Does anyone have a tracker that helps them keep track of their savings over their life? I think it would be very helpful, especially for the younger generation.

Its amazing what time alone can do to your savings. I was able to start saving young, and it definitely has helped. I am in my late 20s and struggling saving currently, but I know that time is your best friend when you are young and can be your worst enemy when you are nearing retirement!

True, I remember when I was in my twenties and people talked about putting money into an IRA. I wish I would have listened. I'd have a lot more saved right now. I'm teaching my kids to do this.

The only way it seems feasible to me is if they start saving right out of college and do everything right. And the really scary thing is that many financial planners are throwing around the number of $1 million needed for retirement. I know some people who are in their 40s and have already hit the $1 million mark with their investments, but they started investing at 23 years old and didn't take any big stock market hits. That just doesn't happen in most cases.

What in my mind is a reality ... where do lower income people find the spare change to put aside beyond regular living expenses and an emergency fund? Don't think many people can do it. Also, medical expenses can eat you alive. Doubt very much (not based on anything I have read) that the sum of $500,000 is very achievable. You look at the life time earnings of a high school grad versus a college grad and the earnings of a professional and show me where a person could come up with $500,000? To me it may be a notable goal but like so many financial ideas not realistic. As to your need at retirement I also don't know many folks that can sustain the same level of life style. As an add on, retirees expenses may go down except medical. Food for thought. Looking at cumulative earnings over the entire career, the typical bachelor’s degree graduate worker earns $1.19 million, which is twice what the typical high school graduate earns, and $335,000 more than what the typical associate degree graduate earns. Now assuming this information is close, tell me how a high school grad can live the life of "mom, apple pie and Chevrolet" plus put aside $500,000? Seems unlikely ...

Ten times your income is an interesting philosophy, but I'm not sure it would be enough for lower income folks. For example, if someone makes $50,000 a year (which is probably pretty average these days), is $500,000 going to be enough in retirement? That seems way too low to me.

Unfortunately this seems to be true. Medical alone eats up savings and we can not always plan for these emergency moments. Over my life span I was always told you need ten times your income in life insurance and savings. Today there are many views on this and I have never seen one that really seemed to catch it all other than salesmanship and keeping us insurances/annuities poor. Living life and setting aside funds makes sense yet where do we find financial vehicles that return enough to make the difference? Savings accounts are not the answer, CDS, are up for grabs and stocks and bonds could work but a person has to pay attention. So what works ... long haul?

Working for the government is one of the few ways to ensure comfort in retirement. I think we're going to see more and more people who never really do retire because most people just aren't going to have enough money saved.

smcc wrote: You know I was reviewing this thread and obviously since I first started this the economy has taken a downturn. Was wondering, how many feel that they either won't or can't retire ? I saw an article in the USA TODAY that spoke about retiree's needing $250,000 just for medical expenses alone !

It's a scary thought isn't it? I'm lucky enough that my current job is a state job and the benefits when I retire will be fantastic. I only hope that I will be able to retire at a young enough age to enjoy it.

Wanderer and FrankN, you both make great points.

The stats use mention are eye-wateringly high, but they get the message across very well.

For those of us who may never be able to save enough and still have some kind of decent lifestyle now then planing to retrain, or develop a skill which could offer an income source in our old age.

Very tough question to answer and it really depends on what your income level is and how comfortable you feel with that income level. Lets take a broad example as outlined below
Lets say your family makes $175K per year now and grows 3% per year

Age 28
Family Salary: $175K, with 3% annual increase
Earnings: Pre Retirement – 8%, Post Retirement 5%
Retirement Age: 65
Retirement Income: 90% of last years salary ($522K): Above $470K per year, with 3% annual increase
You need over $11.8 MILLION Dollars (assuming a 30 year retirement life)

Now that is considering a high income level and high standard of living. The important thing I want to show you is, retirement will require a LOT of money and it is recommended to save as much as you can early.

Hmm ... you pose a quandary? As someone who retired (employer needed to downsize and made an offer I did not dare refuse), I did in fact go back to work in a different field of endeavor than my previous work life. Certain occupations do not lend themselves well to the use of the physical body as it deteriorates at a rate that makes it basically useless for physical matters of work. This would be like the trades so retirement is forced by biology on many of us.

It's a conundrum for the economy - older people forced to look for part time work to survive, while younger folk struggle to get into work or secure a decent enough income to avoid working into their old age too. Perhaps the concept of retirement will become alien in my lifetime? After all, it is meant to describe the period of time after our working life is done.

My husband and I are in our early 40s and I sincerely doubt we will ever really retire. We do save and invest a considerable amount every month, but in 25 years, it probably won't be enough. Thankfully, we're the type of people who wouldn't know what to do with retirement, so if we have to keep working part time, we'll be okay with that. It still doesn't seem fair, though, that many of our citizens don't get to enjoy their twilight years when and if they want to.

I hear you Wanderer! The youth is the hope of the future.