Will Your Retirement Be Worse Than Your Parent’s Was?

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variations cosmic down level

jennavieve of GA 5:09AM October 13, 2009

+1

soundtracks of AL 5:04AM July 17, 2009

While the Gov. Is sending BILLIONS to our 50 states and a few select BANKS why don't we DEMAND A 1000% raise of our soc sec payments each month !

John of WA 4:52AM July 10, 2009

Our Elected Officials cost those who work for Corporations our defined benefit pensions. I worked for IBM 32 years and forced out through a stealth formal program of older worker attrition. About 150,000 of us experienced force out before we were ready. IBM cut benefits, by reducing the formula that was in place for decades, resulting in my pension being reduced by 50%. When you are in your late 40's or early 50's and find yourself on the street, it is too late to make up the difference. As a result, I will be full retirement age next year. My defined benefit pension has lost half its value because of inflation with no Cost of Living adjustment. I am still working as the retirement numbers to retire at 50% of my present salary do not support me not working.
IBM took the money, increased profits, and paid their CEO about $2.4 Billion in compensation with 20 million shares of Stock over a nine year period. Former IBM executives, those who could have made waves about the theft of the defined benefit pension, were paid handsomely to keep their mouth shut.
All this with the blessing of our elected officials. The elected officials, like my US Senator, who kept their DB plans in place. When he retires, if he ever does, will receive 80% of his $200,000 salary, cost of living, and free health care. Most Government employees like IRS retirees, VA retirees, School Teachers, who have been protected by their Unions, have the same retirement as my US Senator. Congratulations. While the rest of us, are working our butts off trying to get to where they were in the early 50's with 70 to 80% of their final wage along with Cost of Living.
There were 125,000 DB programs in the 80s' today there are less than 17,000 and I bet most of those are Government employees and School Teachers.
Amazing what money will do, the deep pockets of Corporations, funneled into Congress, will change the lifestyle of the aveage American, from a Lifetime of Retirement, to a Lifetime of Work for the average American family.
I am reminded of the statistic that says 50% of those age 65 and older, have a physical disability that prevents them from working full time.
Welcome to a life of poverty if you are unable to work.

Mike of UT 7:27AM July 09, 2009

If you have to do it, you might as well do it right.

somas breath sounds of DE 6:35PM July 05, 2009

I think it's difficult to compare because the times and expectations of retirement are so different. My Dad was self-employed, retired young (50s) so lived longer in retirement than he did working. While they were financially fine and travelled extensively and helped the kids when they needed it. Good times were had. But I think he was bored a great deal of the time.Not the "retirement" I'm looking for. Probably the reaon I am so adamant about working and staying engaged as long as I can and not retiring.
For many of us baby boomers, we are resetting our expectations of retirement. Still a work in progress. but I don't think we're necessarily looking at our parents and saying that even if we could have it -- that's what we would want.
I just wrote a piece about the words that we use to talk about this stage of life just don't seem to be working anymore. retirement is one of those words that I think is ready for an overhaul. www.moneyinthemiddle.com

LauraR of MD 9:40AM June 10, 2009

I think my wife and I are poised for a better retirement than our parents. But inflation may change the situation; both our parents had db pensions, paid-off homes and some IRA/401k's. Her parents were depression/WW2 era savers, mine are silent generation spenders. My GRANDparents were a big influence for me, they lived through the depression and it made a bigger impression than it did my own parents. I have worked for the government and my wife also we will have pensions with medical coverage(if nothing changes). Our home is near paid off and we also have 403b, IRA's and Roths. So I anticipate a good retirement if we don't have a depression or SEVERE inflation. Utiities are a big concern for me; they along with gasoline have gone crazy. Things like this were not a concern for the parents.

Loren of CA 4:39PM June 09, 2009

The push for the 401ks resulted in the CEOs and share holders realizing bigger profits due to the elimination of pensions. The "avg. Joe" was caught in the "industry avg." pay that since the 80's has resulted in his losing the income race what with inflation factored in + the overall loss of millions of manufacturing jobs. The middle class which was the "goose that lies the golden egg" in so far as consumption and justifying investment in the economy has been phased out. The growth rate will become and stay negative from now on and result in a glut of homes including the "McMansions" the Gen X & Y'ers won't be able to afford what with the tax/social insecurity/Mediscare burden that's gonna hit VERY soon. the sociological change is that Boomers and their offsprings-offspring will reside under one roof to survive by pooling their resources - - maybe not such a bad thing considering other cultures do it.

Rick Libertarian'ski of WI 1:24PM June 09, 2009

I "worked" for the federal government almost 42 years(includes 4 years in the air force and 3,000+ hours of sick leave). Our home was paid off 11 years ago. When I retired in 1998 my income was $72,000 a year. Today with my federal pension, my social security, my wifes federal pension and her social security we gross over $8,000 a month. This does not include required minimum distributions from our IRA/TSP accounts and we have not touched our other savings. We left the stock market when Bush took office. Being a residemt of Texas I realized his agenda would not serve the average family well and self preservation would be the order of the day..
On many occassions I contemplated leaving the government for more better pay but after watching my father chase the brass ring and ending up living on social security I decided to stick it out and am glad I did so.
Now we are helping out 2 of our daughters who have been caught up in this economic morass.
Lucky (for the time being) in Texas.

Lucky of TX 8:57AM June 09, 2009

There is a LOT to be said for the idea of a guaranteed income for life from the standpoint of peace of mind.
If this were not so, we would not be seeing that "800-pound-gorilla-in-the-room" guy on TV trying to sell you annuities with guess what: "Guaranteed income for LIFE" (as he says with enthusiasm).
But in today's interest rate environment, you're not gonna like the costs and terms and low returns involved in "buying it"--from a gorilla or from anyone else. This is one of the problems with shifting to a 401(k) model of retirement funding. To get that guarantee (instead of from a pension), you now have to pay the insurance company a considerable slice of your savings for their risk and profit, AND you have to pay for "gorillas" to market it to you on TV, AND you have to pay some dude a sales commission to sign up what the gorilla sold you. "Insurers" are gearing up for a bonanza. Can you imagine how much worse this drain away of your savings to corporations would be with "private accounts" in Social Security?

Muser of NM 4:13PM June 08, 2009