Hi guys, I don't mean to be prying, but is anyone here saving for thier retirement or have a Company superannuation scheme at work?. Another thing I wanted to ask was, is there a set retiring age in your area/country?. Reason I bring this up is the policy-makers here are looking to raise the retirement age again from it's current 62, to what I'm not sure. I have no need to worry, the way I'm going I'm going to be working until I'm about 90 anyway!.
Mike- Yes we have Social Security (if it's still around by then) I will able to collect full benefits at age 67. That's 26 years away, but coming fast. I also am putting money into a retirement fund . I have been lucky and have been in a position to stash away quite a bit every year. With out putting anything away how could anyone expect to retire? I constantly am telling my two kids ages 21 and 16 to put away a minimum of 15% of every dollar they recieve.
A 401k is usually a mutual fund (A blend of stocks and bonds) that you pay into every month and your company matches some amount (.25 or .50 is typical, my company matches dollar for dollar with a cap). Your fund usually goes up and down in value when the DJIA goes up or down.
I started planning my retirement when I was 18, I dont plan on working past 60 unless it is on a boat or golf course. I wouldnt count on social security being around after the baby boomers use it all.
Sites like fidelity or Janus have a lot of good tools that help you plan your retirement, I would start there.
There will probably always be social security but expect them to tax the hell out of it, if you take it and have other income. I think the break even date is around age 74-78 if you start collecting at 62. From then on you are losing money. I have retired twice so far (at 49 and 58) I may take another gig if it is attractive. My wife works so I can't afford the taxes if I start collecting SS before she retires.
Trumpy a 401K is a tax deferred savings plan. You can't start tapping it until you are 59½. Employers may match contributions but this is usually in lieu of a real retirement plan. Again, I bet you anything that the government is going to tax the hell out of this if you make much over the poverty level in retirement. One problem with the 401k is that it is pre-tax money and the government is not obligated to treat the withdrawls kindly. I really think they will strongly discourage massive withdrawals and the negative impact on the stock market by using abusive taxes.