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Old 01-06-2017, 08:40 AM
 
Location: Central IL
15,250 posts, read 8,572,788 times
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Quote:
Originally Posted by s1alker View Post
Same here, but they either had a union job, or a state/government job. I knew a gentleman in his 60's who retired from a grocery store with a pension. This man literally stocked grocery store shelves for like 30 years and was able to retire. The grocery store had a union of course.
Okay...but was it the same level of pension as state and federal employees get or that from a big corporate job? This is more rhetorical, than anything. Just because folks get a pension doesn't mean that it adds up to the same as what they might be getting from SS, or even close.
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Old 01-06-2017, 08:53 AM
 
Location: USA
6,229 posts, read 5,375,416 times
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Quote:
Originally Posted by reneeh63 View Post
Okay...but was it the same level of pension as state and federal employees get or that from a big corporate job? This is more rhetorical, than anything. Just because folks get a pension doesn't mean that it adds up to the same as what they might be getting from SS, or even close.
Most likely not, but still better than nothing.
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Old 01-06-2017, 08:58 AM
 
Location: Lakewood OH
21,698 posts, read 23,704,584 times
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Quote:
Originally Posted by brava4 View Post
A mailman and teacher are retiring filthy rich? I believe you have quite a skewed perspective.
You are right, my sister is a retired "mailman" and she is neither filthy nor rich.
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Old 01-06-2017, 09:00 AM
 
Location: Loudon, TN
5,818 posts, read 4,862,439 times
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Quote:
Originally Posted by reneeh63 View Post
Really - not uncommon for Silents to have MILLIONS? Because it isn't that common NOW for retirees to have millions...I guess I need to see some actual percentages from a reliable source. Back in the day there weren't than many two income families either - and if so, one was usually LOW salary (yeah, the woman in most cases).

Also, even when pensions were in their heyday, it was not more than 30% of workers getting them. I thought I also read that the amount was somewhat less than today's amounts (even correcting for inflation). So let's not say everything WAS great for everyone and now it is terrible.

At least now there are 401(k)s for many (certainly not all) workers so there is some tax benefit to saving.
Yes, you're right only 32% of people receive income from pensions. Here are the figures of what the average retiree receives and where it comes from. It's hardly INSANE WEALTH.

The following article is referring to TODAY's retirees, so that would be a mix of "Silents" and older Boomers.

From: https://www.newretirement.com/retire...to-your-plans/

"Where Does Most Retirement Income Come From?
According to the Pension Rights Center, older adults get retirement income from the following sources:
Social Security: 85 percent of people 65 and older get Social Security. The average Social Security income in 2014 was not quite $1,300, according to Smart Asset.
Assets: Sixty-three percent of retirees rely on assets for retirement income. According to Retirement USA, the median amount of asset income for households where either the householder or spouse was aged 65 or older was $1,542 for those households who received any asset income. In 2008 59 percent of older households had income from assets.”
Pensions: A mere 32 percent of us have pensions and this number is trending further downward.
Earnings: 23 percent of older Americans have work income. According to the AARP, the median income earned by retirees from work is $25,000 a year. Note, this is the highest amount of any income source.
Public Assistance or Veteran’s Benefits: About 7 percent of retirees are getting help from government sources. As you can see, retirees today are more dependent than ever before on Social Security income. One of the biggest problems with that approach, aside from the fact that the program isn’t incredibly stable, is that Social Security was never intended to be a primary source of income. It was intended as a boost."

If you want to see how retirees are living on this, you can read the rest of the article. It's not the rosy picture of "pension-fattened" retirees the OP refers to. Most retirees that I know (and I know A LOT of them) are very cost conscious, really good budgeters, and use multiple strategies to supplement their income, or maximize their cash flow through things like reverse mortgages or delaying SS until 70.
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Old 01-06-2017, 09:00 AM
 
Location: Lakewood OH
21,698 posts, read 23,704,584 times
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Quote:
Originally Posted by in_newengland View Post
The idea that two 30 year olds, with liberal arts degrees right now who have been working in retail and trying to pay off college debt, will ever be in that position, even not adjusted for inflation, is laughable.

Well, the news is that you are generalizing and stereotyping us. Most of us had to specialize in something, often something we weren't interested in, to get a job. And many of us went to cheap state colleges and worked our way though.

For example, when I told my dad I wanted to major in liberal arts, he said No. And that was final.

You can't usually get a real job if you major in liberal arts and I don't know who is telling anyone that they can. Another example: my ex had to give up his love of music (his dream of majoring in it and becoming a professional musician) to become a CPA in order to earn a living. He also gave up his dream of attending Williams College because his parents couldn't afford it. He lived at home, worked, and attended a local college.

I gave up my love of art to major in education "so that you can get a job." I purposely went to a state college because I had younger siblings who needed to go to college too.

I don't have kids but my nieces are going to college and living at home and they are studying some high tech stuff that I don't even understand. They'll do fine but they are NOT studying liberal arts. They both are serious about being able to support themselves.

You major in something that is marketable. Very often you don't even need to go to college because there is already a surplus of college educated people. The young people can research and find out what jobs to train for.

It probably won't be a dream job. Most of us never worked at a dream job. But most of us didn't have to work ten hours a day in a sweat shop either, like our grandparents or great grandparents may have. We had it better but we did not have it great.

