Let me explain this. The fee itself at $25 for 2010 and even increasing to $200 through the years is not something that would ruin any person’s finances (and, according to critics, it won’t even fix the system…).

However, it is a sign showing the problem with the health care system(s) devised decades ago, when the life expectancy was less than today. At that time retirees used to live approx. ten years after retirement. Or even less.

Nowadays people live 20-25 years after retirement. We live longer and longer… and according to the statistics the life expectancy is getting higher and higher in all the developed countries. Having a long life seems to be a nice thing in itself – although there is a “little” problem. The human body is no different than your car. The older your car is the more you visit your mechanic. You need to fix a small thing here and another one there, you need to replace a part today, another one tomorrow and so on. The same with our aging bodies. It requires more and more care. Health care. And as everything else, the health care is getting more and more expensive.

So, how do we deal with the ever increasing health care expenses? More taxes? We already pay very high taxes. The next question is is: is there enough active earners to be taxed? Because that’s the huge problem of the aging population: there are more people in retirement than active workers who can be taxed and heavily hit with fees!

Face it, this is another problem created by the Baby Boomers. They (we?) had a wonderful life and enjoyed all the benefits of the systems set up by our predecessors. But we didn’t make enough children to reproduce ourselves. We’ve never thought about the days when we all be retired and all of us want to benefit of the pension system and health care. We’ve never though and didn’t want to think about the simple question – who will put money into those systems if there are less people coming after us? (thanks to our selfish lifestyle and ideology…)

The $25/years sounds like peanuts. Even if all the left leaning chattering classes cry “not fair”. Unfortunately, it’s just a desperate attempt to patch the system. The system needs an overhaul, though.

Do you agree?

You can disagree with this blog but you can not totally ignore one of the most influential financial media outlet: the Wall Street Journal. Here is what they said recently:

Is it too late to save your retirement?

For many, the answer is surely yes. News out this week shows that 29% of those who have already retired have saved nothing at all to support themselves, while only a third have saved at least $50,000.

To put this in context: A retirement account of $50,000 will provide a 65-year-old man with an annuity of just $4,000 a year.

Does this sound to you as a decent retirement? Read the rest of the article at WSJ…

If this looks like your own situation, subscribe for our FREE e-course by filling out the form on the right. You will also get the Bonus Report: the Baby Boomer Pension Crunch. It’s not too late! Just act now!

About the author

Istvan Horvath is an author, blogger, former journalist, a passionate advocate of the Baby Boomers, and the founder of DigitalPensionCom. He is writing extensively about the Baby Boomers' retirement and pension issues. His Pension Report is an eye-opener. Visit his Baby Boomer Pension Blog for more articles. This article can be reprinted or republished provided the content and links are left intact, and the "about the author" section is included.

Travel. While ‘travel’ is mentioned specifically, it really refers to anything we’d like to do for fun. You’ve already paid your dues working for a boss, now is your chance to do the things you always wanted to do. But that fun can add up, so be sure to figure it into your calculations.

Health concerns. Not to sound depressing, but aging is a slow deterioration of the cells in the body. This also means that many ailments may start to appear, and eat away at our savings. Preventative measures can, and should, be taken, but there is still no guarantee you won’t experience some health concerns as you get older.

Nursing home. Though you may be close to retirement and not ready for the “old-folk’s home” quite yet, at some point you will be considering your options. Before you do, take a trip to a private nursing facility, then go to a state or county run one. A big difference in quality is normal, but you will have to decide if a privately run facility is worth the extra cost.

Inflation. Because they get raises, most people simply don’t notice inflation when they are working for a living. But when you’re on a fixed income, inflation has a more noticeable impact on your buying power. In other words, prices go up, but your income doesn’t. Even with your best guess, the rate of inflation varies, so it can be difficult to plan for it accurately.

Savings. As retirement gets closer, people will start to contribute more to their savings or investments to shore up their reserves. However, many savings are tied to financial markets, and when those markets suffer, savings may dwindle. For younger people it doesn’t matter as much, but when retirement is right around the corner any hit to your savings can be scary.

Those are just a few of the money traps that can effect your retirement income. After reading this article you may be wondering what you can do. First, do your best to be realistic and plan for the worst-case scenario (better to have too much than not enough). Next, you can educate yourself about pension and retirement income. Finally, look at ways to increase how much money you have coming in at any given moment. Doing so can make the difference between wasting away or having the time of your life.

