Why Working Longer Is Not A Retirement Solution

Influential labor economist Teresa Ghilarducci argues that working longer is not the solution to the retirement crisis. She explains why not and what is.
WEALTHTRACK episode 2044 broadcast on May 04, 2024
More info: wealthtrack.com/influential-l...
Bookshelf :
Work, Retire, Repeat: The Uncertainty of Retirement in the New Economy
amzn.to/44nREYI
Rescuing Retirement: A Plan to Guarantee Retirement Security for All Americans
amzn.to/3wgSIBe

[@MaxWell-pp9zs]

At 56, with health issues it meant early retirement and with little saved up, turning to investing became my lifeline. Now retired, at 58, with abt $3M saved, It's been a journey from uncertainty to security and peace.

[@MarjorieRyanJoy]

to be realistic, Luck plays a significant role more-so than the resources to thrive with investing. without it, it's very challenging to succeed, been there

[@MaxWell-pp9zs]

when its consistent, its not considered luck. I attribute this to research which was the challenging part before it led me to Emily Ava Milligan, a top fund manager, in turn she made 310k into this and counting

[@MarjorieRyanJoy]

I pasted her name into my browser, and her website popped right up. It became clear how popular her sessions were. Your example is rare, I wish I had it earlier. Thanks for the share

[@gbb82]

After a short stint in the military in my 20’s, I decided to return to the reserves after 9/11 at age 41. It was hard, and some people thought I was crazy. Stayed for 19 years and retired at age 60 with a military pension. Best decision I ever made; I will try to delay SS until age 67.

[@cliffdariff74]

Wish I knew I could got pension from reserves. I did 4 years in AirForce active. Thought had to be active to get pension. When did they start pensions from reserves ?

[@gbb82]

@@cliffdariff74 If you have 20 years of Reserve service, you qualify for a Reserve pension at age 60. The reserves for all branches uses a points system and the amount of your pension is calculated based on those points. The more days you spend on duty in the reserves, the more points you accumulate. The pension age can be further reduced by any time served in a combat zone, not to go below age 55.

[@ashleylittle4142]

@@cliffdariff74it has been in effect for a long time. The National Guard and Reserves have a retirement. You must complete 20 years in service. It is not as good as the full time retirement at the same pay-grade but it is not bad. You cannot draw it until age 60. You draw your full time pension once you reach 20 years. That is better for sure.

[@mooseandsquirrel6267]

So a 66 year old labor economist is telling us that working longer is not a retirement solution. Her solution involves accumulating savings and buying annuities. The insurance industry will get behind this plan for sure.

[@mellowtrinidad]

That's exactly what I was thinking.

[@charlie2222]

Well, if you want to call what she does "work"

[@MA-bo3cf]

Quotes from "Blackrock" stating that by 2034 Social Security won't be able to pay full benefits?! The author cowrote a book with a former Blackrock president. Who do you think would benefit most from privatizing Social Security? Blackrock and all the financial institutions that would love to risk and make money off of you dear savings. Social Security does not need rescuing, it needs to be protected from these fear mongering vultures.

[@Mitzi73]

We started to use Gen AI at my company. They are encouraging us to use it but I find that doing the work myself is easier. Everyone knows that whatever Gen AI spits out, you have to double check otherwise you are culpable. AI, for now, adds to the workload. On another note, if we had a better healthcare system in America, people can retire earlier. The healthcare issue is why people need to work until Medicare age.

[@chessdad182]

After studying Michael Jordan's and Babe Ruth's work history, I decided to retire while on top, not getting booted out the door! LOL.

[@davidbrooks8809]

😊😅

[@Justmyopinion81]

I've known several people who relied mostly on SS for retirement. They had food, shelter, transportation and not much else. They were able to live and not do much extra. They had their basic needs met.

[@cablaze1]

And more than likely lived in a LCOL or VLCOL areas

[@mohammedsharif2651]

Such an informative interview/discussion 👏. Love watching smart, intelligent, articulate and elegant people inform us on such an important topic. Thank you. 🙏

[@apophisxo4480]

Just wondering if you could put together a goal for most prospective retirees that includes not just target date funds, but pensions, annuities, social security, stock portfolios, real estate/ rental properties, long term care insurance, strategies for holding on to your assets (home) while still utilizing government programs, etc...Also, as mentioned in the video when is the optimal time to draw on SS. Sounds like 70 for the most dollars, but does the sociology support this. 70 the maximum benefit in terms of dollar amount, but it also misses some of the most active years....Maybe just thoughts on a coordinated plan (to supplement/ confirm/ reinforce) what a financial advisor might tell you for a fee. 401K's and IRA's wont be enough, and I see a catastrophe for most people in the distance. Even people with millions may be bleed to death by long term care costs for loved ones. As for annuities, I just don't get it. I can invest funds and get a better return while paying less fees. What are the advantages of annuities? It seems to me that with a $1,000,000 portfolio you can just put the money in a CD, or bond and collect the interest, which can supplement other sources of income.

[@dacianbonta2840]

work till you expire is definitely a solution. not a palatable one; not a smart one. solution nonetheless.

[@HotgyalB]

I believe what this guest lady is saying. Yes, it’s true we are living longer, but not necessarily healthier. Look how quickly the big C killed off so many people & older ppl cannot keep up with all this new technology that is going on & that is required. A lot of young people today has gone pass multi tasking!! Too much on the brain.

[@smartnfinal]

great show. thank you. i have in the last few years moved half of my 401k to target funds and half to long term CD . i enjoy my work and have a grandfathered pension and portable pension plan . thank you for shows like this to give me insight and direction as to how to keep more of my earned dollars

[@riverat7558]

Retirement crisis. Housing crisis. Inflation crisis. Is everything in effing crisis now?

