"Dramatic" increase in reliance on Social Security (unemployment, death, companies)

[RCCCB]

Between 1999 and 2009, reliance on Social Security for at least 80 percent of retirement income ballooned by 48 percent among men aged 65 an older, according to a report released today.

Among women, such reliance on Social Security grew 26 percent, the Institute for Women's Policy Research said.

http://economy.kansascity.com/?q=node/9636

About the worst news possible IMO since in reality SS isn't there.
IMO this has happened because government screwed with the lending rate down to near zero and allowing banks to only offer one quarter of 1% as interest on money saved. (that would be .0025)
An example of this would be that if you had saved $250,000 (a quarter of a million dollars) you'd only get maybe $625 or so a year in interest income as a yearly income for leaving it at the bank.
This forced many oldsters and others into the riskier stock market. Formed a bubble there before that popped and it will do so again and again. IMO turns the stock market into a pyramid scheme and leaves retirement vulnerable to being wiped out.
Not good folks!

[workingclasshero]

bet the numbers would be even worse if they took it back to 1990 instead of 1999

the main reason..

the age of the YUPPIE's.and their wanting not to have pensions(they wanted to be MOBILE (ie the age of the 401k).......the 80's and 90's saw the death of the PENSION

[JimMe]

Originally Posted by workingclasshero

bet the numbers would be even worse if they took it back to 1990 instead of 1999

the main reason..

the age of the YUPPIE's.and their wanting not to have pensions(they wanted to be MOBILE (ie the age of the 401k).......the 80's and 90's saw the death of the PENSION

You're talking about the difference between defined benefit and defined contribution plans. The public employee pension plans are defined benefit plans and they have bankrupted many states and municipalities. What's the value of a defined benefit plan if the guarantor of that plan goes belly up? At least a 401K plan belongs to you and it is up to you to ensure its integrity.

[workingclasshero]

Originally Posted by JimMe

You're talking about the difference between defined benefit and defined contribution plans. The public employee pension plans are defined benefit plans and they have bankrupted many states and municipalities. What's the value of a defined benefit plan if the guarantor of that plan goes belly up? At least a 401K plan belongs to you and it is up to you to ensure its integrity.

yes and no

many pension plans and profit sharing plans were a combined investment/benifit from the employeer AND employee contributions

the problem is at a certain stage..society..the yuppies (they were young upwardly MOBILE) didnt want to be TIED (shackeled) to the same company for 20-30 years..they wanted to be able to come in, build a rep for their resume' and move on to bigger and better things....and companies said fine, if that's what you want....actually worked out better for the companies


I would love to see pensions (ie the reward/savings of COMPANY LOYALITY...you work for me for 20-30 years here is your reward), than to not have a vested interest in something


me myself..I am working on my second pension and career

[NOV49]

Does anyone know how many YOUNG people are on SS due to DISABILITY? Where can we find the numbers? Is this the same SS fund that supports the former working person now RETIRED?

I know there are young, disabled women getting SS but having babies and charging it to MEDICARE !! What is wrong with this picture?

[BentBow]

Just think what is going to happen to it, when the dollar is no longer the world currency.

You think all hell isn't going to break loose?

[HappyTexan]

The days of a corporate pension are long gone for anyone not retired today.
401K/IRA and invest where..Wall Street is like the craps table at Vegas with HFT by the big boyz.

[HappyTexan]

Originally Posted by BentBow

Just think what is going to happen to it, when the dollar is no longer the world currency.

You think all hell isn't going to break loose?

You think it hasn't started yet ?
Look at countries in worse condition than us in government corruption, high food prices, high unemployment and a increasing poverty.

The seams are coming loose. Tunisia set off a domino effect.

[Pruzhany]

At least a 401K plan belongs to you and it is up to you to ensure its integrity.

Two problems with 401ks. First the company chooses what stocks you can choose from and thus also chooses the fee structure for administration of it. So unless you area stock market whiz and you change the portfolio often then you really cant ensure its integrity. The second problem is if the company backs out its company match (or gives some miniscule amount) then you're basically playing with your own money that you cant take out w/o a penalty. So yes people are going to rely now more on SS.

BTW at the current rate for $250,000 its around 2500 in interest. You are using DDDW percentages. Plus if someone had that much to save, they would have placed it into annuities which pays a fixed percentage over a certain amount of years which is much higher.

[JimMe]

Originally Posted by HappyTexan

The days of a corporate pension are long gone for anyone not retired today.
401K/IRA and invest where..Wall Street is like the craps table at Vegas with HFT by the big boyz.

Where do you think companies and states and municipalities invested their pension funds? You guessed it: the stock market.