Retirement Theft in 4 Despicable Steps

[xchrom]

http://www.alternet.org/economy/retirement-theft-4-despicable-steps



***SNIP

1. Federal Tax Avoidance is the Biggest Threat to Social Security

Conservatives say that Social Security is too expensive, and that cutbacks and a later retirement age are necessary. But they refuse to acknowledge the facts about missing revenue. Annual tax avoidance by wealthy individuals and corporations is in the trillions of dollars, over double the cost of Social Security.

***SNIP

2. State Tax Avoidance Defunds Pensions

In what David Cay Johnston calls "nothing short of theft," states are reneging on pensions that workers have been paying into for years. Illinois, Michigan, California and a slew of other states have mismanaged and squandered funds that belong to their employees, and then, in effect, have blamed those employees for the mess by penalizing them with pension cuts.


***SNIP

3. Corporations Play One Underfunded State Against Another

The news from the states gets even worse. On the pretense that their presence enriches the people of their home states, and that subsidy-green pastures lie right across the border, companies have cunningly negotiated tax-cutting deals in return for the promise to stay. A Good Jobs First report describes the process, which costs state and local governments up to $80 billion a year.

***SNIP

4. Banks Take a Big Chunk of Our Retirement Accounts

Nearly $2 of every $5 in potential 401(k) earnings is lost because of bank fees. An individual investing $1,000 a year for 30 years (with the historical 6% return) and then holding the accumulated sum for another 20 years would end up with $269,000 in a non-fee fund, but just $165,000 with the industry average 1.3% fee.

[Laelth]

1. k&r for the truth, however depressing it may be. n/t

-Laelth

[daleanime]

2. K&R....

[mountain grammy]

3. K & R for the disgusting truth...

It's an election year, change begins (and ends) at the local level.

[abelenkpe]

4. K&R

My work was offshored with the few remaining small studios hiring per project as contractors. Pretty sure 1099 income doesn't contribute to SS either. Great way to screw workers out of retirement, too.

[SheilaT]

5. Retirement theft got off to a roaring start two decades ago

when certain large corporations, mainly airlines, declared bankruptcy and abrogated their pension obligations, which they'd been systematically underfunding for years.

More recently, state and municipal governments have gotten in on the act. They've likewise underfunded their pensions, and now they want to cut them, maybe even eliminate them altogether in some cases. Along the way the "have nots" are being pitted against the "haves", meaning those without decent pensions are being encouraged to resent those with them.

And now Social Security. It's a significant portion of most people's retirement income. In some cases it's their entire income. The maximum benefit right now is a whopping $2642/month, not a paltry sum but not the kind of money that allows a life of luxury. And most people get much less than that.

[progressoid]

6. Retirement? What's that?

[Veilex]

7. Boeing just did this...

Boeing pitted states against each other in order to force the elimination of retirement for their employees.
With the prospect of losing their jobs outright, the employees capitulated. (They are getting switched to a 401k... but that's not a retirement...its a gamble).

[glinda]

8. and the biggest hit comes when....

in the end....you are elderly and need care so the barrage of Medical Agencies scoop all the rest including the home, any stocks, bonds, savings, properties, you name it.

[NCTraveler]

9. k&r. nt.