Chapter 19. Making Your Money Last
More people should tell their dollars where to go instead of asking where they went.
A nickel ain't worth a dime anymore.
In 1975, Joe retired early at the age of 55 so that he could go fishing. He started receiving a pension check for $ 352.75 per month. Seven years later he started receiving Social Security. Today at the age of 85, Joe, who is in relatively good health, is still receiving his pension check of $ 352.75 each month and continues to go fishing almost every day. What I want to know is this: Is Joe going fishing these days because he wants to or because he has to?
According to a MetLife Employee Benefits Trend study, 61 percent of employees rank "outliving their savings" as their greatest retirement fear. Twenty-seven percent of those surveyed felt they were "significantly" behind in their savings, and 1 in 10 hadn't even started! Only half of the boomers surveyed had factored longevity into their retirement plans. Across all of the age groups in the study, employees were concerned about having enough money to live securely in retirement. Key concerns included:
Outliving retirement money (56 percent).
Having to work full-time or part-time to live comfortably in retirement years (51 percent).
Providing for your spouse/partner's long-term care needs (49 percent).
Providing for your own long-term care needs (47 percent).
Having enough money to take care of elderly parents or in-laws (44 ...