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Money In The News: 25% of Retirees Have No Savings

CNN Money has a sad but stark reality article on how 25% of Retirees have no savings.  This particular topic is of great interest to me, because of the situation my father is in.

More than half, 53%, said they were not confident that they will have enough money to live comfortably in retirement.

My father is a prime example of someone who did not prepare for retirement at all.  Not because he wasn’t planning to retire, but it was a procrastination of “I’ll take care of it later”.  At the age of 53 he was forced into retirement due to a medical condition and has been on disability ever since.  He worked in concrete for 40 years and now had no retirement, no pension, no savings, and has since been living on disability paycheck to disability paycheck.

Fortunately for him he has someone (me) to take care of him.  He lives with me in my house and helps out a lot where he can, which helps me out.  But what if he didn’t have any children?  I’m sure one of his siblings would take him in, but they are of the same generation, so if something were to happen to them then it becomes a more volatile situation.

I feel for the older generation these days, with such an unsteady economy.  Having some income on the side, even if you think you can hold out for the recession to end and for things to pick back up, would be a great way to sorta enforce your retirement plans.

The worst part about -my- generation (Generation X – in their late 20’s/early 30’s) is that many of us were born a little later so that when we are ready to go off to college or starting young families, some of us have to take care of retiring or medically handicapped parents at the same time.  That puts an extra stress on us financially.

So what is the current retiring generation to do?

About Crystal Groves, Google+

Crystal Groves is a farmer, web developer, musician, blogger, and personal finance enthusiast from the back hills of Maryland and Pennsylvania. She started Money Drain as a project to encourage people interested in fixing their financial situation to share their stories and learn from the stories of others. We all make mistakes, but in order to change we have to make changes.

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9 Responses to Money In The News: 25% of Retirees Have No Savings

  1. Pingback: Money Drain: Trying the “Get Rich Quick” schemes lost them everything | The Money Drain

  2. Matthew says:

    I guess just diversify your investments and hope for the best. Housing is a wreck now, but I believe long term, it is still a good investment as long as you do not treat it like an investment. Eventually, if you don’t leverage your equity in your home, you will own it and the largest monthly obligation you have will disappear. Property will always have some value, which can’t be said for cash money or stocks for that matter. You can grow a garden on your property for food and your house provides shelter.

  3. Matthew says:

    What you are doing is actually how the elderly were taken care of in this country. You have kids, raise them right, give them as many opportunities as possible, and later in life, they take care of you. Nowadays, families are much smaller, spread apart, and broke. There are actually so many things to say on this topic. Our generation is going to go through a turbulent transition. The age of the pension is over. Soon the age of social security will be over. We are told to save our money for retirement, but where do we put it? A savings account will not even keep up with inflation. Stocks aren’t much better than going to a casino.

    • You are very correct on many points. I have no faith in social security and can’t plan my retirement future to include it. I have my 401k and Roth IRA but who is to say what will happen to them by the time I’m at the age to retire?

      You touched on a point I hadn’t thought about as well, smaller families (or even families with no children). My father was one of 7 and my mother one of 6 siblings. My grandmother was one of 15 even before that. I was an only child for my father (half-sister from my mother), so I’m essentially all he has so I have the sole burden.

      It’s scary thinking about what will happen. In a way I feel like it’s going to be necessary to keep investing, keep saving, have no debt or mortgage, and then also invest in my skillsets so I can have a backup side business or something I can do in my elderly years to pay for the minor essentials like taxes and food.

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