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You May Be Saving Too Much For Retirement

Monday, January 6, 2014 - 7:28 AM
It's very possible you won't spend as much in retirement as you think.

"FORTUNE -- Are you saving too much for retirement? Can you believe I'm even asking that question?"

You may be saving too much for retirement - The Term Sheet: Fortune's deals blogTerm Sheet
5
ShorebreakShorebreak2,603 posts since
Apr 6, 2010
Rep Points: 14,091
1. Monday, January 6, 2014 - 9:32 AM
One slight problem remains:

“The average working household has virtually no retirement savings. When all households are included—not just households with retirement accounts—the median retirement account balance is $3,000 for all working-age households and $12,000 for near-retirement households. Two-thirds of working households age 55-64 with at least one earner have retirement savings less than one times their annual income, which is far below what they will need to maintain their standard of living in retirement.

https://www.copera.org/pdf/Misc/NIRS6-13.pdf
2
ShorebreakShorebreak2,603 posts since
Apr 6, 2010
Rep Points: 14,091
2. Monday, January 6, 2014 - 9:49 AM
Are you saving too much for retirement?

That'll be the day:D
2
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,426
3. Monday, January 6, 2014 - 10:18 AM
You can never save too much for retirement unless you are psychic and know what financial and/or medical problems are waiting for you in the future.  That doesn't mean you can't enjoy some of your money "before" you retire. 
4
paoli2paoli21,367 posts since
Aug 10, 2011
Rep Points: 5,992
4. Monday, January 6, 2014 - 10:22 AM
"Two-thirds of working households age 55-64 with at least one earner have retirement savings less than one times their annual income, which is far below what they will need to maintain their standard of living in retirement.”   

But yet, most retirees (90%?) seem to be happily retired.  What gives?

Yeah, I did not knock on every retiree's door and ask whether or not they are happy financially, but it does imply to read all these statistics with a grain of salt.  People will take what they have saved and make the best of their retiring years.  Money, although very important for some happiness, is not everything about retirement.  For example, if one loses one's health during retirement, one will not be happy and enjoying life even with more than $10M retirement savings.
2
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,426
5. Monday, January 6, 2014 - 12:51 PM
Noticed that the figures used for this article are 3 years old. Noted that the Dow was a little over 11500 in Dec 2010 those who did not have to use retirement accounts that was invested in the market if they lost their jobs might have substantially more in their accounts now that the Dow is over 40% higher. 
3
Ally6770Ally6770909 posts since
Jan 16, 2010
Rep Points: 2,643
6. Monday, January 6, 2014 - 3:59 PM
Not much more:

"With the average Baby Boomer a half-million dollars short on retirement savings, the prospects for actually retiring look slim."

http://www.usatoday.com/story/mon...t-boomer..
2
ShorebreakShorebreak2,603 posts since
Apr 6, 2010
Rep Points: 14,091
7. Tuesday, January 7, 2014 - 8:44 AM
Don't these "baby boomers" have parents?  Did their parents not save either?  Surely they can count on some type of inheritance in their retirement years.  Being a parent doesn't end at your death, imo.  You certainly don't want to leave your child behind suffering financially.
1
paoli2paoli21,367 posts since
Aug 10, 2011
Rep Points: 5,992
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