About the author

Istvan Horvath is an author, blogger, former journalist, a passionate advocate of the Baby Boomers, and the founder of DigitalPensionCom. He is writing extensively about the Baby Boomers' retirement and pension issues. His Pension Report is an eye-opener. Visit his Baby Boomer Pension Blog for more articles. This article can be reprinted or republished provided the content and links are left intact, and the "about the author" section is included.

Know where you are – Before you can do anything about improving your retirement income, you need to have an idea of where you’re starting from. The more honest and thorough your assessment, the better. Add up all of your assets, income, bills and liabilities. If possible, sit down with a licensed financial planner to get the full picture. At this stage you don’t need to worry about the future, just focus on the present.

Know where you want to be – You need to have an accurate idea of how much money you will need during retirement. Use an online retirement calculator to help determine how much you will need. A good tip is to enter the variables with the worst- and best-case scenarios in mind. This will give you a range of how much you will need. Even the lower number, from the best-case, may surprise you.

Figure out the difference – Chances are you will see that there is a large gap between your present circumstances and future needs. The first time people go through this exercise they get discouraged. The difference between their current situation and what they’ll need for retirement paints a grim picture. Don’t let it get you down, instead let it motivate you to make what you need to live the retirement you deserve.

The bigger the pension gap, the more you will have to do to fill it. The options available to you decrease as you get older. Basically you can either save more, spend less, or make more. Each option has its pros and cons, but making more is the one that can have the most immediate impact.

When you go on a trip, you have a destination in mind. Your retirement is more important than a vacation, yet most people spend more time planning their getaways than how they will support themselves for the rest of their life.

About the author

Istvan Horvath is an author, blogger, former journalist, a passionate advocate of the Baby Boomers, and the founder of DigitalPensionCom. He is writing extensively about the Baby Boomers' retirement and pension issues. His Pension Report is an eye-opener. Visit his Baby Boomer Pension Blog for more articles. This article can be reprinted or republished provided the content and links are left intact, and the "about the author" section is included.

Let me remind you that we live in a digital era. The Digital Revolution meant the end of the Industrial Age and the beginning of the Computer Age or Information Era. Nowadays, many people tend to think of the Information Age or Digital Era in terms of cell phones, digital music, high definition television, digital cameras, email on the Internet, the Web, and other relatively new products and services that have come into widespread use. The pace of change brought on by such technology has been very rapid.

One of the biggest changes that influenced our lives was the invention of the World Wide Web in 1989. Today the Internet has become the ultimate place to accelerate the flow of relevant information and the fastest growing form of media.

As I wrote in my Report (the Baby Boomer Pension Crunch) I realized that the retirement income of the Baby Boomers is in danger and that we have, no, we MUST do something about it to secure a dignified retirement. In this “digital era” the only way to achieve this is to use the most advanced technology: the computer and the internet.

As I see it, the only escape from the miserable situation we have created for ourselves is to go ahead and turn to the technology of the future. We have to use the digital products and services to create the digital pension for ourselves.

That’s how I coined the term “digital pension”.

And now back to the original question: who needs it?

See the numbers below and answer the question for yourself.

Average retirement savings

• The typical pre-retiree household (age 55 and up) has a retirement savings of $60,000.
• Baby boomers between the ages of 41 and 54 have typically a retirement savings of $30,000.
• Baby boomers who save in a 401k have an average 401k account balance of $80,000.

For how many years would those savings last when they start withdrawing money from them?

OK, but what about the “government pension” (Social Security retirement income)?

Quote from their website:
The amount for 2009 for a person retiring at full retirement age (66) is $2,323. This is based on earnings at the maximum taxable amount for every year after age 21.

To give you an idea about the maximum taxable amount, take a look at this graph:
It is for somebody born in 1951, who started to work at age 24 (after going to college) in 1975 and earning every year since then at least the maximum taxable amount:

If you put in the calculator that for the coming years until the retirement (in 2017 at age 66) the individual will earn the same $102,000 amount per year – the retirement benefit would be $2,261.00 per month. A little bit more than two grands. Compare this to the present income: $102,000 per year means $8,500/month.

Can you imagine the drastic change in lifestyle when you have to go from eight grands a month to two grands? Do you think you can downsize your life to that extent? Yes, I am aware that we might need a little bit less for the retirement years, let’s say 70 or 75% of the active income. That still would be around $6,000-6,500…

Don’t forget, if you didn’t always earn the maximum taxable income during your active years – your benefit will be way less!

