It saddens me that people that are getting close to retirement have to even ask themselves if they can afford to retire. This is the moment that they have been working towards throughout their entire careers. They thought it would be their time to relax after working for years and years. Now they will not be able to afford the expenses of living without working? It truly amazes me how this has happened and it makes me sick. The elders of the world need a break eventually. It used to be that your employers would take care of your retirement, now it is the individual’s responsibility. People used to think that a lifetime of working at a company would result in them giving you a lifetime pension, but that is just not the case anymore. A man that they interviewed worked at US Airlines for most of his life, but when they needed to make some cuts, they encouraged this man to retire. He had a good pension and planned to just kick back and relax with his wife until the bankruptcy laws and other retirement laws went into effect. He has been retired for a few years now and has been forced into working again for another company just to afford living expenses. United Airlines had to file for bankruptcy. They dumped their pension’s plans, which were underfunded by almost $10 billion. The PBGC, which is the Pension Benefit Guaranty Corporation, insures pensions that are running a $23 billion deficit. So, because they only insure pensions up to a firm amount, many United Airlines
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Hello to all those that want to retire one day. I would congratulate you, but at this very moment, one of most important government systems has a major problem. Today our country is stricken with a depleting social security fund, one that is predicted to run out in less than 20 years. In the past, every politician and leader has tried to push this widely underrated issue to next in line but ultimately causing more havoc on all of us. Throughout our country, many are unaware of the circumstances that will come from this catastrophe. Although I am still very young, one day I hope to enter the workforce and eventually retire, hopefully receiving the same benefits that those before me have received. Of course, I’m talking about Social Security, the federal insurance program that provides benefits to retired people and those who are unemployed or disabled. But as of now, this looks doubtful due to the already overwhelming amount of people who receive Social Security that is causing the system to divulge into its trust fund. The present Social Security issue is not one that an individual can change by him or herself but rather if we all work together and go to our legislators we will be able to solve this epidemic.
The majority of people age 65 or older in the United States are still working in full time positions. This opens the question if they planned for retirement, or what if anything went wrong while working? How do they feel about still having to work? Have they taken proper steps in preparing for retirement? Are they only working to pass time? These are the questions that everyone should be asking themselves about their own retirement plans, and what they have done to financially prepare for that stage in their life.
Costa, D. L. (1998). The evolution of retirement: Summary of a research project. The American Economic Review, 88(2), 232-236. Retrieved from https://search.proquest.com/docview/233045640?accountid=41759
Many Americans believe that the social security program will face a crisis in this century because of funds running out. The fear of the people is that he government’s funds will be bankrupt when those people try to retire. Already a quarter of most Americans believe that they will receive no benefits from social security; what can we do about the social security problem? The reason that the problem is occurring is because of pay-as-you-go financing, demographic changes, the adoption of wage-indexing of the benefit formula in the 1970s. Due to the baby boomer generation, there are more americans retiring than ever. The younger generation has to pay for the older people retiring, but the problem is that there are less young people entering the
America is facing a previously unknown challenge. By the years 2030 the number of people reaching retirement will have doubled, this will account for an increase from 12 percent to almost 20 percent of the United States population. By 2050 the number of Americans who are over the age of 85 and make up the highest amount of chronic illness, poverty, and need for assistance with activities of daily living, will quadruple to 19 million. (CSWE.org)
In more detail, much of their savings are tied up towards retirement due to the serious financial crisis of 2008, which means they lack of sufficient retirement funds, even basic living expenses. According to the research of Boomer Expectation for Retirement 2016, which is from the Insured Retirement Institute, illustrates that 25 % of boomers have no retirement savings and 76 percent of baby boomer generation are unconfident about whether their savings can last through retirement (Insured Retirement Institute, 2016). This appears to suggest that boomers might not be prepared for their retirement plan and that they have never tried to figure out how much they will need for retirement. Moreover, they are concerned about not being able to maintain their standard of living. For example, according to a newspaper report from Star Tribune, Judy Davis, 57, of St. Paul, who works for a nonprofit agency, discusses her difficulty of retirement, “If I had to retire I would be broke pretty soon. I could probably survive six months to a year” (Read, 2015). With this in mind, it proves that Davis still works for a nonprofit agency because she does not have any preparation for her retirement or enough money to last through her old age. Furthermore, the lack of retirement savings will reduce their standard of living. Therefore, baby boomers experience significant financial stress because of
Twenty or so years ago, the question of personal growth in retirement hadn't really entered the mainstream consciousness. To most people a generation ago, retirement was an ending, not a beginning. But as with everything else they've encountered, the Boomers are challenging that view of retirement.
