Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I think the biggest thing is just the unknown as far as if the next 50+ years will be like the last hundred in this country or more like the rest of the world. Will you get 7%-ish real growth in equities. Will the 4% SWR make sense at retirement? Will the US have peace, stability, democracy at home?
I think it will be pretty much as it is now, except that the middle class will be almost gone. In short, I think the very wealthy will be fine and be able to enjoy their retirement, and everyone else will struggle to survive until they finally die.
Sorry to be so pessimistic, but that is honestly what I think.
I agree.
We were warned about this, 30 years ago, by Ross Perot: too much short term thinking.
I can see more retirees living abroad and maybe a norm. Right now it's still not a norm, but with the first wave of expats settling roots in their chosen countries, more information becoming available, and younger generations being more exposed to various nationalities, my guess is in 30 years, a third of new batch of retirees probably would retire abroad.
The biggest thing that is happening is the demographic change - the aging of the population at large - around the world. The US has largely diluted the effect through immigration, legal and illegal. But, overall - the average age will rise (a given). This means that people will work longer - see Japan for what happens when there are fewer younger people. If I were advising someone in 20s, 30s, 40s - I’d suggest they position themselves to anticipate and gain from the global aging demographic shift coming over the next 4 decades. The details of retirement, etc. will take care of themselves.
About 80% of seniors aged 65+ in the US own their home, suggesting that a similar number of seniors have assets (ie, at least a home) to leave to the next generation. Therefore, I expect that Millenials and Gen Z will rely on inheritance much more than previous generations in the US.
I think about 2/3, or more, of them will be disappointed, for the reason "springfieldva" states.
Quote:
I think investing for retirement, and the annuity industry, will substantially expand.
...
Investing will be the key, but it needs to be done early in life, and pursued all though life.
Quote:
Originally Posted by springfieldva
The younger generation can not rely on getting an inheritance. The costs of eldercare are through the roof and that is even with exceptionally good planning.. The costs have gotten so outrageous that you either plan to get eldercare for yourself OR you leave an inheritance for your kids because you won't be doing both.
I suggest giving your inheritance to your kids (or, to whomever you plan to leave it to, while you are still alive. In fact, I suggest giving them most of it away, before you turn 80, and leave your own fate to chance. But then, I am, already, ready to meet my maker.
Younger workers will seek ways to opt out of paying Social Security thru their paychecks because that debit will increase with little assurance they will collect.
How? There are many ways if a business puts their mind to it. Getting paid shares instead of salary for example, getting non-salary benefits they'd have to pay with after-tax money. Trump family business gave some employees cars to drive and condos to live in and probably a lot more.
I was self-employed, owned small business and we kept our salaries as low as legally allowed and paid ourselves bonus end of year that did not pay SS. When you own the business you pay both halves of SS. We invested our bonuses, bought property. Yes I wish I had a pension but didn't want to spend my life working for someone else.
How will Social Security remain solvent? Inflation can help, reduced benefits, increased wage limits subject to SS. All the usual that will fought at the voting booth where oldsters are in the majority. Importing immigrants to work low-paying jobs and not allowing them to collect Social Security I'm sure is on the agenda too.
Before I got to Medicare age we lived in Florida and saw how very selfish many older people can be about money, and most of them had plenty of money. I hope not to be one of them because I have many young relatives who work for a living. We need them to feel taxation and Social Security is fair.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
