Posted by admin / Under Retirement Funds Administrators
THE retirement dream seems further away for a lot of baby boomers, and they appear to be responding to that by holding on to their jobs if they can. But that may have worsened the employment prospects for younger workers. Labor Department figures indicate that the percentage of workers over the traditional retirement age of 65 is at a record high. But, the figures show, job totals fell sharply for men under 55 during the recession and have only started to recover, while the proportion of women ages 25 to 54 with jobs also slid and is close to the...
Published on Tuesday 22nd of May 2012 08:46:56 AM
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Posted by admin / Under Retirement Funds Administrators
When the April figures on unemployment were released May 4, they were more than disappointing. They were deeply disturbing. While the unemployment rate had fallen from 8.2 percent to 8.1 percent, 342,000 workers had stopped looking for work. They had just dropped out of the labor market. Only 63.6 percent of the U.S. working age population is now in the labor force, the lowest level since December 1981. During the Reagan, Bush I and Clinton years, participation in the labor force rose steadily to a record 67 percent. The plunge since has been almost uninterrupted. Here is a major cause...
Published on Tuesday 22nd of May 2012 08:46:56 AM
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Posted by admin / Under Retirement Funds Administrators
You had better start increasing your personal retirement savings, because Social Security is fast approaching insolvency. According to the latest Social Security Trustees' report, released Monday, the program's combined trust funds will be exhausted by 2033 -- three years earlier than last year's projection and seven years earlier than projections made in 2006. This means that by 2033 Social Security benefits would have to be slashed significantly. Sounds bad, right? Well, it gets worse. Since 2010, Social Security has been running a permanent cash-flow deficit. This means that the taxes collected for the program aren't enough to cover the benefits...
Published on Tuesday 22nd of May 2012 08:46:56 AM
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Posted by admin / Under Retirement Funds Administrators
Chicago Mayor Rahm Emanuel recently offered a stark assessment of the threat to his state's future that is posed by mounting pension and retiree health-care bills for government workers. Unless Illinois enacts reform quickly, he said, the costs of these programs will force taxes so high that, "You won't recruit a business, you won't recruit a family to live here." We're likely to hear more such worries in coming years. That's because state and local governments across the country have accumulated several trillion dollars in unfunded retirement promises to public-sector workers, the costs of which will increasingly force taxes higher...
Published on Tuesday 22nd of May 2012 08:46:56 AM
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Posted by admin / Under Retirement Funds Administrators
Here is some good news from the Center for Disease Control: by 2050, life expectancy in the U.S. will be 87.5 years. Or at least we thought this was good news. According to a Northwestern Mutual study, it turns out that only 56 percent of American are financially prepared to live to age 75, and even fewer are prepared to live to 85 or 95. Women are expected to live even longer than men but they're even more in danger of outliving their finances. In fact, only 45 percent of those surveyed have any plan regarding their financial life, down from...
Published on Tuesday 22nd of May 2012 08:46:56 AM
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