Upcoming world retirement crisis

[TX Bill]

Disagree on SS, but I'm screwed otherwise. Will be working until I die. Made some poor investing/financial decisions and it's cost me.

You may be right on SS. I'm thinking that by the time you and I get there, it'll have some sort of income means testing and if you earn enough on investments or other income, then you may not collect the full amount that you may have been due otherwise.

Only way to solve the problem is by living in a Star Trek world. But sadly that goes against two fundamental characteristics of those who control life - namely greed and selfishness.

I'd love Star Trek world. Transporters. Phasers. Drooling here.

I agree with this advice. Born into the middle class and my parents moved up, so I've had a (relatively) easy go compared to some, but I've never been part of the pension world. Any American with a job that matches retirement benefits who does not fully invest in these plans is making a major mistake. At my job, I get 3% match, which doesn't seem like much, but it's free money. If I invest 9% of my income (pre-tax), I get 12% total invested. Given that my portion is pre-tax, (roughly $.70 on the $1.00), I essentially get my investment doubled from day 1 (6% take home pay = 12% benefits). So long as you take that and put it into a broad index, and earn on a tax-deferred basis, I don't see how you beat that scheme.

The tax deferral is the key as well as any matching you can take advantage of if provided by your company.

The musician's code is very much play til you drop, unless you can write something (which I haven't). Luckily I had the foresight to smoke and drink heavily for 20 years thus dimishing my pension burden on the state

Love this !!!

The private or job pensions go to their next of kin.

At the risk of being morbid my sisters fatally ill and is the main provider for her family so when she gets into her last six months she won't financially be able to afford to quit work because her family need that pension and it's only valid if she's still working at her job when she dies and since she's fatally ill she can't get life insurance, obviously. So she'll have to drag herself in to work at least like once a week even when on deaths door. just so they can't cancel her pension and so her kids can get the payout.

It's pretty grim.

Very sorry to hear of that.

It's ok saying put money aside for retirement but there are millions in **** paid jobs that can barely afford to survive now let alone put away for the future. This needs sorting but never will be unfortunately.

Exactly and that's why I was careful to put "realistically" in my initial post.

I understand that there are many people and probably quite a few on here that live paycheck to paycheck so saving may not be a viable option at this point.

 

[johnnydawg68]

beezer, it's more like how much life you can pack into those years. It's the life for some, for others not so much.

Someday, you'll be like so many of us "if I have known I'd live this long, I'd have taken better care of myself." I didn't have two nickels to rub together until I married an accountant and started thinking like a programmer. You can get a plan and some dosh together if you have two incomes and both save to a target. Tax law has lots of ways to encourage this, but I don't know how it works specifically for the UK. In your biz, your advantage is that you can jackpot on something now and then - you hit on something you write or get a dream gig for awhile. Save it, and don't piss it away - keep living just as you were. That's how you do it in that case. Easy to say, really tough to do. Don't know how singles manage - I know I didn't when I was single.

As always, YMMV.

It's a horrible reason to get married, but it has to be said if I'd gotten married, or if I get married any financial struggles I have would go out the window.

 

[rascal]

David Cameron pledges to 'protect' state pension

http://www.bbc.co.uk/news/uk-25609485

Only one reason for him to pledge this - old people vote. It makes bugger all sense otherwise.

 

[Brennan]

Plan to start saving as soon as i get back from travelling, even if it's only a small amount. Have no idea how best to go about it though.

 

[The Esk]

Ultimately in order to retire with a reasonable income you have to acquire assets during your working life. Depending upon your employment status those assets may be - final salary schemes (increasingly rare), personal pension plans, a business, or property/properties other than than your principal residence.

Each has pluses and minuses - for me I have always believed my businesses are better than other forms of pensions investment because (i) I believe my businesses create a better return than professionally managed funds (ii) I control my businesses, (iii) I can decide when to sell them or indeed pass them on to my children.

Acquiring assets is the key though - without assets, no income, no pension.....

 

[Big Doug]

In Britain's case certainly, the future for the younger generation and some of ours in having a comfortable retirement/nice house is basically "inheritance." This was highlighted in the media a few backs how apart from the well off and intelligent/skilled individuals of our society a large proportion of us/future generations wont be able to afford to buy their own house/retire comfortably without running into family inheritance, be it cash or your parents owned house going to you. Sad but that's the way it is. Ive got a bit saved and currently rent (looking to get a mortgage in the next couple of years) but right now its tough lads

 

[ricardobee]

beezer, it's more like how much life you can pack into those years. It's the life for some, for others not so much.

Someday, you'll be like so many of us "if I have known I'd live this long, I'd have taken better care of myself." I didn't have two nickels to rub together until I married an accountant and started thinking like a programmer. You can get a plan and some dosh together if you have two incomes and both save to a target. Tax law has lots of ways to encourage this, but I don't know how it works specifically for the UK. In your biz, your advantage is that you can jackpot on something now and then - you hit on something you write or get a dream gig for awhile. Save it, and don't piss it away - keep living just as you were. That's how you do it in that case. Easy to say, really tough to do. Don't know how singles manage - I know I didn't when I was single.

As always, YMMV.

Mate, love your input as always. i wonder how old you are, probably a few years ahead of me. I guess you were a pro sax player judging by tour posts, then settled down and gave it up for a proper job (inverted commas)

I have a mortgage and it'll be paid off, as the song goes, when I'm 64. I got this due to the fact I hooked up with an air hostess some years back, and we chipped in together for a battered old house, which I've since done up so the property is worth much more. Maybe I'll sell it and downscale if I'm sick of music or am too unfit to play, but that's not happening. I have no pension, and I don't regret it. I plan on playing til I drop, like all the great musicians did.

To be fair, I'm quite happy with this option, as I seem to be getting better as I get older (as I'm still practising hard)

anyway, sell me that MBII you f*cker xxx

 

[Gwladys St. Glory]

I should be ok...state retirement plan (which is required by law to be balanced every year), 457 plan and Social Security (if it still exists or is worth anything when I retire). Have other assets but those will be the bread and butter for monthly income unless things change.

 

[ricardobee]

beezer, it's more like how much life you can pack into those years. It's the life for some, for others not so much.

Someday, you'll be like so many of us "if I have known I'd live this long, I'd have taken better care of myself." I didn't have two nickels to rub together until I married an accountant and started thinking like a programmer. You can get a plan and some dosh together if you have two incomes and both save to a target. Tax law has lots of ways to encourage this, but I don't know how it works specifically for the UK. In your biz, your advantage is that you can jackpot on something now and then - you hit on something you write or get a dream gig for awhile. Save it, and don't piss it away - keep living just as you were. That's how you do it in that case. Easy to say, really tough to do. Don't know how singles manage - I know I didn't when I was single.

As always, YMMV.

I'd love to hear your story mate, are you a scouser in exile?

 

[ricardobee]

my dad retired, but he now works 4 days a week as an advisor and he's never been happier. [Poor language removed] retirement, my dad says wear out not rust out, I'm with him

 

[WA Toffee]

In Australia, it is compulsory for employers to pay 9% of your gross wage into a superannuation fund - this is being steadily increased to 12% over the next few years. So for someone earning 100K per year, they will get 12K put into a pension fund every year, with annual returns typically about 10%.

All adds up to a tidy sum upon retirement and reduces the burden on the state

 

[Gwladys St. Glory]

my dad retired, but he now works 4 days a week as an advisor and he's never been happier. [Poor language removed] retirement, my dad says wear out not rust out, I'm with him

I'm sure I'll do something just to pass the time but I want that to be an option, not a requirement...you never know if you'll be physically capable later on, for whatever reason.