Danger zone: America's retirement system is breaking down

[magical thyme]

http://www.cbsnews.com/news/danger-zone-americas-retirement-system-is-breaking-down/

"Roughly half of all U.S. families have no money set aside for retirement, Federal Reserve data show. Not a cent. But even that alarming savings deficit doesn't fully capture the emerging socioeconomic crisis facing what is, after all, a rapidly graying nation.

That's because even Americans who work diligently to prepare for their later years are falling behind, thwarted by a confusing, patchwork system that has placed the burden of saving for retirement squarely onto individuals. As a result, only 18 percent of U.S. workers say they are very confident of having enough money to live comfortably during their retirement years, according to the Employee Benefit Research Institute (EBRI).

"What has happened over the last 20 or 30 years is a transfer of risk from employers to employees," said Anthony Webb, senior research economist with Boston College's Center for Retirement Research....

...Yet millions more find it hard or impossible to save, largely for reasons beyond their control. They are casualties of broad economic, social and other forces, from high unemployment, stagnant income and spiraling health care costs to eroding labor protections and rising income inequality. Behind these currents, as always, are political choices we make as a nation, along with the deep-pocketed special interests that steer public policy in ways that may not align with the common good. "

Excellent, excellent analysis that was on the front page of cbsnews.com last night.

[tech3149]

1. Can I say " No Shit Sherlock?"

I'm trying to get to my retirement. I didn't get wise to putting money away for retirement until I was well into my thirties. I walked away from a job that did a matching contribution to give my ex a chance at advancing her career. We managed to put away quite a bit in a short period but it's still going to be tough. I can and have been living a very, very frugal lifestyle for more than a decade. I hope those of us out there who are trying to hang on until "official" retirement don't go broke in the interim.

[magical thyme]

2. I saved, and saved and saved

and then at 48 was laid off post-911, at a time when there was nothing in my field. I was forced to live off much of my retirement savings, couldn't get anything that paid a living wage until I went back to school.

I'm still better off than many. I paid off my mortgage and car back when times were flush. I still own my home outright and 230,000 miles later my honda civic is still holding on (knock wood).

But I'm living paycheck to paycheck off of 2 p/t jobs, trying to hold on as long as possible. I'll get a small pension ($300/month) at 65 if the company that holds it doesn't steal it first.

[tech3149]

6. I guess we are in about the same place as many others

I left my last job willingly so no unemployment. I was just burned out, no support from the company, unless I threatened to quit, my "profession" had become a dinosaur. Nobody repairs electronics in the field, we have computers and robots for that! Even worse, as an exclusive outlet and representative for manufacturers, I had to let customers on the hook for years of repetitive intermittent problems because I couldn't prove the cause even though the manufacturer provided "NO" information to help me find the source of the problem. It was all "proprietary information" and I just couldn't be trusted.

I spent the best part of the decade or so since I quit working assuring that my parents could be relatively independent until their final days. For that I am thankful. I got closer to my Dad than I had in almost 50 years and get to secure the family homestead for the rest of the family.
As to the Honda, Ive gotten well over 300K on those I maintained, the others probably did as well but I got my fair share out of them, and they were hard miles by anyone's estimation.
What realty sucks for you is that you're having to pull down TWO jobs just to get by.I won't stretch this out, there are probably a few thousand people ,at least, who could tell similar stories, and they all would tug the same
heartstrings.

It all seems to come down to the common denominator that if you really work for a living, whether it's hourly or modest salary, like a $M or two, someone in the 0.01% is going to steal what they can from you and if they do get prosecuted, it will be a wrist slap and any penalty will bot go to you.

The big problem for you is that pension. That pension wasn't some gift, it was a negotiation for deferred compensation. That means I'll take this pay today if you promise to pay something for some defined period at some value.

I know most of us don't understand the difference between "defined contribution" or "defined benefit" but seriously as a young dumb punk that defined benefit seemed like the only smart bet. What was better was the company was doing a 100% contribution. Is that phat or what?

If I'd stayed with that company and told my ex to go eff off back then, I'd probably have more than a few $M in my retirement accounts.++

I'm getting a bit winded here so I'll just say that you and I are both fucked.
We're freakin old and probably will never make what we're worth by more than 50%. We are both old and probably dinosaurs in many aspects. I think it's time to tell those young studs, if you can't figure out what we did back then pay me 20 times my pay rate back , that just might make up for real inflation.
Otherwise, FU and the horse you rode in on!

[RebelOne]

3. I had a 401K at my job, but I was laid off in 2010.

I was already 71, but wanted to work as long as I could to build up more money into the 401K.

Then the Wall Street fiasco caused the account balance to drop drastically and I lost a lot of money. I then closed the account and put was left into a savings account. At least the balance wouldn't be diminishing every month.

I was trying not to spend any of the money and just live off Social Security. But I have had to dip into it for emergencies such as car repairs and medical costs. Medicare only pays 80% of medical costs and I cannot afford to get an additional supplement plan. So last month, I had to have cataract surgery in my eyes. Despite having Medicare, I still had to pay a lot out of pocket.

[jwirr]

4. One way some of the people are setting aside for retirement is in their homes. Both of my daughters

are buying houses for the family to live in as well as the one they live in now. That is in the hope that these will help cushion their retirement. We also realize that in retirement we like generations in the past will most likely live with our children. I had no savings and very little social security and that is how I am surviving.

[PasadenaTrudy]

5. I'm depending on my rental property

I have no savings. We own a commercial/residential bldg. that I can live in and have an income stream. Thank goodness! As long as I can still get up the stairs

[Matariki]

7. every time I read 'advice' that you need a million dollars or more saved for retirement

I laugh and laugh.

And then cry.