How Many People are Actually Saving for Their Retirement?

[switch625]

I stopped contributing to my 401K a few years before I filed BK, since $$ was getting tighter and tighter. I have a low six figure sum in the account and would love to contribute again since full-retirement eligibility is at least six years away, but I don't want trouble with the trustee if my Ch 13 plan needs to be modified or he finds out in other ways. Or is that not going to happen? I know my court had a favorable ruling for 401K contributions during a Ch 13, but the debtor in that case was making contributions up to filing.

[autism4now]

Hey now....there are a lot of folks that are not saving any money for retirement if you listen to CNN or Susie Orman, however when our company went from Valic to TransAmerica recently, it was a million people in line for a meeting about their retirement....just goes to show you....they are out there.

[runner4life]

I try to put away $50/week.

[tobee43]

saving and planning for retire are so important. however, there are and is a tremendous amount of variables to consider. i heard in the posts 1m....different amounts.

the question is really this. how much money does one need to retire "comfortably" ...how much exactly does one need to maintain their standard of living or do you plan to change that when you leave and retire? can you afford to stay where you are and live with the income that will be generated from your retirement savings?????

we were saving poor our entire lives. when we started to work there were no such things as 401's etc. however we were allowed to contribute to our pensions by percentages. years later the 401's were introduced they became additions to our pensions but separate. one of use took another job after taking an early out in a state position (which included lifetime medical benefits as well, so we were extremely lucky), and stayed with that company over years, BUT i stupidly used that 401 to try to get us out of our financial mess, of course a HUGE mistake. what was not a huge mistake was we didn't realize how much those 15 years upped our ss amount monthly payments.

i know if we stayed in the house were lived in for over 30 years the monthly expenses exceeded 8k. that was fine when we both had 6 figure salaries, certainly NOT going to be fine to be able to maintain while "retired". when we both lost our jobs, it really became an actual blessing that we were able to leave this mess, because not only did we have terrible water flooding problems, huge monthly payments and taxes, but one of use had a few years to be able to begin to collect ss so if we could manage between the ss and the pension we could find a place that we REALLY could afford for the rest of our lives based on what income was going to be generated from those two resources. was it hard to leave a place after 30 plus years, absolutely! but looking back it was the best decision in our lives. memories after all are in one's heart NOT one's walls.

it worked fine for us, we left the state and went to florida because of the real estate bomb, (really this is not my cup of tea). but, the thing is we never ever have to worry about how we are going to live. AND we are able to save a substantial amount of income and have began investing once again as well. additionally, i have come to a cross roads, if i didn't put money in savings to invest, i could pay this house off much quicker, however, it will be paid off i hope within the next 6 months....free and clear. it's a great feeling, one we never had before and would have never been able to "retire" like this had be not filed bk....we'd be up in nj struggling to make ends meet with a house with so many problems we couldn't afford to fix.

my point is here, think about what you are exactly saving for. for example, if you know you are going to retire in lets say AZ, take advantage of the market NOW, if you can, while the going is good. this place we purchased has almost double in value, although really we could care less about any equity, but it's nice to know that it's become an "asset" in our retirement portfolio, as opposed to a liability.

[SeattleBK]

I just want to put this out there for people who have hefty student loans who really want to contribute to a 401K, but can't due to the student loans.

There is a government program called Income Based Repayment(link below)

http://studentaid.ed.gov/repay-loans/understand/plans/income-based

Your payments are based on your AGI which can incidentally be reduced by contributing to a 401K or traditional IRA.

[SeattleBK]

Wow Spidge! A million? Sounds great, but the best I'll probably be able to do is about 270,000 with the matching, and the raise that I will be getting next year as I am already 50, and I plan to retire in 10 years.

As far as the Govt, I have no complaints.

I actually owe zero taxes this year for the first time in I don't know when. I had such a large amount coming out for my 401k along with a credit for Retirement Savings and other credits, I am actually getting money back from the government.

I've paid a whole lot of taxes over the years, but this year, I finally got smart and started contributing lots to my 401K and I owe nothing.

[spidge]

They were in their early 60's.

[ksgirl38]

Keep in mind these guys were maxing their contribution for some time, and I work for a very large global food and beverage company.

Our plan is administered by T. Rowe Price.

Oh, I'm sure they were, but that's still pretty awesome. Do you know how old they were when they retired?

[spidge]

Seriously $1M? That's awesome. What kind of company do you work for and who manages the 401K/PSP plan?

Keep in mind these guys were maxing their contribution for some time, and I work for a very large global food and beverage company.

Our plan is administered by T. Rowe Price.

[ksgirl38]

Good for you. It is safe until our awesome leaders in the government decide they can tap it. ARGH!!!

By the way I have finely been able to set mine to 6% to gain the max on the company match. Things are tight though, but it always has been. So now my 6%+match3%+Once per year profit share 6% is 15% total per year. I think that's good for now, but once the kids are on their own I will also bump it up as you have. The inspiration for me is that we have had a few guys retire recently with close to a million in their accounts. Fingers are crossed.

Seriously $1M? That's awesome. What kind of company do you work for and who manages the 401K/PSP plan?

[spidge]

I'm putting 20% of my salary in a 401k, and I'm very proud of myself. I just upped it from 15% after getting a raise. I make 38,000 a year at the moment.

Before I filed for bankruptcy, I never saved anything. Most of my money went toward interest and junk I didn't need.

Good for you. It is safe until our awesome leaders in the government decide they can tap it. ARGH!!!

By the way I have finely been able to set mine to 6% to gain the max on the company match. Things are tight though, but it always has been. So now my 6%+match3%+Once per year profit share 6% is 15% total per year. I think that's good for now, but once the kids are on their own I will also bump it up as you have. The inspiration for me is that we have had a few guys retire recently with close to a million in their accounts. Fingers are crossed.

[SeattleBK]

I'm putting 20% of my salary in a 401k, and I'm very proud of myself. I just upped it from 15% after getting a raise. I make 38,000 a year at the moment.

Before I filed for bankruptcy, I never saved anything. Most of my money went toward interest and junk I didn't need.

[spidge]

Anyone??

It would likely only become an issue if the source (your income) goes up 10% or more in any given year. I have changed mine many times while in my 13 (up and down), but my income has not changed so there was nothing to tell the trustee.

[spidge]

I am on and off depending on the time of year. I am determined to at least get up to my company match minimum so I don't miss out on it. The company also adds a nice profit share once per year too. I find it difficult at times as I would like(not always need) that extra cash, so we just have to become accustomed to going without it in our pockets. It is also nice to watch it grow and I did reach a personal milestone that helps keep me (at least) focused on the next goal.

[tobee43]

Anyone??

i wish i could answer for you, however we were a chapter 7 with no trustee to deal with and so we could save what we wanted after the discharge and close of our case. but, from what you are saying if your atty doesn't think it a problem it mostly isn't.

i know many in chapter 13's must put everything through their trustee's for approval, so hopefully someone that is in a 13 will give you a clearer picture on how one saves while being in a chapter 13.