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Author: TheEvilDrP Big gold star, 5000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76406  
Subject: Re: Retirement Lessons from the 1950's Date: 6/1/2014 2:54 AM
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The spoiled brats of today are in for a big shock. They can't afford their current lifestyles piling on debt and spending 110% of what they make. when they get old, it's really going to be nasty. SS won't be paying big bucks.

That seems a bit harsh considering that pensions are a thing of the past, wages have stagnated, living costs are higher than ever, unemployment is still high, college degrees are required for many more jobs than ever, and college costs more than ever.

Your grandfather was able to retire after 44 years with a great pension. There are few organizations that provide pensions today and even with those that do, it's a toss-up as to whether you will actually receive the pension you earned. An individual who plans his life and career with that pension in mind can find it yanked out from under him or, if he's lucky, merely reduced to a much smaller amount.

http://www.forbes.com/sites/jeffreydorfman/2013/07/25/detroi...

Many American companies have gone through bankruptcy, reduced or eliminated workers’ pensions, and then emerged from bankruptcy to continue operation. Delta Airlines is one recent example; its pilots lost millions in promised pensions. In such cases, the federal government’s Pension Benefit Guaranty Corporation steps in to provide much smaller pensions, but workers are still big losers in such actions.

This chart from collegeboard.com displays the tuition and fees for college in 2013 dollars so one can accurately see how the rates have increased. College costs in the 70s were less than one-third what students currently pay for a public four-year university.

https://trends.collegeboard.org/college-pricing/figures-tabl...

According to this report from the Hamilton Project, wages increased by about 25% per decade from 1950 to 1970.
http://www.hamiltonproject.org/files/downloads_and_links/07_...
Over the past 40 years, a period in which U.S. GDP per capita more than doubled after adjusting for inflation, the annual earnings of
the median prime-aged male has actually fallen by 28 percent
.



Young people today aren't "spoiled brats"; they are simply working against a system that is failing them, including the Social Security that will not be there to function as a safety net when they simply can't save enough.

Minxie
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