Debunking US Retirement 'Crisis' Myths | Teresa Ghilarducci | TMR

Live-streamed on May 14, 2024
Teresa Ghilarducci, director of the Schwartz Center for Economic Policy Analysis (SCEPA) at The New School, discusses her recent book Work, Retire, Repeat: The Uncertainty of Retirement in the New Economy.
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www.economicpolicyresearch.org/
press.uchicago.edu/ucp/books/...
Teresa Ghilarducci, dives right into the recent report on Social Security trust’s longevity, and unpacking the myths of the US’ supposed “retirement crisis,” before exploring why the incredible low-end wage growth and robust employment of the post-2020 US economy has proven to be the best formula for funding any retirement system. Next, Ghilarducci steps back as she, Sam, and Emma walk through the primary issue facing Social Security’s funding: the $168k income cap. Teresa parses through how this cap cuts off vast quantities of income in the US from the reaches of Social Security, with folks like Elon Musk covering their yearly payment before January 1st is half over, the additional source of income of capital gains revenue that remains untouched by Social Security, and the minimal impact that eliminating either of these restrictions would have on economic activity.
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[@kevinmichael9482]

Unfortunately, corporate price gouging and rent (post-pandemic), i.e., inflation, has eaten into wage gains at the low end of the pay scale.

[@anthonymicciche821]

The amount of bots in this comment section is hysterical

[@EdT.-xt6yv]

WHO is Andrew Stella?

[@jacquesfrancois2033]

50% of the US population are bot adjacent, nothing we aren't used to

[@billybigwig1154]

Love the show. Left is best.

[@adammuschler3954]

Emma get a retirement account omg 😂 that that sent a shiver down my spine

[@nki5ikni5i45]

38:56 thanks MR for sharing this information.

[@robertduenez2063]

I’m glad that she acknowledged that current system isn’t perfect, but it’s not terrible either and we should be using it. I’m not 100% on everything she says but I do want to know more about her book.

[@dstevens518]

Absolutely love Dr. Ghilarducci's passion and dedicated lifework to improve/fix America's retirement system for everyone but the rich. One quibble with her point that ratio of workers to retired folks isn't important, but rather that "IF we had full employment and healthy wage increases for those 25-62 years of age, then we could afford a dignified retirement for the elderly". Uhm, that's a big IF, since America's not immune to business cycles, nor competitive global pressures from China, Europe, Japan, India, etc., or even big corporations preferring to pocket their profits or buy back stocks to enrich themselves via bonuses, rather than invest in new tech/machinery to boost productivity.. So yeah, if you're running at full capacity and high productivity, you're good, but how often is that going to be the case during the average 20-30 year retirement? Maybe 10% of the time?

[@loljk9443]

Pensions are invested in the stock market. Market success it’s important. Buying index funds is not gambling in the casino.

[@dpporlando]

Raise that CAP.

[@ugeofaltron5003]

Remember, folks: there is no evidence that personal financial choices have a significant factor in poverty. Multiple studies on income inequality and right wing economic policies have shown to be the main factors. Don't be so foolish to think that individual choices should be factored in as well; that's being disingenuous.

[@MarkAvo]

The just world fallacy that comes along with the myth of meritocracy… ugh

[@NotShowingOff]

I mean, to say that they don’t is being disingenuous. However, wage disparity is probably the biggest factor, since wages aren’t really guaranteed. To get appropriate social security, you have to work 35-40 years. However, I feel that if you are frugal for decades, you can make it to a stable retirement. But on the whole, you are correct. There is only so much an individual can do.

[@ugeofaltron5003]

There's nothing disingenuous about not factoring in personally financial choices when (A) you cannot put them in a datapoint, and (B) you can only conclude that the less money someone has equates to the less "choices" they can make. And any person's frugality is irrelevant, especially coming from me who only buys the necessities, works nearly everyday, and still lives in poverty. To give any leeway for bad faith actors whose only economic argument is "wElL tHeY mAdE a BaD cHoIcE" only downplays the effects of the failed policies they support.

[@MrDomputt]

“If the rich just paid a little more in taxes”

[@Mary-il6zz]

Gray divorce has not helped women or men in this country either. I hope this economist is able to influence our politicians to continue to fund Social Security. I understand that Republicans want to defund it.

[@patrickmclaughlin6202]

I would not have been able to help pay for my daughters college education if i wasn't able to make a loan against my 401k. And yes Emma, please start saving in a 401k. I started later but not too late, and was able have a nice retirement fund along with my SS.

[@skyrocketcoast219]

Best book ever on retirement:.The New Retirementality. Found the book age 52 & retired by 58 , because of that book!

