http://money.cnn.com/2014/10/09/retirement/retirement-income-gap/index.html?iid=SF_E_River
In this article, CNN money elaborates on how seniors across the nation are struggling with their retirement, which has caused an unsecured future for them. The basis of this article elaborates on how those who are now retired are mainly living off of an average annual salary of about $37,847, which is about 60% of their working counterparts aged 45-64. This annual salary is significantly lower than that of the pre-retirement salary of 70% which is strongly recommended for retirees.
The proposed issue for these retirees is how, with the cost of living going up as well as the price of goods and services, with their low fixed annual income, it's harder for these seniors to be competing in the market place of goods and services due to their lower income when compared to that of those still working. The article broke everything down by state to show why and how there is such disparity amongst states, and why some states are better off than others.
Overall the main emphasis of the article as well as the related videos was how people need to start saving earlier on in life, and to do so in different ways to ensure a comfortable and safe retirement.
Seniors are in quite the predicament right now, because social security was never designed to have this many people collecting for as long as they have been. With life expectancy going up I feel like the government needs to investigate plans to change the structure of social security to accommodate for these changes.
ReplyDeleteI agree with Phil that the structure of social security might have to change in the near future. Perhaps something that could be done would be to make social security need based so that people who can afford to retire without withdrawing it no longer do. I'm sure this would anger many people, it is just a thought.
ReplyDelete