If you're an American 65 or older, there's a 20% chance that you're working or looking for work (the chance jumps to 53% if you attained an undergrad or more advanced degree): that's double the rate in 1985. The last time it was this high was 57 years ago, in 1962.
Americans are staying in work longer because the market-based 401(k) pensions that replaced defined-benefit pensions, combined with skyrocketing rents and healthcare costs, on top of higher level of debts to support your kids' education, rents, etc, have left older people with insufficient savings to survive their retirement.
To make matters worse, the older Americans who most need additional income beyond retirement age are the least likely to be in work, because they lack the postsecondary degrees that would let them compete with their better-educated peers for jobs.
The retirement math is ugly, even for those who are seemingly well-off. Teresa Ghilarducci, an economics professor at the New School for Social Research, has estimated that Social Security replaces about 40% to 50% of one's pre-retirement income. The general thinking is that people need around 80% of pre-retirement income to get by after they stop working. (Online retirement calculators can give a rough sense for what you need to save, and earn on savings, to get there.)
The typical worker in the bottom 50% of the income distribution, earning less than $40,000 a year, has no retirement savings. Those in the middle 40% of income distribution, earning from $40,000 to $115,000, have a median amount of $60,000 saved, according to Ms. Ghilarducci's research. Workers in the top 10% of income distribution making more than $115,000, meanwhile, have a median amount of $200,000 saved. They, too, are woefully under-saved, although it's worth noting that these calculations don't include real estate and other tangible assets, or the chance of an inheritance.
Older Americans are twice as likely to work now as in 1985
(via Naked Capitalism)
On Jan 1, 2020, AB1482 comes into effect, capping rents at their rates as of March 15, 2019 plus an above-inflation; in response, the state's greediest landlords are evicting their tenants, either by raising their rents to levels they can't afford to pay between now and Jan 1, forcing them out, or by staging "no […]
Kansas is a living laboratory for far-right experimentation with extreme economic cruelty: a state where Medicare expansions were thwarted, where xenophobia has penetrated the state bureaucracy, where a grifty, incompetent lawyer has apologized for slavery and driven women out of his own party, even as neighboring states thrive by tending to the needs of working […]
In Social, demographic, and economic correlates of food and chemical consumption measured by wastewater-based epidemiology, published in the Proceedings of the National Academy of Science, a group of researchers in Australia and Norway present their analysis of a 2016 Australian sewage census, which sampled 22 waste-water treatment facilities and looked for 42 biomarkers.
Treat yourself, internet: We’ve rounded up some deals from the past week that were too good not to bring back for an encore. Take your pick from home goods, massagers and other tech, all at serious discounts. TREBLAB Z2 Bluetooth 5.0 Noise-Cancelling Headphones Get in the groove and stay that way with these headphones and […]
As cool as your smartphone is, it can’t do everything. When a job requires a little elbow grease, a multitool is a great thing to have around – and might just save your life in the right situation. Here’s a roundup of some of the latest multitool designs, which have come a long way since […]
Whether you own or rent your place, insurance on that home is a necessary hassle – but a new tech-driven company called Lemonade is starting to show that while it might indeed be a necessity, it doesn’t have to be a hassle. Here’s the way insurance typically works: You pay premiums and hope an accident […]