Posted on 05/16/2021 4:17:52 PM PDT by Jacob Douglas
Retirement plans nationally and in Florida were already in trouble before the COVID-19 pandemic. Even though Florida has one of the healthier retirement systems in the country, this system is nearly $30 billion in debit and has approximately 85 percent of the funding it needs to pay for retirement benefits. This and a controversial bill to limit retirement options that did not make it through, gave Florida workers the jitters and an omen of what may be coming down the pike. In the report, "Retirement Insecurity 2021," conducted by Greenwald Research of 1200 working adults, two-thirds of Americans (67%) say the nation faces a retirement crisis and over half (50%) are concerned their goal of a financially secure retirement is in jeopardy. Many employees plan to work longer than intended. Pam Swilley of Florida Polytechnic University stated the following: "although I have been in the state retirement system for 26 years, retirement is not an option for me at this time." Other workers concerned about their benefits or their health have chosen to retire early and get their money out of the system now. It should come as no surprise that some workers have been "shown the door" by their employers to prevent them from maximizing their retirement nest egg to the fullest sum.
Florida's pension system is funded by the contributions made by employees and employers, plus its investment income. Unfortunately, investment returns have not lived up to plan predictions. So, one piece of proposed legislation made it that requires employers in state system to pay a higher contribution. Ultimately, to make up for the retirement shortfall, increased contributions from employers may continue since any proposal to divert funds from other programs such as infrastructure, K-12 schools, roads, and public safety are unlikely to succeed. Governor Desantis was asked about bolstering retirement by diverting funds from other programs but gave no comment.
The warning signs are there that the pension systems may be unsustainable over the long term. The 2021 session attempted to close off the pipeline of workers coming in. Voluntary early and involuntary forced retirements, as well as the pandemic, are squeezing workers out through the backend.
And then there is Jao Xiden Inflation...
Pam Swilley of Florida Polytechnic University stated the following: "although I have been in the state retirement system for 26 years...Are you suggesting that this is a universal problem, or just a state government worker problem of underfunded pensions? I'm asking because you only cite state employee examples but suggest a conclusion for all employees.So, one piece of proposed legislation made it that requires employers in state system to pay a higher contribution.
-PJ
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Here’s an idea.....save for your own retirement
A lot of union pension systems, both public and private, are in trouble.
One reason why unions were so desperate to get Biden in office, was so he could bail them out.
“Here’s an idea.....save for your own retirement”
I did, and I’m scared to death that eventually the government will confiscate it.
“...that eventually the government will confiscate it.”
I also heard those proposals, years ago.
While not perfect, the Australian superannuation system is pretty good. Similar to a 401k, it’s compulsory for all workers but there is no single (i.e. government) fund, rather you have the choice of hundreds of funds or you can set up your own self managed fund.
There’s about $3 trillion in super so far which is about double Australia’s GDP.
https://en.wikipedia.org/wiki/Superannuation_in_Australia
As sure as night turns to day, they will confiscate it at the first chance they get.
It’ll be too late for our society by then anyways.
We’re living on borrowed time right now as it is.
Like the HUGE “IOU” in the Social Security “lock box”?
I recall this and it’s part of why I shifted out to help fund children’s colleges AND move $$$$ elsewhere. These dreams of big spending Other People’s Money come up every term:
https://americaswatchtower.com/2008/10/24/democrats-to-consider-nationalizing-personal-401k-plans/
Here’s another idea, you will be lucky if in 10 years each dollar you have saved retains 10% of its current purchasing power.
We need to be encouraging as many people as possible to work as long as possible. That’s one solution to any supposed labor “shortage”.....rather than importing hordes of illiterate 3rd worlders and hordes of H1b’s every year.
The 401k (and IRA) system we have in the USA are actually very decent. However, the big problem is that many do not participate in them which is a big shame. Even those who do participate do not put enough in.
I believe the average 401k retirement savings among Americans is around $66,000 which is nowhere near enough to retire with.
People should be aiming for at least $1,000,000 in retirement savings, which is very achievable if you start in your mid 20s and put aside at least 10% of your income.
With a million, you could safely fund 30 years of retirement by withdrawing $40,000 a year (increasing slightly each year to match the inflation rate). Social Security should easily add $20-40K a year on top of that giving you a retirement income of $60-80k a year for pretty much life. That should be enough for most. (Of course, this is pre-tax)
However, the experts say you should aim more for $2,500,000 as a retirement nest egg. That would allow you to take $100,000 a year.
DeSantis is going to get money from the coronavirus for the state. He best put it towards the pension fund. Will benefit the state in the long run.
I agree with that. The idea that retirement begins at 65 (or 62) is outdated. Especially considering the increasing life expectancies. Besides, most people simply can't afford to retire at that age, with a good 20-30 years ahead of them.
Would not be surprised to see the Social Security eligibility ages get raised in the years ahead. Currently you can start collecting at age 62 with FRA at 66 (soon to be 67).
Likely younger people will not be able to start collecting until they hit around 67 and FRA will probably get bumped to 70 or even 72.
Gee! What a concept! Take care of yourself?
How about also having to write a check for taxes every quarter, paying both sides of social security and medicare, buying your own health insurance and getting by with the coverage you can afford, having minimal or no disability insurance. The list of perks the self employed do without is nearly endless.
Poor babies who suck on the public tit.
Poor baby can’t retire after 26 years? So sad, not.
It took me over 40 years of hard work and saving on our own to retire. If we didn’t plan right or live too long, too bad. Nobody bails us out.
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