Americans aren't saving for retirement. Or maybe they can't?

[natty bumppo 297]

See http://www.ebri.org/pdf/surveys/rcs/2010/F..._RCS-10_Age.pdf

The "less than $10,000" is 43% of All Workers, 46% of Ages 35-44, 38% of Ages 45-54 and 29% of Ages 55+.

ETA: Oh and 56% of Ages 25-34.

sorry for asking about those minor details ...

you didn't call me out on children being a household ...you feeling okay?

[chri'stina 190]

Who made the rule that our economy is required to meet the needs of anyone but the rich??

The poor don't count, never have. If the poor mattered, we would not have vast numbers ( billions ) all over the world starving and living in the dirt...

This nation is divided between rich and poor. The middle class has been largely gone for some time now...

As long as the economy provides for the rich, nothing will be done of anyone else.

I personally think that is an exaggeration. I do think the middle class may be shrinking but there are so many economic levels between poor and rich, there is not a clear difference where everyone is either rich or poor. Which one are you? I am not poor or rich.

[w¡n9Nµ7 §£@¥€r 123]

sorry for asking about those minor details ...

not a minor detail at all. thank you for making me go look.

I personally think that is an exaggeration. I do think the middle class may be shrinking but there are so many economic levels between poor and rich, there is not a clear difference where everyone is either rich or poor. Which one are you? I am not poor or rich.

'middle class' has always primarily been a function of self-identification. if the middle class is perceived to be shrinking it's primarily because fewer people today think they are.

[SMR 368]

Which do you believe is a bigger factor?

I said both, because I agree that "our economy is structurally unsound, in that it is failing to meet the needs of a large proportion of our population" and I agree that 43% of Americans are irresponsible. But to answer your question, you simply have to look at the 2006 column. In 2006, the economy seemed to be doing fine and unemployment was 4%. In my opinion, the first two columns are pretty much equivalent, since neither is really a significant nest egg for retirement. If you combine those categories, the numbers in 2006 and 2010 are the same within 1%, which can easily be attributed to the survey.

Thus, the fact that a large portion of Americans are not prepared for the future can not be tied to the state of the economy. No matter how the economy is doing, some people find a way to spend all the money that they have. One might make the argument that even in 2006, the economy was simply not doing well enough for a lot of people. While that might be true, one cannot argue that the economy is markedly worse today than it was then. Yet it seems that people that were prepared then are still prepared now. Those that were unprepared then, are still unprepared now.

[SMR 368]

Is it a bad time to mention that the savings interest rate is a high as 5.85% in AUS..

It's about 10% in Russia on a 1 year CD.

[Ali G. 37]

It's about 10% in Russia on a 1 year CD.

Would you actually invest money in Russia? I wouldn't trust them with their money let alone mine.

Corruption Index:

AUS: 8th

Canada: 8th

US: 19th

Mexico: 89th

...

RUSSIA: 146th

Edited March 10, 2010 by Booyah

[Usui Takumi 1,562]

I would say between 1983-89 and 94-2001 it would be primarily the fault of Americans. Since 2001, I'd have to blame the economy. If you look back most of the "growth" post 01 wasn't very real. Quite a few people who felt Middle Class in the 80's/90's don't feel the same way in the 2000's.

[natty bumppo 297]

not a minor detail at all. thank you for making me go look.

so ... did i pass the test for paying attention?

[SMR 368]

Would you actually invest money in Russia? I wouldn't trust them with their money let alone mine.

Corruption Index:

AUS: 8th

Canada: 8th

US: 19th

Mexico: 89th

...

RUSSIA: 146th

I actually have money invested in Russian banks. I consider it part of my diversification strategy. It's not like anybody else is offering a guaranteed 10%. I consider the corruption risk to be less than the risk of investing in the stock market.

I would say between 1983-89 and 94-2001 it would be primarily the fault of Americans. Since 2001, I'd have to blame the economy. If you look back most of the "growth" post 01 wasn't very real. Quite a few people who felt Middle Class in the 80's/90's don't feel the same way in the 2000's.

This argument works on an individual level. But when you consider that the same number of people aren't planning ahead, regardless of the economy, this argument is kind of weak.

You have these people who aren't planning for the future who say, "I would if I could but I can't." But we have data showing that, by in large, when they could they didn't. So I don't buy it.

[Calypso 464]

My wife says that to me all the time. May I ask what made you say it to him? What is an adequate savings rate, in your opinion?

I set limits to how much we spend when we dine out and when we go grocery shopping. He went to Petco alone last Saturday and arrived home with a drinking fountain that costs $ 75 for our cat. I confronted him about that. Wise huh. He found a way not to take me with him by going to his doctor first.

Adequate savings rate: For me it depends on your age, how much you make, and what your goals are.

[w¡n9Nµ7 §£@¥€r 123]

I set limits to how much we spend when we dine out and when we go grocery shopping. He went to Petco alone last Saturday and arrived home with a drinking fountain that costs $ 75 for our cat. I confronted him about that. Wise huh. He found a way not to take me with him by going to his doctor first.

OMG now I know why you intimidate me so much.... you're just like my wife!!

[PhiLandShiR 18]

I personally think that is an exaggeration. I do think the middle class may be shrinking but there are so many economic levels between poor and rich, there is not a clear difference where everyone is either rich or poor. Which one are you? I am not poor or rich.

Well... There is an Upper Middle Class and a Lower Middle Class as well as a Middle Class so...

This means there is a Upper Poor Class and Lower Poor Class as well as a Poor Class to match.

I would classify myself as just below the line drawn for bottom of the Lower Middle Class so I am an Upper Poor Class person.

I say this because I don't believe that even a Lower Middle Class person needs to sell things, personal property, household items... etc. to pay bills while those in the bottom 3 Poor classes would need to do this.

I have needed to sell property and cut back on heating the house as well as finding cheaper alternatives to internet access and cable TV this past year. Just like tens of 1000's of others here in the US...

So, No, I do not believe I am in any of the Middle Class brackets...

[Usui Takumi 1,562]

I actually have money invested in Russian banks. I consider it part of my diversification strategy. It's not like anybody else is offering a guaranteed 10%. I consider the corruption risk to be less than the risk of investing in the stock market.

This argument works on an individual level. But when you consider that the same number of people aren't planning ahead, regardless of the economy, this argument is kind of weak.

You have these people who aren't planning for the future who say, "I would if I could but I can't." But we have data showing that, by in large, when they could they didn't. So I don't buy it.

Its still important to note. If I remember correctly the only strong years of the last decade were 2005, 2006, 2007. Wages were stagnant, energy/food inflation was up etc. There was a measurable decline in the American Standard of Living.

[Ali G. 37]

He went to Petco alone last Saturday and arrived home with a drinking fountain that costs $ 75 for our cat. I confronted him about that.

We have one of those, they're awesome.. I too purchased it.. Must be a male thing..

[Calypso 464]

OMG now I know why you intimidate me so much.... you're just like my wife!!

All other wives should be like us.

We have one of those, they're awesome.. I too purchased it.. Must be a male thing..

You, too? I am now growing kitty grass for that aqua garden.