America’s future: too frail to work, too poor to retire will become the “new normal”

[kpete]

We are on the precipice of the greatest retirement crisis in the history of the world. In the decades to come, we will witness millions of elderly Americans, the Baby Boomers and others, slipping into poverty. Too frail to work, too poor to retire will become the “new normal” for many elderly Americans.

That dire prediction, which I wrote two years ago, is already coming true. Our national demographics, coupled with indisputable glaringly insufficient retirement savings and human physiology, suggest that a catastrophic outcome for at least a significant percentage of our elderly population is inevitable. With the average 401(k) balance for 65 year olds estimated at $25,000 by independent experts—$100,000 if you believe the retirement planning industry—the decades many elders will spend in forced or elected “retirement” will be grim.

According to the author, the impending crisis will happen in ‘waves’ to a majority of elderly Americans:

Wave 1: Retirees Come Back To Work
Wave 2: Workers Delay Full Retirement
Wave 3: Full Retirement Is Unachievable
Wave 4: Drowning

more:
http://www.forbes.com/sites/edwardsiedle/2013/03/20/the-greatest-retirement-crisis-in-american-history/
via:
http://underthemountainbunker.com/2013/03/27/americas-future-too-frail-to-work-too-poor-to-retire-will-become-the-new-normal/

[Autumn]

1. The future is here, now.

I know quite a few people in that situation already. Rec

[SoCalDem]

2. Add to the mix the fact that MANY of the people in this category

are caring for (in their homes) :
grandchildren
grown kids who return with husbands/boyfriends & kids
elderly parents whose lifespans have edged into the 90's

[Autumn]

3. Yes, and add health care cost to that. This new normal becoming a nightmare.

And safety nets are being cut.

[Auntie Bush]

4. I think expected longevity or life spans are going to be less in the future...not more.

The average age of life expectancy will go down...not up! That's sad...our children and grandchildren won't live as long as people my age.

[SoCalDem]

6. Just last week my friend's 49 year old daughter dropped dead from a heart attack

She had no health insurance on her job, and was unaware that she even had a heart condition.. (My friend is a very young 80 yr old)

[hay rick]

13. I have been making the same guess.

I see medical progress being offset by declining access to health care (Obamacare is slowing down cost growth, not reversing it) and increasing everyday stress levels. I read somewhere recently that the U. S. went from 9th in life expectancy in 1950 to 50th now. CIA factbook currently ranks us 51st: https://www.cia.gov/library/publications/the-world-factbook/rankorder/2102rank.html

Russian life expectancy actually declined for a few years during the turmoil of the USSR breaking up. I hope we don't face that kind of experience, but it wouldn't be a surprise either.

[LiberalEsto]

7. and are paying their student loans and health insurance nt

[SoCalDem]

9. Wanna hear something really sad?

There's a place on the SS website that shows how to have your student loan payments deducted from your SS check

[LiberalEsto]

10. nooooooo

lifelong indentured servitude, that's what it it

[SoCalDem]

11. Herer's an npr interview about the law (2005)

http://www.npr.org/2012/08/17/158946520/student-loans-can-dent-retirees-social-security

siness
Your Money

Student Loans Can Dent Retirees' Social Security

by NPR Staff
August 17, 2012 2:59 AM
Listen to the Story


Families often pull together to help finance a college education, with parents and grandparents chipping in or co-signing loans. And now, a SmartMoney report finds the U.S. government withholding money from Social Security recipients who've stopped paying on federal student loans.

snip

On a spike in activity

"In about 12 years, we've gone from just six cases [of Social Security benefits being cut] to 115,000 and counting — because this year isn't even over yet. What we're seeing is that student loan debt is following people later on into life."

snip

"In other cases, you have retirees who are still dealing with their own student loan debt — the student loans they incurred to go to college, decades ago. ... But in most cases, these loans aren't even their own loans. And that's what makes this whole situation really sad."

On how much is taken from retirees

"The amount varies, but it can run up to 15 percent of each month's check. So when you look at the average monthly Social Security benefit — that's about $1,200 — that means a monthly haircut of about $190. So, it's not a small amount of money. And especially for a retiree on a fixed income, this sort of situation can really derail their retirement."

[Downwinder]

5. "too frail to work, too 'young' and poor to retire"

[hay rick]

8. The miracles of increased productivity and free trade.

Increased productivity should mean increased per capita production, more total wealth, and a higher standard of living. Instead it means lower wages, a stagnant economy, and a declining standard of living for the majority. Free trade was also supposed to lead to general gains for all participants.

We're looking at some tough sledding ahead.

[TheMastersNemesis]

12. And How Many Of These People Kept Voting For The GOP All These Years. -

I know a lot of seniors that will not vote for a Democrat no matter what. And what are the Dems to do if they run as a progressive or liberal and get their ass beat every time. I also know a lot of seniors my age who hate unions, government, blacks, hispanics, liberal commies, etc. How many are bible thumpers and homo haters?

Just like this post I saw it coming in 1980 with Reagan and yet so many people worshipped Reagan as he fucked everyone. People in a terrible predicament brought their misery on themselves and helped screw those of us who knew the score. And the bastards are still doing it. Gerrymandering should not matter if the idiots understood what their vote means.

So what do these idiots want now. They are pissed and are blaming government workers, people with pensions and yelling that those should be taken away.

[moondust]

14. Scenes from Hell.

Coming soon to a sidewalk near you.

[russspeakeasy]

15. It's already here.

[KauaiK]

16. This is ME.....

[love_katz]

17. Yep, this is me.

I guess I will have to die in harness.

And, I NEVER, EVER voted for Ronnie Raygun, the Liar-in-Chief, the (phony)Actor, the man who helped the 1% piss on all of us from a great height.

I am not to blame. I quit watching t.v. the first time he was elected. I have NEVER voted for a Repuke in my entire life! Never have I blown off my responsibility to vote, either. Unfortunately, I am only one person. Fixing the situation all on my own is not within my grasp. And, yes, the people who drank down the Repuke toxic swill have sold ALL of us down the river. My deepest desire is for the majority of us to WTFU and find ways to work together to turn this country around.

I can remember the scandal at that time, because the corporate-owned media called the election for The Great Deceiver before the polls on the West coast had even closed. Many people fell for this, and stayed home because they were TOLD that the election was a foregone conclusion. It was wrong of them to do that...but, the lousy mouthpieces for the robber barons was doing its job even then (meaning the bought and sold-out traitor news media).

I wish the younger people would quit broad-brushing the boomers. Not all of us are clueless sell-outs.

[doc03]

18. I retired at 62 and am now 65. In order to get the same income

I receive from my union negotiated pension plan I have to purchase a $335.000 annuity. With a 401k balance of $25000 or even $100,000 and SS you would live in poverty. According to Annuity Shopper you would get $147-$567 a month and even less if you are married.

[dimbear]

19. Sounds like the old iron law of economics: life expands until it is barely livable.

Didn't expect it to hit so soon.

[iandhr]

20. Not if my generation has anything to say about it.

[rhett o rick]

21. With the labor abundance many workers will be let go at 50 or 55.

You wont be lucky enough to work past 55. Soup lines for our seniors is the future.

[doc03]

22. My brother started having health problems and was let go in February

at 49 years old. He ended up in the hospital 2 weeks after he was fired with no insurance.