Can someone explain how retirement works and how one can count on it?
I'm about to graduate, but I still don't understand how retirement works.
My dad had a salaried job.He planned to live off the retirement that the company would give him.But when he was 51 he was laid off.The only job he could find is a pay-by-the-hour job.It doesn't pay retirement.Who's going to hire a 54-year-old if they have to pay for retirement in just a couple years?How's it possible for him to find a job?Will he have to work until he dies so he can pay food and bills?Am I the only one who can provide money for him to live when he's too old to work?My mom just got a $10/hr job with paid vacation as a receptionist at a doctors office.Will she get retirement?How can a doctors office afford to support each retired employee for the rest of their lives?What keeps any company from laying off all their old workers so they don't have to pay for retirement?
Now I have to figure out what kind of a job to get. I don't understand how I'm supposed to build a secure future for myself.
- 1 decade agoFavorite Answer
Retirement is a benefit employers can offer employees, and there are countless ways they can offer it. With your father, if they contributed to a 401k or 403b or IRA, he would get to keep his retirement account. If not, he may have lost the benefits from them. Employers are not required to offer retirement benefits. I offer my employees the opportunity to contribute to an IRA, but if the stock market crashes or something severe like that happens, they can loose most of their retirement.
Your father may still have a retirement account. The government offers Social Security, but it is a meager amount and is getting to be less and less of what people need when they retire. Don't count on it for when you retire.
My advice would be three things. 1) Contribute to your employer-sponsored retirement programs especially if they match your contribution. 2) Save up cash and cash equivalents, such as savings accounts, CDs (certificate of deposit), and other accounts. 3) Plan on being 100% debt free when you retire. This means no car payment, mortgage, or consumer debt (credit cards). This makes retiring a lot easier and you don't need as large of a budget when you finally hang up the towel.
Also, you sound quite worried about your father. Have you asked him if he has a retirement account still?
- junebugLv 51 decade ago
I'm sorry to hear about your dad's layoff. Many companies are hiring mature people as they can't find younger staff. There are several job sites that specialize in 50plus employment. He might want to check out some of the home renovations stores as they tend to hire mature people.
At age 65 he will be eligible for old age pension but if he doesn't have a company pension or saving to supplement it he may very well have to work part time to help.
You should start saving in a retirement plan as soon as you can. Even if you only put $25 or $50 per pay cheque into the plan you'd be surprised how a well managed plan does by the time you're 30. A company pension plan is a very desirable negotiating tool when looking for a job. Getting a good education in order to find a good paying job is certainly good retirement insurance.
- 1 decade ago
From what I was told you have to have a 401k that you place funds into for years and years, then when you retire these are the standard funds you use to live life though the government. If you happen to need money prior to retirement age 60+ depending on the job you are penalized.
The best job to get if you really want to rely on funds people our age will never get LOL even if your 18; you’ll need to get a government job that will allow you to retire at 35+ Personally retire doesn’t work for us so if you can stand it go for something long term.Source(s): LIFE
- yeLv 41 decade ago
If you are not of age to retire you may want to re-think your questions you have.
Your best bet would be to research this info because it is a vary broad topic.
Visit the Social Security Administration website and start there.
The site give a lot of info that might be worth reading.
God Bless and I hope this info has helped you!Source(s): http://www.ssa.gov/