If you are over 50, how much do you have saved for retirement? anonymous of course

[Jillpie]

I am so curious whether we are on target with everyone else. Thanks!

 

[cvjw]

You should have a higher option. We would not feel set with $500,000.

 

[georgina]

Yeah, my mom lived to 96. I also don't feel that $500,000 would be anywhere near enough, unless you have a super duper pension. Cost of healthcare is what scares me.

 

[kdonnel]

I am under 50 and have significantly more then your highest category saved and I need to double what I have saved to retire with the life style I want. I have no pension if that makes a difference. My wife and I have worked with a financial planner since our early 20's to work towards retirement. Saving for retirement has been part of our lifestyle for a very long time.

 

[tvguy]

You should have a higher option. We would not feel set with $500,000.

I agree. I would not have felt set at 50 with only $500,000.

 

[Sandeep1]

This is why you see a lot of retired people moving abroad as the dollar goes a lot further. I'm sure people will bring up inferior medical treatment but it is what it is.

 

[tvguy]

This is why you see a lot of retired people moving abroad as the dollar goes a lot further. I'm sure people will bring up inferior medical treatment but it is what it is.

Guess it depends where abroad you go.
A co-worker and his partner retired to Mexico 10 years ago, to a condo they have had for 25 years. It was an area they felt comfortable in for over 20 years, but the crime just got so back that they just moved back to the U.S. The inexpensive and what they felt was top quality health care they got in Mexico they say they will miss. But the soaring stock market the past 2 years has given them some cushion financially to buy great health insurance here, and a nice home they could not have afforded before.

 

[mnrose]

By the time you are 50, you probably should have closer to 2 million if you expect to have a comfortable retirement. 500K isn't going to go very far in the 30+ years that many of us will be retired. Assuming inflation of 3% and a rate of return of 5%, that 500K would give you 1844 per month. Combined with other pensions/social security, maybe that's enough....maybe not. For me, personally, not a number I'd be comfortable with AND I have a pension, and hopefully will draw Social Security. On the other hand, my hypothetical 2 million gives me 7700 per month, which is far more comfortable. Especially given the way the cost of medical care and long term care is going. Remember, Medicare does not pay for all medical expenses.

If I had 500K, I'd seriously be looking at retiring in a lower cost country. It's a myth to say that medical care isn't as good. The only difference is that it costs a fraction of what it does in the US....and that's assuming you go cash pay in the other country. Often, your total OOP in the foreign country on a cash pay basis is LESS than your co-pay and deductible in the US.

 

[mnrose]

Guess it depends where abroad you go.
A co-worker and his partner retired to Mexico 10 years ago, to a condo they have had for 25 years. It was an area they felt comfortable in for over 20 years, but the crime just got so back that they just moved back to the U.S. The inexpensive and what they felt was top quality health care they got in Mexico they say they will miss. But the soaring stock market the past 2 years has given them some cushion financially to buy great health insurance here, and a nice home they could not have afforded before.

I chose random dates (the same one) two years apart. Jan 19, 2017 and Jan 19, 2019. The stock market was up 20% in that time. Fact (19804 to 23787). So, if I had 100,000 invested in the market, on average, I'd have 120,000 today. If I had a million, that's an extra 200K. Certainly that's better than losing money over that same time period. But, it ain't that special. My big gain in my 401K came from the period 2008 (and I count pre-crash) to Jan 2017, where my 401K way more than doubled (200% growth). That is what has made me comfortable. And, like I say, I even count the massive loss I had from 2008-2010 in making the comparison. If I compare my Jan 2010 401K to my Jan 2017 401K that would be one super-impressive rate of growth....more than 3X the value (300% growth).

As for your friends, either they've found some cheap insurance or their in a cheap housing market or both if the market the last two years has made the difference. If you are counting the last 10 years, I might believe the market rising has made the difference. Or they have a lot more than that saved. Buying insurance for my husband and I would cost us in the neighborhood of 24,000 a year. More if we put our adult but under 26 children on the plan. That alone is what keeps my husband working for the next 5 years. We are both 60 and do not quality for Medicare for another 5 years (roughly). So, that would mean in the neighborhood of 125000 out of pocket to buy insurance, plus substantial OOP costs (since that money buys us a high deductible plan). That's a bite we do not wish to take if we can avoid it.

Just finding it hard to believe that your friends are making this decision on the "soaring" market in the last two years alone. The last two years "alone" have done nothing to alleviate my concern about affording health care or made it possible for me to buy "nicer" home....and I've got way more than a million bucks in my retirement plan.

 

[cedricandsophie]

We are very blessed. I retired at 55 with a lot of stock and that was 14 years ago. My husband is an attorney still working. We have almost $6 million. If it was just us it would be more than fine. But we have a disabled daughter in her early 30s. We need as much as possible to ensure her life continues just as it is today.

