from The Daily Bell
Our Ridiculous Approach to Retirement … Seventy-five percent of Americans nearing retirement age in 2010 had less than $30,000 in their retirement accounts. The specter of downward mobility in retirement is a looming reality for both middle- and higher- income workers. Almost half of middle-class workers, 49 percent, will be poor or near poor in retirement, living on a food budget of about $5 a day … To maintain living standards into old age we need roughly 20 times our annual income in financial wealth. If you earn $100,000 at retirement, you need about $2 million beyond what you will receive from Social Security. If you have an income-producing partner and a paid-off house, you need less. This number is startling in light of the stone-cold fact that most people aged 50 to 64 have nothing or next to nothing in retirement accounts and thus will rely solely on Social Security. – NYTimes
Dominant Social Theme: A waste of time?
Free-Market Analysis: Teresa Ghilarducci, a professor of economics at the New School for Social Research, has written an article for theNew York Times (excerpted above) that suggests the solution to the US retirement dilemma is a vast new government program.