Work Until You Die: Lifelong Labor Becomes New Normal

WebInvestigator.KK.org - by F. Kaskais

(Eric Pfeiffer) For a growing number of Americans, there may never be such a thing as real retirement.

“The market is filled with people who are petrified of the idea of retiring because they might not have the funding to afford retirement,” Goalinvestor.com’s Melissa Doran Rayer, whose company provides financial planning services and created a data chart to show how retirement trends are shifting, told Yahoo News in a recent interview.

From 1990 to 2010, the percentage of workers 65 and older staying in the job market rose for both women (from 28.2 to 43.8 percent) and men (52.5 to 65.3 percent).

Interestingly, those trends have occurred in the 35-plus years since the Revenue Act of 1978 was passed, allowing workers to invest tax-deferred savings in 401(k) plans.

There have also been broad cutbacks to pensions across the U.S. A recent analysis found that more than 20 million American workers…

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People Now Pay In More To Social Security Than They Take In Payouts | Libertarian News

“For the early generations, it was an incredibly good deal,” said Andrew Biggs, a former deputy Social Security commissioner who is now a scholar at the American Enterprise Institute. “The government gave you free money and getting free money is popular.”

If you retired in 1960, you could expect to get back seven times more in benefits than you paid in Social Security taxes, and more if you were a low-income worker, as long you made it to age 78 for men and 81 for women.

As recently as 1985, workers at every income level could retire and expect to get more in benefits than they paid in Social Security taxes, though they didn’t do quite as well as their parents and grandparents.

Not anymore.

via People Now Pay In More To Social Security Than They Take In Payouts | Libertarian News.