[@noheroespublishing1907]

The Soviet Union had Full Employment as a part of their economy, they never had an issue funding Elderly Retirement because of that.

[@Greenlantern957]

They bankrupted

[@jg5032]

I am going to call BS on your assertion that means testing is bad. That is essentially the same logic as saying a progressive tax system is bad because hard working high income earners pay more tax. Means testing doesn't result in programs only for the poor, it means if you have substantial wealth you only get (and need) a more modest benefit. You should tax people as little as possible, but according to their ability to pay. This gets round the ludicrous situation where people are disincentivised to work with higher taxes to provide benefits to wealthier retirees.

[@cfaxman]

".....if you're lucky enough to have an employer with a 401k on offer...." LOL, C'mon SAM. Take care of yer peeps!

[@stvinney]

I swear to God Every single channel i subscribe to should title all of their videos "They fucked us" or "They're fucking us" or "They're gonna fuck us" Id say just change the names of the channels to that but it might get confusing

[@EvaSaavedra-jt7qx]

*Amazing video, you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires*

[@DaveSpencer18]

Waking up every 14th of each month to $210,000 it’s a blessing to I and my family… Big gratitude to Andrew Stella 🙌

[@ArmandoRosa-oj5lg]

Hello , I am very interested. As you know, there are tons of investments out there and without solid knowledge, I can't decide what is best. Can you explain further how you invest and earn?

[@LouisAntony-lx9lq]

YES!!! That's exactly her name (Andrew Louis Stella) so many people have recommended highly about her and am just starting with her 😊from Brisbane Australia🇦🇺

[@LawrenceCahill]

Hello how do you make such monthly?? I'm a born Christian and sometimes I feel so down 🤦‍♀️of myself because of low finance but I still believe in God

[@RobertHohn]

I'm favoured, $60K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America,, all thanks to Ms Louis Stella 😊🎉

[@user-kx4dp1ki8p]

Average American pays in $3k annually into SS. $3k/year compounded at 10% annually (historical return of S&P500) for 40 years is over $1.3 million. If invested in a money market paying 5% (current rates), you’d get over $50k/year in income and be a millionaire. Social security is robbing you blind.

[@NotShowingOff]

If Americans were guaranteed jobs for 40 years I’d agree. But if you look at 401ks, they aren’t that high on average, because ppl go though hardships in those 40 years and have to withdraw. The 401k system is in fact regressive as it benefits those who can afford to save and have generous employers.

[@dstevens518]

Bullshit. First, no one works 40 years in a row non-stop, they lose and change jobs 5-10 times in their working lives, so you're not going to end up with $1.3M. Second, you're not getting 10%, which is the HISTORICAL return. Haven't you heard the investment advisor's mantra "past returns are no guarantee of future returns?" That 10% happened due to globalization and the boomer generation growing up and consuming all over the world. Well, the next number of decades will see boomers growing old, consuming less, and dying. And most of the benefits of globalization have already happened. If anything, we're seeing globalization reversing as the pandemic and war in Ukraine show the dangers to supply chains and economies of relying on unreliable partners, so our global economic growth rate will shrink accodingly. So instead of 10%, let's say 5% growth for 40 years of $3K per year contribution, and you'll end up with $370k. And in 40 years, how much will $370k be worth after inflation? Definitely not enough to live off the rest of your life, it's hardly enough even TODAY. Social Security is NEEDED and a good deal for those that need it most. The reason you see messages otherwise, if cause folks making tons that don't need it don't want to help pay for it, duh.

[@shnuggumz]

I don’t entirely disagree with many of the points made here, however most Americans CHOOSE to live a life of credit card debt (non medical purchases) being the norm. Also, they don’t even save money for an emergency fund, let alone for retirement. Income inequality is real, however personal choices should be factored in too! Studying something (whether via personal effort, online, community college, university, trade school, etc.) that is in demand is largely a choice.

[@ccPaolo]

40 minutes video to say the solution is compounding interest 🤣 TOTAL REVELATION 🤣

[@Kyle496]

These comment bots are a perfect example of Google's enshittification. Also this whole video feels like a 401k ad and make you feel invested in these huge corporations so you'll cheer for their corruption cause that makes share prices go up.

[@diggysoze2897]

Huh? She explicitly called for raising the cap on SS. What part of this video left that impression on you?

[@coryluke12]

When a far-left channel says that it “debunked” anything, I can guarantee you that nothing was debunked. 😂

[@anthonymicciche821]

21:26 Or those people worked better jobs and succeeded

[@ugeofaltron5003]

Evidence? Or simply barking?

[@aryaastark9201]

​@@ugeofaltron5003 Barking