AP IMPACT: As populations age and pension costs strain governments, a retirement crisis looms

  • Article by: DAVID MCHUGH , Associated Press
  • Updated: December 28, 2013 - 11:50 PM

A global retirement crisis is bearing down on workers of all ages.

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karendavid816Dec. 29, 13 6:48 AM

A crisis of our own making. When someone has only $30,000 in her 401k after 28 years on the job you have to wonder. When the idea of children taking any responsibility for help their parents seems too radical to even consider you have to wonder. When we see that the only way for a pension program to survive is " In 30 high- and middle-income OECD countries, the average age at which men can collect full retirement benefits will rise to 64.6 in 2050, from 62.9 in 2010; for women, it will rise from 61.8 to 64.4" you might say, that sounds reasonable rather than calling it a crisis. Time for people to get real about this. How about changing the law so there are no withdrawals from retirement programs until age 65 or no COLA's on pensions being collected by people under 65. Harsh isn't it. And maybe the Fed could stop screwing seniors by forcing interest rates so low on their savings.

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ivehaditDec. 29, 13 7:47 AM

"And maybe the Fed could stop screwing seniors by forcing interest rates so low on their savings." Higher interest rates have the effect of driving down the stock market as people flee to bonds. Lower share prices mean less hiring and more layoffs. Which lowers consumer ability to spend, further depressing earnings. 2-4% interest rates seem to be sustainable. The fractional rates we have had for some time are intended to spur bank lending, but the banks are only now opening their vaults to borrowers. Interest rates are a double-edged sword, helping some while hurting others.

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george13Dec. 29, 1310:15 AM

People have to give up the fantasy promoted by the mutual fund companies of strolling a sugar sand beach with your graying but still tanned and fit spouse. Even if this was fiscally possible, it would be very boring after only a couple of days. I won't be leaving my job until I'm at least 66 1/2. This is the correct course of action for everybody.

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shushyn78Dec. 29, 13 1:30 PM

An absolutely predictable disaster ahead. I still remember seeing a Wal-Mart greeter wearing an oxygen mask. How many times did that man think, I should have planned better. We can't foresee the things ahead of us, but we absolutely can take steps to better plan to be able to withstand the uncertainty of life. It took some convincing, but I was able to get my 23 year old to start participating in his employer's 401k. They are paying a great match and he is thrilled to see it grow. Help yourself to think hard about tomorrow.

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