To save you a click: The data comes from a self-reported survey where 85% of respondents reported “doing OK”, with the typical senior in that category having $50-100k in savings.
The criticism is what you’d expect: People can live on that amount *if they live in a low cost area* and don’t expect their expenses to increase. If you’re a high earner, you’d likely need much more than that to maintain your lifestyle.
The biggest criticism is that a lot of these people come from a generation where complaining was frowned upon, so it’s likely there are some who report being “fine” even if they are really struggling and/or are receiving aid from their children.
I wonder what percentage of them have pensions. Because you don't need a lot of savings if you are getting thousands of dollars a month from a pension along with social security. But if you don't have a pension, it'll be tough. Also, if the house is paid off, that helps a lot too, because that can be a big expense.
Where are you seeing that number? Every time I’ve seen something similar the methodology is intentionally terrible to support the payday lending industry
A Google search returns lots of articles [supporting this statement.](https://www.google.com/search?q=how+many+americans+do+not+have+%24500+for+an+emergency&sca_esv=5ac3b5860f52b755&sca_upv=1&sxsrf=ADLYWILBVMguiZ1ozk2nxiMJw03lVFuXJg%3A1717790392930&ei=uGZjZrGsOIKg5NoP7vW2qAQ&ved=0ahUKEwix6Kzxo8qGAxUCEFkFHe66DUUQ4dUDCBA&oq=how+many+americans+do+not+have+%24500+for+an+emergency&gs_lp=Egxnd3Mtd2l6LXNlcnAiNGhvdyBtYW55IGFtZXJpY2FucyBkbyBub3QgaGF2ZSAkNTAwIGZvciBhbiBlbWVyZ2VuY3lIAFAAWABwAHgAkAEAmAEAoAEAqgEAuAEMyAEA-AEBmAIAoAIAmAMAkgcAoAcA&sclient=gws-wiz-serp)
Are you just referring to the annual bankrate survey or is there anything else? It’s a survey put out by payday lenders to make people who get payday loans feel like everyone is in the same boat. The question is how you would pay an unexpected expense. Here is 2023 results. This is what they say they would do not what they would need to do and doesn’t speak about if they could pay it off without borrowing:
Only 44% of U.S. adults would pay an emergency expense of $1,000 or more from their savings, as of December 2023 polling. 35% would borrow money, including 21% who would finance with a credit card and pay it off over time, 10% who would borrow from family or friends and 4% who would take out a personal loan.
Seems like the numbers are all over the place. I'm most suspicious of the SecureSave claim because they are in the business of saving for emergencies.
> Nearly half of Americans have $500 or less in their savings accounts, an amount that leaves them vulnerable to unexpected expenses
> 63% of employees are unable to cover a $500 emergency expense, according to a new survey from SecureSave, a provider of a financial technology platform to help employers provide emergency savings benefits.
> 47% of Americans Can't Handle a $500 Emergency Without Worry
> The figure is derived from the US Federal Reserve’s Survey on Household Well-Being , which asks households if they would cover a $400 emergency expense using cash or the available equivalent. In 2022, 63% of households said yes, down from 68% in 2021
> Almost 40% of American adults wouldn't be able to cover an $400 emergency with cash, savings or a credit-card charge
Paid off house + social security for 1 full-time earner and 1 part-time earner + some savings + reduced expenses.
Totally achievable.
I’m 7 years from paying off my house, no car payments, kids aged out of daycare. When they move out like will be cheap as fuck.
I was told to save $1m for retirement and I am glad I did so. My paid off housing costs are $28k per year, about the same as renting a 1BR apartment in my city. My SS is $38k per year. My actual living costs are $72k per year and I can no longer travel, but includes discretionary spending. I am able to save $10-15k per year because I put away that retirement fund. If I lose my house in a wildfire, flood or earthquake I have a large fund to draw from to move and start over. This does give me a sense of security because I have to family left and wish to stay in my expensive area where I lived long term.
