We are being subjected to polar extremes on the subject of the financial well-being of retirees. Kevin Drum in Mother Jones claims we are looking at a world where “relatively speaking, retirees are doing quite a bit better than current workers. In fact, their incomes are growing more strongly than pretty much any other age […]
Expect Widespread Financial Insecurity Among Many Future Retirees
In a December 2017 poll, many Americans felt they were just a paycheck away from insolvency. About 43% fear an unexpected event would deplete their meagre savings, and another 34% find it difficult to make ends meet. Still, 67% of Americans feel that their finances will get much or somewhat better in 2018, and only […]
Not Saving for Retirement?
In a December 2017 poll, many Americans felt they were just a paycheck away from insolvency. About 43% fear an unexpected event would deplete their meagre savings, and another 34% find it difficult to make ends meet. Still, 67% of Americans feel that their finances will get much or somewhat better in 2018, and only […]
Looking for a Place to Park Your Nest Egg?
We used to think that when the Federal Reserve raised interest rates, we would once again have a chance to invest our consumer nest eggs in low risk bonds that pay 4%-5%. It may be a daydream. Four upcoming changes in the financial market could hold rates down longer than we might expect. Lurking on […]
Should States Regulate IRAs?
Employees in companies that do not offer a 401k arrangement face a disadvantage in saving for retirement. Tax exemption makes 401k retirement funds grow much quicker and the tax exemption is a strong incentive for employees to contribute regularly. The employee benefits from participation and society benefits in future years because the 401k funded employee […]
The Fed, Government Debt, Pensions and Retirement Savings
In the depths of the great recession, the Federal Reserve (the Fed) chose to push interest rates down by buying massive amounts of Treasury notes and bonds. That tactic was meant to stimulate private sector investment and invigorate demand for additional employees. Unfortunately, holding interest rates very low for 6 years has starved pensions and […]
Retirees Face Uneven Recovery
The economic fortunes of American families are evolving at different paces after the great recession. From nearly 10% in 2009, unemployment has dropped to 4.9% today. During the recession, many abandoned their place in the labor force and the participation rate remains low today. The median family faces stagnation in income and net worth following […]
Pensions: Be Careful of Government Involvement
The shortfall in retirement funds for American families is about $4 trillion. Much of that gap is attributable to the demise of defined benefit pensions. Some government plans may help ease the shortfall, but they carry dangers of their own. Few employees are active in a defined benefit pension plan, which means that, for a […]
Retirement Disasters Paid From Your Pocket
For some state and local governments, the weight of retirement obligations is oppressive. To avoid confessing to a complete disaster, they usually decide to cut benefits available to future employees, because governments can less readily rescind retirement benefits of workers who have already retired. This reduction in promised retirement income happens often enough that the […]
Retirees in the Crosshairs: ACI’s Daily Caller Piece
Thinking of retiring in a few years? Beware of what is likely to come. Government has created a massive, new and costly benefit called the Affordable Care Act (ACA). At the same time, government has been burnishing existing programs to rapidly convert people into beneficiaries. Taxpayers will soon be hijacked to pay the unprecedented costs, […]