[@davidbrooks8809]

Doom and Gloom I hope the world doesn't end tomorrow😂😮😅😊

[@deannahouston8801]

Wow, someone is paying attention to the majority of us baby boomers! Thank you.

[@scipioafricanus4875]

Thanks!

[@halojones1843]

In Australia its called superannuation.

[@davidduffy2046]

Get more help from employers? Good luck on that one

[@smartnfinal]

some employers do try to provide good benefits in the past with government write off incentive but as those incentives have gone away. business have less incentives to provide good retirement plans.

[@davidduffy2046]

@@smartnfinal Not many Most start figuring out how to get rid of employees once they reach 50

[@cablaze1]

This woman is spot on in her thoughts.

[@dacianbonta2840]

@1:35 really? compared to what? by how much? (6 months) and the doubling in productivity over the last 50 years cannot compensate for that? why?

[@StevenAbbott]

Coming from a Mormon family I will tell you retirement is not a thing. Family members work and contribute as long as they can. The primary thing is everyone has a work ethic.

[@randysuvada7537]

They should specify that this is an old broadcast since she talks about legislation that may be long acted on

[@isabelatticus4039]

Elon is Gen x. Not a Boomer.

[@scipioafricanus4875]

Great report interesting insights thanks

[@user-fk3jb6sd1d]

83M have nothiing. that's enough to block a highway

[@aaron159r2]

I am a social security participant on the contribution side (self employment payroll taxes). I am NOT a fan of the program. It needs to be trimmed, big time!

[@royprovins7037]

Dump as much money as you can into a 401K if you have one. Then buy a spia. Same as a pension.

[@smartnfinal]

how about putting money in roth IRA first

[@edwardhayes6111]

@@smartnfinal yes Unless you have a match with your 401k

[@davidbrooks8809]

H.S.A. is also king!!😊😂

[@repriser9876]

So you are proposing privatize social security deposit? And forced 401K (equivalent) savings out of their paycheck? It should have a mandatory base level and optional level on top of it. Government pension uses government funds tax so they don't care running behind. If they can balance there why can't they balance social security?

[@MA-bo3cf]

They don't want to save social security. They want to privatize it and make even more money off your savings. This interview could almost be considered propaganda for and by BlackRock.

[@frederickruderman2997]

I can’t recall the last time I found a wealth track so misleading. Typically I love the show. However, this lady has an agenda, she doesn’t want to even talk about the fact that there are many people who are able to work longer and therefore have a satisfying financial retirement. She doesn’t address the fact that there are people who have saved saved diligently. She’s ignores any positives

[@vasiliibogdan1291]

she is wrong at the very thesis - life expectancy did not change much over the past 50 years. The fact that to save to retirement - USA was always garbage with Canada, that's why you want to go to Germany and get your guaranteed pension at retirement . My brother's wife gets 2000 euro a month working as ave engineer in Germany, in Canada ave engineer get around 300 cad in usa similar. As a doctor in Germany my brother gets on top of his pay 6000 euro in pension a month. Also, as a major power USA is finished, this year 2024 is a massive recession of global proportions.

[@siedimani8770]

Very informative!

[@bucolic_frolic1284]

Great. The problem will be solved for the next generation, but not for the current crop.

[@repriser9876]

Good interview!!! Finally thinking about the 90%. Even though I am 10% I often think about the 90% will not keep a stable society if we don't take care of them.

[@jamesmorris913]

You should give more to charities which help the underprivileged.

[@repriser9876]

@@jamesmorris913In theory that is correct. In reality it is not. You never know where your charity spent the money. They are not for profit so any excessive they can pay out big to executives salary travel or bonus. Those are 10%

[@johnmerlino7011]

By design, inequality is expanding in America. Stock markets are bubbled primarily through ten top stocks and massive buybacks enabled by our legislation. In 1982 stock buybacks were illegal until that was reversed by congress. Passive 401k ETF inflows move into a few concentrated top tech stocks coupled with a $1 Trillion dollars of stock buybacks have pushed indexes up. Stock buybacks need a disincentive or limitation (through legislation). They enable the top corporate executive to extract the cream off the top after the stock buybacks increase stock values.

[@fern8580]

@john nothing to do with stock market, everything to see with the takers, with the taxers, with pension plan for political, municipal, school teachers, policeman, firefighter, all looters.civil servant looters sink the private system.

[@fredatlas4396]

Corporate greed, the companies expect to increase their profits year on year, is this really sustainable. Wealthier and the higher payed need to pay some more in taxes to fund public services

[@cinema104]

Finally, we hear the real facts. Thanks Consuelo for bringing this to the forefront.

[@gem3132]

Consuelo Mack is rooting for the big guys. Repugnant.

[@janesmith506]

This guest is a professor who has an agenda that she is not revealing.

[@eliza5960]

what is that agenda?

[@MA-bo3cf]

@@eliza5960 For one she has written a book with a former Blackrock executive. This firm would benefit from privatizing Social Security by claiming it can't be sustained. How often did you hear both host and guest claim Social Security can't be sustained as though it is a fact? It isn't a fact but will be if Blackrock and firms like it get their wish.

[@MA-bo3cf]

"The Myths of Social Security Crisis: Behind the Privatization Push"

[@Justmyopinion81]

Theresa always has a negative take on things!!! Perma bear!!!

[@DRAKENAP]

I'm favoured financially with Bitcoin ETFs, Thank you buddy $32,000 weekly profit regardless of how bad it gets on the economy.

[@blackfiree91]

Lol two old people talking about technology they don’t understand

[@smartnfinal]

blackfireee is clueless. i have more trust in the professionals here than your snide remark