Our retirement system is a disaster

[Onlooker]

With the decline of unions so came the decline of pensions, a far better retirement solution than 401Ks.

- First, given the skyrocketing prices of housing and college, most people have trouble maxxing out their 401Ks.

- Second, while an average return (8%) can double your money about every 12 years, inexperienced investors do not average that and inflation eats away around 3% of the 8% figure.

- Third, some experts say that to retire at your current quality of life, you need to have saved 20 times your annual salary. That's a huge number, and the less you earn the harder it is to save towards that goal.

About a year ago, I read an article that said the average person who has been putting money into their 401K for 25 years has about $120,000. That would generate around $6,000/year in interest, not much at all.

And consider that Social Security is very much under attack, and its benefits are likely to be cut at some point. (Under Reagan, Social Security income became taxable and Clinton increased those taxes, despite Democratic opposition.)

Even with Social Security, our retirement system is a disaster.

[Skittles]

1. which is why I figure I will never retire

yup

[LostinVA]

2. Me too

[Skittles]

11. I really resent it, LostinVA

I served my counrtry and have worked hard all my life but I just don't see how I could ever have enough money to live on and not WORRY - ever

[HysteryDiagnosis]

3. But hey.... why retire when you can pass away on the clock?? n/t

[Squeech]

4. Cheap labor

It's the one guaranteed outcome from practically every Republican policy initiative. If none of us old folks can afford to retire, then we're still in the labor market competing with the youngsters, and helping to bring down labor costs.

Viewed through that lens, the call to deport 12 million illegal immigrants is just a smokescreen, a rhetorical flourish to build up public pressure to "do something" about the immigration "problem"-- and of course the solution will be something that creates a quasi-legal class of guest workers with even fewer rights, easily exploitable, to depress wages further.

Lucky for Skittles, there will always be a market for ass-kicking. I wish I had such useful career skills :hi:

[rfranklin]

8. Hey, it works in Dubai!

Slave labor never loses its appeal.

[JDPriestly]

5. You are so right.

What is more, our industrial base is gone, and we rely on immigrant (translate slave) labor to produce our food. We aren't producing anything that can generate pension income for retired people. And retirement becomes necessary at some point. Most people just don't have the strength and energy and health to work 8 hours a day even at a soft job at the age of 75. It's tough for most people to put in that kind of time beyond 62. Katrina was nothing compared to the havoc our retirement system is going to wreak in just a few years.

[bleedingheart]

6. the people of this nation are to blame for this...they believe corporate

propoganda and have voted in the very people who are threatening their livelihoods...the elected officials who do not protect our security and instead pass bogus legislation like the bankruptcy bill...

[crikkett]

7. no big deal, we're all gonna be Raptured soon anyway

:sarcasm:

[crikkett]

9. you can always marry a youngster

I'm full of answers today!
:)

[DemoTex]

10. Pensions under a union contract are deferred wages.

When a contract is negotiated with provisions for a pension, something else is given up. A pension is just a slice of a finite, fixed-sized pie. My pilot group had a very good pension. We gave up vacation, per diem, duty rigs, and other benefits to augment and protect that pension. Then, after giving back more wage and benefit concessions than any other pilot group in airline history, our pension plan was terminated on March 31, 2003. The then-CEO of US Airways, Dave Siegel, was asked to leave later in 2003 and was awarded a $10-million+ severance package.

Our retirement system is a disaster? Do tell.