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The Retirement Apocalypse That ISN’T Coming

Via:Bloomberg

 

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Grandma’s much-anticipated Arctic cruise becomes a slow drift away on an ice floe. Grandpa mortgages his kidneys to pay for a new heart. Social Security is deader than disco and “IRA” only refers to guys named Ira.

That bleak vision is only a slight exaggeration of the catastrophes foretold by many experts, the media and financial firms.

It’s a scare tactic that’s moved the tone of the U.S. savings and retirement conversation from a constructive call to action to an alarmist frenzy. No one argues that building a solid financial future is easy — wages are stagnant, markets have been disappointing and Americans are getting older and living longer. Still, retirement isn’t going the way of the carrier pigeon. Innovative retirement plans and new policies and products point to a future richer than many workers imagine.

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Fear is a poor motivator, as those who advocate exercise and smoking cessation know. Environmentalists have also figured this out. One study found that the more catastrophic the prediction about climate change, the more skeptical listeners became. Dire scenarios often cause people to give up, throwing up their hands in the face of a seemingly insurmountable challenge. It’s something Erik Carter, who travels around the country for financial adviser Financial Finesse, sees all the time. When he speaks with workers about retirement, pessimists far outnumber optimists: “They’re discouraged to take any action, because they just don’t think they’re going to retire.”

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At the heart of their fear is the fate of the financial safety net we subsidize with every paycheck. Just 6 percent of the millennial generation expect to get their full benefits from Social Security, according to the Pew Research Center. Half believe they’ll get nothing at all. The trust fund built up to pay for Baby Boomer retirements does run out in 2033, but even then Social Security should be able to pay 77 percent of benefits. And that’s assuming politicians can’t find extra revenue for what is arguably the government’s most popular and effective program.

Pew finds more than 80 percent of all generations, including millennials, support Social Security and Medicare.

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http://www.bloomberg.com/news/2014-05-19/the-retirement-apocalypse-that-isn-t-coming.html?cmpid=yhoo

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And then, you have ass-holes like Ayn Rand Paul saying Social Security is goin to run out of money in the next ten-years –

Well, NO its NOT!

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May 20, 2014 - Posted by | Uncategorized | , , , , , , ,

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