Government

‘I hope I can quit working in a few years’: A preview of the U.S. without pensions – The Washington Post

Is it time to give up? Should we just admit Americans can’t plan for their own retirement?

No retirement account? There are several retirement accounts available that don’t involve employers. And even without them saving and investing is always possible.

No employer plan is an excuse and not a very good one, but understandable as it takes discipline to save and plan for the future. And it takes avoiding or delaying the things you really, really want.

In place of pensions, companies and investment advisers urge employees to open retirement accounts. The basic idea is workers will manage their own retirement funds, sometimes with a little help from their employers, sometimes not. Once they reach retirement age, those accounts are supposed to supplement whatever Social Security might pay. (Today, Social Security provides only enough for a bare-bones budget, about $14,000 a year on average.)

The trouble with expecting workers to save on their own is that almost half of U.S. families have no such retirement account, according the Federal Reserve’s 2016 Survey of Consumer ­Finances.

Of those who do have retirement accounts, moreover, their savings are far too scant to support a typical retirement. The median account, among workers at the median income level, is about $25,000. “The U.S. retirement system, and the workers and retirees it was designed to help, face major challenges,” according to an October report by the Government Accountability Office. “Traditional pensions have become much less common, and individuals are increasingly responsible for planning and managing their own retirement savings accounts.”

Source: ‘I hope I can quit working in a few years’: A preview of the U.S. without pensions – The Washington Post

P.S.Over 50% of the millions of visitors who gamble in Las Vegas alone are over age 50 and 25% are age 65 and older. That ain’t a retirement account🤑

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5 replies »

  1. Most people today appear to be demanding spoiled prima donnas. They want, want, want and they want it all NOW. “Delayed gratification” is not in their vocabulary.

    HGTV is filled with such high maintenance types who rip out a prefectly good functional kitchens or baths just because they don’t like the design or color. In one episode, a young “liberal” couple in California was looking for a new “green” environmentally friendly house. As soon as they were shown one, they began planning to replace the new but “wrong color” counter tops. So much for being eco-friendly.

    In 2001, when I bought my old house… it still had the original counter tops and avocado green wall oven from 1967. But both were good and functional and remain so to this day. This kind of “conservative” thinking is not only eco-friendly… it’s a major reason why I was able to retire at age 55.

    Like

  2. I posted my comment here three times… but none of them showed up ??
    if for whatever reason, three of them show up later, you’ll know why.

    Like

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