You KNOW I'm gonna sympathize with Rose Bloom who was profiled recently by the Los Angeles Times.
Rose is 53 years old, a single parent to two adult children, who is just now realizing that she has to save more than the $12,000+ she currently has in retirement accounts. She plans to work forever, but she has diabetes and heart issues. (Now do you see why Grace can relate?)
The good news is that she has a decent salary (almost $95,000 a year). Even better, she will have a pension plus Social Security when she retires. But the bad news is that she lives in California. That means her job may be in jeopardy, she can't afford a home, and the cost of living is high.
Rose is just three years older than I was when I finally buckled down to saving for retirement. I'm a bit blown away by the financial planner's numbers--somehow I just don't see her saving $500,000 over the next ten to fifteen years nor am I sure that her savings will earn a 7.5% average.
BUT, that pension is going to make up for a whole lot of savings mistakes.