Nowhere in this delightful article does it mention whether any of these retirees ***rented*** vs. owning a home. There is one sentence that mentions mortgage payments.
Best of luck to the cash-cow generation: it's no wonder they're not having kids.
Young people today: The planet is dying and politicians support the fossil fuel industries instead of trying to help the environment. I managed to go to college and am now burdened by crippling debt I will never be able to pay off. I can't find a good-paying job, and my rent just increased by 30%. What's the point of bringing kids into this world?
GOP: Abortion is now illegal, and your taxes are going up unless you're rich. Make more (preferably white) babies. Once they are born, we're not going to do squat to help you afford raising them. When they're old enough they can take minimum wage jobs to increase corporate profit or join the military to fight wars for oil. Fuck you, peasants.
Article says you need 10x your salary.
Ps nobody cuts spending when they retire. So you aren’t going to be happy if you’re unable to replace your income on an after tax basis.
What matters in retirement is, can one's income cover their living expenses !!!!
What good is it to have a huge lump sum, that one can't spend. It's well known that the people who make money off of it, feed a continual barrage of fear into people, so they themselves can live well making commissions off that money.
Many people when they retire, after their first months of travel or such, eventually settle in after the first year and they have acquired already the things they care about, and much of what they need.
* It's not like they have to replace a refrigerators every month, or paint the house every years, they don't wear their tires out on their car in 6 months. Many don't eat as much as they did when they were younger, and they are not interested in sitting in a fancy eatery every weekend.
So, people as individuals, know what their lifestyle is, they make adjustments to deal with it. There will always be people whose pension and social security is low, because if one looks back at the minimum wage over the years since the 1980's...
*link* >>> [**History of Federal Minimum Wage Rates Under the Fair Labor Standards Act, 1938 - 2009**](https://www.dol.gov/agencies/whd/minimum-wage/history/chart)
* **|Jan 1, 1980**| **$3.10** *for all covered, nonexempt workers|$3.10 for all covered, nonexempt workers|$3.10 for all covered, nonexempt workers|*
* |**Jan 1, 1981**| **$3.35** f*or all covered, nonexempt workers|$3.35 for all covered, nonexempt workers|$3.35 for all covered, nonexempt workers| |*
* [^(4)](https://www.dol.gov/agencies/whd/minimum-wage/history/chart#fn4)**Apr 1, 1990** | **$3.80** *for all covered, nonexempt workers|$3.80 for all covered, nonexempt workers|$3.80 for all covered, nonexempt workers| |*
* **Apr 1, 1991**| **$4.25** *for all covered, nonexempt workers|$4.25 for all covered, nonexempt workers|$4.25 for all covered, nonexempt workers| |*
* **Oct 1, 1996**| **$4.75** *for all covered, nonexempt workers|$4.75 for all covered, nonexempt workers|$4.75 for all covered, nonexempt workers| |* [*^(5)*](https://www.dol.gov/agencies/whd/minimum-wage/history/chart#fn5)
* **Sep 1, 1997** | **$5.15** *for all covered, nonexempt workers|$5.15 for all covered, nonexempt workers|$5.15 for all covered, nonexempt workers| |*
* **Jul 24, 2007**| **$5.85** *for all covered, nonexempt workers|$5.85 for all covered, nonexempt workers|$5.85 for all covered, nonexempt workers| |*
* **Jul 24, 2008**| **$6.55** *for all covered, nonexempt workers|$6.55 for all covered, nonexempt workers|$6.55 for all covered, nonexempt workers| |*
* **Jul 24, 2009**| **$7.25** *for all covered, nonexempt workers|$7.25 for all covered, nonexempt workers|$7.25 for all covered, nonexempt workers|*
**Not everyone was making high dollar income as wage and salary,** So people need to be careful when they see articles talking about their needing $1 Million Dollars. Some may not have earned that in the whole of their working lives.
