Ahhh, the American Dream. Always part fiction and part ideal, but still a valuable construct for generations.
In order to Rebuild the Dream, we should look at the answers to a few
History questions...
Remember when many old people ate cat food, froze to death in the winter, died of heat prostration in the summer, died from lack of health care?
Recent diaries here have shown how successful our social safety net has become, and given reasons for saving it.
This diary is in support of that idea.
Our Pension
We retired from teaching high school in Austin in 2004 at age 55. We were burnt out, I was experincing some major health challenges, and I was thinking often of my father who died of a oil field accident at age 52.
We have always lived frugally, had a wonderful life, traveled to 48 countries, and are very thankful to have our pension even though it ranks near the bottom among the states.
We spent 100 days in our little dome tent on our sixth trip to Africa recently,and we are thankful for the health and resources and creativity to continue to make this happen.
Bankruptcy Hovers Over Us
However, we know that just one major surgery or extended illness will bankrupt us.
Our district in Austin was one of the ones who elected to pay in to both Social Security and Teacher Retirement. That was a pretty big chunk out of our checks each month but we have no regrets now.
We are opting to draw SS now at 62, and if we don't stop the Republicans in TX from defunding our junk health insurance benefit most of our SS will have to go into health insurance. (Don't worry, we are not giving up on it yet.)
Where's YOUR Pension?
Friends, relatives, and people we meet often tell us they want to have our life. They often quickly add that they could not have taught public school for all those years. Heh.
Private Pensions
I still remember the days when many people in business also could look forward to enjoying their hard earned pensions. What happened to all those? Did people voluntarily turn to the stock market to make ready for retirement, or what?
Wall Street Journal
WEEKEND INVESTOR
SEPTEMBER 17, 2011.
Who Killed Private Pensions?
Over the past two decades, companies have cut pensions, slashed retiree health coverage and killed other benefits. Many have reduced their contributions to 401(k)s as well.
Companies say they are the victims of a "perfect storm" of unforeseen forces: an aging work force, market turmoil, adverse interest rates. Certainly, these all contributed to the retirement crisis. But employers have played a big and hidden role in the death spiral of pensions and retiree benefits as well.
Workers with a significant portion of their net worth tied up in employer-sponsored retirement plans should be aware of the hidden risks they face. Here are some to watch out for:
Tapping Pension Plans
Just over a decade ago, pension plans had a quarter of a trillion dollars in surplus assets. Today, they are collectively underfunded by about 20%. Market losses and historically low interest rates erased a lot of this, but much of the damage was self-inflicted.
Some people even seem resentful that we are retired and having a good time on our pension. Guess what, that's part of the oligarchy's plan as well. Divide and conquer. Stir resentments. Pit age groups against age groups. Cut expenses, raise bonuses for execs.
A similar approach of divide and conquer are behind the proposals to grandfather current seniors but raise the Medicare age. Right now, in this political climate, we should fight all attempts to cut Social Security, Medicare and Medicaid. We keep hearing rumors that the Administration will bargain to raise the Medicare age and other cuts to the safety net. Then we get leaks that say no. Will should be proactive and lobby to oppose cuts. We should never give up defending our safety net.
CEO salaries and bonuses in this country continue to be obscene.
Long term, we should support efforts to claw back pensions for those in business and in government.
Action suggestion:
Join the Movement
http://rebuildthedream.com/
The American Dream Movement is growing stronger by the day, and it’s not going away until we can find jobs, afford to go to college, retire with dignity, and secure a future for our children and our communities.
Reposting this video from Rebuild the Dream because of its hopeful message. Sorry if you have seen it before, and sorry, no transcript.
2:36 PM PT: HT to Quasimodal in comments below for this important link and info:
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Topic:
Economics
Saturday, Sep 17, 2011 13:01 ET
The theft of the American pension
In the last decade, the country's biggest companies have raided worker benefits for profit. An expert explains how
By Thomas Rogers/
http://www.salon.com/...