So, do you need the digital pension?
Keep the answer for yourself and download my free report to learn more.

About the author

Istvan Horvath is an author, blogger, former journalist, a passionate advocate of the Baby Boomers, and the founder of DigitalPensionCom. He is writing extensively about the Baby Boomers' retirement and pension issues. His Pension Report is an eye-opener. Visit his Baby Boomer Pension Blog for more articles. This article can be reprinted or republished provided the content and links are left intact, and the "about the author" section is included.

Possible answer: No – Maybe – Yes.
Not surprisingly, only 27.44%, which means one in four, answered with a sound yes. Almost half of the responders, 42.08% said NO, while the remaining 30.48% is uncertain (maybe). Let me translate to you the meaning of this third of answers: “most likely no but I am embarrassed to admit it…”
It is not a difficult calculation: 72.56% could not answer yes to the question. And if you know the total number of all the boomers, you can easily figure out how many millions will not have enough money for retirement. I kept saying this for quite a long time.

If you want to learn more about the causes of this looming financial disaster – get your copy of my free report: The Baby Boomer Pension Crunch. You can claim your copy here on the right ==>

About the author

Istvan Horvath is an author, blogger, former journalist, a passionate advocate of the Baby Boomers, and the founder of DigitalPensionCom. He is writing extensively about the Baby Boomers' retirement and pension issues. His Pension Report is an eye-opener. Visit his Baby Boomer Pension Blog for more articles. This article can be reprinted or republished provided the content and links are left intact, and the "about the author" section is included.

Watch this video where John Seiferth is interviewing Robert Kiyosaki about business, investing and just life in general.

Pay very special attention to the second minute in the video when Robert starts to talk about some recent pension news!

The second generation is having a devastating reality check. 2008 was supposed to be a watershed year for retirement: it was the first year that the baby-boomers turned 62, and the retirement frenzy was to begin (since people could begin to draw on their social security benefits). Early in the year, however, a study was conducted that found one-fourth of these boomers were delaying retirement (only the baby-boomers who were actually able to plan for retirement were studied). The economy has since nosedived, and many more retirements are being delayed. The unfortunate reality is that many who planned on retiring will work until the grave, joining the millions of other baby-boomers who never had such dreams.

The experts are calling this the “perfect storm” for retirement. Everything that could go wrong is in fact going wrong. This storm, however, was not created by supernatural forces, but the coordinated effort of big-business and their puppet politicians.

The deliberate destruction of the pension and its replacement by the 401(k) was, of course, a giant step towards attacking retirement; but now that the economic crisis has emerged, we’re beginning to see just how ruinous the effects are.

At the end of September, just as the crisis was beginning to gain steam, it was discovered that in the previous year the value of stocks in 401(k) accounts had fallen by nearly $2 trillion! Much more has been lost since then. This is especially devastating since almost one-third of 401(k) participants in their 60s had 80 percent of their money in stocks (pension funds have been similarly destroyed).

The 401(k) was the scheme of the century. Corporations offloaded their “burdensome” pensions and used the combined forces of the media and politicians to sell the ruse to the public, to the great benefit of Wall Street. Workers were told that the boom-slump cycle was over, and that stocks were a sure thing. There were additional factors to invest in stocks: interest rates were so low that investing in bonds and other less-risky instruments offered only tiny returns; and since employers stopped contributing to retirement funds, a bigger return was required.

More importantly, corporations have been driving down real wages since the seventies, allowing less money to be saved for retirement, creating a mood of desperation.

Every “safe bet” for investing has been proven unsafe; the recession has left nothing untouched. After the dotcom bubble burst — taking with it millions of people’s 401(k) savings — the housing market became the place to invest. Now the safest possible investment, too, has turned sour. For millions of people, the home they lived in was their nest egg, which they had planned to sell and move into a smaller place. No more.

Rep. Robert Andrews (D-NJ), who chairs the House subcommittee on health, employment, labor and pensions, put it bluntly: “Some will have very little, some will have almost nothing, and some will have nothing when they retire”. Of course, people who “have nothing” do not retire.

This process is being accelerated by the newest trick of big business: declaring bankruptcy to destroy “pension obligations”. These obligations apply with equal weight to workers already retired, many of whom are seeing their pensions slashed in half, forcing them out of retirement.