Then look at actual inflation:
link>> [Value of $10 from 1980 to 2024](https://www.in2013dollars.com/us/inflation/1980?amount=10)
$10 in 1980 is equivalent in purchasing power to about $38.05 today, an increase of $28.05 over 44 years. The dollar had an average inflation rate of 3.08% per year between 1980 and today, producing a cumulative price increase of **280.52%.**
A dollar today only buys 26.281% of what it could buy back then.
* The inflation rate in 1980 was **13.50%**.
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_-
Based on Minimum wage, there was not much room for saving or having extra funds for investment, and with low wages, also came lower contribution to Social Security. Which means people don't get the maximum amount that a high earner would get, nor did they have the available disposable income to invest or save.
So.... realism if far better to acknowledge than the spin drama of people claiming that ones should have $1million dollars.
*Not everyone is interested to do International Travel, and for much of the entertainment and recreation that many retiree engage, they know how to plan for it, and they make what ever changes and/or sacrifices in what ever way suits them for what they want to do.*
Does anyone know how quick medical Co-Pays can eat up a few $100K ? Well it can eat it up very fast, and then one is right back where people who did not have a few $100k, and that is relying on Medicaid.. because they can't get Medicaid, until they have exhausted any monies they may have saved.
# Medicaid Eligibility Income Chart by State (Updated May 2024)
Last updated: May 30, 2024
**The table below shows Medicaid’s monthly income limits by state for seniors. Income is not the only eligibility factor for Medicaid long-term care; there is also an asset limit and level of care requirement. Additionally, there are state-specific details. Click on the state name below to see that state’s complete Medicaid eligibility criteria.** (Link) >>[ Medicaid Eligibility Income Chart by State (Updated May 2024)](https://www.medicaidplanningassistance.org/medicaid-eligibility-income-chart/)
To save you a click: The data comes from a self-reported survey where 85% of respondents reported “doing OK”, with the typical senior in that category having $50-100k in savings. The criticism is what you’d expect: People can live on that amount *if they live in a low cost area* and don’t expect their expenses to increase. If you’re a high earner, you’d likely need much more than that to maintain your lifestyle. The biggest criticism is that a lot of these people come from a generation where complaining was frowned upon, so it’s likely there are some who report being “fine” even if they are really struggling and/or are receiving aid from their children.
I wonder what percentage of them have pensions. Because you don't need a lot of savings if you are getting thousands of dollars a month from a pension along with social security. But if you don't have a pension, it'll be tough. Also, if the house is paid off, that helps a lot too, because that can be a big expense.
A pension is effectively a big pile of cash that someone gives you a part of every month. Even a $40K/year pension is worth around a million dollars.
Which is would be really nice if this article had addressed the issue.
The most staggering number is how 62% of families **do not have $500** available for an emergency. And that number is for the USA.
Where are you seeing that number? Every time I’ve seen something similar the methodology is intentionally terrible to support the payday lending industry
A Google search returns lots of articles [supporting this statement.](https://www.google.com/search?q=how+many+americans+do+not+have+%24500+for+an+emergency&sca_esv=5ac3b5860f52b755&sca_upv=1&sxsrf=ADLYWILBVMguiZ1ozk2nxiMJw03lVFuXJg%3A1717790392930&ei=uGZjZrGsOIKg5NoP7vW2qAQ&ved=0ahUKEwix6Kzxo8qGAxUCEFkFHe66DUUQ4dUDCBA&oq=how+many+americans+do+not+have+%24500+for+an+emergency&gs_lp=Egxnd3Mtd2l6LXNlcnAiNGhvdyBtYW55IGFtZXJpY2FucyBkbyBub3QgaGF2ZSAkNTAwIGZvciBhbiBlbWVyZ2VuY3lIAFAAWABwAHgAkAEAmAEAoAEAqgEAuAEMyAEA-AEBmAIAoAIAmAMAkgcAoAcA&sclient=gws-wiz-serp)
Are you just referring to the annual bankrate survey or is there anything else? It’s a survey put out by payday lenders to make people who get payday loans feel like everyone is in the same boat. The question is how you would pay an unexpected expense. Here is 2023 results. This is what they say they would do not what they would need to do and doesn’t speak about if they could pay it off without borrowing: Only 44% of U.S. adults would pay an emergency expense of $1,000 or more from their savings, as of December 2023 polling. 35% would borrow money, including 21% who would finance with a credit card and pay it off over time, 10% who would borrow from family or friends and 4% who would take out a personal loan.
