Funny you should ask this Cj, I was thinking about it for most of the day. We are just getting really serious in our quest to fund our retirement. I'm interested to hear what others say about this topic. Being self employed for most of our adult lives AND knowing that social security isn't going to be there for my age retirees is pretty darned scarey :ugh: . Sooooo we're really starting to put back and making sure all of our debts are paid off now. What about you Cj-how do you feel on the subject?
I would hope to be but honestly doubt it....We don't have the savings I'd like to have...and saving much isn't going to happen for a while either. Since I stay at home we don't seem to find much extra.
My thoughts are your going to need lots of $$ when you retire. Dh was forced into early retirement because of the company he worked for, and he was out of work for almost a year and a half. We realized we didn't have enough to live on come our later years. We receive a pension (from the company where he worked for 20 years) but its very small.
I personally think many people will be surprised when they see the amount they recieve from company pensions. I've heard over and over how people who have received their company pensions are astonished at the amount, even after 20, 25 or 30 years of employment. Also, because so many people don't stay at any job for any length of time nowadays, they won't have company pensions to fall back on. The other thing about company pensions are so many are going bankrupt or doing illegal things, that company pensions may not even be there when a person retires. Thank goodness, ours is safe, in a trust at the bank.
Canada Pension kicks in here at 65, but your allowed to take it out at 60, at a reduced rate, which we plan on doing. Old age security kicks in at 65 as well. BUT whether they will be around for when we come to full retirement I'm not sure. They will probably be there, but far lower than what retirees receive now and I would care to bet, won't be there in 20 years or so.
The only debt we have is our van, which will be paid off in a couple of years, before if we can help it.
Having no debt or mortgage, will certainly help us in our retirement, but we will have to continue to be very frugal. Dh went back to work full time so that we could get our van paid off quicker and so we could get more money put into our retirement savings. BUT unless we pay huge $$ to an insurance company, we will have to pay all our own medicine which is really scary. Right now, dh has an insurance through his company and our medicine is paid for, but for almost 2 years, we had to pay for it ourselves. The price of medicine is astronimical and climbing, so its vitally important to take care of your health at a young age and continue to do so as you age!!
So, to put in bluntly, I think your going to need more $$ than you think you are. Start saving now, even if its only a few $$ per month. Put it into a good investment that is as secure as possible. We all know that it might not be, but there are safer places than others to invest in. Get out of debt as early as you can, thats an absolute MUST for retirement.
We get an estimate of what our pension will be each year, as well as an estimate of what our Social Security will be- from work. I'm already vested in our company- so as long as the hospital remains solvent, my pension should still be there.
You're right about it being small though! That's why I also have a retirement fund ( not an IRA though, but gets more interest than a regular savings account), savings and assetts.
We are plannig for this! Dh has a 401 k and we plan to prepay our mortgage so he can retire with no house payment. Our first car will be paid for next month, and then we are planning for a 2nd.
On think I think we need to find a way to do is get off the electric grid, the hosue and electric run almost $1000 per month now! Get out from under thsoe payments are imperative to inssure we do have enough.
I told dh i wan to retire as a combo of our parents, my folks did nto have much money and lived (stepmom now lives on $400 per month!) on dads ssi, but he had all their stuff paid for, car, van and house! DHs mom and dad have lots of $$ (last i heard it was over $2900 and i knwo they added $700 to that when mil was declared disabled!) but they pay a good amout toward meds, (minimum $500 per month uncovered by fils insurance!) and house.
I want their money but with no bills! I know the med bills will not be avoided, but i think if dh and begin now to take better care of ourselves we can avoid a good portion of what they are dealing with.
here is a terrific web site. Alot of the information was given by one of my heroes, Larry Burkett, he went home to be with the Father on July 4th. He was a very caring man, and wanted everyone to be good stewards of what God has given them.
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