Half of Americans die with almost no money

[flintlock]

Almost half of U.S. retirees die with savings of $10,000 or less, but that grim finding doesn’t fully describe the variability and uncertainty that characterize retirement in America, according to a recent study.

http://www.marketwatch.com/story/half-of-americans-die-with-almost-no-money-2012-08-29

And this reflect people dying AFTER living in the most affluent times in our country's history. What becomes of those who will grow old during our decline??

[don]

Re: Half of Americans die with almost no money

from the article:

When net worth is measured—including savings, home equity, the value of Social Security and pension benefits, and more—retirees’ financial picture around the time of death looks less bleak. Single people had average assets of about $142,000, those whose spouse had died previously had average assets of $253,000, and couples where the surveyed retiree had died but the other spouse was still living had average assets of $692,000, according to the study.

I'm assuming that means a spouse died before retirement.

If you want the best retirement outcome possible, get rich. If that fails, consider getting married, staying married—and doing your best to die before your spouse does.

( and stay healthy until that final illness/accident takes you away)

ergo . . .

the study’s most striking finding was a “strong and consistent” relationship between wealth and survival. If you’re rich, you’re much likelier to live longer. “The relationship between wealth when first observed and subsequent mortality is striking,” the study said.

the longevity of wealthy men who run through a string of mistresses and trophy wives was not tabulated

[GRG55]

Re: Half of Americans die with almost no money



"Half of Americans die with almost no money"

Seems the best outcome one could wish for. After all, you can't take it with you...

[LorenS]

Re: Half of Americans die with almost no money

"Half of Americans die with almost no money"

Seems the best outcome one could wish for. After all, you can't take it with you...

That sort of depends on the time period between the money running out and death. My grandmother has been living on almost nothing for about 30 years. When she hit 70 she was "ready to go", the good Lord has not cooperated, however, and now she's in her mid 90's.

[thriftyandboringinohio]

Re: Half of Americans die with almost no money

My father described it as his most difficult planning challenge - arranging to go broke just on the day he died.

[jiimbergin]

Re: Half of Americans die with almost no money

My father described it as his most difficult planning challenge - arranging to go broke just on the day he died.

We have told the kids that is our plan.

[wayiwalk]

Re: Half of Americans die with almost no money

What a great group you all are.....I enjoy the subtle and witty perspective.

Of course, this issue of retirement, death, and planning when your money runs out suggests that my wife is trying to kill me in my prime!

[flintlock]

Re: Half of Americans die with almost no money

The sad thing is, most of these people probably never had much, if anything, besides a monthly SS or paycheck. And not everyone who dies is retired and old. I'm not sure how much is the low pay, the high cost of living, or how much is an inability to plan for life and defer gratification. I know health issues are one thing almost nobody ever plans on, but are almost a certainty if you live long enough. I just see a lot of people today living like there is no tomorrow. You expect that from kids, but its the 40 and 50 somethings that stand out to me. Something has changed from those who grew up in the 1930s and those today. I suppose its the more generous assistance available from the government today, but people are just not as conservative financially as they used to be. I suppose if you've actually see hard times vs having to imagine it, it makes all the difference.

[flintlock]

Re: Half of Americans die with almost no money

We have told the kids that is our plan.

My father has the same plan and tells me constantly!

[BK]

Re: Half of Americans die with almost no money

Why aren't people frugal today? Hasn't the free and easy credit made it nearly impossible to think they could ever run out of money and starve (perhaps a bit melodramatic). Money was tight in my family as a kid (so, I treat money issues with a lttle too much care). Ultimately, we are shaped by our upbringing and environment is what I figure.

[BadJuju]

Re: Half of Americans die with almost no money

Why aren't people frugal today? Hasn't the free and easy credit made it nearly impossible to think they could ever run out of money and starve (perhaps a bit melodramatic). Money was tight in my family as a kid (so, I treat money issues with a lttle too much care). Ultimately, we are shaped by our upbringing and environment is what I figure.

From what I know, my dad grew up in poverty, but it didn't seem to really affect his spending habits these days. Grandmother, on the hand, was born in 1935 and is an extreme hoarder and very frugal. I'm not a hoarder, but the financial crisis has made me much more frugal.

[lakedaemonian]

Re: Half of Americans die with almost no money

The sad thing is, most of these people probably never had much, if anything, besides a monthly SS or paycheck. And not everyone who dies is retired and old. I'm not sure how much is the low pay, the high cost of living, or how much is an inability to plan for life and defer gratification. I know health issues are one thing almost nobody ever plans on, but are almost a certainty if you live long enough. I just see a lot of people today living like there is no tomorrow. You expect that from kids, but its the 40 and 50 somethings that stand out to me. Something has changed from those who grew up in the 1930s and those today. I suppose its the more generous assistance available from the government today, but people are just not as conservative financially as they used to be. I suppose if you've actually see hard times vs having to imagine it, it makes all the difference.

I definitely notice that on my visits to the US.

Seeing the way folks I used to know and perceive as fairly conservative financially now acting financially silly is quite odd.

To me it's a bit like having friends who used to be conservative teetotalers suddenly doing keg stands, beer bongs, body shots, and smoking weed.....well into their 40's and 50's.......

In some respects it feels a bit like the film Leaving Las Vegas.....on some level there's an underlying understanding of where they are at and where they are going.

Or maybe Berlin in April/May 1945 is a better analogy.......normally quite conservative culture surrendering inhibitions to the inescapable inevitability of the coming storm.

Maybe it's a Wisdom of Crowds(or would that be foolishness of crowds?) type of rough indicator of doom?

http://www.youtube.com/watch?v=T43InzvBm-k

[GRG55]

Re: Half of Americans die with almost no money

What a great group you all are.....I enjoy the subtle and witty perspective.

Of course, this issue of retirement, death, and planning when your money runs out suggests that my wife is trying to kill me in my prime!

If your wife has recently asked you if your life insurance is paid up, I would be suspicious... ;-)

[metalman]

Re: Half of Americans die with almost no money

If your wife has recently asked you if your life insurance is paid up, I would be suspicious... ;-)

why do married men die earlier than their wives, statistically speaking?

because they want to.

[GRG55]

Re: Half of Americans die with almost no money

why do married men die earlier than married men, statistically speaking?

because they want to.

Why do married men live longer than single men?

They don't. It just feels like it...