 

[tvguy]

I chose random dates (the same one) two years apart. Jan 19, 2017 and Jan 19, 2019. The stock market was up 20% in that time. Fact (19804 to 23787). So, if I had 100,000 invested in the market, on average, I'd have 120,000 today. Certainly that's better than losing money over that same time period. But, it ain't that special. My big gain in my 401K came from the period 2008 (and I count pre-crash) to Jan 2017, where my 401K way more than doubled (200% growth). That is what has made me comfortable. And, like I say, I even count the massive loss I had from 2008-2010 in making the comparison. If I compare my Jan 2010 401K to my Jan 2017 401K that would be one super-impressive rate of growth....more than 3X the value (300% growth).

Helps that my co-workers partner was a Stock Broker for 40 years.

 

[Floridaman999]

We have plenty.

 

[mnrose]

Helps that my co-workers partner was a Stock Broker for 40 years.

Don't care. I'd bet anything that it's not the last two years, but more like the last 10 years that have made the HUGE difference in their comfort level. That's my only point. Let's not forget that growing from 6443 (low point in 2009) to 19804 in 2017 is FAR more impressive and FAR more substantial than the 20% we've experienced since then. It's just irritating that people seem to have "forgotten" that one while we all "celebrate" the last two years.

 

[QueenIsabella]

I agree with the PPs--half a million isn't going to go real far, unless you have a nice pension. Health care is the biggest question mark--better to over-save than not save enough. Luckily for us, we're in good shape.

 

[arminnie]

My medical expenses are not high post retirement (65). I am in my 70s. I see lots of specialists and have an extremely rare neurological disease. My out of pocket expenses (over part B Medicare) are less than $1000 a year including drugs. Probably closer to $500.

I pay 0 for my supplement which also includes dental and vision. I pay $25 to see a specialist. I could even get free rides to the doctor if needed. I take a handful of drugs but one has a $35 copay and the rest have none.

But I live in a city with 2 medical schools and see doctors through a great hospital system.

 

[Cubbiecakes]

My medical expenses are not high post retirement (65).

Generally the last 2-3 years of life eat up the most medical expenses. Have those end-of-life discussions with your kids/family/heirs now before you're mired in it.

 

[Frwinkley]

I think people do the very best they can do. My parents had nothing--my father made $12,000 and he and my mother had 4 children. He didn't begin to save for retirement until about 15 years before he retired. Neither he or my mother were college educated. My mother took a job with the state of NJ as a secretary when my youngest sibling was 16. When my father retired at the age of 67, he had a little over $100K in his 401k--he thought he was a millionaire. My mother continued for work for a few more years. My father has since passed away, and my mother now has Alzheimer's. She lives very comfortably and happily in a wonderful memory care facility. Her care costs $6800 a month. Between her pension, SS, what my father left her and the sale of her home in NJ (about $240K), she has enough money to live comfortably for another 15 years. She's now 76 years old. She has wonderful healthcare through her previous employer. My siblings and I hope she exhausts every last penny--her children want for nothing. We feel blessed that she is living her days well.

My point is this--not everybody needs/wants a 2nd home, nor do they want to travel the world endlessly, or leave a small fortune to their children.

I hate to see people made to feel badly that they haven't saved enough.

 

[Kitty 34]

I picked $250 K and climbing because at 50 (15 yrs ago) we were definitely still climbing!!!

 

[morgan98]

I agree that the numbers for the poll are not high enough for some respondents. I also do not feel asking on the DIS is a good cross section to "know if we're on target with everyone else." And then because it is the DIS, a bunch of people are going to answer $10M.lol!

I would consider a less stressful job starting today if it was not for the uncertainty of medical expenses. We are also considering moving abroad. Our biggest decision is when I should retire. My husband is 10 years older than I am and I want to enjoy some non working time with him. We do not have children,and while it may be nice to leave a little something to a couple of nieces/nephews or to a good cause, our goal is to retire ASAP and die with just about $0 the bank. I understand the fear of running out of money, but I do not need to die with $2M in the bank either, because I was afraid to retire too soon.

 

[tvguy]

Don't care. I'd bet anything that it's not the last two years, but more like the last 10 years that have made the HUGE difference in their comfort level. That's my only point. Let's not forget that growing from 6443 (low point in 2009) to 19804 in 2017 is FAR more impressive and FAR more substantial than the 20% we've experienced since then. It's just irritating that people seem to have "forgotten" that one while we all "celebrate" the last two years.

Well mine soared also in the past 26 months.....fell back at the end of December, beginning January, recovered in at the end of February first part of this month.
But I have only about 40% in stocks.