top of page

American Retirement: Social-Security the New Endangered Species

The financial strength of the United States literally gets increasingly sketchy each year. Constant government mismanagement is making conditions worse with each passing day.


Social Security for the first time in modern history is being projected to become insolvent by 2035 to which there may be a reduction in benefits of up to 25% in benefits by some sources. Generation X, those who are between the ages of 43


Social Security
Social Security

and 58 have the largest wealth gap of any generation.


A new report from the National Institute on Retirement Security finds a dismal retirement outlook for Generation X, the first generation to enter the labor market following the shift from defined benefit pension plans to 401(k)-style defined contribution accounts.


When looking at median retirement savings levels for Generation X, the bottom half of earners have only a few thousand dollars saved for retirement, and the typical household has only $40,000 in retirement savings. Retirement savings for Generation X is highly concentrated among the highest earners, while Blacks and Hispanics have substantially lower savings and access to retirement plans as compared to whites.


The American Retirement System is quickly becoming "that" animal edging towards the endangered species list. What this means though is that Americans need to wake up and get off of the hamster wheel that is our current system. What we are being sold isn't adding up and those that are aware will take a step back, take a deep breath and look at this situation from a new lense.


What the American Focus Should Be


Contrary to some opinions there are always answers to every problem that exists. To solve this issue, we have to stop thinking in traditional manners and think outside the box. The foundations of retirement were set way back in the day and those foundations hold true even today. The formula we need to be working towards is simple, establish cash flow vehicles in several areas:


  • Pensions- utilizing pensions through business as well as establishing personal pensions. Modern day insurance products such as Index Universal Life products were actually designed for this very purpose. The banking industry had to lobby congress to regulate IUL's in the early days because of the mass exodus from highly taxed vehicles to these products that can provide cash flow legally tax free.

  • Business establishment- think on this manner, who says we have to retire? Revenue streams can be the reality for those who simply want to step back from business and not retire completely.


13 views0 comments
bottom of page