Quote:
Originally Posted by Winnisquamer
Pensions…. What a great thing the rest of our generations will never get. These young kids couldn’t imagine having incentive to actually be loyal to a company rather than the faux promise of perform above your goals and you’ll get a 2%-3% raise every year.
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Well, if all goes as predicted by Greenspan for Reagan and O'Neil, the SS Trust Fund will go insolvent in the mid-2030s. So anyone on SS at that time, including those that are already receiving checks, will see about a 20% decline in comparable monthly checks as those currently being received.
Since the SS checks replace approximately 40% of pre-retirement annual earned income, that means that after the insolvency they should expect a replacement of on 32%. Using the 4% Rule - and that itself is questionably high as an expectation - they will need to save about 2.5X annual earned income just to be even with today's retirees.
With Medicare Part A Trust Fund slated for insolvency even earlier, lots of issues for those that are late boomers and everyone afterward.
Personally, I plan on following the tradition of my grandfather and great grandfather. They were farmers and loggers, with some time in construction and manufacturing (something farmers had to be to survive back then); they believed that we should work until we receive last rites.