Now even the threat of bankruptcy is constantly used in union contract negotiations to scare workers into concessions, since after achieving bankruptcy, labor agreements are torn up. The threat of closing the company’s doors is a very effective form of intimidation.

This phenomenon is at the center of the GM debate. The corporate politicians in congress cannot decide whether to appoint a “Car Tsar” to oversee the destruction of the autoworkers pensions, or use the proven method of bankruptcy. Not a day goes by that the corporate media doesn’t join hands to assail the pension and health care benefits of the “spoiled” GM workers. The hypocrisy is sickening.

This after the UAW had already agreed to the most shameful concessions in 2007. Although concessions are often made in the name of “job security,” the result is that corporations become emboldened by such acts. Eventually, every benefit of workers that contradicts company profit will be targeted. The demand for concessions never stops, and soon the point arrives when the benefits of having a union become questioned, since dues money is not paid with concessions in mind.

The autoworkers struggle is at the forefront of the pension battle nationwide, since their struggles in the 1930’s originally paved the way for pensions. Equally important is the pension struggles emerging with public employees, the last stronghold of workers who receive them. Public employees will find their pensions under immense attack as the economic crisis intensifies, and government budgets are depleted (see “State Budget Crisis Deepens” on this site).

Fighting the corporate strategy of bankruptcy and business closures is an immediate need of working people. This tactic will increase in number as the crisis deepens and companies strive to “restore profitability” by drastically lowering wages. If a company attempts such a criminal act, the workers should demand a bailout for themselves; the government should take over the plant so that the workers can keep their jobs, such as was done for the banks. Management must be sacked and instead of a government bureaucrat, the workers themselves should run the business.

To win this program, new levels of organizing and solidarity are needed, such as the example of the United Electrical Workers, who occupied their factory and organized in a brilliant fashion. They won a stunning victory by utilizing the methods of the original autoworkers struggles from the 1930’s. If a fight is to be waged, it must be done seriously and with determination, uniting both retired and active workers. The UEW workers have shown the way forward for the labor movement, which can no longer rely on union concessions or the promises of Democratic politicians, but only their own collective strength.

Shamus Cooke is a frequent contributor to Global Research.

________________________________________
© Copyright Shamus Cooke, Global Research, 2008

The url address of this article is: www.globalresearch.ca/index.php?context=va&aid=11379

The comprehensive study of nearly 2,000 Americans born between 1946 and 1964, shows boomers are optimistic about the future, but many are not adequately prepared for retirement.

As a group, boomers are in their peak earning years and continue to wield great influence in the U.S. economy, but they are not homogeneous — there are significant variances in needs, behavior, attitudes and resources. On one hand is an almost insatiable desire for real estate, with some owning multiple properties, and on the other, many have not adequately planned for retirement.

Are boomers ready for retirement? Many of them have little in savings and are fearful that they will outlive their money.

Many Baby Boomers are apparently planning to play catch-up with their retirement savings later in life instead of making regular deposits now, putting their retirement plans at risk, according to “Beyond Behavior: Why Boomers Underfund Retirement,” a new survey.

A number of recent studies have shown that many Boomers have great expectations for their imminent retirements, but have not set aside money to pay for it. Very few studies, however, have tapped into the field of behavioral finance to understand why Boomers find themselves in this predicament.

“We found that Baby Boomers are in a state of financial paralysis. They don’t know how much to save and they don’t understand some basic financial principles such as compound interest and adequate returns, so they are doing nothing,” said Dr. Frank Murtha, a behavioral finance expert and business professor at New York University and managing member of Frank Murtha Associates LLC.

Baby boomers are responsible for half of all discretionary spending in the country today and have annual discretionary income of $750 billion, yet too many are unprepared financially for retirement.

Only one in four of the boomers has invested assets of more than $100,000, one in three has less than $50,000 and by the time they reach retirement age, only one out of every two will have accumulated enough money to be able to support their current standard of living.

Nearly one out of two boomers believe they will outlive their money although that is a common fear among seniors. Nevertheless, “there are interesting adjustments to be made.”

Your thoughts?

About the author

Istvan Horvath is an author, blogger, former journalist, a passionate advocate of the Baby Boomers, and the founder of DigitalPensionCom. He is writing extensively about the Baby Boomers' retirement and pension issues. His Pension Report is an eye-opener. Visit his Baby Boomer Pension Blog for more articles. This article can be reprinted or republished provided the content and links are left intact, and the "about the author" section is included.