Skip to comments.Social Security canít save us from the poorhouse
Posted on 04/06/2014 1:01:43 AM PDT by wetphoenix
Financial advisers for years have warned about a looming shortfall between what people have saved and what theyll need to maintain their standard of living in retirement.
And, certainly, what Americans have put away for retirement is paltry. Unless we all start saving like crazy, the pundits say, well have nothing to live on during our so-called golden years. Or well all have to work into our eighties if they let us.
But maybe we should look at it another way. For most Americans, Social Security will be their primary source of retirement income. Everything else IRAs, 401(k)s, even some old-fashioned defined-benefit pension plans will be icing on a not-very-rich cake.
The reasons are clear. Tens of millions of Americans dont have access to 401(k)s or other retirement plans at work. And millions of families are barely earning enough to cover their current needs, let alone save for retirement.
Suggesting that Social Security will be Americans main source of retirement income may seem surprising; after all, the average monthly benefit is only $1,294, according to the Social Security Administration.
But its no surprise at all to Dallas Salisbury, president of the Employee Benefit Research Institute (EBRI), a Washington, D.C.-based group that publishes tons of research on the topic.
When I put the question to him in a phone interview this week, he said matter-of-factly: Thats what all kinds of pensions have always been. The system always has been designed to supplement Social Security for individuals who have had continuous attachment to the labor force.
(Excerpt) Read more at marketwatch.com ...
In 1983 (Reagan Administration) there was a bipartisan agreement that a wage cap should be established at 90% of all income in the US. After that wages at the top started increasing 10% to 20% a year, while the wage cap appears to have been set at inflation (2% to 4%). By the mid 1990s it was down to 85% and recently has been as low as 82%. All they need to do is put it back to 90% and keep it there.
There is no way that I could live on my SS in the USSA.
As an expat, however, I have a very fine life on my minimal SS.
So do I get a larger benefit to match the bigger contribution, or do you just plan on helping yourself to more of my money?
You are exactly right clearcarbon. That’s what my wife and I are now facing. One of us is most likely going to have to return to working part time.
The history of government entitlement programs clearly demonstrate the folly of big government central planning. The implications for the ACA are clear.
To where did you emigrate ... thinking about the doing same thing?
As health insurance costs for retiring Baby Boomers goes ballistic due to ObamaCare, more and more and more money will be withdrawn from the stock market so that aging Boomer can survive - literally. Medicare Advantage is now being cut, and the cuts will only get worse. As people get sick, they will have to rely on their own money to relieve pain and suffering for themselves, or a loved one.
The younger workers don't even have the same capacity to invest as the older generation did. The money that everyday workers (not professional investors) threw into the stock market to help inflate prices won't be there. Fed Pumping has also led to a bomb of flamed gasoline that is ready to explode. "Financial Advisers" wave their hands and tell everyone that this will never happen, because all Boomers won't retire at the same time. They never figured on ObamaCare ruining the financial lives of millions of people.
Health care is bankrupting the nation - Medicare and Medicaid alone consume a majority of the Federal budget:
People who think their retirement accounts will not be consumed by this looming disaster are smoking something.
Thanks for getting back to me ... thinking fairly seriously about Finland ... if I am going to live under socialism, better to do it with experts ... seems to be renowned for a good and efficient government. Spent some time there with my eldest who is an opera singer and was there singing the lead in the Savonlinna Opera Festival ... we were all treated like royalty!
Many will criticize those who make the decision to escape from Amerika, but one day Big Brother may attempt to thwart that option, especially if you are a productive achiever.
There you go again, Alex. You really just cannot help yourself, can you? You just have to put down the USA and tell us again how poor you are at financial planning. You sniveling little excuse for an American.
As you can see, the Dawg Pack has been duly notified.
I’d be interested to hear what you’ve learned in retiring as an ex-pat.
” thinking fairly seriously about Finland .”
I know zero about Finland/Scandinavia. Everyone has to choose whatever floats their boat. I enjoyed my years in Slovakia and would still be there if not for other turns of events.
Oh, last month a Slovak and British friend came to visit me.
Congratulations on getting out, and sooner, rather than later!!
You are, of course, right. I think, in the end, the key was when the unions decided that it was worth the cost of massive Third World immigration to assure a Democrat majority...which then would give them unopposed power (both the unions and the Democrats).
And so the Democrats got permission to team up with big business owners to massively increase immigration from south of the border, both legal and illegal, and the expected demographic shift started taking place - with Hispanics now a MUCH LARGER minority in this country than blacks (who are still holding their ground, by the way).
To finish the job, all that is needed is some form of Amnesty - be it the Senate bill (i.e., citizenship for Illegals), which finishes off this country in a couple of decades, or the Cruz amendment (i.e., legal status for today’s Illegals, but rejected by the Senate as not going “far enough”), which finishes off the country in 3 or 4 decades.
