How to Save for Retirement on a Low Income

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I am so tired of these so-called "experts" writing about something they know ZERO about. That "Social Security" reduction? That $600 she talks about? That is completely BOGUS. DID NOT HAPPEN. What it was? a shell game, that's what. That money was "removed" from your SS part of what is taken out of your paycheck. Then, because you had more "income" you were taxed up on that, plus the "making work pay" was being "made up for". For me at $30,000 annual salary, my "600 dollars" nets me $2.80 per paycheck. Do the math people. The foregoing explanation was handed me by the CPA who does my employer's payroll and taxes. I was so shocked at the miniscule difference in my paycheck that I collared her one day and demanded an explanation. The above explanation including the exact words "a shell game" is what she told me. So. Fine. I'm happy to save $2.80 per paycheck - EXCEPT that every penny of that AND MORE is going for higher gasoline prices just to even GET to work.

Alexis of WA 11:37AM April 18, 2011

So, at 59, I am ready to give up the total political environment of working. I worked baby-sitting at 11 and have worked almost constantly since. In my mind, 48 years of providing service for pay on any level is enough. I am debt-free except for a very small mortgage on a house that is rented. As a "low income" worker even though I had a college degree for the last 20 years and was committed to public service..........who in Washington, DC, is the least bit concerned about me????? I have worked for and earned my Social Security. I will be one very unhappy, politically active, gray-haired old woman that will certainly make my opinions known. If more articulate, fed-up, ready-for-retirement American citizens made our voices heard, THEY would have to listen!!!!!! I love my country, I love the freedoms that we have enjoyed by the provision of our Government but it is time that the retirement-ready community began to speak out. We are the same generation that "changed our society." We didn't pay taxes and social security for everybody else -- to be IGNORED or DELAYED now.

Giese 1:28PM April 15, 2011

I read this article and found that she geared to those still working and those who have one job w/retirement plan and if they retire at one time or another - but not if already retired and options there. I am retired and now will be going back to work - since I am going through divorce..... I was planning to work anyway - just was putting all my energy into a loan modification and minimizing the farm animals so that I could do just that. He missed the bar life from his work days - so there he went....:} I am also moving another region as well. Now - I am interested in what to plan for and how. I clicked on this but was disapointed in the lack of advise for folks like me. I plan to work into twilight years as my folks did. They essentially stopped working in their early 90's. Didn't have to..... just loved what they were doing - together! Would appreciate any other sites if anyone knows of one. Thanx

jv of WA 11:23AM April 15, 2011

the writer is just drawing our attention to s'thing s'one may not be considering now thinking there is more time so we consider and then plan to plan for it. Is this a crime. I know people who reach their retiring age only to realise hey! what I feared has caught up with me

of 11:14AM April 15, 2011

The article fails to mention robbing a bank as a tax-free source of retirement income. With Republcains in power, it may be the only effective means of achieving your retirement goals.

Jim Johnson of GA 10:38AM April 15, 2011

Guys -
Give the lady a break. At least she thought to write an article that addresses saving for those of us in the low income bracket. It doesn't say anywhere that she is condemning those of us who were unable to save or have been subjected to awful circumstance. I don't think she intended to be insulting. As for how to save on a low income we all know it's easier said than done and we all also know that Forrest was right, "Life is like a box of chocolate, you never know what you're gonna get." Sometimes unfortunately the "what you get" is more like curdled, spoiled milk rather than chocolate. I don't have any words of wisdom...just don't think we should beat up the author. God Bless.

Rachael of FL 10:23AM April 15, 2011

Low income? This article is a waist to people like me who work a full time job, a part time job, and still struggle to pay just normal bills. Not credit cards, just living expenses. Who ever wrote this article doesn't have a clue what low income is!! Retirement is not an option any time soon. Your right why do I even read these articles.

Sharon of IN 10:16AM April 15, 2011

As the two others have stated above, this is advice for middle income or higher.
I feel sad for the lady where medical expenses took all her money. I know that the company HE used to work for unless they were smaller than 20 people would be obligated by law to offer Cobra insurance which would last 18 months and if her husband died during that time, the widow would get her own 36 months.

Thor of TX 9:42AM April 15, 2011

The "advice" in these articles are obviously written by 21-year old recent college graduates with no experience in life, or 40-year old smart asses with their tongue firmly in their sarcastic cheeks. "Low-income" means wondering how soon you will be homeless, and being grateful your kids are grown and able to survive on their own. The people who write these should indeed by ashamed of themselves.

lineasaved of NE 9:19AM April 15, 2011

My husband and I saved for retirement and rainy days ... until my husband turned 51 and suffered a heart attack requiring open-heart surgury with 5 bypasses. His Company insurance paid 80%, after he returned to work the Company terminated the position he held -- re-named it and hired someone else for the position and he was not allowed to retain his insurance. Unable to obtain insurance to cover heart condition ... and 4 heart surgurys later we were mired in debt. Husband passed away; I continued to work and managed to pay off debts, then 2 months later I was laid off work as were all other older employees when the Company sold and they didn`t want older employees with 28 years of experience. I was 67 at the time and unable to find a job. I have diabetes and had 4 stent placements in my heart. Savings are gone --- I do manage to pay for Supplemental Insurance by forgoing fresh fruit and vegetables and lean meat etc that are too expensive for me. Food , gas and utilities are more expensive monthly. No Cost-of-Living increase in at least 2 years and now talks of making cuts on Social Security and Medicare ! ! I don`t know how I could have handled anything differently to prevent using my retirement money.... unless I defaulted paying my bills. I was taught to pay my bills and morally could not refuse to pay. God Help Us All.

Joyce Jones of TX 6:20PM April 14, 2011