Many risk retiring income-poor: Report

[NTL]

I think at old age, people tend to take less risks....they prefer to preserve their capital instead of investing for income.

Maybe annuities is the way to go......

the "100-rule" is a pretty good guide, imho.

in short, allocate your age's portion of your portfolio to fixed-income and the rest to riskier assets. i.e. a 70y.o should have 70% in "safe" assets.

I suppose you're talking about (near) risk-free debt instruments when you say "fixed income" assets cos there are many out there that are as risky (if not more) than equities. However, under this low interest rate environment, one is likely to make capital losses unless one holds the securities to maturity. And even then, current yields for AAA-type debt securities are dismally low. As has been said, the current environment "punishes" the savers and retirees.

For me, I have a new perspective about annuities. I see them as Perpetual Bonds bounded by a contract. Though they are issued by insurance companies, I believe they are heavily regulated by the govt. The govt will not wish for any of the insurers here to fail as it will affect a good portion of the population. The 3.3%pa return is not much, but should be good enough for something I consider pretty safe.

[safetyfirst]

Some useful advice from Charlie Munger on how to cope with the brutalities in life:

1. Have low expectations
2. Have a sense of humour
3. Surround yourself with the love of friends and family

I found no.1 to be most useful for me

People are living longer.

For the elderly, let them work half a day helps them pass time. The income will help them generate the economy.
But first, the elderly must keep healthy, exercise EVERYDAY.

My father was depressed because he did not want to meet people and he has no hobbies or passion to pursue.

Some "beggars" - they have 3 or 4 room flat where they stay themselves. May not be so poor. Just that they choose a different approach.

So there are genuine beggars and less genuine ones. My block has a cleaner > 75 years old. She is so happy everyday...

Yes Depression! i believe all of us can hardly escape depression in our life. All of us at least has some form of depression at least once in our life. i understand even the great Winston Churchill & Abraham Lincoln had suffered depression.

Types of Depression (Maybe more. Just for sharing)

Just like other illnesses, such as heart disease, depression comes in different forms. And within these, there are variations in the number of symptoms, their severity, and persistence.

Major depression can have a combination of symptoms (see accompanying symptoms list) that interferes with the ability to work, study, sleep, eat, and enjoy previously pleasurable activities. A major depressive episode may occur only once; but more commonly, several episodes may occur in a lifetime.
Dysthymia, a less severe type of depression, involves longlasting, chronic symptoms that do not seriously disable, but keep you from functioning well or feeling good.
Bipolar disorder (or manic depressive illness) is characterized by cycling mood changes: severe highs (mania) and lows (depression), often with periods of normal mood in between.
Postpartum depression can make new mothers feel restless, anxious, fatigued, and worthless. Some new moms worry they will hurt themselves or their babies. Unlike the "baby blues," postpartum depression does not go away quickly. Researchers think that changes in a woman's hormone levels during and after pregnancy may lead to postpartum depression.
Seasonal affective disorder (SAD) has been linked to a biochemical imbalance in the brain prompted by shorter daylight hours and a lack of sunlight in winter. Some people may sleep too much, have little energy, and crave sweets and starchy foods. They may also feel depressed.

My 2 cents:
i think one way to escape depression is simply to replace every negative thought you have with a positive thought; even you know your negative thought is correct about something or some person. Another words try to be a more "easy-going" or "happy-go -lucky" or "jolly -good-fellow" or "more forgiving" person; Even if you suffer a little or at the losing end. i tell you it's easier say than done. But we have to keep on trying to save ourselves from the clutches of depression. If we are too calculative and want to be on the upper-hand all the time with anything/anybody that comes into our path of living; we soon will find ourselves defeated by depression. (i can say this because i am going to be 65. Hope you can say the same thing earlier)

Of course! It's best that we have something to do every day. if you don't have any, it's time you look for one. And also you must always remember whatever it is, you are responsible for yourself; besides maybe for someone too young to be responsible by law.
How about learning to blog or something new for a start?
Sorry trying to be KK here

[Temperament]

Me won't worry too much. If GOD permits me to live over 75, I think my daily needs will be getting simpler provided I am still healthy.