Wife and I went to our local Social Security Office yesterday to check on my wife's FRA retirement benefits she had applied for, but hasn't go yet. Hopefully, got it straightened out..........hopefully! Anyway, while sitting there waiting for our number to be called, the Office Manager spoke to everyone. One of the things he talked about was how Social Security Retirement was never meant to be the only retirement a person should have. He mentioned personally saving for retirement and 401k. I think a number of folks were probably thinking, "Social Security is the only retirement income I will have and that's that". Most likely there were some in the room that are lucky enough and get a Pension and SS. And, there are those, like my wife, who are working a full-time job and are going to get, or getting, SS as well. Since she is over FRA, she can make any salary she wants and not have anything taken out of her SS. What I thought was sort of funny is, when I looked around at the people, after he mentioned that SS was not meant to solely retire on, how these people's faces looked. I didn't, but thought about looking at him and commenting, "Sir, do you have any idea how many people have to rely only on their SS for retirement?"
Yes I agree totally Cody....50 years ago the average blue collar worker was earning barely a living wage certainly few had anything to save in a private pension pot and probably even less were advised to do it..but they knew that at least at the end of their working lives they would be given a retirement pension from the government for everything they'd paid into the pot, and they were led to believe that it would be sufficient for their needs in old age.. There were some who worked and put a little away for when the time came to retire and found that when they did, that they had gone over the SS limit..and were entitled to less financial help than those who put nothing away at all. We in the UK don't have a 401k plan, I wish we did...so it's entirely up to an individual ..whether to create their own financial plan, or in fact if they could ever afford to.. In White collar companies it was by and large a different matter, the company paid a certain amount into a pension plan and the employee could add to that if they could afford to....we were fortunate in that my husband did this, and we have a bit of a cushion when he retires...but I know many many people who simply couldn't afford to, and are now solely reliant on benefits of some type in their old age, and really struggling to make ends meet . In recent years it has become common for companies white and blue collar to create a pension scheme for all their employees but it certainly wasn't the case up until very recently so everyone retired now or coming up to retiring, are affected one way or another..
As someone who lives solely on SS these days, I know the tight budget problem well. I have a little life insurance since my husband died, but it has to be for emergencies and taxes only. It has taken me a while to fall in line with the lifestyle (translation, money crunch) that I need to be living .... I think I'm there now {{{{knock on wood}}}} Have thought of PT jobs, but fact is, no one hires someone retired for 10 yrs. Isn't going to happen. All in all, I'm not complaining. As long as my health is fairly good and I don't get hit with unexpected things, SS should keep me. ....even tho this year SS didn't go up any, but general expenses did. (there's always that..)
The manager was correct. Social security was never meant to be a retirees only income. As mentioned though many people had little money to put aside for retirement. 50 years ago, though, almost all employers had a pension fund. Most don't today but the 401k is a better deal anyway. I wish it had been available all of my working years.
I live on my widows benefits but my children help. I'm content. I don't need much. What can be a problem for most seniors is the unexpected big expense item that can hit you.
Even though we have 401k savings, from my wife's last job and current job, a lot of that will be used up for our move in the future. After that, unless we both get part-time jobs, we will be living solely off of SS. By that time, however, we will have downsized quite a bit and have only one vehicle. Our future health, and finances, will also dictate our future boating. One thing I do know, we'll have to continue paying for health insurance. Like some Baby Boomer's, for one reason or another, saving for retirement at a young age, never happened. Like the gentleman said about SS not being meant as the only retirement income, that's just what it has to be for some.
Yes, things happen. We had a nice savings account about 10 years ago, thought it looked good for the future and retirement. But my husband's health problems wiped it out... between doctor/hospital bills. ...even with the best insurance coverage. And that insurance coverage was costing a small fortune too. Luck of the draw .....
Dear Lord Bonnie I'm sorry to hear that happened to you.. and I do know this is a very real danger for senior Americans where they have to be very concerned that if their health fails then all your savings will be eaten up in Medical care..that's my total understanding of the American medical system although I know that it's complicated... Although our NHS system is far from perfect, at least it's free.!!....so we don't have that worry of our savings being eaten up by medical costs and insurances...
My husbands last bill was $600,000! When I got it in the mail I though it was a catalogue, that's how thick it was. He had medicare and I think I was able to get him mediCal, something Ca. has or had, think that was one of our reasons for moving to CA. Apart from it being close to my daughter. He was already sick when we left Hungary. Anyway, I didn't have to pay a penny of that. I did look at the bill and it's really a crime what they charge for. They knew he was going to die but kept him in the hospital for a month. Every time I visited, I saw the cans of ensure piling up in his room. He wasn't drinking any of them and they charged for all of it. There were many other charges like that but I didn't argue it because I was happy I didn't have to pay $200,000. I couldn't have anyway.
Even when a person is able to set money aside, as @Bonnie Thomas mentioned, all it takes is one disaster to wipe it all out. I certainly never thought I would be in this predicament. Despite what the government says, the cost of living has increased significantly, and wages and social security have not increased accordingly. When families and individuals are struggling to survive from paycheck to paycheck, there is no way to save, and many I know who were able to set some aside (including myself) have had to tap into and/or wipe out their savings and/or retirements to cover unexpected expenses, including medical costs. It's a sad state of affairs in what many consider to be one of the wealthiest nations in the world.
There was a time when most people might have changed jobs a few times early in their working life, then settled into one job that they remained at until retirement, at which time they had a retirement income. That rarely happens anymore. Even those who desire to do so are frequently forced out before becoming vested in a retirement policy, and companies go our of business more frequently today, as well. The town of Millinocket offered a retirement plan for its employees until recently. After the mill, the town's primary employer and taxpayer, closed, the town quit paying on its retirement plans. Although it appalls me that the court would rule so, the retired employees lost their appeal to the court, and are left with nothing. So even those who are receiving a retirement income are at risk.
Years ago, I had a friend who worked for the County of Orange in So. California. She worked the amount of years she needed to in order to get a retirement pension from them, but the County declared bankruptcy right before she retired. She ended up with a big fat zero for a pension. Talking about being upset, but absolutely nothing she could do about it.
I have worked since I was 14 years old. I have never had a job that paid for holidays, health insurance or anything special. Pension was a concept that had no basis in reality because there was nothing to put into it. I felt pretty guilty about that for many years, until I watched people I know that scrimped and saved LOSE ALL THEIR 401K FIRST WHEN THE DOT.COM BUBBLE BROKE AND THEN AGAIN IN 2008! What could is savings when the only vehicle available is really no better then the casino? I don't really worry about retiring, no matter what I do the day will come sometime. It is true that as you get older your options for what you can do career wise starts to narrow. With the cost of things these days it is almost impossible to even afford the bare bones basics. You get used o it, eventually you just decide that all those bells and whistles are really not worth what they want. basic food is better then eating out and convenience is really not all that convenient I think the saddest thing or anyone is to do everything like your suppose to and still be left with nothing to show for it. It bothers me that wages today are the same as they were back in 2005 for many positions that are far from entry level work. In this part of NY they have been trying to push for a $15 minimum wag for fast food workers, what is sad is this is the same amount we pay people like ambulance drivers and many other career positions. It is not a lot of money and I do not blame the fast food workers for wanting it. Seems like this will be the last step in squashing out the middle class.