Op-Ed: Most Americans Will Be Able to Spend $0 Per Year in Retirement
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Young_Chitlin
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By: Hamilton Nolan
As we do periodically, we will now remind you that you will probably never save enough money to retire successfully. What makes us so sure of ourselves? Well, try this simple quiz: are you an American?
If you answered "yes," then congratulations: you live in the greatest country in the world! Home of the Kansas City Royals. Also, you will probably never save enough money to retire successfully. Because, if you are an American, the odds are, I'm afraid, stacked against you quite heavily. See, experts say that if you want to retire at a halfway decent age and live a halfway decent life, you probably should have, socked away in your retirement account—this is absolutely true, no joke—well over half a million dollars. And that is being modest! Do you have well over half a million dollars, in your retirement account? Don't answer that yet. Let's try to guess. First, let's look at some true facts, via this Bloomberg story about a nice 77 year-old man who will be flipping burgers for the rest of his life despite the fact that he was once a corporate executive with a six figure salary:
- "Only about half of private-sector workers were covered by an employee-sponsored retirement plan of any kind in 2011. And fewer than 40 percent of those participated." Too bad, since that is essentially the only kind of retirement plan left!
- "59 percent of households headed by people 65 and older currently have no retirement account assets, according to Federal Reserve data."
Says here that experts recommend that you deduct no more than 4% of your retirement savings per year, in order to remain solvent into your later years. So the majority of Americans will be able to deduct $0 annually, which is 4% of $0.
Only socialism will save you from a poverty-stricken death in your old age.
http://www.bloomberg.com/news/2013-09-23/why-100-000-salary-may-yield-retirement-flipping-burgers.html
Comments
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See.....? like this is exactly why I'm open to socialism. The federal reserve is pumping 85 billion a MONTH to prop up the housing market.....why can't the federal reserve pump 85 billion a month into helping mainstream America? Cutting rent and mortgage payments into only 10 times a year instead of 12 would go a long way toward helping the avg American, but I know this realistically will never happen. And that's why America is screwed in the long run.....don't have kids? Keep it that way as long as possible, cost of living is only gona go up....
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of course, if everyone's retirement is paid for through socialism... someone has to pay for THAT. this is where the baby boomers are kind of ? us over right now.
i also have this theory that if the problem is "no one saves for their retirement," government programs may ironically also encourage that. -
Mandatory euthanasia at the age of 65. Problem solved.
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Mandatory euthanasia at the age of 65. Problem solved.
Call me nuts, but something along these lines should be considered for those who volunteer. In fact, we should have voluntary euthanasia for anyone with cancer, multiple sclerosis, severe burns, and is old as ? . It would take care of a TON of healthcare costs for the nation. -
Ay if you have no outstanding debt or responsibilities that need tending (kids, mortgage, jury duty etc) there should be a suicide service made available to all who qualify. Get rid of overpopulation and make some money at the same Damn time.
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Agreed A-Rod I mean ElRawd......too many people on planet Earth at this point and before someone says the whole world's population can fit into Texas, I mean the resources are being consumed too quick, too fast for humankind to continue to prosper. Time for some population control (voluntary)
