Retired too early

[Radar]

It is really sad but a majority of American workers don't start to seriously save - if they do at all - until it is much too late. Latest statistics show that the median retirement savings at age 65 is about $150,000. (and that's the median!) There was a time when a man retired at 65 his remaining life expectancy was less than 10 years so having a large amount saved was not as important. You now have to save enough over your working life to live another 20 years or more. Even in this time of low unemployment and rising wages, about 60% of American household could not come up with $1,000 if they had a financial emergency.

Yes sir, I can believe that.

I can also tell you that I see so many of my younger customers raid their 401k for the stupidest stuff. I guess if you have hit hard times and you have no choice but to withdraw from your 401k is one thing, but I have seen guys in their 40's raid their 401k for a down payment on a 70k dollar pick up.

[quarterback]

I know hindsight is 20-20 but probably the ol boy should have used some of his 401k money to purchase his Cobra plan till Medicare kicked in. But then again I have no experience with this stuff.

At 63 I would think he faces stiff tax penalties if he starts tapping into his 401k plan. Maybe that's why he doesn't consider that.

[topher]

Tough decisions are coming when retiring for all. May we make the best choices.

[Cajun Blake]

Walmart is full of door greeters that thought they hated their job and wanted to retire.

Walmart is phasing out the door greeter position and inventory personnel. Inventory is now being done by robots. 2 additional ways WM will cut costs to be more profitable since they are feeling the pinch from Amazon

[Rush2Judge]

This is a really good thread and one I am afraid we will see way too often over the next 5-10 years. It's easy to say "start saving early". That's exactly what I did 34 years ago. I went with the assumption SS would not be there (or greatly reduced due to means testing) when my time comes. But never in my wildest dreams did I figure health insurance could be expensive as it has become. That's the only thing keeping me from retirement now (that and I like my job). My wife and I both have electrical engineering degrees. She went the sales route and I continued with the technical path. I cannot imagine how scary it has to be for those less well off. Many times at no fault of their own. They save, but it is really hard to save "enough".

[txpitdog]

At 63 I would think he faces stiff tax penalties if he starts tapping into his 401k plan. Maybe that's why he doesn't consider that.

They changed the law. You can draw off 401k starting at 59 1/2

[duckmanep]

30 years ago when he started planning for retirement, a car cost how much, and insurance cost how much, and food cost how much? Kinda scary to think ahead 30 years if we use the past 30 as a guide of what things will cost. Life happens and many will not be prepared.

[txpitdog]

When I hit the eject button at 60, I’m going to make crappy but quaint and rustic looking metal objects, leave them outside to rust, then sell them at felony level prices in shops in Fredericksburg, The Woodlands, and Plano.

[Rush2Judge]

When I hit the eject button at 60, I’m going to make crappy but quaint and rustic looking metal objects, leave them outside to rust, then sell them at felony level prices in shops in Fredericksburg, The Woodlands, and Plano.

Now this is a man with a plan! Flawless.

[glen]

I will be retired at age 51maybe 52. Been planning on it since I was 20 years old. I think I will be making more retired than I am currently paying myself. I probably have put 30% into retirement on average since I started working.

Ive never bought a new car and have always lived well within my means. I do not regret any of it. Ill be able to go travel and watch my kid play ball if he elects to do so. Ill also be able to go fish some different places and I might hunt a little more often. When I punch out in the next 2 years I will not have a house or car payment of any kind and don't plan on having either.

I see young folks driving new trucks and I am so happy I never did now.

[AntlerCollector]

this is so true, there are so many that have to start all over again raising grandchildren , due to the parent not knowing how to act like adults.... I also find it kinda offensive to say "all greeters are there due to lack of planning", some just don't want to sit at home all day, as well as Insurance is expensive, so there are many reasons to keep doing something once you retire..

Who's quote are you referring to that you find offensive? I don't see rut anywhere on this thread.

[Throwin Darts]

$1400 a month and he took on a $600 car payment. Clearly his profession wasn't in mathematics or finance.

[Still Hunter]

Don't judge anyone till you have lived in their shoes. Bad health situations will drain anyone's assets quickly. Life does not happens the same for everyone. Not everyone gets a great job with a 401K or a great retirement program. Some guys work for people that never come through with promises. Maybe they prioritized college funds for the kids rather retirement plans for themselves. Started a business but failed. Dropped out of college to help a parent keep their home due to another parent dying. If you are in a good place financially, good for you. Don't judge. You might get cancer tomorrow, stock market collapse and all your savings drop to nothing. Yes the average American is in a bad situation. I see lots of wealthy people running runaround living the big life with fancy cars, fancy boats lavish life styles but they are hocked in debt over their heads.
Not everyone "loves their job". There are some extremely well off individuals on this green screen and others barely getting by. It has nothing to do with a persons character or integrity or morals. Life just happens different for some people. I know good people who have done everything right that are struggling and POS's that do not deserve to breathe oxygen on this planet be so wealthy it is ridiculous. I hope OP's friend gets his job back and gets back on his feet. I am sorry he could not retire from his crappy job and that he did not have enough put away to live comfortably, but I sure am not going to pass judgement on him.

[doug]

When I hit the eject button at 60, I’m going to make crappy but quaint and rustic looking metal objects, leave them outside to rust, then sell them at felony level prices in shops in Fredericksburg, The Woodlands, and Plano.

Brilliant plan! I'm thinking of doing something similar with wood.

Wife and i retired last year after 33 years with the county. We both got raises after we retired and still have great insurance. Life is GOOD!!!!

[Rush2Judge]

Don't judge anyone till you have lived in their shoes. Bad health situations will drain anyone's assets quickly. Life does not happens the same for everyone. Not everyone gets a great job with a 401K or a great retirement program. Some guys work for people that never come through with promises. Maybe they prioritized college funds for the kids rather retirement plans for themselves. Started a business but failed. Dropped out of college to help a parent keep their home due to another parent dying. If you are in a good place financially, good for you. Don't judge. You might get cancer tomorrow, stock market collapse and all your savings drop to nothing. Yes the average American is in a bad situation. I see lots of wealthy people running runaround living the big life with fancy cars, fancy boats lavish life styles but they are hocked in debt over their heads.
Not everyone "loves their job". There are some extremely well off individuals on this green screen and others barely getting by. It has nothing to do with a persons character or integrity or morals. Life just happens different for some people. I know good people who have done everything right that are struggling and POS's that do not deserve to breathe oxygen on this planet be so wealthy it is ridiculous. I hope OP's friend gets his job back and gets back on his feet. I am sorry he could not retire from his crappy job and that he did not have enough put away to live comfortably, but I sure am not going to pass judgement on him.

There is a whole lot of truth in what you typed. I guess I don't see anyone (well, maybe there are a couple people) judging this individual for not having saved more. As you say, we haven't walked in his shoes. All we have is what the OP wrote and it isn't judgmental to say the man could not afford to retire. And it's an even bigger head scratcher that he bought a new truck.