The best, or even only, advice for those of us who belong to younger generations is: don’t count on getting a pension when you reach retirement age. It’ll probably have been moved to age 85 or over by the time you get there anyway.
This is not something that can or will be fixed overnight. It was doomed from the moment baby boomers started producing the number of children they have. It simply hasn’t been enough to keep the pension Ponzi going. And those baby boomers, with far too few children to provide for their pensions, have only just started to retire now, as the plans are already in such disarray. I’m sure you can see where this will lead.
” I’m sure you can see where this will lead. ” Logan’s Run???
Do not get a pension or gamble within the system, too much money will go on commission and if it doesn’t get gambled away by a coke sniffing city boy the government will inflate away its worth, I’ll pay off all mortgage debt by 50 and to keep a sense of family. In the West too many parents think that they don’t need to be close to their kids after they are adults and too many kids see their parents as a burden.
But you neglect to mention the decades of mismanagement:
The babyboom was visible decades ago and they did not even raise the input to the pensions one bit because of that.
But now, in the ‘crisis’, this is suddenly the reason.
Everybody is suddenly getting so old.
So pension is moved from 65 to 67 or worse.
If they would have made a serious, wise kind of policy then this would have been a gradual change that was started decades ago, together with slightly higher payments to the funds.
But NONE of the weak politicians and NONE of the weak pension fund people did even bother to ACT about this.
How stupid can mmankind be?
Meanwhile, in the Netherlands, any money you have in a savings account over circa 20.000 euros is considered ‘vermogen’ and is taxed at a ficticious return of 3% whether you make 3% on it or not.
How can you take care of yourselves with such stupid limitations.
You bet they do not know about my PMs.
But these will hit them when it hurts most. (at the height of the crisis)
The US is monetarily sovereign and could fund EVERY US pension if it wanted to. And with automation and a liberal immigration policy for the young, the purchasing power of those funds could be protected too.
“(c) Among more subtle measures, “prudential”
regulatory measures requiring that institutions (almost exclusively domestic ones) hold
government debts in their portfolios (pension funds have historically been a primary
target); and (d) transaction taxes on equities (see Campbell and Froot, 1994) also act to
direct investors toward government (and other) types of debt instruments. (e)
prohibitions on gold transactions.”
Interesting:
THE LIQUIDATION OF GOVERNMENT DEBT; Carmen M. Reinhart …
The Liquidation of Government Debt. Carmen M. Reinhart and M. Belen Sbrancia . NBER Working Paper No. 16893. March 2011. JEL No. E31,E4,E6,F3,F4,H6, …
http://www.imf.org/external/np/seminars/eng/2011/res2/pdf/crbs.pdf
Are we in the west becoming a base for cheap labor by cheap currency?
Western state banks selling and leasing gold …
results in weak currency
2 and 3 world developing tiger economies buying gold
resulting in strong stable expensive currencies
Too many people are wise to the fraud now… Let the boomers fend for themselves while we still can, the bastards have pulled up the ladder and left the rest of mankind to suffer.
We face eating our neighbours within 12 months, whilst they have us wipe their collective arses as they spend their kids inheritance that they in turn inherited.
They raped the entire economy because they were free to do so by the sacrifice of their predecessors.
There is a generation of wealth-hoovers that need euthanasing… and until they are gone, Pensions are just funding their enduring frauds….
Not disappearing but you need to be 80 before you lay claim.
But it won’t apply to Politicians though
Here we go again, blaming the victims. It’s the baby boomers fault for pumping out enough kids. That is rich. Let’s turn the blind eye to fees, fraud, corruption, inflation, zero percent interest to name a few.
“Harry | August 27, 2012 at 7:23 pm |
But you neglect to mention the decades of mismanagement:
The babyboom was visible decades ago and they did not even raise the input to the pensions one bit because of that.”
Maybe it was “neglected” because it ain’t F45king true, Harry. Us babyboomers had the FICA TRIPLED on us under Reagan in the early 80′s. WE BUILD UP THE TRUST FUND. Us babyboomers are the FIRST generation to pay MORE into Social Security than we will get back.
FACT.
You are entitled to your opinion (as misinformed and ignorant as it is), but not your own facts, Harry.
farang
@noone: then how come (in Netherlands Europe) that suddenly ‘everybody is getting older’ and pension ages have to be increased to make pensions affordable?
That means that the babyboomers have not put in enough and also that the funds lost due to the crisis, also mismanagement (by regulators!) as they cannot have too many PMs in their portfolio due to perceived risks of them going down in value.
So what does this mean for us, younger, working people?
Our pensions will be cut even before we can enjoy them.
We cannot move our pensions, we are stuck with the fund that has a deal with our employer.
We cannot really change the investment policy, we cannot really do stuff for ourselves (unless we are self employed).
So I invest in PMs. (at least as a gamble to sooner pay off the mortgage)
Without a solid Govt. pension system in America there will be a Potter’s Field in every city. (Like New York City’s.) The millions of destitute old people dying will need to be “disposed off” someplace.