Retirement Savings, At Different Stages

We all move at different speeds when it comes to saving. Our pals at LearnVest have a great piece about where different people are when it comes to saving for retirement. Jamila, 29, has $41,500 saved up in a 403(b), and began saving when she got her first job at 22. Olivia, 30, started saving in her late twenties and has $3,500 saved in an RRSP—the Canadian equivalent of an IRA account. The person who I was most interested in (because she reminded me a little of my mother), was Nieves, a 74-year-old woman who lives off of social security and support from her daughter and son-in-law:

Now I live with my daughter and son-in-law and receive $684 a month from Social Security. After I had to stop working, I was depressed that I worked so hard and now have to depend on others. I buy groceries and pay for my personal expenses, but my daughter and son-in-law pay for everything else. We make it work.

I often ask my folks what they’ll do if they don’t have the money they need to live comfortably after they both retire. “We’ll make it work,” is their answer.

---
---
---
---
---
---

11 Comments / Post A Comment

EM (#1,012)

Nieves’ story was so sad. I hope the coworker who “jokingly” tripped her and basically destroyed her physical well-being/actually destroyed her ability to work feels like a total asshole forever.

ThatJenn (#916)

I recently finally sat down and really looked at my retirement savings and where they might be if I continue as I have been or make various adjustments in my savings. (The answer is that I’m almost certainly OK if I can get some growth, on average, and don’t have any major disasters, including the potential “disaster” of going into a lower-paying career I care more about.) It’s scary, though, and since all of my working years have been during this recession/post-recession I keep laughing at the idea of an average 3+% growth (also, a lot of those calculators assume you’ll get a raise every year, LOLz – not this state employee!).

sventurata (#27)

@ThatJenn Right there with you. The base rate for my retirement plan savings is 0.05%.

Not 5%. 0.05%.

There had BETTER be some 10-15% years before 2050 arrives.

Sloane (#675)

@ThatJenn Good news is that consistently buying now, while prices are generally low, means that you have a lot of room for growth. I think it was Warren Buffet himself who said that young investors in down economies profit because they buy low and have a long time to see returns.
I’m with you on the lack of raises though – haven’t had one in more than 3 years, and it’s not looking like I’ll get one any time soon.

deepomega (#22)

Just imagine a world where you invested your retirement savings and then the money got bigger. Hilarious!

sventurata (#27)

@deepomega My retirement savings account honestly feels like a black hole. Maybe because I can’t afford a house or car yet either.

I do not have much in retirement savings (about 5k at the end of this year? Maybe a bit more) BUT I’ve been working less than a year and am supporting myself and my boyfriend right now. I have NO savings goals but I’m paying all my bills so – I’ll take it.

I have also gotten the “We’ll make it work” response from my parents. I know the burden to help them will fall on me when they retire. They both supported their parents in the late stages of their lives, and I’m an only child. What frustrates me the most is when I see them save enough money to go on vacation, or worse, buy me birthday gifts, because I know down the road that is money I wish they had saved so I wouldn’t have to dole it out.

TARDIStime (#1,633)

*sigh* “We’ll make it work”.
My mum’s retirement plan is for me to buy a house, build a Granny flat out the back and live with Mr TARDIStime and me.
I’m OK with that in theory, but I have no idea if a)Mr TARDIStime will go for that, b) We’ll be able to afford that plan (given our current career trajectories, this is a VERY ambitious plan).

cmcm (#267)

My retirement plan is to just never retire and work until I die.

Daniel B (#2,486)

Stories like this scare me…. None of these women have saved anywhere near enough money (some even seem to feel proud of the little pile that they have saved).

Comments are closed!