Sunday, October 10, 2010
America's $4.6 trillion retirement hole
Retirement. This word brings back memories of all of those commercials offering a safe, effective plan for settling down and living your golden years happily. As the demographic pyramid becomes top heavy, this promise is no longer valid. The Employee Benefit Research Institute estimates an extra 48 grand is needed to keep that promise, when individuals retire at the ripe old age of 65. That's a fairly large number! They even included an estimate for the time period when Social Security inevitably collapses: $89,000!!! It's probably time to start having more children...
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That worries me that when we go to retire, the funds will be insufficient because of times like this. Where will this money come from? Will it increase the national deficit? Will taxes increase to cover it?
ReplyDeleteThe problem is social security was set up for workers to support retirees. When this was created the ratio of workers to people retired was a greater number. Unfortunately, this ratio is decreasing gradually. This means that social security will be insufficient and people will have to start saving on their own.
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