Photo Credit: Rosie O’Beirne
I just read that the life expectancy for people in the United States and Canada continues to rise.
Seems like a real blessing, doesn’t it. We get to live a longer life. But how are we going to afford medical care and to feed ourselves if life far exceeds our ability to work and earn?
Unless we save sufficient funds during our working years, we won’t have enough money to properly care and feed ourselves when we get older. Hey, I’m in the same boat as well.
During this past economic downturn many people have been raiding their retirement funds to help make ends meet.
Loans from retirement funds jumped 20 percent last year. This really can’t be a big surprise to many. Faced with difficult financial decisions people will tend to gravitate towards the oath that seems easiest and less painful immediately. – Source
What are we to do, not paint the house, not fix the car, not have any fun at all? In that case retirement is morphing from the years in which we enjoy the fruits of our labors and saving to one where we simply budget what little money we have and prepare to die without the need for medical care.
Gone are the days of a company pension to give you income and worries that Social Security will vanish or be significantly depleted are real as well. If changes are not made to Social Security by 2036 there will only be enough money to pay 77% of scheduled benefits. In 2036 I’ll be 77 years old.
Imagine if I worked at a job that required me engage in a significant amount of manual labor. At 77 years old how would I ever be able to work on a landscaping crew or work a full shift in a factory? What would I do, work at some fast food establishment? But even then I’ve noticed that there are fewer older people working at fast food places as it seem younger people are pushing them out of even those jobs.
I’ve scared the hell out of myself just writing this.
If You Are in Deep Debt, You Must Act Now
If you are in deep debt and you are older than 40 then time is not on your side. While you may want to do everything you can to work your way out of this hole over the next decade, if you don’t take action to resolve your debt situation within 12-24 months it’s quite possible it will have a very negative impact on your retirement.
Every month that goes by that you don’t save for retirement is a compounded month you’ve lost to avoid a financial catastrophe (thank you spellcheck for changing that to “cat atrophy”) when you can least afford it.
I think there is a very logical argument to be made that if you are struggling with unmanageable debt today a consumer bankruptcy now that allows you to get back to saving again makes complete sense in the face of otherwise retiring with little to no income of your own.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Do you have a question you'd like to ask me for free? Go ahead and click here.
- Who Knew TitleMax Sucked This Bad? - February 23, 2023
- Litigation Practice Group Lawsuit by Business Partner All Service Financial – We Want Our Money - January 24, 2023
- HomeAdvisor and Angi to Pay Up To $7.2 Million and Stop Deceptively Marketing its Leads for Home Improvement Projects - January 23, 2023
5 thoughts on “Chances Are You WIll Live Long Enough to Be Broke”
I’m glad I read this article. I’m only 24 and have a good habit of saving but with the cost of everything going up things look a little bleak it seems. Thanks Steve for the advice. Saving More Program is a GO!!!
Luckily I have not hit that 40 year old mark yet. 🙂 Time is on my side right?
You just have to put one foot in front of the other and hope life turns out. Luck has a lot to do with it.
I am 48 years old and will pay US student loans for 25 years at 6.8 interest. That will be 505.00 per month. I earn 60 K per year and try to do extra jobs on the side since I teach school and have 18 years experience. Will 500 dollars be a lot of money to pay in 10 years, and should I take action in a will to make certain that the government doesn’t take my children’s meager inheritance, if there’s anything left?
If you have government backed student loans have you check to see about lowering the payment? I recently published this that might help.
Student Loan Consolidation Opportunities
Student Loan Consolidation Payment and Interest Rate Calculator