Let’s Plan And Save for Our Retirement Now

reg430 By reg430, 30th Nov 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/2o1qtwdv/
Posted in Wikinut>Family>Retirement

The Baby Boomers, in great numbers, are getting ready to retire. Alicia H. Munnell has a new book out that offers three choices for retirement.

Retirement Choices

According to Alicia H. Munnell, in her new book, Falling Short: The Coming Retirement Crisis and What To Do About It, America is in serious trouble when it comes to the Baby Boomers and their retirement. As we near retirement age, there are three choices we can make: be poor in retirement, save, and work longer.

Explanation of Choices

Munnell says we have to accept the fact that we will be poor in retirement. This is our first choice. I don’t know about you, but I am not ready for this. I need a second choice. The second one is to save more and spend less as we work. We need to tighten our belts, and use my husband’s favorite word – “sacrifice.” We also have a third choice: put off retirement until the age of 70, at least. With this, we will have fewer years in retirement, but, hopefully, we won’t be starving.

Retirement Benefits

We have to be serious about the choices available to us. For some time we’ve heard rumors that Social Security is in trouble. The truth is, rates for Social Security are dwindling. Beyond the Social Security Benefit, people are not participating in 401(k)s as they used to in the 1980s. Currently, 80% of eligible workers have 401(k)s and 10% of those contribute the maximum to their 401(k).

Problems with Social Security

Munnell discusses in her book a debt that was incurred back in 1935 by Congress, which helped retirees who had served in WW1 and for those who had faced ruin during the Great Depression. This debt is called the Social Security “legacy debt.” This particular generation had not contributed much to cover the cost so every generation since then has helped to pay this bill down. Munnell claims that we are still paying the bill, but not at a fair level. Wealthier tax payers get a break according to how much their wages surpass the payroll tax cap.

Whatever is happening with the wealthy, we need to be serious about the years after work. All of us need to make plans and don’t start planning on how we are going to live once we decide to retire.



Resource
Hiltzik, M. (2014, Nov 16). A hard look at your old-age options. Los Angeles Times. Business.p.1+

Tags

401Ks, Baby Boomers, Retirement, Social Security

Meet the author

author avatar reg430
I have been involved in writing since earning my M.A. in English/Creative Writing over 20 years ago. Most of my work, though, has been in the classroom, helping others better their writing.

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Comments

author avatar Sivaramakrishnan A
10th Dec 2014 (#)

All over the world, retirement has become an issue. Many are working well past the age of sixty which earlier generations did not do in Asia. There is little social security too. Now it it is not mere food and shelter, medical costs are increasing too. I do wonder - is it necessary to lengthen our lifespan through costly medications when there is no quality to it - siva

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author avatar reg430
12th Dec 2014 (#)

Siva: you make very good points. But we have to think about the ones we live behind when we leave this world. I think about mine everyday. And I do spend quite a bit on prescriptions.

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