Friday, December 9, 2016

Minimum Wage Retirement

In small towns there is a big issue minimum wage retirees. The issue with it is as
you retire it will be at the wages you retired at. Like if you retired 10 years ago then
you more likely are retired at $5+ an hour. Taking your check divided by 160 hours
for the month as you where still working. This is bad being the un-ability to hire
people to fix your house so the house is falling apart. Sometimes retires out live their
homes. That is happening in the town I live in.

Why? This is a issue of many not making a living wage in small towns.
Not being able to put money in for retirement. Well if many people walk with
no cars or drive cars with no bumpers like in many towns it points to no
retirement as the fact you make nothing, you have nothing and nothing to put
in for retirement. Raising the pay would help in that issue as long as being able
to afford things that are a issue now, not being able to afford ObamaCare etc.
Make children wages live like a child! Children don't pay for ObamaCare.

But as it looks the wages are not going to go up as most Republicans fight
any wage growth. Like it would be the end of the world like it was the last
times the wages went up over, and over... Oh wait we all are still here!
Wage growth does not kill jobs and cost! But nope no increase!

Also noted is the point that many can't do better in small towns. 
No raise, no moving up the ladder as you are kept down.
Like working at Walmart 10 years ago and trying to move up
to a better job. Or working at a good job in town only to be fired
six months later because they don't want to pay benefits.

So the towns growth is and will always be kept in check by the
low wages. So to retire with no growth is no growth!
So retirement on minimum wage is a no growth situation looking ahead.
So to retire you have to go down, cut back spending, do without,
Make no sales for them so you can make sales for you, your retirement!
You can save for retirement on low pay you just cutback.


~~~~~Could you live on $16,000 a year? Here's why you might have to
Can you live on Social Security alone?
The problem with banking on Social Security is that your benefits are only designed to replace about 40% of your pre-retirement income. This isn't just an educated estimate; the Social Security Administration even says so itself.

Now you may be expecting your living costs to go down once you retire -- so much so that you'll be able to survive on Social Security alone -- but in reality, that's not likely to happen.

For one thing, you're going to have a lot more free time on your hands, which means you might wind up spending extra on leisure and entertainment. But more importantly, you're going to have health care to worry about, and that's where so many seniors get thrown for a loop.

According to 2016 data from HealthView Services, a provider of healthcare cost-projection software, the average healthy 65-year-old couple retiring this year can expect to incur $377,000 in medical expenses over the course of retirement.

Younger couples have it even worse. The average healthy 55-year-old couple today could spend as much as $466,000 on health care expenses throughout retirement, while a 45-year-old couple today in similar health might rack up $592,000 in health care costs. And those are the numbers healthy couples are facing. If your health isn't great, your expenses could climb even more.

When you think about it that way, Social Security probably won't be enough, especially since the average recipient currently receives $1,341 in monthly benefits, or just over $16,000 a year. Even if you and your spouse each receive $16,000 a year in Social Security benefits for a total of $32,000, if you wind up spending $377,000 like the average healthy older couple over the course of a 20-year retirement, that's $18,850 a year on medical costs alone. Subtract that figure from $32,000, and you're left with just over $13,000 a year, or roughly $1,100 a month, to cover the rest of your expenses.

And as much as you can try to keep your living costs down, there's just no getting around the basics like food, electricity, transportation, and housing. In 2014, the average American spent $934 a month on rent alone. If you're in a similar boat, that means you'd be left with less than $200 a month to cover the rest of your expenses if you were to rely solely on Social Security. And that's just not enough.

Time to start saving
If $16,000 a year per person in retirement doesn't sound adequate, then it's time to start saving independently while you still have a chance. Even with retirement less than a decade away, there's still time to amass some savings before you stop working for good. Anyone 50 or older can currently contribute up to $24,000 a year to a 401(k) and $6,500 a year to an IRA. If you can't max out those contributions, do what you can. Saving just $250 a month over the course of 10 years will give you an extra $36,000 in retirement if your investments generate a relatively conservative 4% average annual return.

If you're still in your 30s or 40s, you have an even greater opportunity to catch up. Saving $250 a month over the course of 20 years will leave you with $137,000 for retirement, assuming your investments generate an average annual 8% return -- a reasonable assumption for younger investors who are able to get more aggressive.

Now if you're already in your 60s and have yet to start saving, you might consider postponing retirement and working a few extra years to put some money aside. Though it may not be your ideal solution, some studies have shown that working longer could actually lead to a longer life. Another option? Work part-time in retirement to supplement your Social Security benefits.