DIY Retirement System Is Failing Many American Retirees

I've managed my own 401k. Maxed it out since 32 y/o. retiring at 59 y/o ,very well off. I never trusted someone like Jamie. Buy annuities from me! What BS. Therre's plenty of good investing newsletters and advice out there to avoid the "professionals" with their cufflinks and smooth talk. Never trust them with your money.

I retired at 62 and started drawing my Social Security right away. You notice I said "my Social Security". It's my money. I put it in and now I want it back so I'm getting it back. Some folks will tell you to wait because you will get a higher amount if you wait. Well define "higher amount". Truth be told the odds are if you wait you will get less total money. Remember If you wait until age 70 to start taking your money you will get a higher monthly payout. But you need to consider the fact that I will already have 96 months of payments in my pocket before you get your first check. The odds are you won't live long enough to catch up. That's because you are only gaining on the difference not the whole check. You also need to ask yourself what is more important. More time retired when you are young enough to enjoy it, or more money when you are old and can't remember what day it is. Coming up on 6 years retired and there is no doubt in my mind that I made the right choice. You have to do what's best for you.

“Humans are flawed.” This point is so salient, and glossed over in seconds. I’m not one who believes the entirety of the retirement crisis is the fault of the individual. However, I do believe that a much larger portion of this crisis is due to poor personal choices and chosen lifestyles/careers than the industry seems willing to publicly say these days. Those who often decry pensions are unwilling to take the government jobs which provide them. Those who live an outsized life on debt are unwilling to admit they are spending their retirement now... and society treats them as victims instead of the simple truth of stating they have been fools with their money. I’ve been that fool, and had to learn that financial security is unattainable until you cease these patterns of behavior. The solutions presented by these guests ignore the problem, and shift the responsibility to the government (I.e., the taxpayer). I agree some adjustments will be needed to Social Security, but no system can shoulder the failure to handle finances responsibly through your life. Some who will not work/save, should do without. This is a harsh truth society has lost the backbone to accept.

Just recently retired and did the deferment for 1 extra year. It along with my savings makes a difference.

This video assumes that people aren’t educated about saving or investing in a do it yourself system. I’ll go further and say too many people are racking up debt to keep up with the Jones’s. Live within your means and “luck” is on your side.

Unfortunately, I think Teresa is right. Many in the US like to say they don't want gov intrusion in their lives, but in practice they want it. They say they don't want socialism while clinging to all kinds of government services. They claim self-reliance and personal responsibility, but they don't take the time to seriously look over their personal money matters and set them in order. I was recently talking with a wife and full-time worker (about 40 years old) at one of the large defense contractors, who is also a business student and conservative type. You would think she is responsible enough to set her financial matters in order. She is completely unaware to which funds her 401(k) contributions are going, which are matched. She looked surprised when I said she needs to know for various reasons, in particular the expenses. She thought it was a completely hands-off benefit, like a pension.

I talk to many folks about retirement. I've found a common thread: they don't have a written budget that they follow and they don't know the details of their retirement plans provided by their employer. I've been through divorce, disability, and huge medical bills....all within 8 months of each other. Saving for the rainy day made all the difference.

This lady is nuts! We have a retirement crisis but it also includes social security. She isn't being honest about social security and putting trust in the gov't is a terrible idea. Providing people education, don't allow people to borrow from 401(K) and other legislation to encourage people to save more and become educated (maybe a credit systems or something), more incentives is a better idea.

After nearly forty years of falling returns for bonds, we now turn with scorn to the older portion of our labor force and demand : “Why haven’t you saved more?”

Wait til 70 to collect SS? That's a gamble that would pay off nicely if you live long

Govt employees have no concerns at least in ontario canada.Their pensions are backed up by the rest of us and we have to fork it over or go to jail.

We should change the SS withholding to 20%/5% employer/employee as the employers have relief themself of pension responsibility. 401K has failed us as the performance has been sucked out by professional management fees. Social security needs to cover 70% of retiree's needs instead of the 1/3 ss, 1/3 pension and 1/3 401(K) envisioned.

There are times that emergencies crop up and just devastate your savings. There are also things such as layoffs ,shut downs of businesses,thus loss of jobs.

You won't get the benefit of deferring until you hit ~84yrs old. If you honestly anticipate living past that point then defer as long as you can, but if your health/genetics doesn't point to that conclusion then you are better off taking SS when you can.

So glad I am receiving my pension and Social Security benefits.

I have never seen of these people talk about selfsustaining retirement portfolios. Where one creates a portfolio large where they can live off the dividends and not worry about tax deferment, and needless junk that goes with pensions and 401(k)s.

And we all know if you delay social security you get 8% more a year; that number is drummed into our heads in every article and show about retirement. If only I lived 8% longer for each year I defer. And coming as a shock to nobody; annuities yep annuities. Not just annuities but fixed index annuities. Annuities are pretty much horrible for the person buying them. Maybe SPIA might make sense for a part of your income stream but there are so many better options.

And if no one told you when you were 16 to open an IRA, well, sucks to be you.

Stop talking over each other. You ask a question then speak over the person answering the question.

The biggest canard, especially for people who have a couple of nickels to rub together, is the recomendation to defer. There are already 5 means tested tiers to medicare deductions and you'd have to live in lala land to think means testing and 100% taxation of benefits (from 85%) aren't in the near future. Deferral is especially stupid if one has a spouse that doesn't qualify for benefits in their own account (stay at home mom for example) and who would otherwise be getting a 50% benefit through the deferred period. They never tell you about that.