10 Incredible Statistics About America’s Coming Retirement Crisis That Will Blow Your Mind

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America is facing a retirement crisis that is so colossal that it threatens to collapse the entire financial system.  Millions upon millions of Baby Boomers are preparing to retire, but when you take a close look at the numbers it quickly becomes clear that it is mathematically impossible for us to keep the financial promises that we have made to them.  The truth is that the days when tens of millions of elderly Americans could enjoy a very comfortable retirement are rapidly drawing to a close.  Why?  Well, because there is no money.  The U.S. government is supposed to have 2.5 trillion dollars in the Social Security trust fund for all of these retiring Baby Boomers, but they “borrowed” all of that money over the past 30 years to pay other bills.  Hundreds of other government and corporate pension programs across the United States are either severely underfunded or are not funded at all.  Meanwhile, American workers have been contributing pitifully small amounts to their own retirement funds.  Americans have been too busy drowning in debt as the pursue the American Dream to worry about putting away anything for the future.  So where does all of that leave us?  It leaves us with a complete and total financial nightmare on our hands. 

 

An increasing number of Americans are starting to wake up to this new reality.  In fact, a solid majority of American workers do not believe that the Social Security system will pay them benefits when they retire.

Just think about that for a moment.

Over half the working population has completely lost faith in the Social Security system.

That is what you call a crisis.

But that lack of faith has not resulted in increased private saving for retirement.

Right now approximately half of all American workers have less than $2000 saved for retirement.

That certainly won’t go very far.

But to a certain extent, you can’t blame people for not saving.

The truth is that an increasing number of Americans are just trying to find some way to survive in this horrible economy.

According to a poll taken in 2009, 61 percent of Americans “always or usually” live paycheck to paycheck.  That was up significantly from 49 percent in 2008 and 43 percent in 2007.

How can people save up tens of thousands of dollars for retirement if they are living month to month?

It is just not going to happen.

As the economy continues to collapse, the retirement crisis is going to get even worse.  Something is going to have to give.  Things are going to become very uncomfortable for our politicians as they are forced to deal with this growing crisis.

So just how bad are things already?

The following are ten incredible statistics about America’s coming retirement crisis that will blow your mind….

1 – According to one new poll, six of 10 non-retirees believe that Social Security won’t be able to pay them benefits when they stop working.

2 – There is supposed to be approximately 2.5 trillion dollars in the Social Security trust fund, but the U.S. government has taken all of that money out and has spent it over the last 30 years. 

3 – According to the Congressional Budget Office, this year the Social Security system will pay out more in benefits than it receives in payroll taxes.  This was not supposed to happen until at least 2016.

435% of Americans over the age of 65 rely almost totally on Social Security alone.

5 – Back in 1950 each retiree’s Social Security benefit was paid for by 16 workers.  Today, each retiree’s Social Security benefit is paid for by approximately 3.3 workers.  By 2025 it is projected that there will be approximately two workers for each retiree.

6 – 56% of current retirees believe that the government will eventually cut their Social Security benefits.

7 – Approximately half of all American workers have less than $2000 saved for retirement.

8 – According to one survey, 36 percent of Americans say that they don’t contribute anything at all to retirement savings.

9 – According to another recent survey, 24% of American workers say that they have postponed their planned retirement age at some point during the past year.

10According to an official U.S. government report, rapidly growing interest costs on the U.S. national debt together with spending on major entitlement programs such as Social Security and Medicare will absorb approximately 92 cents of every dollar of federal revenue by the year 2019.  That is before one penny is spent on anything else.

   
  • Greg

    The aborted generation will succeed in implementing euthanasia and genocide on the abortionist generation. The law of sowing and reaping can’t be repealed.

  • Not so Mad Max

    Every middle class Bennie out there will be means tested. Social Security Medicare, VA at first this will very mild (Six figure incomes) then years by year the income of who’s eligible will get smaller. The Government slipped in a gold tax and a way to keep track of gold (Expect the price to spike it goes into effect 01/01/2012). They’ll tax gold directly and eventually confscate it, we’ll see a VAT, a much more aggressive IRS.

  • Gary

    I have the perfect-Tax the rich and spread the wealth.

  • concerned reader

    Well, we have squandered the older generation’s ability to retire comfortly. I am not surprised that entitlement programs like social security and medicare are broke because the government took the money from those programs and spent it on special projects.The retiring baby boomers are going to be very pissed off when they finally realize that all they have worked for during their lives is gone.

    Some experts have stated that if we had left social security alone, we would not have to worry about it until about the 2070s. But the fact of the matter is that not only the government, but also the older generations did not mind the store very well and will soon turn to the youth of this country for answers. Young people today may never have any social security for themselves and I say good riddance.

