I enjoy listening to your RU-vid channel. You are 1 of a few creator on financial matters that gives solid advice. By solid I mean credible and honest. Thanks and keep going.
In 1974, ERISA made companies responsible for the retirement plans of their employees. Before that, all those retirement plans could go away if the company closed. I didn't know that company pensions can just "go away". -- RU-vid David Hoffman I Want To Retire I Can't Here's Why -- After ERISA, companies said "heck with this", "were going to make employees be responsible for their own retirement program". That's when 401Ks, IRAs and the like began. 401Ks and IRAs have been a colossal failure for retirees. It hasn't worked out for the workers because wages haven't allowed them to save after the cost of living. Even though Productivity has gone up, wages have not. This started in 1981. A chart comparing productivity and wages will illustrate that. Most have less than $100K saved. This will be a huge problem with future retirees. Local, State and Federal retirement systems are worth gold today. I think the Federal systems are pretty safe because they’re backed by the US as a whole. Some State programs are in definite deficits and local programs will be dependent on property and sales taxes (until the populace revolts).
What if you become ill or disabled? Most people after 65 are not in perfect health unfortunately. Even if you take perfect care of yourself, you can get unlucky.
Why do you tube financial/retirement experts always frame retirement as a competition between the generations? Financial well being, building wealth, retirement isnt a competion between the generations. Its a long process of being better everyday, and improving the person you see in the mirror everyday.
Because it makes these people feel better to have someone to blame. Giving out participation trophies removes the concept of accountability and creates weak humans.
Speaking as a boomer here - We had to worry about all of these things too. While a very few did have a pension most of us never heard the word pension in an HR welcome meeting. My folks had their pensions dropped by employers after working their 20+ years - yeah, that happened. Welcome to being an adult - this is your problem to solve.
I stopped listening after she mentioned a retirement savings over a million dollars, very out of touch with America! The average blue collar worker today has roughly 50k saved up in a 401k and most young people have much less there is no way they could even get in the millions of dollars!
She was just doing the math of how much you would need to have to live off of when not working for approx. 25 years. People not being able to attain that number is a real issue, but the amount needed is also part of reality.
