Posted on 08/08/2014 8:25:21 PM PDT by SeekAndFind
One in five people who are near retirement age have zero money saved.
Yes, you read that correctly.
The sobering statistic was one of many released by the Federal Reserve on Thursday as part of its report on the economic well-being of U.S. households, which surveyed more than 4,100 people online last year between mid-September and early October.
The study offered a stark reminder that as more Americans are made responsible for their own retirement, most are not saving nearly enough. Overall, 31 percent of people said they have zero money saved for retirement and do not have a pension. That included 19 percent of people between the ages of 55 and 64, or those closest to retirement age.
What's going on here? A lot of people said they rarely thought about retirement, at least not until it was too late. About 41 percent of people ages 18 to 29 said they never thought about retirement planning, a number that understandably declined to 20 percent for people above the age of 60.
But researchers said the dismal saving rates weren't fully explained by lack of caring. They also cited a combination of low resources and poor awareness
(Excerpt) Read more at washingtonpost.com ...
No, most of them will die and not need much in the way of retirement funds
The Fable of the Ant and the Grasshopper comes to mind.
More like 50% if you count in the state taxes and fees which is another name for a tax.
My boys are subsisting, 1 is married, with 1 kid, she can’t work, in the process of Chemo for Breast Cancer, and he has to work PT or she has not health care. His job full time with ins job was one of the first waves of big lay offs.
My youngest makes a whopping $15 an hr, lack of education. That is 1 area you can’t force them to get after they leave home.
Why would the general population have to vote? We didn't vote on initiatives that use money paid into Social Security for other things. I'd think, if we're lucky, the HOR and US Senate could pass it. If we're not lucky, the Federal Reserve could decree it.
A lot of people's retirement savings plans have been messed up by the 0% interest rates. I could envision a scheme where there would be federal annuities for savings. Retirement monies would go into fed-insured annuities and pay out a certain percentage each year, but the gov instead of an insurance company keeps the balance when one dies. The only way to avoid that would be to not have any of those federally sanctioned retirement plans.
If that happened, I believe the general population, with less knowledge about perconal finance and economics than HS graduates had in the '60s, would accept it as a good deal.
It would be long-term dumb and destroy all the good plans such as the Roth IRA do to encourage people to save for retirement.
You'll surprise yourself. Time often equates to finding ways to spend less.
My brother has all that income too and the VA gave him hearing aids because his hearing loss was caused by his service on the flight line.
He needs to check with the VA again.
There's already talk of making Social Security "needs based", meaning if you have a pension or 401K, you don't get any.
I would bet that’s mostly the twenty percent who have relied on gov. assistance their entire lives. Why should they save? Uncle Moneybags will ride to the rescue.
Under the current ‘pay as you go’ system, the earnings of those currently working are taxed to pay the social security pension benefits and Medicare of the retired generation. The monies paid in by the current retirees has already been paid out to others, or ‘loaned’ to Treasury to make up shortages in the general fund. So the morality I struggle with is the notion that my children should be taxed for my so-called retirement benefit.
For the twenty-something’s who act responsibly, who get an education and start a career, who work to support their families and save for the future, who live within (below) their means and pay their taxes; for all these young Americans who are faithful to the values of Christian America, we have really bequeathed a manure sandwich.
They have generations of debt laid on their heads, new regulations and taxes which inhibit personal initiative and upward mobility, and a society with the morals of Sodom or Ancient Rome. I have considered whether I should even take social security at this point? The taxes I paid in are spent, and I can’t get them back. But is it right to impose that same burden on the innocent? Does having it done to me somehow justify my doing it to others? And my own children among those others?
What a shame that Americans no longer feel the moral imperative to earn their own bread, rather than to take all they can take by force or deceit from their neighbors, without qualm or pang of conscience. What a shame we can no longer trust our God to be our Provider, laboring for our bread ‘as unto the Lord’.
It strikes that the Bible consistently describes blessing as planting a field, and eating the fruit thereof. I can’t find the place where we are to eat of the fruit our neighbor planted, taken by force.
Don’t worry. They’ll take what we’ve saved.
The gooberment doesn’t want you to save. Spend, Spend, Spend.
The greedy bastards know that taxes on a dollar come back twice fold. I have yet to find one commodity or service in this nation that isn’t taxed.
The distortion of the interest rate by government intervention causes many problems both for the retired and those trying to save for retirement. Traditional, non-speculative retirement portfolios depend on interest for a major share of the income they generate, and with rates under 1% it is very hard to have sufficient assets to generate enough income. For example, paying a $7500 property tax bill (not uncommon at all around here) requires $750,000 in capital, even before considering the additional capital necessary to pay the taxes due on the income.
In the 1980s when interest rates were 8%, the property tax burden for the same property was less than $3000 so $37,500 in capital was sufficient, before considering income taxes.
The combination of increasing taxes and decreased interest rates has caused the amount of capital needed for this one expense to increase by a factor of 20.
In the 1980s, a $50,000 a year retirement income from interest required around $625,000 in capital. In 2014 a $50,000 a year retirement income from interest requires 5 million dollars in capital. For most people generating $625,000 in capital through saving and active investment is a lot more possible than generating $5 million dollars through savings and investment - particularly when overall market returns for less speculative investments were higher.
For many people, the traditional approach to retirement saving won't generate enough income unless they either work or invest actively and speculatively throughout retirement.
It is easy to see why people are discouraged from saving.
He is in the process of going through the disability end, took a year to get the appointments. So far they are dud ones that took a big chunk of the day for useless tests not related, that has noting to do with his hearing or retinitis. That comes next month when he sees the internist type dr.
We got a FLAT NO you make to much statement even when the former ENT who was once a VA Doc said it was typical flight deck hearing loss.
I wasn’t aware that his income was a factor. It was not for my brother. Damage during his service was the key...not how much money he makes.
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