Retirement: 10 years left, 0 savings - Money Magazine
Um, how scary is this? Walter Updegrave from Money Magazine is trying to help these people who have 10 years left until retirement…and no nest egg. First piece of advice? Start saving…like crazy. “If you save $500 a month for the next 10 years and earn an 8 percent annual return, for example, you’ll have a retirement kitty of more than $90,000 before taxes. If you can manage $1,000 a month, you’re talking $181,000. Neither sum is enough for living large. But both are better than going into retirement with nothing stashed away.”
I cannot imagine being 50 something years old and not having a dime for retirement. I imagine there are quite a few people that find themselves in this position, so hopefully this article will be of some help to them. But really, the part that got me, as well as Mr. Updegrave, is that these people actually think they WILL be retiring in 10 years; that is what their letter said. It actually says:
Question: My husband and I are retiring in 10 years, but haven’t set up any retirement accounts….
Um, maybe you won’t be?
Anyway, check out the article, if only to read their question and his first response. Scary.
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5 Comments so far
My parents are a good example of a couple nearing retirement with little to no retirement savings (they’ve only got about $30k saved, and my father is 55). I worry about them everyday, and have slowly come to accept the fact that what will likely happen is that when they can no longer work (which will likely happen in the next 10 years, especially given my father’s health), myself and three other siblings will end up helping to support our parents. I really don’t know what else they’ll do… they still have a hefty mortgage, a great deal of debt, and barely make ends meet as is. Like I said, I worry about them every day…
Simple answer is that in ten years time these folk are going to be unemployed, NOT “retired”. I don’t have much sympathy for most people in this situation - usually they have chosen not to defer any of their daily consumption up to now, which is why they have no retirement savings accumulated. It’s their choice, just live with it and stop complaining!
Regards
http://enoughwealth.com
Therein lies the problem, EnoughWealth, they don’t have to deal with it, their kids will or us, the taxpayers. Its a shame people don’t take responsibility, but really, if they don’t do it, the government will, which means you and I. That is why it is so important for everyone to become educated on this stuff, whether by your kids teaching you, or a mandatory class, or something!
My husband and myself are starting late in the game when it comes to getting prepared for retirement. Hubby has NO retirement. Very scary for me. I have been putting away 12 percent of my salary in the 401k (unmatched) and contributing a smaller amount to my Roth.
Hubby has plans….. we shall see. (Some men just don’t see it or get it)
The most important thing Missy is that you are doing something, a lot of people have been in your position and caught up. Good luck!