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Government should encourage and promote both options, through tax policies, if necessary.
The current Standard of Living and Life-Style is unsustainable over the long-term, so people, especially Generations X and Y, should get used to down-sizing. The sooner they do, the better-off they'll be.
There is nothing wrong with that living arraingment at all. Many low income seniors would be in better shape with that kind of set up
401K plans have been around for years. IRA's have been around for years. The market has been around for years. Many employers offered pensions years ago. Even without a plan, nothing has kept people from saving money and or investing it as they choose to.
If all the above options have been available to people, who's problem is it that people are retiring poor? I know that every year I have been working at the Hospital and it is almost 19 years now, we have benefit fairs including 403B representatives and IRA representatives that explain choices that we have.
Lets say that someone starts working at 20 and invests each year in a 401K or an IRA and today they are 65 and want to retire. So for the past 45 years they had the option to invest money. Truth be told not all employers offered a 401K that long ago. It was not till 1980 I think that a company or two started to offer a 401K or 403B. Back then though many did offer a pension plan.
Well I have been working full time for let's say 15 years now (give or take). I have had 8 professional jobs. Let me recap employer sponsored retirement options for all of them now:
1. 401k with employer match
2. 401k with employer match
3. employer IRA no match, but it got eliminated halfway through my tenure
4. no retirement options until my last 6 months
5. no retirement options till my last 6 months
6. no retirement options
7. 401k no match
8. 401k no match
While 401ks and other retirement vehicles are available, they may not exist at your employer!
Yes, statistics show that low income people have less longevity than high income people. But the reasons for that difference are not clear, to me at least. Some claim that high income people can afford better medical care, and that may be part of it, but I'm not buying that as a complete explanation. In any case, after age 65 we're all on Medicare and so we all have the same medical care.
High income people, being better educated in general, know more about the importance of healthy practices and lifestyle. For example, there is an enormous difference in smoking rates as tied to educational levels. In that case, it is probably less about "knowing" per se (everybody knows smoking isn't good for you) than it is about being able to defer gratification and take a longer view of things.
In the US, poor people have less access to health services, so that stands to reason. But a study found the same in UK, which (like all other civilized countries) has universal coverage. Why? Cigarettes, less education, living in high crime areas, self destructive activities? Or maybe if you're at the bottom you have less desire for longevity.
Goody for you. My physical therapy provider just dropped Medicare. Fortunately for me, I am not on Medicare so it does not affect me. Your experience is not my experience. That doesn't make mine less valid. Try finding a psychiatrist who takes Medicare. It's very limited. Yes, they are on the list, but you need to call them to find out that they stopped accepting it this past year as costs increase and they don't get reimbursed enough (according to the doctor). Many of the specialty doctors, by "speciality," i mean some condition that is less common, will not accept Medicare and even any insurance plans. This has been "our" experience learned the hard way, but we had no choice.
compared to the restrictions on my health insurance which requires me to go in network my wife's medicare is far more flexible. i can't even use one of the best hospitals in long island which is 2 miles away because they are out of network . i can't wait for medicare in 8 months . not only do i have better and more choices but the price will be 1/2 of what i pay without the ridiculous deductibles and out of pockets . i am holding off any things i need done for as long as i can until medicare kicks in .
Well I have been working full time for let's say 15 years now (give or take). I have had 8 professional jobs. Let me recap employer sponsored retirement options for all of them now:
1. 401k with employer match
2. 401k with employer match
3. employer IRA no match, but it got eliminated halfway through my tenure
4. no retirement options until my last 6 months
5. no retirement options till my last 6 months
6. no retirement options
7. 401k no match
8. 401k no match
While 401ks and other retirement vehicles are available, they may not exist at your employer!
Very true but someone can invest in an IRA if that is the case. you do not need an employer participation program to invest in an IRA. You can go to our bank or financial advisor to set one up.
Just wondering? 8 jobs in 15 years? I am asking because of movement within my industry. It seems that some Facility directors took the tact that they should move around every year or two. Others kept with a 3 to 5 year time frame of moving up. I stayed where I was and although I have done well it seems to have kept me from moving further up.
Due mostly to the decisions I've made in my career and life, I am not set up at all for retirement. So I've decided that the best plan is to not outlive my money. In that respect, I'm insured by Smith & Wesson.
This is especially true for specialists and or those doctors with practices that can get on without accepting insurance in any form. My "quack" has never accepted any sort of insurance or Medicare. You pay upfront and they will give you the information to submit to be reimbursed.
Now it also happens that NYC does have a good number of second and third tier doctors who aren't necessarily connected with the big teaching hospitals or have exclusive/expensive practices, there people may have better luck if on Medicare, and perhaps even Medicaid.
I am sure in 30 years or so there will be someone on this forum telling Gen-Xers and Millennials they made poor choices and didn't plan for retirement.
Good links. I had already read the first one when it came out. Both links talk about the potential funding problems of California pensions, but neither one supports your contention that they are "about to go away". Your use of the word "about" implies that it will happen before very long. New hires are already subject to less generous formulas, but that won't take effect until the new hires start to retire decades from now.
As for "using up everything you have saved in the vaults", CalPERS has billions and billions of dollars "in the vaults". If those reserves are ever used up, and it's possible eventually, there will be an enormous crisis, but that is not around the corner, as you imply.
There is a real problem with public pensions, but exaggerations such as the one you engaged in don't lend to a rational discussion.
Have you seen this? I'm not sure if this is CA wide, but it certainly sets a precedent. The article talks about CALPers being 65% funded.
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