How to Save for Retirement on a Low Income

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Esteban of TN 3:38PM April 22, 2011

Greed is ruining this country? You're pathetic. The 'poor' should not receive handouts from those who work hard & earn what they've sacraficed for. This 'poor' population that you speak of are the ones who claim they can't save for retirement & blame the Greedy as you call them for it, but they have no problem buying cigarettes & US Weekly.
I'm 24 & make 32K a year. My 401K contribution is $9600/yr, I max out my Roth IRA & I bought a house at 22 with a 20% downpayment. I could've bought a 100K dollar home, but instead went w/ a modest 3 bed, 1 bath for 45K (1100 sq feet). I contribute my tax return each year ($1000+) towards the principle & I'll have the mortgage paid off before I'm 35. The money I used for the mortgage will then go towards my 401K from there. I took out loans for school (around $20K) & these will be paid off by 30; which means more dollars towards retirement.
The bottom line is live below your means. Show me someone whose 'poor' & I'll show you areas where they're undisciplined & will never have enough. People like you want to make more when in reality, you should spend less.

Mikey Jay of OH 1:41PM April 22, 2011

Very good article. I would add to the "Seek a job with good retirement benefits" part to contribute 100% up to the match! I don't include Social Security in our retirement planning. If it is still there when we are ready to retire. I will consider it a bonus.

Rob of CO 1:16PM April 20, 2011

I don't believe the author was trying to act superior by writing this article. Yes, folks in the low income bracket do have trouble saving and chances are, if your job is minimum wage, then you won't be able to save for retirement. But I think she is pointing out that if you are able to save just a fraction of what you earn, it's better than having nothing. Of course the money you set aside won't be enough to live on when you retire. Folks in the lower income brackets will definitely need to have Social Security to get by. A small savings account could help to at least offset some of the incidentals that people may need in retirement. The author was just trying to offer a bit of advice.

Ted of TX 1:28AM April 19, 2011

You are what the world needs more of! I am also on SSDI and it is as low as yours. Struggling? Yes. Grateful? Absolutely!! Why? Because I did what you did. I let go and let GOD! The poor are not the ones ruining this country! It is the greedy and self serving that are sucking up ALL of the resources (and most of those are wasted by being thrown away!). God bless you darlin'
p.s. You sure sound like a woman I know in AZ! Peace!

Susan of CA 9:37PM April 18, 2011

Did you party too hard when you were young? Seems like those that did alot of Drinking & Drugs have caused our society to down fall. All I hear from those folks are "POOR ME"

of 8:50PM April 18, 2011

Our government is paying $600 to $1000 a month to individuals from the Social Security fund that have NEVER paid a penny into the system!!! I see 23 yr old kids coming into the prison system & I ask them if they have ever worked, their answer " No, I get SSI"
I have worked ever since I was 15 yrs old & paid into the SS, now that I'm reaching retirement, My hard work may have not paid off cause someone who has played the system has my CHECK

of MO 8:45PM April 18, 2011

i live on $654.00 a month. i have no electric, no hot water, no propane and heat w/ wood. fortunately, i paid off my land and home when i was working. then i became disabled. so i have a place to live. i am unemployable because of my disability and labeled crazy. people w/ mental disabilities are treated w/ contempt and shunned. i admire folks who can work and struggle to just make it and remember being one of them. since i am out in the country, i have adapted and am quite efficient at surviving. i have water. i have shelter. i have faith. i don't have cable but i have the internet on my phone line. i have just enough solar to make it work and i am content to no longer drive to town except 3 times a month. gas is so high i fear for all of you who have to spend your wages just getting to work. it must seem so hopeless, spinning wheels and treading water, while the media idolizes these celebrities, politicians and sports stars for their millions they argue aren't enough. i have learned to count my few and simple blessings. i want each of you to try to do the same. something must be done for all of us that are the American poor. But what? all i can think of is to reflect on what you do have right now that is positive and healthy. being angry and envious didn't work for me and it only made me unhappy. sometimes you just have to let go and let God show you what you need. when i did this, i just woke up one morning and i was calm and happy and content. it is time for everyone to re-evaluate a life plan and find what will bring you peace and surrender to what you do have and be grateful.

coyotewoman of AZ 8:31PM April 18, 2011

I am 49 years old. I got Cancer again at 45, had to quit my job live on my savings for 2 years, then dreaded having to draw SSDI, because of my age I draw $830 a month, penalty for getting Cancer at a young age, even though I worked, and am a Military widow, too young to draw my husbands pension or SS, MAKES NO SENSE TO ME!!!

Laney of CA 4:31PM April 18, 2011

I agree with these opinions. If our senators, governors and, yes, even our president would cut their own pay by just 1/4 for the next 3 years, put that into SS, and then start to PAY into SS, we may not have senior citizens that can't afford medication and therefore die many years sooner than they need to. Or maybe they die from malnutrition because all they can afford is the canned cat food they buy for Fluffy!!!! Either way, it seems ludicrous to see our government living in mansions, flying to France to comfort a friend, and living it up as though there was no "depression" going on while the people that have kept America going for the last 50 years by working every day and paying THEIR taxes, can't even enjoy retirement. My dad has worked since he was 12 yrs old, odd jobs until he was 18, then worked every day until he reached retirement age. Now they can barely afford to make a small house payment and buy their meds, and my mom has to pay for her medical insurance AND her meds!!!! In the meantime, we have young, healthy men and women on welfare and state insurance...they COULD go out and get a job but they're too good to clean toilets or flip burgers! THEY don't have to worry about retirement and being able to survive!!! How Ironic.. welfare hogs and politicians are set for life while the rest of us that have made all that possible for them have to work until we're 70 just to be able to draw a low income!!! AWESOME, huh?!

Debbie of TN 3:22PM April 18, 2011