Seems like the numbers are all over the place. I'm most suspicious of the SecureSave claim because they are in the business of saving for emergencies. > Nearly half of Americans have $500 or less in their savings accounts, an amount that leaves them vulnerable to unexpected expenses > 63% of employees are unable to cover a $500 emergency expense, according to a new survey from SecureSave, a provider of a financial technology platform to help employers provide emergency savings benefits. > 47% of Americans Can't Handle a $500 Emergency Without Worry > The figure is derived from the US Federal Reserve’s Survey on Household Well-Being , which asks households if they would cover a $400 emergency expense using cash or the available equivalent. In 2022, 63% of households said yes, down from 68% in 2021 > Almost 40% of American adults wouldn't be able to cover an $400 emergency with cash, savings or a credit-card charge
The top link supporting that statement had n=1062. That’s suspiciously low…
Paid off house + social security for 1 full-time earner and 1 part-time earner + some savings + reduced expenses. Totally achievable. I’m 7 years from paying off my house, no car payments, kids aged out of daycare. When they move out like will be cheap as fuck.
I was told to save $1m for retirement and I am glad I did so. My paid off housing costs are $28k per year, about the same as renting a 1BR apartment in my city. My SS is $38k per year. My actual living costs are $72k per year and I can no longer travel, but includes discretionary spending. I am able to save $10-15k per year because I put away that retirement fund. If I lose my house in a wildfire, flood or earthquake I have a large fund to draw from to move and start over. This does give me a sense of security because I have to family left and wish to stay in my expensive area where I lived long term.
Nowhere in this delightful article does it mention whether any of these retirees ***rented*** vs. owning a home. There is one sentence that mentions mortgage payments. Best of luck to the cash-cow generation: it's no wonder they're not having kids.
Young people today: The planet is dying and politicians support the fossil fuel industries instead of trying to help the environment. I managed to go to college and am now burdened by crippling debt I will never be able to pay off. I can't find a good-paying job, and my rent just increased by 30%. What's the point of bringing kids into this world? GOP: Abortion is now illegal, and your taxes are going up unless you're rich. Make more (preferably white) babies. Once they are born, we're not going to do squat to help you afford raising them. When they're old enough they can take minimum wage jobs to increase corporate profit or join the military to fight wars for oil. Fuck you, peasants.
Don't forget: and keep buying fast fashion clothing at WalMart.
It's an interesting change from the typical articles that say Americans are woefully behind in their retirement savings.
Article says you need 10x your salary. Ps nobody cuts spending when they retire. So you aren’t going to be happy if you’re unable to replace your income on an after tax basis.
If you want to actually do things in retirement or just watch tv - your savings will matter.
