Stock Market hiccups, and hasn't really been a good replacement for a pension fund.

Now, the GOP wants to attack our other lifeline, Social Security. I think we should vote them out!

Rob f (cheaper than me)
Dec 25, 2012 10:30AM
avatar
what a ponzi! there is no such thing as retirement and to stop paying out, you must die. When do you ever own your house? is there ever a fixed price on anything? how can you plan for what you can't see? electric,tv,phone,me​ds,insurance! no way to get a fixed price on anything! how about property tax on your house. what happens if you can't pay them? you own it! 65 and you know the end is coming and you worked your entire life. now they just need to fiquire out new ways to help you! out of everything! why should you pay taxes FOREVER? the system is broken and hurry up and die to end your golden years!
dont_jones_for_nothing
Dec 25, 2012 8:39AM
avatar
While many of us are going behind fanancially, those in our elitist government are enjoying the best of the best. Voting themselves raises, the best of health care and the finest retirement plan a person could hope for. All paid for by non other than you and I. We were warned about this kind of government many years ago. Many of those who would once have been labeled patriots are now labeled terrorists.
unhappy605
Dec 18, 2012 1:35PM
avatar

My only problem is the marriage penalty built into the tax on Social Security benefits. Two single people living together can earn far more without paying any tax on their SS benefits.

They can EACH get $25,000 including half of their SS without paying one nickel on their SS benefits while a married couple will start paying at $32,000. In addition the jump to 85% comes at $34,000 for singles & only $44,000 for a married couple.

If my wife & I get a divorce & live together we can save a substantial amount of money in taxes & have the fun of living in sin.

Why should the government tax you for being married?

illumination_fascination
Dec 18, 2012 11:27AM
avatar
Retirement may be forced upon you if you mistake and turn 50 in many corporations as they were the majority of people cut during the mass layoffs.

We can thank the merciless greedy bastards who can never make enough profits at the expense of society for our great new society of throwaway people.
17571
Dec 18, 2012 8:29AM
avatar
What's the big surprise, the only republican  cure for this countries financial woes is reducing and ultimately eliminating medicare and evolving the trillions in social security into wall street stock market accounts. Anyone earning $30.00 bucks an hour or less is pretty much living pay check to pay check. If you believe a 401K is the solution,when you can barley make it each week, your part of the blind republican spin machine. Keep voting for these folks and don't complain when your 70.
L H
Dec 14, 2012 1:10PM
avatar
 Following Dave Ramsey's advice, allowed me to retire @ 54 in 2004. Zero debt, live modestly, good retirement account, makes sense to me. 
HelmetRod
Dec 11, 2012 4:39PM
avatar
The Baby Boomers will continue to selfishly bankrupt this great country faster than when they used their management positions to move manufacturing overseas in order to increase short term corporate profitability and management bonuses!   The average Boomer retiree feels entitled to the maximum personal benefit from ss/medicare.  All the time I hear " I put money in and I intend to get everything I can from SS"  The average person gets EVERYTHING they put into social security plus interest back in the first 9 years of collecting benefits!     Think about that Boomers!  If you get all your money back-  who payed for the benefits your parents collected? YOU DIDN'T now I will have to.  Your Aunts & Uncles? they got social security right?.   The entire cost of the "greatest generation"s social security  will skip the boomers and still they raid the "trust fund"  because "its MY money, and I'm entitled to it"    SELFISH GENERATION!   !!    Just wait until they start divesting their bloated 401k's pulling money out of the system!!!!!!   they'll complain about it ! !!!      The biggest thing Boomers contributed to humanity?  DEBT!!
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2013 Microsoft. All rights reserved.

Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.

Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.

Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.