muses of the moment

August 29, 2012

The Retiree

Filed under: 401K and IRAs, Economic Crisis — totallygroovygirlfriday @ 1:43 am

Here is another good article on the demise of the US pension plan, this one from Automatic Earth. Retirement planning as we understand it is gone, but there will not be an announcement or education program to alert you to this demise.

The collapse of the pension plan was inevitable, despite the current financial crisis. Pension plans (private and public) are designed with two main imaginary assumptions: every generation is larger than the previous generation (like the baby boomers) and investments make at least 3-4% over the real inflation rate every year. And that is why pension plans, social security, and 401ks are at the least, overly optimistic, and at the worst, a ponzi scheme. This system doesn’t even take into consideration the devalue of the USollar or the rise in taxes.

groovygirl is very concerned about those people over 45 that are now or will be dependent on these systems for their survival. Even if they understand the collapse of the retirement systems, they have very little time to do anything about it. However, every step to save money outside these systems is better than no action at all.


  1. Fascinating. ZH posted an article recently that bemoaned dependence on some kind of welfare by roughly half the population. Mainstream references to “recovery” seem glib.

    Comment by Lore — August 29, 2012 @ 4:50 am

  2. George Carlin was right – “It’s called the American Dream because you have to be asleep to believe it.”. He predicted that the owners would be going after your retirement money.

    Comment by sw — August 29, 2012 @ 10:01 am

  3. GG,

    You just plan prudently and accept that fact that you will have to work for the rest of your life. At least you get to die with dignity instead of in a nursing home.


    Comment by Lemming — August 29, 2012 @ 10:40 am

  4. Good clip, SW.

    George Carlin, the Will Rogers of our time 🙂


    Comment by totallygroovygirlfriday — August 29, 2012 @ 11:31 am

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