    Social security was mainly created so that the elderly could retire from the work force and have a fare bit of money saved to live on for the rest of their days. The youth could then enter the workforce and replace the retiring person and simultaneously pay into their own social security account. However, with the squandering, nay, looting of the social security treasurey, the older generations can not afford to retire, nor can young people pay for their own retirement.

    For example, I recently ordered a pizza and n oldman showed up to my door to delive me my food. He told me that he was 65-years-old and had retired a few years ago, but he had to reneter the workforce because he did not have enough money saved. I took the phrase “no money saved” to mean that his social secuirty is gone. As jobs become scarcer and the boomers find themselves with out the ability to retire, it is going to become increasingly common to see the eldely working jobs that teenagers and young adults are accustom to working.

    I have heared experts say that the only way to solve the social security crisis is to bring as many illegal aliens as possible and grant them citizenship to pay into and save social secuirty, but this program may be beyond saving.

  • AlamoDoll

    You are right on the money, Greg. Galations 6:7 says “Be not deceived, God is not mocked. For whatsoever a man soweth, that shall he also reap.”

    Every action whether evil or good, demands a consequence. We are cooked.

  • Lisa

    I just turned 50 and have literally lost many nights of sleep worrying about this problem. Basically, I’ve known I’m screwed, but find small cold comfort in knowing that I’m apparently in good company. Suspected that this was behind the illegal alien issue all along, plus lobbying by companies like Del Monte, etc. Problem is, right now most of the illegals I (suspect) I see are working under the table and then sending their money out of the country. We have a HUGE black market economy that needs to see daylight. Anyway, I hope I am lucid enough to work until the day I die…

  • Greg

    Aesop wrote fables to point out stupidity in a subtle way. He wrote the golden goose fable for Gary.

  • the obvious solution is for the US government to introduce a comsumption tax – on everything. The UK government is currently increasing its take from 17 1/2% – on everthing – to 20%

  • Concerned Reader

    The real problem with the retirement crisis is that there are about ninety million baby boomers who are in poor health and there are not enough young people to support the people entering retirement. Let’s analyze this issue further.

    The baby boomers gre up in a time period where such things as smoking and other poor health choices were common. This life style cost them health wise and they are paying for it in their later years. On one hand, my libertarian view point tells me that it is some one’s right to smoke, or do what ever they want as long as they do not harm any one else, but paycheck for these illness brought on because of smoking and other bad habits is just too costly for society to foot the bill any longer.

    Let’s face it, people are in poorer health today than they were any time in the past. This is mainly due to our sedintray life style, and I am guilty of it myself. But the other day I was at a McDonalds eating and I noticed a family setting over across from me that had an elderly women, possibly the grandmother of the small children, and she was being very contrary to the poepl at her table. She through a fit because she could not figure out how to open the box on the hamburger, which the middle aged women eventually did for her. About five minutes later I heared her throw another hissy fit because she could not chew her hamburger. She was cursing up a storm and caused a scene. I minded my own buisness, but I could not help but worry that this might be our future if things are not turned around.

    When I say that they are not enough young people to take care of the aging population, I meant that with the dimenishing job market and the fact that wages are stagnating for many workers and that many young people are graduating from college with huge amounts of debt there will not be any way to support the retirees. I have to wonder how we are going to get out of this mess. When I was working, I did not make enough money to support myself and pay into social security.

  • xyloman

    Retirement? Whats that???
    Oh yeah – something we ONCE upon a time could count on.

    It will get worse.

    A consumption tax is fine. Single payer Health Care must be in place BEFORE this can happen. The Brits have a Health system that works FAIRLY well. I’d even take the Canadian model.

    ——-

    Knock off the abortion analogy – that’s really nothing more than a pot shot at NOTHING but your own ignorance. Bliss you you.

    ——-

  • Greg

    xyloman – you wish it was just “ignorance”. America will pay for murdering tens of millions of babies, guaranteed.

  • xyloman

    Ah yes – IF you are correct about God’s ‘payback.’ Lets just for grins sake – say you are.

    Then what we have is a sorry a@@ god that doesn’t deserve the light of day given the fact that some THINK He created it all.

    A sad god. A bloody revengeful god.

    What a poor invention of a MAN.

  • Mike

    @ xyloman – The problem is not with the creator but with the creation. We should take responsibility for our own actions. If YOU do not have savings, it is probably because YOU did not save. Dont blame GOD blame yourself.

  • Terrible and scary statistics. Not sure how the current young generation is going to cope. By the time we are set to retire, all savings are gone. Good luck to all of us.