Help A Reader Out - 60 Years Old, No Retirement Funds
Posted on March 06, 2007 by Him and tagged retirement
Reader Danny left this comment and emailed us (3 times, no less) with this question (edited for clarity):
I wonder if any news magazines or newspapers have reported on another trend: older people who have no retirement funds, no big income coming in after they retire, because they worked all their lives at odd jobs and occasional jobs, and lived okay, but now at age 60 or so, like me, they have no retirement fund, no pension, no company benefits, nothing, nada. I am debt free, never been in debt, but I am basically in big doodoo for the future. If I live that long, from 60 to 80, I will have no income to speak of. What to do? Are others in this situation in the USA? Email me (ed: or leave a comment) and tell me what to do. I led a charmed life by the way, no regrets.
Anyone have any suggestions?
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My father is in the same situation. He is hoping that we'll completely support him with a little cottage out back. It's either that or run to China to teach English there. . . I hope you develop a better plan than he did!
Harm | Mar 6, 2007
I have a 66 year old friend
who's been in jail for a year. He at least had a trailer and a small IRA that could have supplemented social security, but that was repossessed when he was incarcerated. The finance company wouldn't take payments from anyone else.He's living on the street in his old van, required to live in San Diego by probation. My view of the justice system and social safety net has been seriously...disillusioned, I guess you could say. He did break the law, but he's a gentle, good man who's being punished long after his sentence is over. grrr
What an awful situation and one I wonder about every time I see someone's grandparents treating them lavishly to "this and that." Poor guy. Now that companies don't offer the retirement they did years ago, I am afraid many will find themselves in situations like this. It is a harsh reality that your retirement is all up to you. Harsher is the fact that children will be forced to provide for their parents that did not plan for their own retirements, thus crippling their own abilites to plan properly or live a charmed life.
Dean in Des Moines | Mar 6, 2007
You can't say that you have no savings, then say you have no regrets. Clearly your question announces your desire to have done things differently.
So, first there's a heart issue that needs to be resolved. The time for living for the moment is past.
Next, you need to develop an income. You should be able get a job doing something. Greeters at Walmart and delivering pizzas don't take special skills and can be started now.
You can also take an inventory of your possessions and sell of what you don't need. This can be used to establish some savings.
Those are beginning steps. You will need to develop a budget and a long term plan.
There's nothing here you don't already know. There are no freebies to claim. Perhaps you have close family or friends to help you keep accounts?
The Travelin' Man | Mar 6, 2007
You didn't address whether or not you own your own home. There may be some untapped equity there. Perhaps in the course of "living in the moment" you purchased a home along the way?? If so, you may be able to do a reverse mortgage (not the best plan for everyone, but maybe not a bad plan in this instance). If not, you may be able to sell your home and downsize to a smaller, more affordable living space. Other than that, Dean in Des Moines offers excellent advice.
One more - see if you can get a job with benefits - soon! Perhaps there is a local university nearby. They hire people with diverse backgrounds for all kinds of jobs (you said odd jobs and handywork - perhaps maintenance, lawn care, janitorial, etc.) and they often offer excellent benefit packages, if not great pay!
LivingAlmostLarge | Mar 6, 2007
All is not lost. You can continue working at a job that has benefits until you die basically. You'll need it because it's unlikely that SS will be enough to support you to live. And you need to work until 65 when Medicare kicks in.
Sorry for the reality check. It's a tough life. Soon I think you'll be joined by many other people who haven't saved anything either.
jj | Mar 7, 2007
I know a wonderful woman in a similar position - she owned her own travel agency for many years and worked very hard to be a successful business owner and favorite aunt of all her little ones. Her plan was to work until she was about 65, sell the business to get some more cash in the bank to pay for medical insurance during retirement, and travel around to see all her neices and nephews. Unfortunately she was 60 at the time of 9/11, and the travel industry basically tanked, combined with the increasing popularity of consumers booking travel online themselves... in other words, her business wasn't worth much of anything, and so her plan for having some medical savings money was out. She found out that you can work at Jewel, a grocery store chain in Chicago, for just 12 hours a week and get full benefits. So, that's what she has been doing - she works a few hours a week as a cashier, gets to spend time with her "young friends" as she calls them, and gets great benefits - on top of it, she makes a little extra money which she banks for medical savings and travel. Jewel workers are unionized so I think that's the key to getting good benefits and a nice hourly wage. I also understand that Starbucks gives full benefits for part time workers as well, so you might want to check that out too.
MoneyMinx | Mar 7, 2007
You could check out places to live in other countries. There are lots of Americans living in really cheap places. So you'd have a network of English speaking people to step into. Work 3-4 jobs until then or while you can to get ahead.
