Saving money previous and after retirement when resources limited
By suspenseful
@suspenseful (40192)
Canada
December 6, 2007 11:43am CST
I know about that it is preferable that people start saving for their retirement when they start working. That, however, assumes that they kept working most of their lives and if they did not keep working, and were at times taking time off for raising children, or were between jobs, they made enough during their employment to put enough aside for retirement.
However for those who worked at low paying jobs either part time or full time, and who were unemployed, who decided to stay home and raise children, who maybe use myLot and other means to make money, they cannot put a whole amount of money into retirement and in some cases, they cannot take advantage of Registered Retirement Income Funds.
I had a low income office job, but at that time there was no such thing as RRSPS for low income workers. Later when I was able to join them, I did make enough to contribute for a year or two. However it was not until in the last two to three years that I was able to put some money aside, but it is no where near the one million I would have had, had I had better paying jobs. So now I have a little over a few thousand set aside, not enough to live on, plus my Old Age Securiy that will kick in next year. I have an online high interest banking account, but I keep it in reserve for big purchases and other things.
So how do you who have a low income, manage to put aside money for retirement and how would you manage after you are sixty-five or do you plan to keep working untl you drop dead?
4 people like this
8 responses
@newzealtralian (3930)
• Australia
7 Dec 07
Save money? Not here! lol. We tend to buy things in bulk, so we consider ourselves to be saving in the long run, but not into a bank account. We are going to do a complete overhaul of our finances and start saving though, gotta take a trip to see some friends soon! lol.
1 person likes this
@suspenseful (40192)
• Canada
7 Dec 07
We did not save money when we were first married either. It went onto the mortgage. The interest rates were sky high, at least eighteen percent, and we were buying meat by the cow, etc.
1 person likes this
@suspenseful (40192)
• Canada
8 Dec 07
Still it must be hard informing all your friends and relatives.
1 person likes this
@newzealtralian (3930)
• Australia
8 Dec 07
I doubt we will ever be in a position to own a house. Still, renting means a change of scenery more often! lol. Kind of like 'buying' a new house every 6months to 2years! I love moving, but now there is 6 in our family, we need a company of removal trucks! lol.
1 person likes this
@Lakota12 (42600)
• United States
7 Dec 07
my hubby had a good paying job but didnt work al the time mostly about 9 months out of the year he had money put into a retirement fund and we drew that out and bought a house.
where I didnt wan tto retire at so now i am where I wan tto be and Daughter and I are paying fior the house and I have my SS and she has a hubby whwen I get wel she will go back to work I think . never did work out to try to save to 1 million $ lol some poeple might make it but witht he way prices go up every year and gas prices going up every few days there is no way to set any thing aside for a rainy day.
and I dont know any one that has trhat kind of savings to many things get in the way like an operation or kids gt sick or you do and there goes the savings you have tried so hard to keep on the side!
1 person likes this
@suspenseful (40192)
• Canada
7 Dec 07
I find that those who are able to save well a million dollars are extremely lucky hat their wives have gone to university and got good careers when they got married, and can work part time at good paying jobs, no one gets sick, no one has an accident, and if they lose money, someone gives them more without requiring they pay it back. We are not as lucky.
@suspenseful (40192)
• Canada
8 Dec 07
You have to pay back loans. Luckily my sons got grants and they also worked to pay for their university.
@men82in (1268)
• India
8 Dec 07
Herein india even government itself curtailing the funds towards pensions by the ways of alternate plan by the employee themselves. Private sectors pension plans not upto the mark due to their investment with share markets like lottery. If share fails pension plans will be under clouds. Improper plans towards unorganised sectors pension dreams. Only way remains is to save ourself towards old age to live with anybodies interference. Saving money is the only way towards save our soul after retirements.
@suspenseful (40192)
• Canada
8 Dec 07
You cannot depend on government or even registered retirement plans that only work for the wealthy and the upper middle class. We have old age security that was designed for those who did not have good paying jobs and for homemakers, but because our birth rate has not been replaced here in Canada (even though I went into marriage and tried, but could not, and we adopted but were only allowed two) soon the age when one retires may increase to 66 then 67 then in the future one may have to work until the grave.
@LittleMel (8742)
• Canada
7 Dec 07
I shouldn't be responding to this since I don't know really what would I do for RRSP. I started it low monthly pay since the first year I started working, which is several years ago. I can only put that much aside after saving every dime even when I was employed. I don't get a car or anything that will require monthly payment, unless TV, hydro, phone, internet, which is necessity. I can't imagine if we have kids, I think we will not save anything and can't pay into pension anymore
@suspenseful (40192)
• Canada
7 Dec 07
We had to really watch our budget when the boys were small. Luckily my husband had his CN pension and was a tradesman so he made enough, but even then it was hard. I was not until a few years ago, that we could save more.
1 person likes this
@betsyraeduke (2670)
• United States
7 Dec 07
I am a stay at home mom so I am not working myself. What I do is put money from our tax return each year into an interest earning savings account. However, I am not sure how much I will end up with when I need it, but it is the best I can do. Also, I do not know if that would work for everyone as I do not know if there is a such a thing as a tax return in other countries or not.
1 person likes this
@suspenseful (40192)
• Canada
7 Dec 07
Yes but how does one who has a low income and low paying job save enough?
@cutepenguin (6431)
• Canada
6 Dec 07
I have had an RRSP since I was eighteen, and back then, I made something like $200 per week. It wasn't a tax savings so much as a way for me to start saving. I started with $25 a month.
Right now, I can't afford to contribute to it, and I even took some of it out, but it's still sitting there, earning interest. It's definitely not enough to retire on, but I hope to be able to add to it.
I am trying to set bits of money aside, even just a few dollars a month, and am trying to find other ways to earn income, online, etc., to pay down more of the debt so I can save for retirement, but it is difficult.
I will probably continue working after 65, both because I won't be able to afford to retire and because, well, what would I do all day?
1 person likes this
@scheng1 (24649)
• Singapore
6 Oct 15
I bought insurance policies when I just started working.
At that time I had the intention of buying just 5 years saving plan, so that I could have the money to go on holiday.
The insurance agent was very wise, and convinced me to buy life insurance to protect against loss of income due to critical illness or as a saving for retirement if nothing happened to me.
I paid just $50 a month. It was big money to me at that time, now $50 is not worth a lot.
The cash value of the policy is now more than what I have put in.
I just regret not buying more policies. I could have retired in comfort if I have a few of these $50 a month policy.
