If you need 100% of your income inorder to retire than how could anyone ever really retire?

Question

They expect people to save for retirement when they do not make enough currently to even meet their bills. How can these economic morons think people really make enough to even plan for the long term?

We don't go out eat, we already have cut everything down to the bare essentials. We are lucky to eat one meal a day. We're frugal to the max we don't even have a T.V. and the only reson we have a computer is to look for jobs. Yet everything goes to utilities and our mortgage payment. I don't expect to ever pay off our house and it is sad, but believe it or not is cheeper for not to rent.

Answer 1

It is pretty unbelievable that solid economic advise like saving some of your income can be taken as moronic. What do you think a good plan is? Live a life of barely meeting your bills until you drop dead at work. GFU, but it's not everyone's plan. The power of savings and investing is phenomenal. You start out small, you don't EVER touch it, and you put your money to work for you rather than you working for your money. But I'm giving you good advise again, and you'll probably characterize it as moronic because planning an economic future is clearly not a priority for you. I wish you luck, you're going to need it. So I'll ask you again, if saving is stupid or impossible, what is your plan? (PS, I retired at age 55).

Answer 2

First of all one must learn what money is. Once you learn the real meaning of money your next step is to learn how to make it. The best way to do so is from those who already know how. (The honest way and within the law)

But most of all --- all these people who need 100% of their income to survive must wake up to the fact that trading their time for money (aka as employment) is the surest way to the poor house and riskiest way toward security in retirement or in the best of cases Just Over Broke, that's why it is called a JOB.

Anybody out there that is financially independent used part of their money wisely to work for them and the majority changed their status from an Employee to an Employer or better yet an Investor. Anybody can start with this book Rich Dad Poor Dad. (By the way I retired at 45 debt free. To me the meaning of retirement is not a rocking chair but ... to be financially independent at any age, able to do what I want to do when I want to do it and have plenty of time and money to do it.)

Answer 3

Those economic morons know that with a complete spending plan analyses anyone can afford to retire. The first step is stop spending all of your money. What have you bought in the last month, that you "couldn't live without"? Did you ever think that since you have lived without that thing for the last x-teen years, you could really live without it for the next 50 years? It takes a whole new kind of mind set to establish a retirement fund. Are you willing to make some changes in your life that will result in some changes in your life being made? Are you willing to live like no one else, so that later you can live like no one else? It takes work.

Answer 4

Many people are able to retire on less because they paid off their house .
They have No More Mortgage !
( that 100% is Not absolute just a desirable goal )

I do know a bunch of people , however , who will have Higher incomes when even a couple of their retirement plans are activated .
Several , however , made the mistake though of going with regular IRAs instead of Roths ,
Soooo , those payouts will kick them into even worse tax brackets .
Proper planning , and they would have gone with Roth !


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Answer 5

I think sometimes we think we cannot save for the future, but a lot of us spend money where it's wasteful, like eating out too much. I think there is a way we could all save that works for our own lives. Whether it's 10 a month, or 300 a month.
Also, I think there is an article on the Yahoo! homepage talking about how saving pennies can't benefit your future.

Answer 6

That's easy.

You need to focus not on cutting your expenses to the bone but INCREASING your income.

You could get a second job.
Invest 1% of your salary in the Stock Market.

If you get an MBA then you will make at least $100,000.00 USD per year.

Work less (I know this seems dumb because you don't make it wih your current salary and it will be harder if you work for less time AND less money) but if you work only for a few hours a day perhaps you can go to the Community College after work and actually get a degree and then after graduation you will make more money.

Answer 7

I think the key to the problem is in the fact that people are looking for jobs. You need a plan. Find out how much you actually need to live on. Target jobs that pay above and beyond and find out what it takes to qualify for those jobs. Do whatever is necessary to Qualify. Do NOT give up.

Answer 8

The IRS doesn't want you to retire. I personally think it's in response to all of the baby boomers that are about to retire. That's an insane amount of people leaving the work force. Though it will be good for us spring chickens because a lot of really good jobs will open up.

Retiring is not going to be a viable option in 20 years. It's sad but it's true.

Answer 9

priorities, mutual funds, IRAs, CD accounts, 401Ks and long term investments.

A lot of it comes with discipline, budgets and goals

I'm doing it and I think everyone else should too and not rely on the government's help once they retire - it might not be there

Answer 10

If you're not meeting your bills then you either need a better job, reduce your bills (lower standard of living or whatever), or both.