The Government Has You Where They Want You!

Do you want to know why campaign issues like forgiving student loans, or fixing social security and Medicare/Medicaid is such a big thing across this country? The reason is very simple. It’s because We The People have gotten used to being taken care of by the government, and don’t want to give up on those things we view as freebies from the feds.

I just read a very surprising article that explains it all very clearly. Think about this. 27% of all adults in the United States consider themselves to be retired. That’s over one in four. That means they have little to no income other than what they’ve saved and social security coming in. The average age of retirement is 61, up from 59 in 2002, and 57 in 1991. But the real kicker is what we’re doing to get ready for retirement.

I was shocked to learn that if you’re between 55 and 64, you have saved a nest egg of $207,854 for your golden years. Seem like a lot? Well, it’s not. That number includes high income earners that are still working. If you look at the median income (that which sits right at the 50% mark of all incomes), it’s only $71,168, meaning half of the people 55 to 64 have more than that saved and half have less than that saved!

Now comes the interesting point. Only 10% of us have saved $1,000,000 or more for retirement. And when you consider that the average amount a retiree will spend on healthcare alone during their retirement years is $315,000, having even $1 million in your IRA or 401k doesn’t seem like a lot.

And the government has you right where they want you!

If you’re between 56 and 74, you have an average debt of around $97,000. That means half of America at the time they retire is underwater. They owe $97,000 and have a median net savings for retirement of $71,000. There are several reasons for this.

The first is, no one makes you save for retirement. And if you decide at 26 years old that you’d rather travel the world and get the latest/greatest video game console rather than put 10% of your earnings into your retirement years, no one faults you for it…until you get there.

Another reason is simply the way social security is handled by the federal government. You don’t have an account with your name on it. It’s all pooled together, and Congress regularly raids that account to pay for things that aren’t in the budget. Add to the fact that there isn’t any investment in the stock market, or any mutual fund of any kind. In fact, the current amount of withholding for social security is basically spent paying off those who are already on social security. Any amount left over is invested…it’s used to buy down the federal debt.

So, if you aren’t retired already, and want to be able to do so, the smartest thing you can do is start saving and pay down whatever debt you have. If you don’t, the federal government will have you right where they want you. They can threaten to take away social security, or cut Medicare to the point where you’ll have to pay for everything. And we wonder why it is people are having to choose between eating and taking medicine?

That’s part of what I call “the dumbing down of America”. Take away our ability to be fiscally responsible throughout our lives, and you have ceded control of your life to whatever then pays the bills.

Carry on world…you’re dismissed!