tst123Millions of older workers are nearing retirement with nothing saved
evatronicThis is the same demographic that overwhelmingly votes for Republicans. I am finding it very hard to empathize.
That said, perhaps this train wreck will serve as an object lesson for the next generation about creating and maintaining social safety nets.
Agreed, the boomers are finally suffering after all the cruelty they inflicted on us.
Let me find my champagne.
This isnt just boomers, it call into Gen X too.
Boomers: 1946 to 1964: 59 - 77
Gen X: 1966 and 1980: 43 - 57
"Only 1 in 10 low-income workers between the ages of 51 and 64 had any funds put away for retirement "
I’m young genx, I hope we’re not that stupid, we should have learned something what with Boomers trying to scam us literally every fucking day of our lives.
But if they haven’t, whoops, another point to Darwin.
What gets me riled up is I work w/ a bunch of GenX and some don’t even contribute to the 401k that is matched 6% (aka FREE MONEY). I just don’t get it, my leave money on the table. Go low risk if your not sure…
Do you know if they have the economy to actually “loose” 6% of their salary?
It might be “free money” in their retirement fund but they still have to afford to actually add anything to it.
dudeAssuming it’s a 1:1 match and is immediately vested they would technically still gain more money by contributing, immediately withdrawing all of it, and paying the associated taxes and fees.
So it’s definitely possible they’re leaving money on the table either way.
Interesting, didn’t know of that possibility. Is it also possible to withdraw just a part and save some “for free”?
I’m not from the US so the exact workings of your pension system is a bit beyond my expertise 😊
No.
Typically
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employer matches have a vesting period where it’s not yours to withdraw
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actual withdrawal means paying the taxes you skipped plus a penalty
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loans can be useful, but you have to pay yourself back and meanwhile that money is not invested.
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loans have a low interest rate, so your loan to yourself is making almost nothing compared to if it was left in an investment
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loans need to be payed back immediately if you leave the company for any reason, otherwise it’s an early withdrawal with all those taxes and fees