Life is full of surprises but those who do the research and put some thought into it can probably figure out what to do. A lot of us floundered, fell down, got back up again and kept on trying. Yes, there should definitely be safety nets for those who, through no fault of their own, fall upon hard times or simply do not have the ability to earn a living. But I think most young people just have to figure out how to earn money, get a job, and start out at the bottom and work their way up. And be patient--how many of us started out at the top?
Best post in the history of CD anywhere.
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Old 01-06-2017, 09:12 AM
 
71,922 posts, read 71,971,035 times
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all our kids and their spouses earn more today this early on in their career's than i retired at .

within 10 years of graduation "

one is a full partner at a national law firm with 900 attorneys

one is a cpa for one of the most well known hedge fund managers in the world

one owns a successful auto leasing business

one works in cabling and communication wiring

one is a big wig at the NBA

all stayed focused at what they wanted to do and pulled it off . there friends , not so much . many are still trying to find direction and focus in to something that pays
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Old 01-06-2017, 09:19 AM
 
Location: RVA
2,174 posts, read 1,273,469 times
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Never saw that article. Interesting. Note it actually said what I mentioned earlier: $5k/mo expected needed income for many boomers. Also, anyone else see there was a single $2 bill on the money tree. Funny.
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Old 01-06-2017, 09:26 AM
 
Location: Somewhere in America
12,304 posts, read 10,793,748 times
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Quote:
Originally Posted by basehead617 View Post
Young Gen-Xers and Millennials are starting decent paying careers much later in life, making much less than their parents, and are unable to save any money at all due to high cost of living and debt, and flattening investment gains.

Their retirement will arrive and they will have likely zero or negative net worth. On top of that, social security will likely be somewhat insolvent and unable to pay even the meager benefits it now provides. And medicare will hardly be in better shape.

The only way I see this crisis being handled is by the economy taking several enormous body blows, a plummeting housing market, along with plummeting cost of services, e.g. massive deflationary pressures, product/food shortages, etc.

Rich baby boomers make the political decisions in this country and the insane wealth of the baby boomer generation (and even their pension-fattened parents) is distorting the discussion here of what it means to be a retiree - even a modest retired couple of a mailman and a teacher are retiring filthy rich compared to how the young generations will.

Are there any think tanks studying what it will mean for a generation to retire with virtually no money, in a country that will likely not have today's safety net?
Making a lot of assumptions here. None of this is true for everyone. While parts of it may be true for some people.

Rich baby boomers? I don't have any in my family! Amazingly, they all have managed to retire. Do they travel to far off places, drink champagne with breakfast, drive Ferrari's, live in mansions? Nope. But they're not starving or homeless.

We're working on keeping the current generation of retirees going....No one knows what the world will be like in 25+ years!
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Old 01-06-2017, 11:32 AM
 
1,985 posts, read 1,312,685 times
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Quote:
Originally Posted by bpollen View Post
I don't think they're starting their careers making decent money any later than I and millions of others did. I didn't start seriously saving for retirement until age 40. I didn't make a decent salary until I was age 30. But if you're speaking of the working class (janitors, maids, waitresses, low level clerks, cashiers), they will have the same problems as my generation had: lack of money.

Investment gains - we've been in a several year bull market. The stock market will reward the millennials. They also have the internet with a wealth (pardon the pun) of financial information at their fingertips. That was unavailable to the prior generation. They can join forums with experts, join financial sites with expert analyses, get analyst recommendations on investments, etc. They can buy stocks themselves online for a few dollars, whereas in my earlier days, you had to hire a broker and pay a large fee. (Again, this doesn't apply to the working class, since they don't have the money to invest, except under unusual circumstances.)

Retirement funds - I didn't have a 401k for much of my working life. The millennials have that at the starting gate. (Again, not the working class, usually.)

Debt - Student loan debt is a problem. Other than that, debt is entirely within the control of the individual, like it was in the prior generation. If they choose to run up large credit card debt, they will have trouble building their retirement fund.

Social Security - It's fixable. It's a matter of whether the govt will fix it or abolish it. If it's fixed, they'll have supplemental income, like the prior generations. If not, millions of the working class will live in poverty, but I don't think that's who you're speaking of. Nothing can be done about that except a social program. That is precisely why Social Security was started in the first place.

For the middle class, I don't see that the millennials will have a harder time of it. In some ways, they have it better. Females are paid more these days than when I was young (it was quite legal for a company to pay women less, and even tell you point blank that you are paid less than Dave because you are female). Minorities definitely have it better (in my young days, blacks would not even be hired for certain jobs).

For the working class, without SS and Medicare, they will end up living in real poverty, I'm afraid. (I'm talking homelessness and eating cat food.) But that's not because of the special circumstances of their generation. It will be because of no SS and Medicare, if those are done away with.

For the wealthy, things will be better than ever, of course. The gap between the wealthy and the rest of the country continues to grow with every generation since, I think, the 1970s. The wealthy millennials will inherit wealth from their parents to add to their own wealth.

Right- I don't buy it either. It's not as bleak as they make it sound. I know PLENTY of millenials that are doing quite well.
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Old 01-06-2017, 11:39 AM
 
Location: Near a river
16,042 posts, read 19,007,999 times
Reputation: 15649
Quote:
Originally Posted by brava4 View Post
A mailman and teacher are retiring filthy rich? I believe you have quite a skewed perspective.
I think s/he mean in comparison to those who don't have pensions/401Ks. The teachers I know have retired quite comfortably. I live in an area that pays teachers well. "Filthy rich" is a little extreme though.
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