I wonder what a "charmed life" means? And I wonder if he paid FICA while working those odd jobs. If not, then he doesn't even have social security coming in.
Living Almost Large is right. Danny is going to have to work for the rest of his life.
mary | Mar 9, 2007
The bottom line is this: you won't be able to retire. You'll have to keep working, possibly for the rest of your life.
Retire in a foreign country where the dollar exchange will go far. You're still probably screwed (particularly with costs like Medicare), but your standard of living will likely be adequate in Central American countries, and if you need truly serious care, you can always return to the US and use your Medicare benefits. (You will qualify for social security and Medicare, wont you?)
Interesting comments, above. ACtually, I don't own anything, no car, no house, no condo, nada. No retirement funds, no pension, but some Social Security will come my way 10 years down the road or so, but like just US$100 a month, since my working ages were sporadic over a long period of time, freelance work, etc.
I wonder now, after reading comments here, if there might be an important media story for some enterprising reporter for New York Times, say, to write about people like me, and I am sure there are LOTS, and how the future might unfold. if at all. All is not lost, i still have my wits about me, working still, saving a bit of money in the bank, but no longterm retirement funds at all. What do people like us do?
The New York Times recently did a story about people trying to get out of debt, and keeping blogs about it to help others, and now I think there might be a good story for the New York Times or some other newspaper or magazine, about people without any parachute or retirement funds coming LATE IN LIFE. AHHHHHHHHH!
I think i will contact a reporter at the Times and see if they are interested in interviewing 9-10 people in this kind of situation, and getting some experts to give their advice on what to do........ good idea? DO you know any reporters who might be interested in this story idea?
That just seems irresponsible... not to think about where $ will come from when you're already 60? Why not think about that earlier, when you can still do something about it?
BW | Mar 13, 2007
So Danny B. has lived a charmed life. Never had a lot of money, but never been in debt. Always paid people what he owed them and spent the rest enjoying himself. After all, you only go around this crazy world once. Why not spend a little money on your happiness?
But now things aren't looking so good. Danny doesn't want to have to work when he's 80. Should somebody else be paying the ticket by then? Aren't we supposed to revere the elderly? What about the government, couldn't they just pay for Danny to continue his charmed life?
Sorry Danny, but you didn't make the choices you needed to make in order to retire. As some others have said, you'll likely work the rest of your life. But all is not lost, repair your spending habits now, start saving, and prepare for the future, and someday you will be able to slow down again.
My best suggestion would be to become a motivational speaker. Travel the country telling people about responsibility and what can happen if you don't plan ahead.
Kevin Egan | Mar 13, 2007
If there is a Heaven and Hell, Danny will go to Heaven because he loved life more than he loved money; and our current President will look up at him from a long way down, and very, very hot, because he despised life (he ended the lives of so many others so cavalierly) and he loved money more than life itself (all those sweetheart deals with daddy's friends).
I make this point because I want to reinforce to those who criticize Danny and pride themselves on their thrift that they have no right to look down on a person who loved life and people; if you love thrift, well, fine, that's your choice; but you are in fact the kind of sucker that makes our unjust economic arrangements possible these days, where 1% of the population has 40% of the wealth, and the superstar CEO makes 500 times the salary of the person who actually produces the product.
It's just good old-fashioned greed at the top, and the people who are advising Danny are the strict middle-manager types who make their greed function. (See David Gordon's brilliant book, Fat and Mean.) I'm not really sure that's something to boast about....
Other countries have fairer systems that help people who prefer doing social good to accumulatiing money (like teachers and nurses) to save instead of siphoning the vast majority of wealth to the top 1%; if we don't make such a system here, then we are culpable.
And if you doubt how greedy the American rich are, just look at how they even tried to kill Social Security: they never, never, ever can get enough money. Well, unfortunately for them, you can't take it with you! Just live, Danny; go to a kind society that knows that when one person is hungry, all people are less than they could be. Good luck!
And you others, read the Bible: I don't think Jesus had an IRA, do you? And in his Heaven, the rich man had to thread the eye of a needle: are you slim enough for that, do you think? Somehow I doubt it....
I'd suggest that Dan subscribe to Gary North's Reality Check. He can Google that phrase or go to garynorth.com. It's free. Some Fridays Gary will answer readers' questions. A number have been about this kind of situation. What he suggests will work, but it's not sugar-coated in any way.
Or for 10 bucks he can download as much of Gary's archived content as he wants for a month. Gary's advice could be just what he needs, even if he doesn't want it.
