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While I agree with the concept of RTBs point about wages, stagnant for the other 99% for the last 30years is an exaggeration. I graduated from college in 1980, and everyone I know, (maybe in the top 30%) has had wage growth WAY above inflation. Maybe the botton 25-30% saw stagnation...Id like to see some documentation. Definitely a loss of income to SS, but how much of it being thenissue is greatly debateable.
This is a very regional event as the rise in wages has been very locally and region driven. There is good reason for the popularity over the last thirty years of some areas.
While I agree with the concept of RTBs point about wages, stagnant for the other 99% for the last 30years is an exaggeration. I graduated from college in 1980, and everyone I know, (maybe in the top 30%) has had wage growth WAY above inflation. Maybe the botton 25-30% saw stagnation...Id like to see some documentation. Definitely a loss of income to SS, but how much of it being thenissue is greatly debateable.
I tried to find some numbers and they are all over the map. I think the source of those original numbers excluded some of the Clinton years when they did rise slightly:
Quote:
The issue of wage stagnation, however, should focus on what the vast majority of workers have been experiencing for most of the post-1979 period. Hourly wages, inflation-adjusted, grew only 0.2 percent annually from 1979 to 2014 and did not grow at all if we exclude the 1995-2000 period. What happens if we add in benefits growth and examine hourly compensation growth? Not much. The growth of the hourly compensation of private-sector production, non-supervisory workers was 0.2 percent annually over the 1979-2014 period and just 0.1 annually if we exclude the 1995-2000 period.
That one includes benefits to come up with what has happened to total compensation also:
Quote:
Among the bottom 40 percent of workers there was an even greater decline in compensation than there was in wages, indicating that including benefits as well as wages in an analysis results in a more adverse trends
In this case though the OP is goading people to post their rants against the government figures.
I don't think he honestly wants to discuss the lack of COLA.
One of the unfortunate realities of retirement is that there are no more raises or promotions. Trying to stay ahead of your own personal cost of living for many is a challenge. There are ways to minimize the dangers but many are unwilling to sacrifice the early retirement years for down the road. Our current low interest rate world doesn't help.
My husband and I are retired and we have made sure that we will never be in financial trouble, but my great aunt just died at 100. Her husband died 45 years ago, she never worked (not unusual at the time) She lived on less than $800 a month for many years. Her mortgage was paid off and family members helped her with some of her expenses, but you can hardly blame her for not planning ahead, she grew up in a culture where the husband was supposed to take care of things like saving money..and I'm sure at the time he thought his pension and SS would be adequate.
One thing to keep in mind on this board is we are undoubtedly skewed. Probably more than half of us were or are in the top 20% of wage earners. My wages have not been stagnant and I am not in the 1%. That does not disprove what I said earlier about stagnant wages. Some people gained ground, some lost and some have been treading water.
Maybe they are taking into consideration all the Cubans they are now paying who never worked a day in their lives in America, and freely travel back and forth to their home country: More Cubans immigrating in old age - Sun Sentinel
Maybe they are taking into consideration all the Cubans they are now paying who never worked a day in their lives in America, and freely travel back and forth to their home country: More Cubans immigrating in old age - Sun Sentinel
Looking at that article, about 7,000 since 2010 and in 2010 the number of new ones was under 500; the majority came in the last 2 years. There are 60,000,000 SS beneficiaries. So roughly 1% of 1% of recipients are elderly Cuban emigrants. No, I don't think they are taking that into consideration, except maybe the candidates who have an aversion to facts and math.
My husband and I are retired and we have made sure that we will never be in financial trouble, but my great aunt just died at 100. Her husband died 45 years ago, she never worked (not unusual at the time) She lived on less than $800 a month for many years. Her mortgage was paid off and family members helped her with some of her expenses, but you can hardly blame her for not planning ahead, she grew up in a culture where the husband was supposed to take care of things like saving money..and I'm sure at the time he thought his pension and SS would be adequate.
There are additional steps folks with pensions and SS need to also do if possible. Having a multiple of 3 or more of annual income invested enables you to use that nest egg as your own personal COLA. As you note once you start to collect your pension or SS your only increases will be a COLA and that over time will erode the buying power of your income. The whole retirement cost model for health care and living is being redone as providers are emerging that will enable you to lock in your retirement cost at a price in the early years that is more expensive but becomes more of a bargain down the road. Will be interesting to see how it plays out. Especially for folks with pensions and SS who can guarantee a monthly payment to a continuing care program.
There are additional steps folks with pensions and SS need to also do if possible. Having a multiple of 3 or more of annual income invested enables you to use that nest egg as your own personal COLA. As you note once you start to collect your pension or SS your only increases will be a COLA and that over time will erode the buying power of your income. The whole retirement cost model for health care and living is being redone as providers are emerging that will enable you to lock in your retirement cost at a price in the early years that is more expensive but becomes more of a bargain down the road. Will be interesting to see how it plays out. Especially for folks with pensions and SS who can guarantee a monthly payment to a continuing care program.
Trust me, my husband and I are doing fine..we both have defined benefit pensions, SS, and a decent investment portfolio. I was referring to my centenarian great aunt who lived in a culture where it would have been considered inappropriate for her to question her husband's financial decisions let alone influence them.
One thing to keep in mind on this board is we are undoubtedly skewed. Probably more than half of us were or are in the top 20% of wage earners. My wages have not been stagnant and I am not in the 1%. That does not disprove what I said earlier about stagnant wages. Some people gained ground, some lost and some have been treading water.
Bada Bing!
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