Either way, it’s essentially game over now. Like it or not, we were outsmarted - once the Chamber of Commerce, the Unions, and the Democrats started marching in lock-step to flooding this country with Third World types, we NEVER had a chance.
So enjoy life there - the demographics there are probably much more stable than in the US, as we’re sliding down quickly.
The US treasury reports that they send 450,000 Social Security checks overseas...the State Department estimates that over 5 million Americans live outside the US.
Money that is not spent in the US - creating jobs etc., Foreign aid by any other name is still taken out of the American tax-payers pocket.
Wow, you've done it now Alex.
Like you in Cebu, I am shaking in my boots here in Davao, because of the "dawg pack".
Things are going well here, and soon I will be President of a Corporation here, providing a retirement community for Americans. We have already made the necessary applications, and made an agreement to take over a resort here, so we have nothing to build. I know that Social Security is not going to be enough, as they are devaluing the US Dollar by their fiscal policies.
What a bunch of poseurs who have nothing good in their lives, obviously. Why else would they waste time on people smart enough to be ahead of the curve. What a bunch of losers...
“Id be interested to hear what youve learned in retiring as an ex-pat.”
I would be happy to tell you, but you would have to be more
specific. I started in Central Europe and found it very rewarding, but I was working as a private tutor an making money.
After retirement I moved to the Philippines and started a whole new life with a new wife and a new child.
Life can be great if you make your own.
Exactly...the health insurance (healthcare) costs will destroy nearly everyone.
This is not by accident. I keep trying to tell people that it is an asset grab...the “middle class” owns too much. They are going after the real estate, farm ground, etc. that is owned by the populace...they are doing it by bankrupting all of us via healthcare.
They are already signing up unsuspecting dupes to Medicaid...these people have no idea that their assets will be seized upon their death. Next up: making medical bills “unbankruptable”...they did it with student loans...they will do it with medical bills shortly.
Not to worry....They are a pathetic little bunch of dogs.
Hurry up and come meet our expat crowd here. A few of us meet above the sea for a few San Miguels every afternoon.
“A few of us meet above the sea for a few San Miguels every afternoon.”
That’s exactly how I imagine ex-pat life!
Had you been in the Philippines before, perhaps with the military? Did or do you speak Filipino? Were and are you an EU citizen?
“Had you been in the Philippines before, perhaps with the military? Did or do you speak Filipino? Were and are you an EU citizen?”
I am an American from Tennessee, and my heritage goes back to Uncle Sam, 1832.
I started International travel in 1999, living in central Europe. My first trip to the Philippines was in 2009. I decided to move here the following year. I now have a Philippine wife and we have one child that is an American as well as a Philippine citizen. There is no need to speak anything but English. My landlady’s husband is from PA. Another good neighbor is from Cape Cod. We have a few beers each afternoon.
Impressive! I’m having lunch with a Filipino friend today, among others, and I’ll ask him about it. (Of course, he’s an ex-pat over here.)
I’ve lived in the UK, but I’m ready for a warmer climate, at least for the winters. I can take my work with me, but of course communications are a little trickier in some places than in others.
Yep, you describe the situation here quite accurately.
Well, come on over. We will be happy to have you.
Do not worry about communications. We have state of the art here, DSl as well as new cable TV, even here in my providential city. You can ask your friend about my town, Dalaguete, Cebu.
—There is no way that I could live on my SS in the USSA. As an expat, however, I have a very fine life on my minimal SS.—
Why not AW? You married your washing machine and are proud of it. Hey you are saving some bucks right there with your rat tail tucked between your lil rat legs.
Now if you could only marry your grounds keeper, a maid and a handy MAN you would be shittein’ in high cotton (oh that is too American for you); maybe sand piles.
This bloodhound is smelling something and it is a traitorous rat turd.
Hahahaha,,,you clowns are so funny :)
Try getting your own life.
Wish I could come there to have a San Miguel with you, but am busy here for now. I am heading for Mati on Tuesday, where the Governor of Davao Oriental Province there is touring me and a friend, trying to lure us to also make a facility there. I met her at the funeral of the former Mayor of Davao City a few weeks ago and told her of our project.
Life is good here in Davao City. I live on the beach about 7 km from downtown. The resort is not on the beach, but on a hill overlooking the city. It is beautiful at night.
I still have many friends in Leyte that are trying to recover from Typhoon Yolanda. It destroyed the house I rented there, and I made my move here just one week before it hit there. God is good!
I found a picture of that bloodhound, Alex.
Enjoy your gloating while it lasts.
This country is the keystone in the arch of Western Civilization, and when it “resets”, it’s going to take the rest of the West with it.
