Quote:
Originally Posted by rhsgypsylady
Food for thought...........
I've never understood the expression "retirees are on fixed incomes". Sure they draw an established amount from SS and if fortunate to have worked for a company with pension benefits they draw an established amount from that pension. And yes those drawing SS benefits usually get an annual COLA increase. And those retirees (59 1/2+) who have annuities, IRAs, 401ks, or some other type savings or investment usually can draw out any amount they choose at anytime they choose.
I don't get it. Aren't those who are employed and paid a "salary" as opposed to being paid hourly, commission, additional jobs, etc. also on fixed incomes? I know I am. Because I am not 59 1/2, I do not have the luxury of withdrawing from 401k, IRAs, and annuities, etc. I get paid a set annual salary and my paycheck is the same week in and week out. That is what I call "fixed income", especially when raises are scarce and percent is minimal.
I agree those not retired (and even some who are) have the advantage wherein they can get a better paying job, a part-time job, a 2nd job, etc. if they choose to do so. This means, their incomes could be flexible, not fixed.
For me, I consider myself on a fixed income while I am working and not so fixed when I retire.
|
Fixed Income - I am on a fixed income. I will never see another raise or a promotion. I do not get COLA from my retirement pension. I only get COLA from SS and we did not get a COLA this year nor are we expected to get one next year. Besides COLA is usually about 1% and does not even cover the increases in Medicare and other Healthcare costs - not to mention the increases across the board in food, gas, etc. Yes I do have an annuity and a 401K that I can draw from but I prefer to hold those until I really need them. I do not consider them annual funds at this point - just the way you probably don't consider your savings account annual income.
Drawing from 401ks, IRAs, and annuities is not a luxury. They do run dry so you have to be very careful about accessing them.
Plan ahead and be VERY CAREFUL because until you join the ranks of the retired you will probably never be able to understand what fixed income really means.
Z