How prepared are you for retirement? If you’re like most Californians, you probably do not yet have enough saved and/or are realizing significant enough returns from your retirement investments to enjoy a comfortable retirement. Tell us about your situation and how you’re dealing with it. Also, give us your views on whether readers and/or the government should be doing more.
By Conduit Staff
Respondents to this week’s question seem to be above average in their preparations for their golden years.
According to national reports, a significant portion of American workers are not financially prepared for a traditional retirement and say that they plan to continue working well past the age when most would consider stopping working.
While certain sectors and professions offer pensions and employer-matching funds, many companies provide such retirement funds as part of their employee benefits packages.
One respondent said he was in pretty good shape and likely won’t have to hock the gold watch he received at his retirement party.
“While, after decades of careful savings (no big house, no fancy cars, etc.), we have enough to live well in retirement. The wage gap, the college loan situation, and the continued dismantling of the social safety net does not bode well for following generations. Social Security should have no income cap on tax contributions. Single-payer health care for all, the restoration of welfare and programs of retraining or reentry are needed to assure that our children have a prosperous future. Government on all levels needs to remember the people. Most people live paycheck to paycheck and slightly less than half of the population cannot come up with $400 of uncommitted money in an emergency! (Source: NY Times 7-20-18). Priorities need to be adjusted.”
Another person said he was already retired but worried about how steady the Social Security system is.
“After life-long planning and savings, I'm retired with adequate income. The government should strengthen Social Security and expand it by more heavily taxing higher income tax-payers,” wrote the respondent.
Yet another wrote that after 11 years with her current employer she is steadily getting her retirement finances together.
“My employer contributes 5 percent of my income to a 403(b), and will then match my own contribution of up to 4 percent with an additional 5 percent (i.e., a 1.25-to-1 match). I contribute another 5 percent and also put a small amount into a Roth IRA twice a month. My total retirement savings are around $200k.”
This survey respondent also offers this good advice and comment:
“Readers should make every effort to save something for retirement each paycheck, no matter how small the amount. Ideally, we'd all have pensions.”
It’s hard to argue with that.