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When the economy tanked a couple of years ago, the savings and retirement accounts of many retired seniors were decimated.
As with many people who lost jobs, the response has been to spend whatever savings were available ... just to live.
But, these seniors will have no way to replace their depleted retirement funds in the future.
Even if this economy turns around, will we be facing a major crisis among currently retired seniors who run out of money in about 10-15 years? What is the solution?
It's not just seniors. Unless we have cultivated a lifestyle of living below our means we will all be taking a 'step down' in social class in the future.
I saw what was coming and 'stepped down' - sold everything, bought a farm and am living on far far less, and making and learning to make, growing and learning to grow, whatever I want or need. There are going to be a lot of people without retirement, without income, and without the comfortable futures they worked and planned for and dreamed of, who are doing everything they can right now just to maintain that living style that they want. Of course they feel like they deserve it, because it was there goal for 30-40 years, was what they worked for and dreamed about, and don't want it taken away. People are soon going to have to face some pretty cold hard realities, no matter how cruel and unfair they are. Not just the retirees, but the Xers, Yers, ME'ers, or whatever you want to call them. Protesting or rallying won't help when you are cold, hungry, or homeless... and so many are just short of that, of all generations.
I don't think its EVERYONE, cause Black Friday sales were up 16% over last year ! Alot of shopping. Alot of stuff was sold. If they needed money for homes, food, etc, they didn't spend it for that. They spent it on stuff. Somehow people seem to get by. I got by, cause I stayed home !
When the economy tanked a couple of years ago, the savings and retirement accounts of many retired seniors were decimated.
As with many people who lost jobs, the response has been to spend whatever savings were available ... just to live.
But, these seniors will have no way to replace their depleted retirement funds in the future.
Even if this economy turns around, will we be facing a major crisis among currently retired seniors who run out of money in about 10-15 years? What is the solution?
Social Security and Medicare are the "Solution"
It's that or the Knackers
The problem is that the Boomers make up 30% or the population, the solution is that they are not immortal. They will die and life will go on
The thing about many baby boomers was that we always believed that our houses would not only never ever lose a dime of value but outpace inflation every year until hell froze over. After all housing had always been a sure fire safe investment and had never declined in value before. Then the fit hit the shan and we found out that housing can indeed go down. And many of us had counted on the house as a retirement investment. We would sell our larger family homes for $300,000 and move to a small town or other city and buy a small condo for $100,000 and live happily ever after. Therefore many people did not feel the need to save or to save much. Your house was your "savings". So, yes, lots of people are in deep doo doo.
The thing about many baby boomers was that we always believed that our houses would not only never ever lose a dime of value but outpace inflation every year until hell froze over. After all housing had always been a sure fire safe investment and had never declined in value before. Then the fit hit the shan and we found out that housing can indeed go down. And many of us had counted on the house as a retirement investment. We would sell our larger family homes for $300,000 and move to a small town or other city and buy a small condo for $100,000 and live happily ever after. Therefore many people did not feel the need to save or to save much. Your house was your "savings". So, yes, lots of people are in deep doo doo.
Your analysis is basically sound, but there was indeed a previous housing bubble which popped. I believe it was in the 1990's. People were underwater with their mortgages and it shook a lot of people up. But how short our memories are! And the 1990's bubble (provided I'm remembering the decade correctly - it could have been the 1980's) was not as severe as the 2007/2008 one. We humans seem to have an ability to ignore warning signs and plunge right ahead. This current housing crisis is so severe that perhaps it will not be forgotten for a very long time.
It was the 80's and very short-lived. Primarily due to rampant inflation blamed on skyrocketing oil prices, and mortgage rates at 18%. Some houses were sold with negative amortization mortgages to keep payments down which, of course, would put people under water. High interest rates caused a deflation in property values of about 25%. Memories are very short because the downturn was considered an aberration and the rebound came quickly. I remember this period well, because it was - then - The Depression of my lifetime. I was in real estate at the time, didn't sell a house for two years, sold property I owned on land contract just to free up cash to pay bills and then discounted that land contract further for more money. Took a paying job at a depression-proof firm as soon as the job market opened up in 1983. Stayed there until I retired. I'd learned my lesson.
This situation now is a permanent structural change in the economic foundation of this country.
Two words. Globalization and technology. The USA will never be the same - not even close. Those unemployed but ten years from retirement are really in a bad spot. Young people not much better off either, opportunities so diminished. Glad I'm the age I am. I had it good.
This situation now is a permanent structural change in the economic foundation of this country.
Two words. Globalization and technology. The USA will never be the same - not even close. Those unemployed but ten years from retirement are really in a bad spot. Young people not much better off either, opportunities so diminished. Glad I'm the age I am. I had it good.
Do you believe the 'American dream' is dead? What will America look like 10-15-years from now .... for today's seniors --- and those looking to retire in the next 10-years.
Do you believe the 'American dream' is dead? What will America look like 10-15-years from now .... for today's seniors --- and those looking to retire in the next 10-years.
I think the 'American dream' as the current generations know it is dead. At least one economist has said that we did not have an economic recession - we had an economic constriction, and we will not "recover" as we would have it it had been merely a recession.
I think the 'American dream' will be re-thought and re-built, over time.
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How will this 'change' play-out in the future?
