Skip to main content

Have You Prepared Well Enough?

This is a hot-button issue. All of the literature regarding saving for retirement suggests that there soon may be a glut of aging bums on the streets.

But, is that a realistic outcome?

Statistics suggest "Yes".

First, I have to point out that retirees are divided into two major groups:

  • Those with pension plans that will provide a specific amount of money each month (called Defined Benefit plans). Those with these plans include:
    • Police, Firemen, and other government workers
    • Teachers and full-time workers in schools
    • Military - it may not be a BIG benefit, but it is a stable one
    • SOME workers in larger corporations
  • Those with pension plans that do not guarantee a certain benefit (called Defined Contribution plans). Most people have these.
    • These include 401(k)s and other tax-free contribution plans
    • Many employers will match or even double the contributions made by their workers. Too many people don't even make minimal contributions in their early years, if at all.
    • If people leave their job, too often, they cash out the plans (well, to be fair, many of them desperately need the money to pay their bills)
The stories that talk about the HUGE amounts of money you will need to retire are primarily talking about the second type of plan. Even with that pile of money, you can be at risk of losing everything if a health crisis hits.
The Defined Benefit plan is less vulnerable to being lost in a financial crunch. It's not, generally, a large income, but it is steady. And, it cannot be touched by bankruptcy, nursing homes (if you are a spouse), or other things that threaten Defined Contribution plans. If you are divorced by someone with a Defined Benefit plan, you can't even lose your spousal share against your will (you CAN negotiate it away, but you can't be forced to give it up).


Popular posts from this blog

Bouncing Back From Setbacks

I was reading (nothing much, just noodling around), and found this link to Bouncing Back After Setbacks, and the resilience needed to do so.

Resilience is the (according to
abilitytorecoverreadilyfromillness,depression,adversity,orthe like;buoyancy One factor that is not fully appreciated by many parents is the importance of experiencing Failure - AND recovering from it.

Some lessons from a school that has studied the successes - and failures.

I'm going to start a regular post on At Last - Retiring for Good, that focuses on Things Kids Need to Learn From Grandma. If you'd like to be added to the list, go here and put your information into the link form.

Getting Back on Track

I started off strong - really, I did. When I first retired, I had the strength of 10. But, as the summer passed, I lost my Mojo.

The first thing to go was my dedication to daily upkeep of the house. I found myself weakly saying, maƱana.

Then, I began raiding the fridge. I packed on a lot of the weight I had lost in the last semester I worked.

Lastly, I began skipping my revision schedule. I read aimlessly, both on- and offline.

I started taking naps. Like a 3-year old.

So, unless I want to become this:

I need to re-boot my life plans.

I started Tuesday morning by getting cleaned up and dressed. I got to work with revising my Chem book, planning my week, and cleaning up the kitchen.

Together, Den and I planned a healthy breakfast, conferred about our schedules, and made the bed (that last is not easy to get done early, if you have a partner - like mine - who likes to sleep in).

I didn't manage to check-in with the Ham Radio NET today, but I did re-set my radio for the local repeaters (I ha…