Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Golden Years or Retirement Nightmare?

  by    0   0

Do you dream of retirement? Sitting on a beach sipping cocktails? Leisurely afternoon rounds of golf? Spending hours playing with grandchildren?

Well, for a lot of Americans, that retirement dream may turn into a nightmare. Instead of reclining poolside, they may find themselves greeting customers at Walmart.

According to data recently released by Northwestern Mutual, one-third of Americans have less than $5,000 in retirement savings. 

Twenty-one percent – nearly a quarter of Americans – have a retirement savings of zero. Thirty-three percent of Baby Boomers  – the generation now entering into retirement years – have on average between 0 and $25,000 saved up.

Here’s another sobering fact. The average household bank balance was $12,870 last year, according to Bank of America’s annual report. That’s less than the average account balance the bank reported in 1997. In other words, the average household is saving less than it did 20 years ago and has very little put away for retirement.

According to a Gallup poll, a majority of current retirees – 58% – say they rely on Social Security to get by. As an article at the SovereignMan points out, that isn’t exactly a rock-solid retirement plan.

The most recent report from Social Security’s Board of Trustees (which includes the US Secretaries of the Treasury, Labor, and Health & Human Services) tells us that the program’s cost has exceeded its tax revenue since 2010. Last year this shortfall was $59 billion, 11% worse than in 2016. And in order to make up the difference and cover this deficit, Social Security has to dip into its trust fund, effectively burning through the program’s savings. The problem with this approach is that, eventually, these annual deficits will burn through ALL of the program’s savings. The government knows this; the Board of Trustees even state this in their annual report, projecting that the Social Security trust funds will become fully depleted in 2034. Sixteen years may seem like a long way off. But we’re talking about retirement here. You’re supposed to think long-term about retirement. And the math simply doesn’t add up. The Trustee Report states explicitly that, once the trust funds run out of cash, the program will have to, at a minimum, reduce the monthly benefit that’s paid to its recipients. So if you’re planning on being retired at any point past 2034, the government is LITERALLY TELLING YOU that they won’t be able to pay the retirement benefit that’s been promised to you.”

If you’re under 40, the prospects of having a government safety net to fall into look even bleaker.

Social Security relies on current workers to pay retirees’ benefits. Yes. It is essentially a government-run Ponzi scheme. And like all Ponzi schemes, it will eventually collapse.

In 1995, 4.9 workers paid into the program for every retiree getting benefits. By 2020, the Social Security Administration projects the ratio will drop to 3.7 workers per retiree. By 2040, the ratio will fall to 2.75-to-1. As the Sovereign Man put it – that’s not enough workers.

In other words, the system that the majority of American rely on for retirement is completely unsustainable.

Do the math– at 2.75 workers per retiree, you’d have to pay nearly 40% of your salary just in Social Security tax (i.e. NOT including Medicare, federal, or state income tax) to keep the program running.”

And if you happen to be relying on a state pension program, your prospects are even more dismal.

SovereignMan summed it up this way:

Either way, retirement is a nuclear problem set to explode in the Land of the Free.”

So, what’s your plan?

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Singapore Adds Gold to Reserves for the First Time in Over 2 Decades

Singapore expanded its gold reserves by about 20% earlier this year, joining a growing number of countries increasing their investment in the yellow metal.

READ MORE →

Silver Demand Expected to Exceed 1 Billion Ounces in 2021

Every key area of silver demand is forecast to rise in 2021, according to the Silver Institute’s Interim Silver Market Review. The institute projects silver demand will come in at 1.029 billion ounces this year. That would mark the first year demand has exceeded 1 billion ounces since 2015.

READ MORE →

Jerome Powell 2.0

President Joe Biden has tapped Jerome Powell to serve a second term as chairman of the Federal Reserve. Biden said Powell’s “steady leadership” helped calm markets as governments shut down the economy due to coronavirus, and he expressed confidence in Powell’s future leadership. “I believe Jay is the right person to see us through,” Biden […]

READ MORE →

The Fed Pulled Off a Masterful Manipulation of the Junk Bond Market

The Federal Reserve pulled off a magnificent manipulation of the junk bond market, facilitated a massive wealth transfer from savers to speculators, pocketed millions of dollars, and then washed its hands of the matter. In March 2020, as governments shut down the economy for coronavirus, the Fed slashed interest rates and launched a massive quantitative […]

READ MORE →

Poland Plans to Add Another 100 Tons of Gold to Its Reserves

During a recent interview, Bank of Poland President Adam Glapiński said the central bank plans to add 100 tons of gold to its reserves in 2022. In 2018, the National Bank of Poland began aggressively adding gold to its reserves. Through the first half of 2019, the Polish central bank added more than 100 tons of […]

READ MORE →

Comments are closed.

Call Now