The judges ruling may help Governor-elect Rauner institute a defined-contribution pension system to replace the current defined-benefit system. So lets once again do the Puig rule-of-thumb retirement nest-egg calculation. Say you need to accumulate a nest-egg that will provide you with a $40,000 annual income in retirement to supplement your Social Security check. Well just divide the $40,000 by an assumed distribution rate of 5%. The rule-of-thumb answer is $800,000. Now how many folks out there will be able to save enough each and every paycheck to accumulate that sum? And remember, that $40,000 is in todays dollars, not tomorrows. You see a guaranteed government pension is worth a lot of dollars! The creation of the 401(k) was a slyly crafted plan for financial institutions to have massive infusions of retirement dollars where the worker bears all the risk, while benefitting political incumbents and aspirants whose primary campaign promise is cutting taxes. Like so much of the transfer of control over our lives to corporations, the process of removing the traditional legs of the retirement stool - a guaranteed pension, Social Security, and ones retirement nest egg is slowly becoming extinct. The complete demise of the guaranteed pension is the first step. The second step - destroying Social Security as we know it. Eventually, if the November 4th winners have it their way, youll be entirely on your own. You and your 401(k), if indeed you have access to one. So the fight is not just about a living wage, its also about having a wage that allows you to save for income security and a decent quality of life in the future. Oh yes, and having enough to send your children to college......and......well you get the picture.
Posted on: Sun, 23 Nov 2014 23:24:50 +0000
Trending Topics
Recently Viewed Topics
© 2015