This chapter is about how the economic status of the aged changed over recent decades. It addresses the present status of the Social Security system and its future. It reviews the measures that may be taken to ensure the viability of the Social Security system for future generations. It discusses the difference between a defined benefit plan and a defined contribution plan and last, the chapter considers how personal savings contribute to the support of the aged.
It was exciting and informative hearing about Bill, Harold, and Rose transition from the workforce into retirement. All three participants, stated that when they were growing up no one ever considered themselves retired or not part of the workforce. If you were unable to work anymore, then you assisted your family in other ways. For example, if you were physically unfit to work you could still be needed around for meal preparation, gardening, sewing, or other daily activities; which is why in Harold’s mind he’s not truly retired. Yes, he retired from his career, but he still saunters around his farm mowing, working in the garage, cooking, and fixing machinery; however, both Bill and Rose consider themselves fully retired and they wouldn’t want it any other way. It’s interesting to look at the progression of those entering the workforce to fill those positions left behind by those who retired.
Retirement? Try asking the people, now, in their mid sixties about that nightmare. “ There was a time when most middle-class Americans could work until they were 65 and then look forward to a financially secure retirement,” (Eskow). As for most individuals, in order to retire, a person must have been working. For most, a job would require going to college; a satisfying job would require a more advanced education. A more advanced education would call for longer payment of student loans. “Education for every American that wants to get ahead? Forget about it.,” (Eskow). With the rising need for education, of course, the price will also rise, and has been rising. Retirement comes into play with the people that were born into money, who have
Retirement in the United States of America, officially when an individual turns 66 or 67 years old, depending on their year of birth, is a time span that many look forward to in their latter years before they pass away. It is a time of relaxation and enjoyment that is usually spent with their friends and family. It seems to be that the main concern of retirement has to do with financial security once the pay checks stop. The amount of benefits in Social Security received depends on how much someone works and their annual income. Another important factor that contributes to the amount of benefits is their actuarial projection, a plan that has been set forth by someone who examines the amount of time that a person is expected to live,
Gradually, the Social Security Administration has grappled to accommodate a host of novel demographic trends, namely those impacting the retirement sector of the American population. Continuously, with advances in the medical realm, the senior population is steadily extending its lifespan, and thus, retirement altogether, introducing a wealth of new economic considerations. As human longevity increases, the Social Security system proves increasingly unsustainable, specifically in the pension department-among other areas. As workforce involvement declines with age, the budgetary deficit and low supplementary funding plague the social security system. Unless crucial economic reforms are made, the present rate of pension disbursement will
I have to admit that I do not plan on working until I die, and I know I am not the only one who feels this way. Although retirement might seem many years away for me and a significant portion of the workforce, now is the time to start planning for retirement. Many companies offer private retirement benefits such as 401k plans where a percentage of the employees’ wages (typically 15% or less) goes to stocks and bonds. Even though many employees contribute to a private retirement plan, many employees need additional retirement benefits. Moreover, many workplaces have no retirement package, and the employees need a different form of retirement benefits.
With the workforce in America decreasing due to hard economic times, there is no guarantee the money put into the reserve will sufficiently support a generation when it is time for retirement. Depending on Social Security to support a person financially when ready to retire, will leave that individual in even more of a struggle than the beneficiaries trying to survive in these earlier years of the 21 century. Social Security benefits represent about 41% of the income of the elderly; if there is not enough to support even half of the elderly’s financial needs now, there is no reason a younger person should depend on it alone for retirement (Dewitt, 2010) in the future.
Although mandatory retirement is not largely popular, it still has an effect on many older workers and how they plan for retirement. "Mandatory retirement involves less than 1 percent of the work force and so opens up only a small fraction of the total jobs", because