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We aren't. They're just going to have to work until they're physically unable, I guess.
But, as the article stated, older employees are often laid off and when that happens they can not get jobs and if they do manage to get employment, it is usually at a much lower salary.
So the proper behavior is to fear the government and Trust in ENRON or Mortgage Backed Secutities?
No. You should fear the government because it is so powerful but have that government keep Enron playing by the rules. That's what government is all about.
How many of these people were "saving" the equity in their houses instead of at really low interest rates? The crash in housing prices both impoverished a high number of near retirement folks also produced bargains for young families.
This is a good point. It is unfair to label all of these people as lazy or careless with their money. There could be any number of reasons people get to retirement age with little to show for it. Guess we don't know the real reasons unless we walk a mile in their shoes.....
How many of these people were "saving" the equity in their houses instead of at really low interest rates? The crash in housing prices both impoverished a high number of near retirement folks also produced bargains for young families.
That's not saving. That's spending. And adults should know the difference. Adults should be able to perform simple math and spend less than their income. It really is that simple.
American's savings rate has been on a decline since the 80's.
A "consumer nation" spends, not saves.
As our personal debt grew, our personal savings fell.
When the 401k was introduced one of the benefits was control over your own money.
Unfortunately, we now live in a society where people have no self-discipline.
.
Yes, I worked with professional people who thought the gravy train would last forever. We all got older and there was a lay off. These guys did little saving, took great vacations, lived in lovely homes and bought expensive cars. So, there is some verity in the irresponsibility theory.
On the other hand, although these were professionals, they did not know much about personal finance. College often requires courses in corporate finance. High schools, at least when we went, did not teach personal finance.
The fellows who I worked with often parked their money in one or a few 401k investments and let it sit there, not following it on a regular basis. For a long time the company offered no training at all in how to invest.
I can only speculate at the nightmare that even less educated workers face when attempting to manage their own investments.
The article did make the following informative comment: The gains in longevity in the last two decades almost all went to people earning more than average.
I guess that's not news, but it's a shame that our medical system is set up to just allow the poorer folks die.
I don't think there is a lot of information that tells people to treat the amount set aside for saving for the future as an additional expense, something that must be done, and preferably starting at your first job. People typically do not think of their retirement until later in life, forgoing the advantages of interest compounding from their youth.
The article only comments about how much money they have in their Retirement Accounts.
Some folks have money elsewhere (non retirement accounts, real estate).
The article mentions amounts for individuals. As we know, many folks are married and this makes up 2 IRA accts that are being counted for in this article, for each married couple. Maybe one spouse has $300k in an IRA and the other spouse has $20k in an IRA.
Last edited by sware2cod; 07-23-2012 at 07:41 AM..
When we can no longer produce a profit for someone, we are discarded like a broken tool. We are expected to die. That is the way the system operates.
Yes. This is the problem with strict capitalism or libertarianism.
A civilization should exist for the benefit of its people and not the other way around.
As well as some people do in life through their own merit and efforts, there is always an element of luck involved.
A person may have educated parents who encourage him, or go to schools with teachers who care or live near a college so all they have to pay for is tuition and not boarding or they may have a boss who thinks in similar patterns and so rewards them. Most good jobs are gotten through contacts and not 'normal' means.
The article only comments about how much money they have in their Retirement Accounts.
Some folks have money elsewhere (non retirement accounts). Also some folks have good pensions. That's not mentioned either.
True. The reality is that the retired population is the most well off - many have their homes paid off long ago, they have no rent, no mortgage, their children are gone so they don't have the costs of children.
Many still own businesses, stocks, and other assets.
As far as corporations not teaching their employees about finance, all that is really required is some third grade math. Income $80,000 a year -- and then income $0 a year (unless you will be in the group that will still be given social security, then add that to the $0). And it's not difficult to do the math, if you have to come up with property tax, payments for your RV and other travel costs, food, gas, utilities.
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This is a good point. It is unfair to label all of these people as lazy or careless with their money. There could be any number of reasons people get to retirement age with little to show for it. Guess we don't know the real reasons unless we walk a mile in their shoes.....