Sarah | Mar 14, 2007
I have a hard time feeling sorry for Danny B... part of living is taking responsibility for the future. Is he starting to change his habits now and save, or, is he just lamenting the fact that he will only have $100 a month in social security if he is ever able to retire?
I am not sure that I agree with Kevin's post. Does loving life (in this case not saving money) instead of money make you a better person? Do you consider me greedy then? I love life, but I am accountable with my money... I pay my bills, save for a rainy day, give to charity and am also planning for the future. I'm not in that percentage of wealthy that is selfish. I am firmly middle class.
My parents are both teachers, they sure didn't make a lot of money, but they understood how compounding interest works and put away as much as they could. Now they are looking at retiring in the next 9 years are are in a position to replace almost 100% of their money. During that time they gave to charity, raised 2 children, and went on relatively inexpensive vacations. Kevin - do you consider them they greedy?
What do greedy CEO's have to do with saving for your own future? They're not the ones forcing you to spend money instead of putting it in an IRA.
Him and Her have taken responsibility for their decisions, and their candid and realistic approach to life and finances are major reasons why I keep visiting this blog.
Sarah | Mar 15, 2007
cnnmoney.com has a column on this very topic.
http://money.cnn.com/2007/03/13/pf/expert/expert.moneymag/index.htm?postversion=2007031510
I absolutely agree with the last commenter, Sarah. I don't feel sorry for him at all. It is incredibly irresponsible to have no savings at age 60.
$100/mo of Social Security? The only way your benefits are so low is because you are a tax cheat! You never claimed the income from freelance work, did you?
I grew up in a very poor family. I worked hard (job and school) to put myself through college. I am 28 now and I work 50 to 60 hours a week to pay for my student debt and mortgage.
This year, I'll be paying more than $12,000 in Social Security taxes alone. Statistics says I am likely to pay more than $7 in SS taxes for every dollar I get back in benefits.
People like you make me sick!
Давид | Mar 16, 2007
NPR Report: Getting Paid Off the Books in America
http://www.npr.org/templates/story/story.php?storyId=8939277
Describes people like you who work off books -- don't pay taxes, expecting the government to take care of you, leaching on the society.
boomie | Mar 18, 2007
Kevin,
who would offer you a job: a rich company or a poor company? where can you find a job? In africa or the US? why are so many immigrants doing whatever they can to get into this country, America?
God said He helps those who help themselves. Jesus said there will always be the poor, the infirm, those who just do not want to help themselves and will always beg.
In America EVERYONE can get a free education, go to any emergency room and get free medical attention, sleep in any homeless center and get food. Can you do that in the bowels of Africa? North Korea, Russia? ANYWHERE ELSE? Bush is the only person who has stood up to terrorists. THE ONLY PERSON WHO HAS THE GUTS AND THE BALLS!!!!!! Bush may make mistakes, he is human, but he has also done right things. When will people wake up, throw away the kool aid and realize that America is the BEST place on earth? The 60 yr old man, who lived by the sword, must die by the sword. No one should feel sorry for him. he has 15 more good work years left. Now, that he knows the 'score' he can still work towards his retirement. It is not too late.
This has nothing to do with George Bush, the rich or the poor. Man has free will and this 60 yr old man has certianly taken advantage of his own free will.
Alain | Mar 20, 2007
Two, actually three suggestions - First stop listening to all the ant and grasshopper rants, most of these folks won't have the money they think they need to enjoy the "retirement" Money Magazine, the investment community and Suzie Ormand seem to suggest Americans are entitled to. Second, a quote that resonates with me from Running a One-Person Business – "You can’t find an ecological model for a retirement plan. Expect to work until you die. Retirement is an unnatural construct of an environmentally unsound society and has no historical basis … what animal says ‘Okay I’m a bobcat. I’ve lived for eight years so I should just take it easy for the next three years and have somebody bring me my dead rabbits. Fat chance! Dead bobcat". Third go out and buy a copy of Get a Life: You Don't Need a Million to Retire Well by Ralph E. Warner - helps focus on whats really important and it's not money. You have passed 60 years on this planet without incurring any debt and somehow I think you'll manage.
Давид | Mar 21, 2007
boomie: "The right thing" is debatable. Most of the country (and the world) would disagree.
Karina | Mar 6, 2007
The good ol' US of A supports charmed lifestyles like this almost into infinity for all us citizens. But I'd have to be perfectly honest - my thought is it's not that charmed when you're stuck with only Social Security and Medicaid. You still have 5 years to contribute to retirement accounts; IRS.gov will detail your qualifications. May the sun continue to shine on you as you save for rainy days.
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