Sorry for the language but let us look at this family in the USA. It could well be India after a few years, not commenting on it though.
Grandfather is aged about 95 had the following:
1. A great job (he was a supervisor in Gen Motors and retired in 1980),
2. Has an indexed pension from a company that has not yet gone bankrupt
3. Social security is paying in full and
4. His house that he bought for a small amount is worth about US $ 1 Million.
No debt, and has enough money to spend.
His son aged 70 has a few strong legs:
1. A decent job, retired about 5 years ago, he would have loved to work for a few more years, but the job moved. However his wife works as a senior nurse in a good hospital.
2. Has started drawing from his social security
3. Has a medical insurance that his company is continuing to fund. However no long term care insurance….he hopes he does not live too long.
4. His house has lost value recently, but he hopes to inherit something from his parents…so he feels a little more secure.
The next guy is gen Y guy…
1. Recently lost his job, and his wife has left him. The house belonged to his wife, so he is homeless, trying to come back to his dad’s house.
2. His 401(k) looks like a 201(k)
3. No savings, no wife, no house, luckily no kids. He does not dare get into a relationship.
4. With no job, not sure of his social security, no savings, obviously no retirement plan.
Well well….at the age of 45….the current generation of Americans will be the first to see a fall in their standard of living.
So if the 4 pillars of a good retired life were: a good job, a defined pension, social security, and good health, the current generation has none of these…Obama what will you do? seek a re-election? You might as well go back to Kenya.
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