The typical American couple has only $5,000 saved for retirement

[SheilaT]

140. Right, even in the golden age the pension rate was under 50%.

So it's almost pure mythology that there was a time when all workers could look forward to retiring after thirty or forty years with a good pension.

The wage competition ended in the early 1970s. Do you remember Nixon's wage and price controls imposed in August, 1971? I remember them quite clearly, because I was affected by them. And wages, depending on exactly how you're looking at them, more or less peaked in 1971 or 72 for the working class. Probably not a coincidence.

I agree that those at the top -- again depending on where the line is drawn -- have far fewer worries about retirement, simply because they're likely to have more money in the first place. But then I read the stories about those who earned six figures all of their working career, spent every penny, didn't bother to contribute to the 401k at work, and are suddenly startled to realize they won't be able to survive on Social Security alone.

I was married some 25 years to a man whose parents were quite well off and who gifted us with money every year. Which we saved and invested. As we did with any bonus money he ever got. I was a stay-at-home mom, and his paycheck was rarely much more than the median. But because we saved so much, once the marriage came to an end I walked away with a tidy nest egg. Most people in our situation would probably have spent that money on a bigger home in a fancier neighborhood, on pricier cars, on luxurious vacations. Instead, I'm able to live a modest (and trust me about the modest part) life in a city I chose to move to when that marriage came to an end. I can travel a bit, go out with friends, and generally have a good life.

I know that over the years we didn't have that much more than so many, but we were committed to saving and planning ahead. Perhaps more to the point, we lived on a median or perhaps a bit less than median income.

My observation about debit cards is this: those who use them for every single purchase seem to be spending all of their money paycheck to paycheck. In addition, many places have a $5.00 or so minimum, so if for instance you only want a pack of gum, you'll be buying a bunch more stuff just to reach that minimum. Carry at least some cash.

Of course, by observation is firmly in the realm of anecdote, and it's certainly possible that there's research out there that those who use debit cards for most of their spending are better money managers. Somehow I doubt it.

Anyway, I do not want to be coming across as argumentative, simply as presenting my point of view and a bit of the reasons behind it.