Posted on 11/10/2011 4:21:38 AM PST by Publius804
Will Baby Boomers be the last generation to enjoy the modern concept of a leisure-filled retirement? It's a worthy question to ponder in light of a new Pew Research Center report showing a growing wealth gap between young and old in the United States.
Using government data over the last 25 years, Pew found that households headed by those over 65 have made "dramatic gains" in economic well-being, while those headed by younger adults have fallen steadily behind.
In 2009, elderly households possessed 42 percent more median net worth than their same-age counterparts had in 1984. Young adults veered in the opposite direction: Households headed by those under the age of 35 had 68 percent less wealth in 2009 than those in their same age range had in 1984.
Put simply, the age-based wealth gap was 10:1 in 1984. A quarter-century later, it's 47:1.
It's obvious why older Americans typically have a higher net worth -- extra years of earning -- but the rising gap illustrates a growing problem, one worsened by the Great Recession: Many Americans in their golden years are enjoying a retirement that, most likely, will be extinct by the time today's younger workers reach their 60s.
That reality is setting the stage for a generational war over retirement, and a large part of the equation is Social Security. The political fault lines on the issue already are real.
(Excerpt) Read more at spectator.org ...
No, you crank....
I've got an IRA Money Market account, apparently invested in T-Bills.
Three years ago, it was paying about $400 per month.
Starting about two years ago, that yield dropped from $400 per month to literally under one dollar per month.
Thank You, Spendthrift Congress and their enabler, the Benbernank. You've destroyed a reliable income source for every saver in the country.
Fortunately, I'm not retired yet and have a little bit of time to pursue an alternative.
Let's say the oldest Boomer was born in mid-1946.
That means they would have hit 65 this past summer.
That means very, very few of those households "headed by those over 65" are headed by Boomers.
“Is there anything worse than an old man being provocative this early in the morning?”
YES... there is. Are you wandering around the yard again with your bathrobe open?! You promised me you would STOP doing this and waving to the neighbors on their way to work!!! LOL!
Ping list for the discussion of the politics and social (and sometimes nostalgic) aspects that directly effects Generation Reagan / Generation-X (Those born from 1965-1981) including all the spending previous generations are doing that Gen-X and Y will end up paying for.
Freep mail me to be added or dropped. See my home page for details and previous articles.
THANKS greybeard58 for suggesting the Google of Life of Riley.
I always wondered what that meant and where it came from.
It is perfectly fascinating, ah to be a Riley!
It’s obvious why older Americans typically have a higher net worth — extra years of earning — but the rising gap illustrates a growing problem
Wow. Just wow.
First and foremost, a rising wealth gap, all other things being equal, is a GOOD thing. It implies that the current generation of retirees has created more wealth over their lives than the former. The people just getting started are “always” going to be near zero, because they are at the beginning.
Also, I don’t know if they counted pensions as wealth, but we have seen a large movement from pensions to individual retirement accounts, which could make the current generation appear wealthier. And of course, something just might have happened in the early eighties that might have had an effect on those very near or past retirement who might have unfortunately moved a lot of their money to cash or equivalents, so maybe 1984 isn’t the best year to compare to?
A lot of cruise ships will be going into drydock.
Yep. Additionally, our annual vacation was one daytrip by family car to the beach. The family car was used by Dad to get to work with the exception of that one day.
And you spend a lot less than someone who is working (typically). Because you needs are less. Most who retire either own the home or downsize, don't have kids, and don't have a lot of other payments. Retired people spend a lot, but a lot less than current workers.
I gather you two are buddies.
Be good to your kids.
They pick your retirement home
two words......”Death Panels”
My wife and I I spend a LOT like many of my retired friends. The Kids have their own good jobs, no student loans, and instead of Occupying Wall Street they occupy their own houses, work, and contribute to my SS payments . We thank them for working .
$$ comes from savings,pension and SS. What a great idea! We made great DECISIONS in life( planned ahead ) and are reaping the rewards. Thing is, I still get taxed to the hilt even retired because of LESS deductions.
We spend a LOT more because now we can afford to buy and do what we couldn’t afford to do while working and raising two children.
Don’t have to save it for anything ( we invest in lead , and firearms instead of gold in case of a SHTF moment.
“I bought a used 2010 vehicle with 30K miles this year. Want to blame me?”
Why not? At 26 - your age - I drove a 12 year old car.
Now, are there youths who are working and trying to get ahead? Yes.
Are there a great many who rack up huge college loans they have no plausible chance of paying off? Yes. Do those outstanding loans affect their net worth? Yes. Multiply it by 1,000,000, and can you create a debt that makes it look like youths are oppressed? Yes.
That doesn’t make me a huge fan of spending money on the old. I expect SS to be means-tested by the time I can apply (15 years), and I won’t make the cut. I actually approve of means-testing SS, since it was ALWAYS welfare for the old & stupid.
I despise Medicaid and Medicare, and was furious when GWB pushed free prescription drugs. I think many old people demand a level of health care that no one can pay for, and I think they need to accept the fact that sometimes you get sick and die. My Mom accepted the idea in her 80s, and I will at some point. I have pain in my back nearly 4 years after a tumble off a horse, and expect to deal with it for the rest of my life. I do NOT plan on back surgery, etc.
But I’ve also got a son who flunked his college classes because playing video games was too much fun, and doing that until 3AM meant he couldn’t pass his classes. That was HIS fault, and sure wasn’t anything I taught him. I’ve got a daughter who complained about needing to live in an apartment at 22 - and her apartment was 4 times larger than what I lived in at that age (I shared a 200 sq ft apartment).
It is highly simplistic to write that the old have proportionately more wealth than the young, and assume it is all due to greed on the part of the old.
At 18, if I had needed to borrow 50,0000 for college, I would not have gone to college. Not on the loan. I have money now because my wife and I worked hard and didn’t spend, and now those who cannot control their spending - on both sides of me age-wise - want my money to cover their waste. And yes, it pisses me off.
I guess you’ll be part of the recipe for Soylent Green.
Right on! Pisses my wife and I off also. We have decided we will DIE fighting against this Progressive machine if we have to . BTW, WE ARE NOT ALONE!
Beat em’ to it ! Mountains in Summer, Florida in Winter.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.