I think we all know the tropes by now. Many Generation Xers and Yers often wonder if they will be able to retire. I think that's a genuine concern when you consider a few factors. First, the decline in defined benefit plans and retiree health plans. That's not going to change; the two institutions that still widely offer pension plans, government and unions, are laying off workers and they're not being replaced (federal gov't. is an exception, as it is growing and they offer only a partial defined benefit plan). There also seems to be a generational attitude about saving for retirement. One study says that only 4% of workers under 25 are maxing out benefits to their retirement plan. I question the claims that this is some new trend, as sub-25 workers have less disposable income with which to beef up retirement accounts.That's not a new thing. But I honestly never hear people in my age group discussing IRAs or 401(k)s. They do often discuss how much credit card and student loan debt they have, though.
I found this very interesting: "the percentage of young workers who cited their pension plan as a reason for staying with their current employer has jumped from 28% two years ago to 43% now." (http://www.foxbusiness.com/personal-finance/2011/04/25/young-workers-want-good-old-fashioned-pension/) The peace-of-mind factor is obvious in a recession-esque economy, but I wonder if young people are seeing how their Boomer relatives with nice pensions are able to maintain comfortable lifestyles.
OK, so the question is: do you plan on retiring? Do you think you'll have enough income to do so? I think it's fair to wonder if the traditional notion of retirement will change drastically over the next couple of decades. Decline in defined benefit plans, longer lives, etc.
Some interesting reads about this and similar topics below. I'd like to read more on the subject so if you have recommendations, please list.
"By choice or necessity ,generation staying in workforce"--http://www.chicagotribune.com/special/primetime/chi-primetime-retirement-041311,0,4198022.story
"The Disappearing Defined Benefit Pension and Its Potential Impact on the Retirement Incomes of Baby Boomers"--http://www.ssa.gov/policy/docs/ssb/v69n3/v69n3p1.html
"The Rise of 401(k) and other Defined Contribution Plans"--http://research.stlouisfed.org/publications/review/02/01/23-34Friedberg.pdf
I found this very interesting: "the percentage of young workers who cited their pension plan as a reason for staying with their current employer has jumped from 28% two years ago to 43% now." (http://www.foxbusiness.com/personal-finance/2011/04/25/young-workers-want-good-old-fashioned-pension/) The peace-of-mind factor is obvious in a recession-esque economy, but I wonder if young people are seeing how their Boomer relatives with nice pensions are able to maintain comfortable lifestyles.
OK, so the question is: do you plan on retiring? Do you think you'll have enough income to do so? I think it's fair to wonder if the traditional notion of retirement will change drastically over the next couple of decades. Decline in defined benefit plans, longer lives, etc.
Some interesting reads about this and similar topics below. I'd like to read more on the subject so if you have recommendations, please list.
"By choice or necessity ,generation staying in workforce"--http://www.chicagotribune.com/special/primetime/chi-primetime-retirement-041311,0,4198022.story
"The Disappearing Defined Benefit Pension and Its Potential Impact on the Retirement Incomes of Baby Boomers"--http://www.ssa.gov/policy/docs/ssb/v69n3/v69n3p1.html
"The Rise of 401(k) and other Defined Contribution Plans"--http://research.stlouisfed.org/publications/review/02/01/23-34Friedberg.pdf
More seriously, I have a decent company plan, but I'm not holding out too much hope of actually seeing it. The way the law is right now, it's basically guaranteed, but I just don't see it as sustainable by the time I hit retirement age.![shog[1].gif](http://files.styleforum.net/images/smilies/shog%5B1%5D.gif)
