RETIRING RETIREMENT?

[ss4699]

America’s Retirement System Is Failing Us: Economist

http://finance.yahoo.com/blogs/daily...153445894.html

Your "golden years" may not be so golden.
The majority of Americans (75 percent) nearing retirement age had less than $30,000 in their retirement accounts in 2010. For the poorest Americans in the 50-to-64-age bracket, the average amount saved for retirement was $16,034.
The lack of nest egg savings could become an acute crisis in the U.S. and should force a reexamination of the nation's retirement system, says Teresa Ghilarducci, a professor of economics at The New School.
In a recent New York Times Op-Ed, Ghilarducci argues that the current retirement savings model has failed middle-class Americans. The "do-it-yourself" pension system — aka 401(k) plans — that replaced traditional pension packages 30 years ago mistakenly assumed that individuals without investment experience could "reap the same results as professional investors and money managers," she writes.
In an interview with The Daily Ticker, she says individuals "were asked to do what they really couldn't do. Not because they're irresponsible, not because they didn't plan well, not because they didn't have enough financial literacy. That system asked humans to do what they just can't do — anticipate the future."
The savings accrued by the majority of middle class seniors will not support their current standard of living, Ghilarducci says. Americans should save at least 8 times their annual income to maintain their living standards (she strongly recommends increasing that number to 20 times if possible). For those earning $100,000 a year at the time of retirement, at least $2 million or more would be needed.
Unfortunately most Americans are ill-equipped for retirement and she estimates that 49 percent of middle-class workers will live on a food budget of less than $5 a day — poverty-like conditions.
Americans can no longer lean on social security checks or late retirements as safety nets Ghilarducci notes. Social Security and other entitlement programs have been under attack in Congress. A growing number of lawmakers from both sides of the isle support reducing or curtailing government spending on these 77-year old institutions as means to lower the national deficit. Workers over the age of 55 have a harder time finding employment than younger workers and when they do find work it's usually a big wage cut or reduced hours. According to the Labor Department, 6.2 percent of Americans over the age of 55 were unemployed in July and 50 percent of that group had been out of work for six months or more.
Saving for retirement has become especially hard for many Americans who are struggling to pay everyday expenses. That's why Ghilarducci wants to reform Americans' approach to retirement. She advocates instituting mandatory retirement accounts for all Americans. These would be professionally managed with a guaranteed rate return and annuity payment. This mandated account would be a supplement — not a replacement — to Social Security and other private retirement accounts.
"People need to save a lot more," she says. "Social security is a base but it's not enough. I'm just advocating that people save more."
Tell us what you think!

[Old-T]

I blaim both ends of the political spectrum:

--The left has sold a lie that says social security is their retirement, trust the government and they will take care of you. So people didn't save, or even question.

--The right has sold a lie that the bankers and financial companies are your friends. They would never rip off an honest citizen like you. So people who are working 2+ jobs to make ends meet don't learn how to spot the wolf who is fleesing them.

--And then we have the corporate advertizers, bankers, and businesses who sell the lie that spending every last cent is good for the economy.

Humanely unraveling the lies turns out to be in no politician's best interest.

[i'va biggen]

It was a sound idea to start.If it is in trouble look at all the IOU'S from different administrations balancing their budget.If there is money around a politician will find some way to get their hands on it...

[Guest123018-4]

I am not banking on SS but I fully expect to draw what is owed t me.
I have been paying into the system for over 40 years with the promise of having it to supplement my retirement.
I have never expected to live off of the meager SS benefit in my retirement years and have always saved a portion of what I have earned, even as kid.

Now as I approach retirement age, i am faced with supporting all of the people that fucked off for most of their lives and made poor choices. Most failed to do what is or was needed to prepare for the future and instead lived for the moment. Politicians have stolen my money and the currnet administration thinks that because I have worked my ass off to get where i am at today that I owe them something. FUCK THAT. I have paid and paid and paid and now this asshat wants me to pay more for a bunch of fuckers that wont get off their ass and do something for themselves. Fuck em all.

You know, maybe it is time i quit paying and start taking. I can go on disability anytime I want and let the rest of you dumbass suckers pay my way. Why the fuck should I keep on contributing when no matter how much they take it is never enough. In fact, if my taxes go up, I am done. I will ride the gravy train. I wont have to pay no taxes, I wont have to pay for no medical insurance. Shit that being a Democrat is sounding better and better all the time.

[Guest123018-4]

Can you Democrats tell me how to sign up for food stamps and unemployment till my check come in?

[ss4699]

So would it get better if the members of Congress had to use it instead of their "private label retirement plan"?

[TexTushHog]

Not a well designed poll, needless to say. I expect to draw it unless it becomes means tested. It won't be an important part of MY retirement like it will for most folks, but that's because I've been blessed economically. I'll just put it in the bank with my other funds and invest it like the rest of my surplus.

[Guest123018-4]

Surplus?
The wording is interesting.
For the most part what I put aside was because of personal sacrifice and not because of surplus.
Not sure about you, but I worked very hard and made personal sacrifices in my life for every penny that I have. I have never been so fortunate to get some windfall that was not earned.
Placing what I earn at risk in investments and the good and the bad are not the result of a surplus.


The idea of means testing so the government can steal money from you that you earned and paid taxes on is wrong. Why have I always paid income tax on the money that I pay to SS? Now because the government has been a horrible steward of our money were are being told tough shit.
What is wrong with this picture?

It is time to change the leadership in this nation and stop the destruction of America.