Your electronically-deposited Social Security payment won’t be worth the paper it’s not printed on, and there will be nobody more hated anywhere than the evil Merkuns.
I know that Davao is a nice city, but I have yet to be anywhere on Mindanao, and can not find anyone that wants to join me on trip to Davao.
If you come to Cebu, let me know.
I wish they`d just let me cash out what I`ve put in and cut me loose with no further obligation to pay into it, ever! I`ll take my chances in the future and agree to be cut off from something I`ve never used anyway, the Gubmint tit. Just don`t make me pay for it, ever again!
Got my own life and a WIFE AlexW not a washing machine.
I love her too much to call her that and have too much respect for her.
How bout you rat?
It is often pointed out that social security is running out of money but it is never said welfare funds, in all of their many forms, are running out.
Why is it that a program to which millions contribute compulsorily is running out of money but the others can be expanded?
“Medicare Advantage is now being cut...”
Here again, a program funded by compulsory taxation, paid into by hard working folks throughout their lives, is being cut while Medicaid is being expanded?
Very blurry on bing maps.
So sorry that I do not feel your pain..Maybe you can put some ice on it :)
Medicare is also no longer paying for a huge percentage of medicines and a smaller percentage of care, making it a tax instead of a health insurance. So if you pay over a $100 for Medicare deducted auto by government, then you have to pay full price for the medicines and a larger part of the physician and hospital bill....your insurance is no longer insurance but an additional tax.
That cost is to make up the shortfall of the trillion dollars Obama took for Obama Care. And that’s not even the Advantage program cuts, no one wins here but the government overspending idiots.
Finland? Putin is thinking about taking Finland for Russia, like Crimea. Scandinavia may not be your best bet.
So now you’re channeling Bill Clinton?
You never cease to amaze me.
Based on some of your other posts, I suspect you rarely feel any pain.
Try Dumaguete, Negros...that is closer.
“I suspect you rarely feel any pain.”
Yes, child, I feel no pain at all.
As for your pain, I have no solution, as you make your own.
Go on and live it and love it.
So, in other words, you haven't made anything of yourself. You're sitting on land that you inherited and you think that gives you a right to criticize those of us that choose to be elsewhere. Better pay your taxes or they will take it from you.
I still own about 120 acres in West Virginia that I bought myself. It is being used as a place for my children and grandchildren to enjoy. I built a nice little cabin of around 3000 sq feet. It has a million dollar view and so much wildlife that it can easily feed and support them when the crunch comes.
I have children in VA, NC and OK. I also have 9 grandkids, who I can see anytime I fire up my MacBook Pro and light up the FaceTime application. I established a Family Trust a few years ago, and keep adding to their inheritance, because I am only 66 and not ready to retire. I also don't want to continue to support a Gum't that is nothing like the one I spent some of my earlier years helping to protect.
Life here is good, with everything needed for comfort. I have sweet Pinay bride that is a blessing from God. I have a 5 bedroom house with three workers to help keep everything running and clean. I employ a maid, a groundskeeper and a driver for around $350 per month. I have central air conditioning, a modern kitchen, and a view looking onto Davao Gulf. With my DSL service here, I can stream Hulu and Netflix, surf the internet, and maintain my various websites. I have Cignal Satellite TV beaming to my 2 LED TV's. I'll watch the Nascar Race live if I stay up tonight, or watch the replay tomorrow on Fox Sports. I never miss The Five on FoxNews. I still have a couple of businesses back home to help keep things going, but I cut way back so I don't feed the beasts in DC..
I also own 15 acres in North Carolina, which I also worked hard to buy. My oldest daughter lives in the house I built there, with money I earned by working hard. Nobody gave me anything.
I prefer to live here now, and no matter what you think, it is one of the nicest places to live, among some of the nicest people.
Good luck holding onto that which you inherited. The smelly part seems to be on the asses of your pack! The only turds seen are when I read your posts! Your pack seems to be all about smelling butts.
I like that it is close to Bacon(g)!
It's a bit of shame losing people like you two since that is a (admittedly small) part of the demographic destruction of America. I have no problems whatsoever with your choice and I have no idea how we will fix America other than to slow the fall a little bit. But I will slug it out a few more decades here before I succumb. Might be sooner than that.
BTW, where's the quote, liar?
Dawg soldiers up! Woof, woof!
Scouts Out! Cavalry Ho!
And to think, THIS constitutes intelligent discussion?
Your need to insult is what causes many to shun you, but I have to believe you already are aware of that and you somehow find sick pleasure in continuing to taunt others.
I would respectfully ask that you cease calling our beautiful nation the USSA, as you are doing nothing more than trying to be ‘cute’ and it’s anything but.
Gloating is very unbecoming as you well know.