"I hope I can quit working in a few years": A Preview of the U.S. Without Pensions (state, coverage)
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If anybody had asked me, I would have guessed that nobody had a pension any more, they were all stolen.
Luckily, of all the presidents we ever had, there was one who really cared for the well-being of the citizenry, and saw to it that everyone had a retirement cushion salted away. After nearly a century, it is still alive and well, supporting retirees with dignity, and if it ever gets torn down, it will be for political reasons, not economic.
Only two years of my life, did I ever earn anywhere near the median income in this country. Yet, my social security provided me with enough to live on (in the USA) and at the same time, save enough for international travel. No pension. None needed. Never depended on it.
Thanks to FDR. It was out of gratitude that he was elected for life. Don't forget that.
just to be clear, FDR was NOT "elected for life" he was elected for four terms and died during that 4th term. if he'd had lived and been so minded he would have had to stand for election again if he'd wanted another term and just might have been replaced just like Winston Churchill was in the U.K. after the war. there is no de jure provision in the Constitution for "president for life" (thank Heavens) and the 22'nd amendment limiting the stay in office to two terms (passed by Congress in 1947 and approved by the states in 1951) makes sure that no one can become a de facto "perennial president", either.
FWIW and back to the discussion at hand, I was lucky enough to have a state government job with a reasonable and hopefully secure pension (which can theoretically be changed or reduced by the state legislature but so far has not) after 30 years which allows my wife and I to live in reasonable comfort but nothing fancy---we live in a 1996 vintage "manufactured home"/trailer house and our newest car is 11 years old but our bills are paid---ALONG WITH having an after-retirement home business that allows us to have enough income to continue living in that reasonable comfort just mentioned AND also pay for the ever increasing cost of medical insurance (state pension does NOT include "free" medical insurance) and if you have "too much" income you are NOT eligible for any subsidies under the "affordable care act" to help pay for it.
IMHO, the present economic and political systems good, bad, or indifferent mandates that we all have to make good or at least lucky in my case choices in our employment, earning, saving, and spending both during our "regular" working career and maybe just as importantly in how we plan and live out our retirement.
Last edited by georgeinbandonoregon; 12-24-2017 at 02:46 PM..
It was never a good idea to rely on a company pension. Companies come and go and workers change jobs even if the initial company remains. It is really sad that some workers thought they were going to get a pension and that plan failed. Everyone needs to think about saving and investing on their own. That was always a better idea and something most of us were taught at an early age.
Workers entered into agreements with company's that they would be provided with a pension. A binding contract that was allowed to be broken because people with attitudes like this are prevalent in the US.
If I can't have a pension then no one should have a pension.
Unfortunately, if I want to retire I can't pay to read the 1 article a month someone posts from the Washington Post.
Your sarcasm aside, it's not one article a month, it's somewhere around five. I forget exactly as I now have a paid subscription; however, before I decided to support them montarily, I would just get around their pay wall by deleting their cookies each time I exceeded their monthly limit.
I guess it was my analytical skills as demonstrated by that workaround that allowed me to suceed in life and retire early rather than just giving up when present with a problem.
Technically my OH and i will never be able to retire. But we are going to make it happen. Our inheritance s will help, but it is not the only thing.
I've never worked anywhere that offered a pension plan. In fact even at the height of "401k mania", those were hard to come by too.
These years my OH works two jobs, I work and can keep my SSDI unless I work too much ( which medical reasons dictate i can't). These years,we are paying down/ paying off the house, so we do go into retirement years house debt free.
So months we don't have two nickel to rub together, but I try to put at least 1% away if nothing else.
During my 20s I saved like mad, but medical issues started creeping in and I went through ALL my SAVINGS and retirement accounts to pay medical bills and to live, ultimately ending up homeless and living under a bridge next to the RR tracks. I was medically retired at age of 40 due to my SSDI. Now 14 years later it doesn't pay the bills with something left over to save, and that was eye opening into the future after SS comes calling.
Now my OH might be able to retire with good SS at the age of 70 in 2029, and I at the age of 67 in 2030, that's the closest we can get to retiring together, assuming I can still work then.
I do but don't feel sorry for those who have nothing for retirement but SS. I look at as the gov has made a promise of it, and it'll ruin the country if they do away or severely cut SS. They've known for years the day was coming and they've had years to make the wealthy pay more into it, at least on all earnings. They'll be the first to scrabble when their SS is cut.
If employers paid ALL Jobs well enough, then I'd say there's no excuse for people not to save for retirement, but many jobs are skin flint paying jobs, so peopke can't really save. Even those making $100k in some high COL areas can't save much. That's too bad, but lower income in a lower COL area I don't feel sorry for them.
When we get our house paupaid for we'll be able to save that additional money right to retirement over the next years. We also will habe rentals to help support us in retirement, but we will work for those units and pay cash. Our inheritance will be half our desired retirement goals, and it still isn't what it should be. I lost years of compounding due to the medical issues.
But it is what it is. People need to take second jobs of necessary and work while they can until retirement. I've always had two jobs until recently. So I was no slouch. Had I been able to not touch my retirement would be 3/4 m-1m now, but will be happy if we reach 500k. The inheritance will make up the balance.
I can't cry over what's lost and the past , but i can still prepare for the future.
a pension is something i heard was very common in my fathers generation . it supposedly was where a company gives you less pay than private industry but to make up for it pays you after you retire forever .
That is why government workers get a pension. They get a very small pay raise every year and modest salary. Not like during good times they can go in and negotiate a raise.
Your sarcasm aside, it's not one article a month, it's somewhere around five. I forget exactly as I now have a paid subscription; however, before I decided to support them montarily, I would just get around their pay wall by deleting their cookies each time I exceeded their monthly limit.
I guess it was my analytical skills as demonstrated by that workaround that allowed me to suceed in life and retire early rather than just giving up when present with a problem.
Yeah, I had the same reaction when I read it. Cleaning cookies is good anyways
Workers entered into agreements with company's that they would be provided with a pension. A binding contract that was allowed to be broken because people with attitudes like this are prevalent in the US.
If I can't have a pension then no one should have a pension.
The point is simply that pensions are risky because most of us have numerous jobs for different companies. In addition lots of companies go out of business. Both are happening and will continue to happen at an increasing rate as our economy continues to change rapidly. It is not that no one should have a pension, but relying on a pension can be a serious, irreversible disappointment. That has happened to many people. It is much better and much safer to fund your own retirement, which is why many of us are very happy with 401k and 403b plans.
That is why government workers get a pension. They get a very small pay raise every year and modest salary. Not like during good times they can go in and negotiate a raise.
There is another even bigger issue. I was raised in the Washington, D.C area and saw it first hand. Government jobs are often just close to torture. The typical Federal worker is disgruntled, bored senseless and can barely wait to retire. There are of course those who are lucky but from my experience they are in the minority. Partly the government just seems incompetent. Nothing ever seems to get done and even when something is accomplished, the direction often changes and makes the accomplishment obsolete. Job security is extremely high so totally incompetent employees remain and those who actually want to achieve something do not get rewarded. Many leave and of course that just leaves a higher and higher percentage of deadwood.
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