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$3,000! That’s All The Typical Household Has Saved For Retirement?

Thursday, July 25, 2013 - 6:59 AM
Diane Oakley, NIRS executive director, points out in a press release that employers have dialed back on workplace retirement plans and that many households have struggled to save in the midst of higher living expenses and stagnant wages.

If something isn't done to boost our ability to save, we're in for a dire future.

"We can expect substantial increases in public assistance costs, and even greater demands on strained families and social service organizations, to help older Americans who just can’t make it on their own,” Oakley says.

The typical household has saved $3,000 for retirement?! | Interest.com
5
ShorebreakShorebreak2,699 posts since
Apr 6, 2010
Rep Points: 14,632
1. Thursday, July 25, 2013 - 7:39 AM
"What's to blame?

There's no doubt that two recessions and a sluggish economic recovery have played a part.

Diane Oakley, NIRS executive director, points out in a press release that employers have dialed back on workplace retirement plans and that many households have struggled to save in the midst of higher living expenses and stagnant wages."

Yeah, the blame game.  How about the families themselves, for not diligently saving and blindly throwing money into the brutal stock market.

"What can we do?

The NIRS suggests strengthening Social Security, expanding access to low-cost and high-quality retirement plans and making the Saver's Credit, a little known tax break, refundable.

But counting on any help out of Washington, where conservatives are clamoring to cut Social Security, is probably unrealistic.

We're on our own until the political winds change, and that means there's only one thing we can do — figure out ways to put more money into our 401(k)s and IRAs."

This is an honest assessment (on social security prospect).  Thus start to have some realism in life and live within one's means; and putting more money into 401K/IRA; and INVEST WISELY.  
4
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
2. Thursday, July 25, 2013 - 8:33 AM
This is truly appalling!  But I think one of the answers is that too many people do not want to live frugally in order to save.  I heard recently that a young woman I know makes over $50,000.00 a year but is griping about only having less than $200 left for her personal use after paying all her debts!  First I felt sorry for the person until I realized where her money was going.  She is living way above her means.  Her rent, loans, debts etc. do not leave her much money to use for personal enjoyment much less saving.  And she is fortunate to be healthy!  It is not medical bills eating up her money and she has no one to support but herself.  Could this be the reason so many have next to nothing in savings? Even if the interest rates on CDs were 5%, I don't think these people would save.  They live for today and tomorrow does not seem to be a part of their thinking.

I did something yesterday out of curiosity.  Are you aware you can login to your social security account and see all of the salaries for all these years, social secuirity and medicare deductions also?  I had DP bring up his info and it was awesome to see his salaries for so many years while we were traveling, paying cash for everything "and" saving!  We were thrilled to see when he finally was making over $5,000 per year!  I know things were cheaper then but salaries for some are so much higher now and they still don't save.  I think it's either a part of who you are or it's not.  
3
paoli2paoli21,406 posts since
Aug 10, 2011
Rep Points: 6,152
3. Thursday, July 25, 2013 - 9:07 AM
Part of the reason is that this "disease" has spread throughout the country...

"Mr. Colson: I've seen more of this state's poor cowboys, miners, railroaders and Indians go broke buyin' pickup trucks. The poor people of this state are dope fiends for pickup trucks. As soon's they get ten cents ahead they trade in on a new pickup truck. The families, homesteads, schools, hospitals and happiness of Montana have been sold down the river to buy pickup trucks!... And there's a sickness here worse than alcohol and dope. It is the pickup truck debt! And there's no cure in sight."
- Rancho Deluxe (1975)
5
ShorebreakShorebreak2,699 posts since
Apr 6, 2010
Rep Points: 14,632
4. Thursday, July 25, 2013 - 4:39 PM
I remember my mother and father going to the gas station every Friday night after payday with all of in the back seat to get $3 gas for the car. They did not fill it up but that was what they could afford. When we got home we had dinner. Friday's we could have no meat, so it was french toast, pancakes or an egg sandwich. Then we went upstairs and watched them put money in the envelopes and then we went down stairs and we could have popcorn and an apple or split a twinkie. That was the only night we had a snack and we could watch "I Remember Mama" before bedtime. I wonder how many families taught their children how to budget, that it was OK to have a cheap meal one night a week. My children learned about budgeting even with their allowances. 
2
Ally6770Ally6770943 posts since
Jan 16, 2010
Rep Points: 2,742
5. Saturday, July 27, 2013 - 9:24 PM
Not to sound like a broken record, but it's high time that Obama mandate mandatory savings so we don't pay for it either. Not sure about specifics but that's why he's paid the big bucks. I haven't been able to save anything over the past two months. I blame the economy
1
mustsavemoremustsavemore49 posts since
Jun 26, 2013
Rep Points: 152
6. Sunday, July 28, 2013 - 9:52 AM
#5  How can you post you want "mandated" savings and then actually write "you" haven't been able to save anything over the past two months?  Are you just trying to get Obama to force "you" to save?  Many of us don't need anyone to force us to save so why should there be a mandate for people who can't do it on their own?  Maybe some just don't have that extra few dollars to save so what good does it do to "mandate" it.  Why don't you learn how to get yourself to save on your own and stop being so concerned about forcing others to do it?.  I am definitely for everyone "trying" to save what they can but I don't need my government forcing me to do anything.  Please change the record and put on something new.  Your plead has been read over and over.  Save your own money and leave others alone.
1
paoli2paoli21,406 posts since
Aug 10, 2011
Rep Points: 6,152
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