retirement - what is that

[97guns]

2 stories that have affected my family

i have a cousin that is a mechanic for united airlines, been there 20+ years. when they filed bankruptcy the pensions were tied to the stock and everyone lost it all. he says there are guys 80 years old still working with him, he just had a co worker die and he was 84

2 months ago my brothers pension was slashed 25% from $2400/mo to $1800

SS looks to be incapable of supporting itself, what about detroit's pensioners, teachers in wisconsin

whats your retirement plan horror story?

[snafu]

Thank you for the head's up. It's sad to learn of seniors stripped of their pensions or having them chopped while the executive suite continues with golden handshakes. I'd always believed pension with holding was sacrosanct and untouchable until they grabbed it and the government admited it was actually an unfunded liability.

It's reminds the rest of us to keep track of how employer operated retirement/benefit programs contain are managed. It seems so much safer to make monthly contributions to a low cost Vanguard type Index Fund even if the ups and downs of the stock exchange can give us pause.

[cardtrick]

Confiscation of 401Ks and IRAs is what scares me. Of course they won't call it that. It might be a "tax" on "wealthy 401K accounts". I know Congress held a few hearings on "converting" 401Ks into government managed accounts where they guarantee a min rate of return while investing all the money in treasuries. Who wants that? All your money invested in US government bonds?

I'm not saying this will happen, but there is always that small possibility especially considering that all else being equal, we will never be able to repay the 16+ trillion that we've borrowed. The key is to diversify, not just investment accounts and assets but even currencies.

i also don't expect to see a single penny of what I paid into social security. I look at it as just another tax. The COLAs will not keep up with inflation and by the time I retire in 40 years, I probably won't be able to buy much more than a day's worth of groceries with that money each month.

[cschin4]

Even if people want to work into their 80's, I see a lot of people being forced out much early. The reality is that most employers value youth and energy and an youthful face more then they do experience. Yes, I know that isn't true of every industry, etc. But my point is that even if you plan to continue working, you may not be able too.

[corn18]

Even if people want to work into their 80's, I see a lot of people being forced out much early. The reality is that most employers value youth and energy and an youthful face more then they do experience. Yes, I know that isn't true of every industry, etc. But my point is that even if you plan to continue working, you may not be able too.

Age isn't always the issue. Many times it's about the higher compensation of an experienced workforce. If the 55 yo is getting paid $120k / year with a pension, guaranteed bonus and 401k, that is expensive. If that 55 yo can be "right-sized" and the company puts in a 28yo making half as much with no pension or bonus, they just cut overhead costs by a significant amount. The point is youth and energy are valued, but so are cost savings. That's why early outs are offered to high wage earners.

[shivampanwar]

Retirement is the point where a person stops employment completely. A person may also semi-retire by reducing work hours.

Many people choose to retire when they are eligible for private or public pension benefits, although some are forced to retire when physical conditions no longer allow the person to work any more (by illness or accident) or as a result of legislation concerning their position. In most countries, the idea of retirement is of recent origin, being introduced during the late 19th and early 20th centuries

[Gailete]

Technically I would be considered 'retired' I suppose as I am on permanent disability. Yet I can't sit and watch TV all day so I started a small business that I intend to keep doing as long as possible. It has greatly helped our finances and is also for me occupational therapy. Too many days I can barely walk when I get out of bed and it would be so nice just to crawl back in, but I force myself to get over to the computer, limber up stiff fingers on the keyboard and work on my business. I don't make enough to affect my SS although I wish I could. I see now that if we had had the internet capability for the last 40 years, I would have made plenty of money on line. It is only my poor health and need for frequent rest breaks that keeps me from doing as much as I would like.

Retirement is not something I have looked forward to for not doing anything. I just wanted to stop having to get up by alarm clocks and driving through blizzards to get to work. I am at that point now. I am blessed.