Our retirement system is screwed up😂

Retirement: “the act of retiring or of leaving one’s job, career, or occupation permanently, usually because of age.

As anyone who is retired can tell you, there are many factors related to a satisfying retirement, some logistical, some emotional and definitely some financial.

It’s that financial part that seems to get a lot of attention and not too much coordination. Everyone is in on the act, except all too often the individual.

art_bailing_water_from_boat_lg_clrThere is a fundamental question; who is responsible for a financial secure retirement? Is it the individual, the employer, state government, or the federal government? (or some combination)

Then there is the question of funding. Should it be voluntary on the individual’s part, via taxes, as part of a workers total compensation or forced individual savings?

As things stand now we seem to be tripping over ourselves and getting nowhere.

Our retirement foundation is Social Security but beyond that it’s every man for himself. Even Social Security is a political football. Ignoring the fiscal problems of the Trust Fund, there are calls to expand the program and in the process turn it into another form of welfare.

Let’s see, we have IRAs, Roth IRAs, myRA, 401k, Roth 401k, 403b, SEPs and who knows what else under the IRC.

Various states are seeking to start their own retirement programs for citizens. If Americans are not using retirement vehicles currently available, how will adding more to the mix help? In fact, that will confuse people more than they are already.

Why should there be different rules, limits and distributions based on who sponsors your plan, you or your employer? Why should there be hundreds of ways to take your Social Security?

All this is extremely confusing and in some ways contributes to people doing nothing to save for retirement.

Just as with the IRC, we need to step back and rethink all this to insure the best possible opportunity for success for all Americans

 

12 comments

  1. After my post for Medicare, I looked at at my Social Security Statement again (personalized statements are available to everyone). The estimated amount paid by my employers and myself is reported to be about $266K into Social Security.

    I know that social security was never meant to be a retirement plan therefore I should not expect to ever get back more than I put into it. In fact it was meant to keep people off of welfare due to disability or the untimely death of the bread winner thus that is why the benefits are so generous for children.

    If I were to retire today, I will exhaust what I put into the fund in 8.3 years. If I live longer than that and if my wife lives longer then me, where is that extra money coming from? The answer is from other workers and the government general fund when they have to prop up the social security fund. Welfare is a form of entitlement given by the government. If I take more then I put into it, what else can you call it but a government handout?

    Take the time to check out your own statements at http://www.ssa.gov/myaccount/

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      1. Hmmm so when it runs out we are suppose to die……..?????………We spent 50 years of our lives for this country!!!!!!!! My dad was a welder, made excellent money, paid in a monumentous amount and died at 55 years old, what about his share, I can name others the same way….. And we are willing to give it away to illegals and who ever…….?.. My husband paid into it until he was 87……… Hmmm something wrong with this math?…….Or your selfish head!!!!!!!

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  2. I am 64 and was raised to understand that Social Security was never intended to be a sole source of retirement income. It would help supplement whatever else you earn. So, after high school (1969), I went to work for the Fed. Govt. (Department of Defense). I was asking questions about retirement at age 18! That is a fact! Anyway, i found out that if I kept my nose clean, do whatever it was I was suppose to do, at age 55, I could retire, drawing a pension for the rest of my life. Other friends of mine chose college and work after that, but all of them ended up bouncing around from job to job throughout their working life. Today, most of them are still working. I’ve been retired for 9 years. I am ‘living off” of my pension, and will never get Social Security because I never paid into it. I had an IRA that went to former spouse No.1 in the divorce. Irrespective, we all make choices. I was fortunate in that I was able to find employment with an organization that offered an actual pension. People have to look out for themselves.

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    1. There is a lot of truth in what you say. I did a similar thing right out of high school. Unfortunately however the days of finding a company offering a pension (other than government) are gone.

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  3. Who in the hell was there when Prudential investment policies went bankrupt and another insurance investment policy went bankrupt?……. No one that is who!!!!!!!!….. and you chastize me for drawing and depending on social security…… calling it essentially “welfare”……..????…..Go to hell…….. I need this money like many other Americans just to make it from month to month !!!!!!!

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      1. Than anyone drawing social security for more than a couple of years is drawing welfare (or a form of it). That would have to be a very large percentage of all social security recipients, would it not?

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      2. Most people get back all they put into Social Security within seven years or so not counting potential lost interest on what they could have invested and that’s not counting COLAs. Less time if a spouse collects 50% of the benefit. Each generation pays for the previous one, but now the demographics don’t work any longer. So changes must be made.

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      3. We were self employed, we contributed our own and that of the employer, My husband and I paid in until he was 87 and then he died!!!!!!!!! It is survival of the fittest now…… it is not pretty……..Hmmmm what about people like my dad who died at age 55…….? It all averages out…….
        Let me remind you…… we were the generation that made it possible for your generation to have a retirement plan outside of social security…..
        ONLY IN AMERICA……!!!!!

        Liked by 1 person

      4. Call it what you will………… How much do we send over seas……. how much do we give to legal and illegal people?….. Our seniors work all of their lives and thru no fault of their own are made to live from day to day……….hand to mouth……….? I do not see the economics in that scenario…….We are threatened everyday that is will be taken away from us…….
        Thru no fault of our own (bankruptcy court) our retirement was taken away from us….. so stuff it !!!!!!!! I am making it< I have had to gear down to fit the social security check each month… I get NOTHING ELSE !! but I am making it…….

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