The Extinction of Retirement. Is It Going the Way of the Dodo Bird?

For the better part of a century, the foundations for a semi-comfortable retirement for many Americans have rested on the financial pillars of rising real estate and equity prices, positive real interest rates on savings, the continued solvency of public and private pension plans and the reliability of national entitlement programs (Social Security, Medicaid). But in the last few years, the economic sands have fundamentally shifted and these pillars are no longer sturdy, some have cracked completely. For many Americans, the traditional idea of a comfortable retirement filled with golf carts, cruises and fishing trips is going the way of the dodo bird.

Over the last decade incomes and job growth have stagnated, causing savings rates to drop. According to Jim Quinn, author of The Burning Platform, 60 percent of retirees have less than $50,000 in savings. Such sums won't last very long, especially when consumer prices are up 3.6 percent, import prices are up 12.5 percent and commodity prices are up 35 percent year over year. What's worse, any savings placed in a bank will pay next to zero interest and will likely not even pay for the fees associated with the account. With cash savings essentially non-existent, the other pillars of income take on paramount importance. But these former bastions of financial security are being washed away by a torrent of red ink.

For years, the essential Ponzi-like structures of Social Security and Medicare were concealed behind positive demographics. But once taxes collected from current payers fall short of the required distribution owed to current recipients, the ruse will be laid bare. That day is now here. With insolvency a real and present danger, at last a consensus is now forming that Social Security must be structurally altered if it is to survive.

But according to the Social Security Administration, in 2008 Social Security provided 50 percent of all income for 64 percent of recipients and 90 percent of all income for 34 percent of all beneficiaries. With these numbers, it's not hard to see how even small cuts will spark big protests. Now, try cutting the close to $20 trillion prescription drug program and the $79 trillion Medicare entitlements and watch the political sparks fly! However, given the realities, it's hard to see how the program can escape deep cuts -- Paul Ryan has it correct.

“He spent 4 years in college and worked hard to get”

The $5000 marked up to $1000 is for the part alone. Why did you bring up the doctor’s educational history?

The doctors probably have to pay way too much for their education.

Wonder if patients found cheaper alternatives to the American system, and thus the American system lost business. Do you suppose they would then charge less? That’s how the free market works every time.

Maybe an alternative medical system needs to be formed in America that would handle certain problems at a lower cost. That might be a great idea that can’t happen now because the establishment has rules that prevent it.

Another alternative would be more do-it-yourself medicine, where you would go to the internet or somewhere for guidance and then do it yourself, or with the help of friends.

I didn't know that it was JUST the cost of the implant marked up. You're post didn't say that, though it could have been taken that way. You're post stated the part cost $5k and finished at $10k. You didn't stipulate parts alone, so I figured the final cost was parts and labor.

So if we figure in labor, I think the price is typical of a cost AND labor ratio.

Now as far as other points, such as "The doctors probably have to pay way too much for their education."

I'd prefer my Drs not having their Md from the University Of New Delhi or the Molefi Kimbwandènde Owomoyela School Of Voodoo.

Todays Drs spend 4 years at a normal university, getting their gen ed, just like everybody else. With tuition, books and board, lets say $40K a year. Then 6 more years of specialized schooling. Thats 10 years JUST from school. Thats $400K. Think thats too much school? Why does 1/4 of the drs fee go to cover his/her MALPRACTICE insurance? How much DO YOU PAY in Oops Insurance at your job, so that nobody takes your house, car and childrens future, because you made a SIMPLE mistake?

OH!!! No simple mistakes in medicine??? Yeah thats right. A Drs balls are on the anvil every time he sees a patient, whether "snifles" or a "minor scratch".

You want lower cost medical? How many Drs are getting ready to retire, or not continue with med school, because of the lower pay of Obamacare.

There are all types of books and websites on DIY med advice, or alternative medicine. BUT...It sounds like what you want, is the Dr "coaching" you and your buddies through setting a bone or a fixing Steve Austins bionic arm. Meanwhile, who gets the blame when something goes wrong??? You want the benefits without the cost. Hey don't worry, Obama and company have agreed to take care of that for you. FREE healthcare for ALL.

There are no doubt rules that benefit "the establishment". BUT...there is a reason people come to the US for healthcare, when their own countries have FREE healthcare. There is a reason students from ALLOVER the world, come to the US to study medecine.

Maybe you'd like an alternative healthcare system, where its illegal to get an expensive operation or proceedure, even if YOU PAY out of your pocket, when government healthcare deems it so.

I'm not naive to believe that ALL in the medical field are altruistic, and do so solely for societies benefit.

Insurance companies have changed the face AND cost of medecine in the US. No doubt. But don't forget, its people wanting golden insurance programs, from their employers, that they themselves don't bear the cost of, that has driven the pharma r+d. People want a GUARANTEE that nothing bad can or will happen to them, no matter the cost...

to SOMEONE ELSE.

You yourself are describing that you want all the advantages that modern US medecine has wrought, but only want to pay for strictly what you use, but want the GUARANTEE that full medical is available when you want or need it. You love the fact that something like Polio, today is virtually eradicated, that YOU DON'T NEED your dr to treat you for that. BUT...At what cost yesterday, for someone else? For the Drs involved in the research and development?

Hey I'm just a dumb construction worker.

I'm skilled labor. When its hot and sweltering out, I get the call.
When its bitter a-- cold out, with the wind blowing, dropping temps to below zero, I get the call.
When its raining and the job HAS TO GET DONE...thats right...I get the call.
When the job is high up, and you feel your butt pucker...I GET THE CALL.
When the job needs to get from point A to point B, in a PROFESSIONAL manner...thats right...I GET THE CALL.

When 40 feet of 16" pipe weighing TONS, needs to be rigged and moved and inched into place, WITHOUT damaging millions of $$$ equipment...I GET THE CALL.

Now, someone wants me do a "simple" project for them. But they want it free, or they'll "DO ME THE FAVOR" to give me a little extra spending money, and offer me what the local handyman charges.

I'm sorry, you want handyman quality, call a handyman. You want professional quality, you call ME.

And who does the handyman call when he gets in over his head, or is unfamiliar with something??? ...Thats right...I get the call.

And when the handyman screws the pooch on the project, and his "workmanship" needs to be tirned into "craftsmanship"...I get the call.

AND STILL...people want to pay handyman prices.

ITS NO DIFFERENT in the medical field. People want Ben Carson quality and assurance...BUT...at LPN prices.

“I didn’t know that it was JUST the cost of the implant marked up. Your post didn’t say that”

Yes it did. I wrote “or a $5,000 knee replacement (the mechanical part) ...”. Do you think $10,000 after the hospital markup for the knee replacement hardware is excessive?

Medical costs in America could be reduced by the higher-paid people throughout the medical industry (doctors, scientists, professors, engineers, administrators) working for less pay. The result would be no change in the quality of medical care, but more money available for citizens to do what the want with.

But who wants their pay reduced? Don’t look cost-reduction ideas from the medical industry.

You say “people want to pay handyman prices”.

In the case of medical care that’s not true. People know that the price for medical equipment and services is often incomprehensibly high (e.g $4000 for a 20 minute breast biopsy or a malpractice settlement $40 million). People know that medical costs are way out of whack, period.

You sound like someone whose medical costs are paid for by someone else. That, by the way, is a reason medical costs are so high — we get an outrageous bill but don’t care because someone else pays it.

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