Retirement Crisis for Baby Boomers?
| We read this today from Robert Kiyosaki and it’s a significant article for those of us in or approaching retirement And whist he talks specifically to our USA friends be assured every country has these issues and just about every retiree is affected in some way, shape or form For many years, I’ve written about the coming retirement crisis that the baby boomer generation would face. I didn’t do so with any type of glee, and often I hoped I would be wrong. But it sure doesn’t look like that is going to be the case. A few years ago, The New York Times shared that an alarming amount of baby boomers were declaring bankruptcy. As they wrote, “The rate of people 65 and older filing for bankruptcy is three times what it was in 1991, the study found, and the same group accounts for a far greater share of all filers.” The cause? Driving the surge, the study suggests, is a three-decade shift of financial risk from government and employers to individuals, who are bearing an ever-greater responsibility for their own financial well being as the social safety net shrinks. The transfer has come in the form of, among other things… Longer waits for full Social Security benefits The replacement of employer-provided pensions with 401(k) savings plans More out-of-pocket spending on health care Declining incomes The article went on to share sad stories about many people who are struggling financially in their old age, many of whom are working low-wage jobs, making less than they ever have in their life in order to supplement their meagre social security checks. As the article states, a large part of the financial problems that baby boomers face today is due to the fact that they have to fend for themselves when it comes to retirement. A while back, I wrote an article called, “Are you prepared for a lifetime of work?” In it, I shared the recent history of money and the rise of the 401(k) in the US. All this changed when Nixon took the dollar off the gold system in 1971. This was the beginning of the end of the economic stability of the American family. Since then, we’ve had… Three of the worst recessions since the Great Depression Continual devaluation of the US dollar Wild swings in interest rates and unemployment rates The collapse of the pension system As a counteract to growing instability, the Revenue Act of 1978 was passed, allowing employees to save money tax deferred for retirement. Then in 1981, it became legal for paycheck deductions for 401(k) plans. By 1983, nearly half of all major corporations had switched or were considering offering 401(k) over traditional pension systems. Today, a pension is a thing of the past. The great tragedy of this switch is that while the rules of money were changed, education about money was not. A majority of baby boomers were raised to understand the old rules of money… Go to a good school Get a good job Get a house Save money Invest in a diversified portfolio of stocks, bonds, and mutual funds Unfortunately, those old rules of money don’t work in the new world of money—a world where you have to know how to invest in order to succeed. And unfortunately, many baby boomers have outsourced their retirement investing to brokers who are broker than them, people who are really just sales arms for the financial industry. It’s time to increase your financial literacy |
Credit : Robert Kiyosaki
From our point of view, we’ve been building an online business teaching people in and approaching retirement ways to supplement their retirement savings and income
There are many different ways to do that but our favourites are Affiliate Marketing and Network Marketing
If you would like to know more about how to get involved you can book a free call with us here or request a copy of our book – THE ULTIMATE RETIREMENT LIFESTYLE – HOW TO GENERATE AN INCOME ONLINE IN RETIREMENT – here
0 Comments