Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

Americans Retiring Early, Then Running Out Of Money

Wednesday, November 13, 2013 - 8:10 AM
If Americans don't get a better grip on their retirement needs, and a more realistic timetable on when they can afford to retire, a financial tsunami awaits millions of unsuspecting U.S. retirees.

Americans Retiring Early, Then Running Out of Money | Business News
7
ShorebreakShorebreak2,603 posts since
Apr 6, 2010
Rep Points: 14,091
1. Wednesday, November 13, 2013 - 8:56 AM
I have seen many of my friends retiring early as soon as their pension plan would allow a cashout, and take that instead taking the annuity saying "I can take care of my own money" only to give thier money to a financial person and be broke in a very few years later. Many of my friends taking the cashout were the ones that had no IRA's, did not join their companies 401K (even if it had no match) and have no savings. They think that this cashout is enough to live on until they are on SS and SS will take care of them until they die. They listened to their financial person (a very popular firm in this town) tell them that after all these years of working you deserve that something you always wanted. Don't you want a nice trip or a new truck, does your wife want a new kitchen? Each of you should get something special. Get a HE loan and enjoy it. This was in the late 90's and early 2000's and as early as 2005 many were broke. Not sure where they get these ideas. These are people I went to school with, were in my classes and many went to college and some have graduate degrees. Getting out of debt before retirement is so important, contributing to an IRA is important, if your spouse is not working contribute to a spousal IRA. 
5
Ally6770Ally6770909 posts since
Jan 16, 2010
Rep Points: 2,643
2. Wednesday, November 13, 2013 - 9:04 AM
Don't forget that, in many occasions, people have no choice but to retire due to health or job situations.  I think that this uncontrollable/involuntary retirement group is definitely not the minorty among retirees.
5
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,426
3. Wednesday, November 13, 2013 - 9:43 AM
Yes I know my husband and I went through an unexcepted situation. He was in an accident in 1984 caused by a drunk driver who also was on cocaine. This drunk driver was already was waiting for his trial on 2 counts of manufacture and delivery of over 650 grams. My husbands neck was broken (and they could not fix it) had a serious back and head injury. He was put on 100% disability in 1995 at 54. We were both working 2 jobs before his accident and out of debt and working to finish putting the kids through college. He had to quit one job after the accident until 1995 and I continued to work 2 jobs until 2003 when I had to quit one job so I could spend more time doing things for my husband that he could no longer do and quit the second one in 2008 to care for him as he now needed 24 hour care until he passed last year. We lived on sales and coupons and did just fine. Wasn't the life we would have chosen maybe but it was fulfilling and caring for him was an act of love and felt honored I could care for him thanking him every day for carrying for me the first 47 years of our marriage.  
7
Ally6770Ally6770909 posts since
Jan 16, 2010
Rep Points: 2,643
Reply