Why do you think Boomers aren't saving enough for retirement?
Answers | 10
Everyone is all of a sudden "worried" about the solvency of Social Security - but, that ship sailed in the 90's, when they used the "Baby Boomer Bow Wave" to balance the budget (for a very short time). There's no money in the till, they won't admit that payments come out of current revenue, not the mythical trust fund.
All you have to do is look at your rent or mortgage statement, and then look at your Social Security Annual Statement to realize that you cannot survive on social security (even if it somehow gets saved). But people are entranced by the bigger house, the newer car, the latest cell phone with the most giggle-bits of memory. Do you realize that $10 per week (at only 3% interest) turns into about $40,000 in 40 years? I personally know several people who won't throw that $10 into the till to have a nest egg when they retire.
I am not a finance guy, I'm an engineer. However, I am reasonably solvent in retirement planning, and it took 30 years to get there. I tell all my associates - save the windfall, save the tax refund, get into the 401K, put aside money in the Christmas Club account. Every once in a while, someone listens.
There are real reasons why the average American doesn't feel like he's drowning in prosperity:
Many of them are making less money than they did years ago. This article noting that median household incomes in 81% of US counties peaked 15 years ago is from late 2014, but the trends haven't improved since: http://wapo.st/1M8Fglc
Increases in health care costs make them feel poorer. American workers with employer-sponsored health insurance saw their premiums rise 27% and their deductibles rise 67%, on average, from 2010 to 2015 ( http://on.ft.com/1orLmBD ).
94 million Americans are out of work today, compared to 81 million out of work in 2009. They aren't captured in the 4.9% unemployment rate, because they are no longer considered part of the work force. And the decline in workforce participation is not driven by Baby Boomers retiring, but by prime working age adults falling out of the labor force ( http://bit.ly/1M8Fglf ).
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It's not what you make, It's what you keep that determines your lifestyle.