You may have seen one of the many articles on mainstream media about the “60 year career”.
Here is a headline taken from the Wallstreet Journal on the matter.
Now, their thinking is that people will live longer and therefore will have longer to contribute to the workforce. What is the main obstacle to the 60-year career that the media sees? Well, it’s that people will have to change their mindset to accept the lower standard of living.
Think about that. A new mindset? What exact mindset are they talking about?
I don’t know about you, but the idea of letting a 60-year career become normalized does not sit well with me.
Imagine a world where people never have a hope of retirement, and instead must work until their deathbed (and well into old age) because they can’t afford to live without income. Not only will they not be able to support themselves, but the government will not have enough resources to support them through social security.
Don’t forget that Republican congress members are currently focused on ending social security. If you are unfamiliar, social security is what pays your parents to retire on a monthly basis. And ideally, social security will exist to pay younger generations when they retire.
Even if social security stands strong for the next century, we still have a glaring problem. That is, people are not having children. Without children, who will pay social security taxes to sustain the elderly population?
And who will make up for the lost GDP output from retiring Millennials and Gen Z?
This real question to ask is this:
Why does the mainstream media keep pushing the narrative of the 60-year career?
Answer: They are getting workers ready to work for the rest of their lives.
Is this yet another example of Boomers benefitting from a system created by their parents and stripping all of the value so that their children do not enjoy the same benefits?
Do you really need to ask?
Below is a short demonstration of how boomers suck up resources to enrich themselves.
As the headline says, a new mindset is required, and they are planting the seed so that people will begin to accept a life without retirement.
What can you do?
Get educated on the topic and call out news articles that blatantly push the ’60-year career’ agenda. Get talking to people about social security and the fertility crisis. Maybe even sign up to our newsletter to stay informed on all these topics and more!
What are some potential Solutions?
One popular solution to the social security crisis is immigration.
We know that people are having fewer children, and we will need more workers to support an aging population in 30 to 40 years. The obvious solution is immigration. However, that is a touchy subject already, and its aggressively opposed by many in the United States.
Let’s talk about the Current Retirement System
Retirement benefits in the United States can come from several sources, including:
- Social Security: Social Security is a federal program that provides retirement benefits to eligible workers who have paid into the system through payroll taxes. To qualify for Social Security retirement benefits, you must have earned a certain number of work credits over your lifetime and be at least 62 years old. The amount of your benefit is based on your earnings history.
- Employer-sponsored retirement plans: Many employers offer retirement plans, such as 401(k) plans or pension plans, as part of their employee benefits packages. These plans allow employees to save money for retirement on a tax-advantaged basis. Some employers also offer matching contributions to help employees save even more.
- Individual retirement accounts (IRAs): IRAs are personal savings accounts that allow individuals to save for retirement on a tax-advantaged basis. There are two main types of IRAs: traditional and Roth. Traditional IRAs allow individuals to deduct their contributions from their taxable income, while Roth IRAs allow individuals to withdraw their contributions and earnings tax-free in retirement.
When you retire, you may be eligible to receive benefits from one or more of these sources. Social Security benefits are generally available to most Americans who have worked and paid taxes for at least 10 years, while eligibility for employer-sponsored retirement plans and IRAs varies based on the specific plan or account.
The number of retirement benefits you receive will depend on several factors, including your earnings history, the age at which you start receiving benefits, and the type of retirement plan or account you have. It’s important to plan ahead for retirement and save as much as possible, as many experts recommend that retirees have enough savings to replace at least 70% to 80% of their pre-retirement income.
The Impacts of Inflation and Late Stage Capitalism on Retirement
The recent inflationary period over 2020-2023 gives us the reason for extra concern regarding retirement. Where $1 million would suffice as the “go to” number for retirement age, we are now looking at somewhere closer to $10 million by 2070.
Inflation can have a significant impact on retirement, particularly on retirement savings and income. Inflation refers to the general increase in prices of goods and services over time, which means that the purchasing power of money decreases. This means that the same amount of money will buy fewer goods and services in the future than it does today. Inflation can impact retirement in several ways:
- Reduced purchasing power: Inflation can reduce the purchasing power of retirement savings over time, which means that retirees may not be able to buy as much with their savings as they could in the past.
- Increased expenses: Inflation can also lead to increased expenses for retirees, particularly for things like healthcare and housing, which are often major expenses in retirement. Rising prices can make it more difficult for retirees to afford the things they need.
- Lower real returns: Inflation can also impact investment returns, particularly for fixed-income investments like bonds. Inflation can erode the real returns of these investments, meaning that the returns may not keep up with the rate of inflation.
To combat the impact of inflation on retirement, it’s important for retirees to plan ahead and take steps to protect their savings and income. This may include investing in assets that have historically outpaced inflation, such as stocks or real estate, or considering retirement income strategies that offer inflation protection, such as Social Security benefits or annuities with inflation-adjusted payouts. It’s also important to regularly review and adjust retirement plans to account for changing economic conditions and inflation rates.
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