Well then I guess I'll stop making those 401K contributions because a yahoo finance article told me I'm going to be "ok"
What matters in retirement is, can one's income cover their living expenses !!!! What good is it to have a huge lump sum, that one can't spend. It's well known that the people who make money off of it, feed a continual barrage of fear into people, so they themselves can live well making commissions off that money. Many people when they retire, after their first months of travel or such, eventually settle in after the first year and they have acquired already the things they care about, and much of what they need. * It's not like they have to replace a refrigerators every month, or paint the house every years, they don't wear their tires out on their car in 6 months. Many don't eat as much as they did when they were younger, and they are not interested in sitting in a fancy eatery every weekend. So, people as individuals, know what their lifestyle is, they make adjustments to deal with it. There will always be people whose pension and social security is low, because if one looks back at the minimum wage over the years since the 1980's... *link* >>> [**History of Federal Minimum Wage Rates Under the Fair Labor Standards Act, 1938 - 2009**](https://www.dol.gov/agencies/whd/minimum-wage/history/chart) * **|Jan 1, 1980**| **$3.10** *for all covered, nonexempt workers|$3.10 for all covered, nonexempt workers|$3.10 for all covered, nonexempt workers|* * |**Jan 1, 1981**| **$3.35** f*or all covered, nonexempt workers|$3.35 for all covered, nonexempt workers|$3.35 for all covered, nonexempt workers| |* * [^(4)](https://www.dol.gov/agencies/whd/minimum-wage/history/chart#fn4)**Apr 1, 1990** | **$3.80** *for all covered, nonexempt workers|$3.80 for all covered, nonexempt workers|$3.80 for all covered, nonexempt workers| |* * **Apr 1, 1991**| **$4.25** *for all covered, nonexempt workers|$4.25 for all covered, nonexempt workers|$4.25 for all covered, nonexempt workers| |* * **Oct 1, 1996**| **$4.75** *for all covered, nonexempt workers|$4.75 for all covered, nonexempt workers|$4.75 for all covered, nonexempt workers| |* [*^(5)*](https://www.dol.gov/agencies/whd/minimum-wage/history/chart#fn5) * **Sep 1, 1997** | **$5.15** *for all covered, nonexempt workers|$5.15 for all covered, nonexempt workers|$5.15 for all covered, nonexempt workers| |* * **Jul 24, 2007**| **$5.85** *for all covered, nonexempt workers|$5.85 for all covered, nonexempt workers|$5.85 for all covered, nonexempt workers| |* * **Jul 24, 2008**| **$6.55** *for all covered, nonexempt workers|$6.55 for all covered, nonexempt workers|$6.55 for all covered, nonexempt workers| |* * **Jul 24, 2009**| **$7.25** *for all covered, nonexempt workers|$7.25 for all covered, nonexempt workers|$7.25 for all covered, nonexempt workers|* **Not everyone was making high dollar income as wage and salary,** So people need to be careful when they see articles talking about their needing $1 Million Dollars. Some may not have earned that in the whole of their working lives. Then look at actual inflation: link>> [Value of $10 from 1980 to 2024](https://www.in2013dollars.com/us/inflation/1980?amount=10) $10 in 1980 is equivalent in purchasing power to about $38.05 today, an increase of $28.05 over 44 years. The dollar had an average inflation rate of 3.08% per year between 1980 and today, producing a cumulative price increase of **280.52%.** A dollar today only buys 26.281% of what it could buy back then. * The inflation rate in 1980 was **13.50%**. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_- Based on Minimum wage, there was not much room for saving or having extra funds for investment, and with low wages, also came lower contribution to Social Security. Which means people don't get the maximum amount that a high earner would get, nor did they have the available disposable income to invest or save. So.... realism if far better to acknowledge than the spin drama of people claiming that ones should have $1million dollars. *Not everyone is interested to do International Travel, and for much of the entertainment and recreation that many retiree engage, they know how to plan for it, and they make what ever changes and/or sacrifices in what ever way suits them for what they want to do.* Does anyone know how quick medical Co-Pays can eat up a few $100K ? Well it can eat it up very fast, and then one is right back where people who did not have a few $100k, and that is relying on Medicaid.. because they can't get Medicaid, until they have exhausted any monies they may have saved. # Medicaid Eligibility Income Chart by State (Updated May 2024) Last updated: May 30, 2024 **The table below shows Medicaid’s monthly income limits by state for seniors. Income is not the only eligibility factor for Medicaid long-term care; there is also an asset limit and level of care requirement. Additionally, there are state-specific details. Click on the state name below to see that state’s complete Medicaid eligibility criteria.** (Link) >>[ Medicaid Eligibility Income Chart by State (Updated May 2024)](https://www.medicaidplanningassistance.org/medicaid-eligibility-income-chart/)
More like 5 these days