Saving for Retirement - My Story

I was born and raised in a small town in southeastlong process of recovery. What would you do in that
Arkansas with a population of about 700. My parentsor a similar situation? I opted to retire rather than
were share-croppers. It was a hard life. We had notrek all over the country seeking another comparable
mechanical equipment. All of the power needed tosix figure position. The shocker for me was the
get the crops to market was provided by two oldrealization that even with my tax-deferred annuity
mules and us. My parents' mantra to me and mythat I had poured handsomely into, my total
other ten brothers and sisters was: "Get a goodretirement income slid downward by nearly 20%!
education so you can get a good job and make aObviously, I had not saved enough. I felt terribly. I
good living."felt like I had failed.
Well I earned a BA degree and joined the Air Force.I later discovered that calculations of retirement
After I was discharged, I found it difficult to findincome adequacy usually target 75%-8o% of
"good paying" work, however. The jobs I was ablepre-retirement income which is considered by many
to land paid enough to put a roof over my head andfinancial planners as adequate since the income needs
allowed me to have a little "fun" but little else.of retirees are supposed to be lower than those of
Planning and saving for retirement were not prioritiesworkers. The reasoning is households no longer need
for me at that time.to save for retirement, taxes are supposedly lower,
When I finally began to focus a little on retirement inwork- related expenses disappear, and the family size
the late 1970's, I was fortunate enough to beginof retirees is generally smaller. Retirees are also
carving out a career in the Public Sector as a schoolexpected to consume less (whatever that means). I
district administrator. I secured the services of awas at 80% of my pre-retirement income, but that
financial planner and set up a tax-deferred annuity. Ididn't make me feel any better. All I could think about
was able to increase my income to six figures andwas I had worked nearly all of my adult life and now
was sailing along toward retirement. And then Lifethat I was retiring, I would have to live on less.
happened!Remember, however, you do not have to live on
At age 62, I found myself suddenly thrown out ofless in retirement. No matter where you are right
the district on my ear because the district massivelynow financially, you can build and enjoy a retirement
over- spent its budget and had to eliminate nearlylifestyle that you desire. Peace.
four hundred jobs, including mine, to just begin the