Random musings: 2,340

That's how many weeks there are between the ages of 22 and 67. The number of weeks between college graduation and being eligible to collect Social Security, if you were born after 1960. And if you don't go to college it could be 2600 weeks or maybe even more. That means you'll be working forty five years to fifty years.

For most Americans you won't have anything to show for all those years of work. There are no more gold watches and very few pensions left. The pension has been replaced by the 401k, relieving the company of having to provide for an employee's retirement and placing the responsibility entirely on the employee.

The difference is that a pension is a defined benefit plan, while a 401k is a defined contribution plan. A pension gives you a specific amount of money to live on paid by the company every month. With a 401k you put a specific amount of money into it every month and if you're lucky you might have something left to live on when you retire...you're entirely at the mercy of the stock market. And with a 401k you have to start taking out a minimum distribution at age 70 1/2. The amount of the distribution is based on your life expectancy (plus your spouse's if your spouse is the beneficiary). Right now, the tables require that the 401k account be drained in 27.4 years if you're age 70 since the IRS wants all of the tax money that they allowed you to defer before you die. But since most Americans have little to nothing in their 401k, they will probably take more than the required amount.

And while you're working, you'll probably not have enough money to live on even if both spouses are working. Forty five to fifty years of struggle followed by 20 - 30 more years of struggle after retirement.

What are the options for retirement?

401k, 403b, etc - They all have similar requirements for minimum distributions
Pension - if you're lucky enough to get one
Social Security - if there's anything left by the time you retire
Continue working - which is what many people will have to do whether they want to or not
Start your own business - preferably one that will pay you a residual income, so that you'll continue getting paid when you quit working

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