Monday, February 18, 2013
Future retirees face bleaker outlook than ever
The Washington Post greeted readers on Presidents’ Sunday morning with a detailed and grim story by Margaret A. Fletcher, “Future retirees at greater fiscal risk; majority may be worse off than parents; savings shortfall threatened decades of progress”, link here.
The article chases the history of Social Security, Medicare, and private pension systems, but the basic reasons the problems are mathematics and demographics. People are living longer, there are fewer children, and employers are not inclined to increase wages or offer more high paying jobs. Employers are freezing pensions, sometimes even terminating them, and sometimes not even offering 401(k) matches.
It’s a sustainability problem, in a culture that does not care as much about the future in a personal way as it used to.