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.

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Dec 25, 2012 3:53PM

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.

Dec 25, 2012 3:31PM

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

Dec 25, 2012 3:16PM
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.
Dec 25, 2012 3:09PM
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.

Dec 25, 2012 2:05PM
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  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.


Dec 25, 2012 12:56PM
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 !!!
Dec 25, 2012 12:56PM
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.)
Dec 25, 2012 12:50PM
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 !!!
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.
Dec 25, 2012 11:17AM
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.
Dec 25, 2012 11:03AM

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!

Dec 25, 2012 10:30AM
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,meds,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!
Dec 25, 2012 8:39AM
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.
Dec 18, 2012 1:35PM

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?

Dec 18, 2012 11:27AM
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.
Dec 18, 2012 8:29AM
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.
Dec 11, 2012 4:39PM
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!!
Dec 11, 2012 2:35PM

If our old folks used their head & had their mortgage paid off when retirement time comes, they wouldn't be in a bind. Today many of them take out a second mortgage to put kids thru college or buy expensive toys.

Don't get me wrong, putting your kids thru college or buying luxury items is A OK, but don't hock up your home for it.

There's nothing more important in our lives that that home. It must always be the first bill you pay & when you pay it off your retirement years will be great.


EF Hutton  :)

Dec 11, 2012 2:03PM

How much do you need in retirement?  To answer this, you must answer:


1)  What will the inflation rate be over my retirement (no one can answer, but likely much higher than now)


2)  What will my health be like? (no one can answer, but some are healthier than others.  If you are unhealthy, assume that $260K they indicate will be $1M with health care cost inflation)


3)  What will the return on my savings be?  (no one can answer, but likely not as good as in the 80s and 90s)


4)  How many years will I live? (no one can answer)


5)  What will the tax rate be on my 401K distribution? (no one knows what tax rates will be, but likely higher)


6)  How much will SS and Medicare provide? (no one can answer, but likely less than now.  And if you have managed to save a 401K, that money WILL be counted against you when they implement means testing)


So, if you are about to retire, I think $27.8M is about right.

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