"There's no huge retirement savings crisis,"

"Many in U.S. saving too much for retirement, econ prof says"

"One who shares his view that Americans are doing a better job of saving than the industry typically proclaims is John Karl Scholz, economics professor at the University of Wisconsin at Madison.

"There's no huge retirement savings crisis," Mr. Scholz said.

Mr. Scholz examined the saving behavior of heads of households born from 1931 to 1941 and found roughly 85 percent were on track for maintaining their living standards as they age.

Although he and his colleagues did not study younger generations as closely, Mr. Scholz said other statistics suggest that baby boomers are similarly well-situated for retirement."


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As a nation it "feels" like we don't save enough. My wife and I manage to save around $36K per year towards retirement if you count what we put into our 401Ks,Roths, Universal Life Insurance - along with employer contributions and profit sharing.

Talking to our financial guy, it still doesn't seem like enough to maintain a decent life style for two people.

My wife and I are luck, we have a couple of white collar jobs; some of my friends are in the their mid-30's who haven't really begun to save for retirement.

Someone making $40K per year, socking away 3% to the 401K + the employer's 3% matching will only save $2,400 per year. Even with compounding, I can't see that being enough to retire on.

Value at retirement (age 67) $1,035,254 for SensorG's 401K question.

Starting at age of 25, assuming $2400 per year, 9% growth, tax deferement, and the use pre-tax dollars.

I used a IRA Calc instead of a 401K Calc, because it's Beer Thirty!

One million dollars seams like a lot, but in 2049 what will it be truely worth? At age 67 in 2049 a retired person may very well have another 20-30 years ahead of them.

It beats nothing saved which is where a lot of people are at now. As far as living 20 or 30 years, you'd hope that people would have built up some sort of next egg where interest, dividends, and gains support a serious chunk of their retirement income vs. principle.

At 2049, I wonder what the attitude of younger workers will be trying to support poor political social security decisions. Obviously with more people living longer we have fewer workers supporting each SS recipient. At some point, the math doesn't work very well.

Very true about 2049 but many also live under the myth that retirement means "stop working" in most cases this isn't true. Many retiree's get lower paying jobs for a variety of reasons.

Many times it's just to stay active and have something to do, other times they retire to "do what they love to do", and by the time of retirement the assumption of many is that they will have paid off their home, schooling, and their children are out on their own.

So someone who lives on a 85K income technically wouldn't need 85k a year to maintain their standard of living. Assuming they could live on 3/4 that then 40K a year from retirement and a 20K a year job could supplement their income without lowering their standard of living. 40K a year from a 1 million dollar retirement can last 25 years assuming no interest was gained on the principle not taken out each year.



$40K in 2049 won

Inflation occurs at about 3% traditionally.

I haven't seen a retirement account that hasn't pulled this much in over a time frame over 10 years. In fact most range to over double that in many low risk investments. Higher risk investments (stocks) tend to bring in interest into the double digits.

That being said, unless you pull it all out on the first year the amount invested should stay above the inflation line meaning you wouldn't be out the initial investment.



Future retires are screwed.

SensorG - Are referring to all the "blue pill" parties going on at the retirement communities in Florida and elsewhere?

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