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Worrying about retirement at 25

By Jennie L. Phipps · Bankrate.com
Wednesday, August 4, 2010
Posted: 2 pm ET

Young adults are already concerned about not having enough money to retire.

When I was 25 years old, I was way too busy thinking about beer and boys to worry about retiring. But the world and retirement planning have apparently changed.

The Canadian-based market research firm Ipsos.com, found that 46 percent of young adults between the ages of 25 and 34 are already concerned about not having enough money to retire. Some 37 percent think it is unlikely that they will ever be able to cover basic monthly expenses in retirement.

My husband and I used to laugh about retiring to a cheap acre of land and living in a double-wide with a garden and a few chickens. In these tough financial times, that doesn't sound like such a bad idea, so probably the young people who responded to this poll and don't think that a trailer and poultry sound appealing are correct in being concerned about their ability to put together a real retirement plan.

In 2006, there were 7.2 people between the ages of 18 and 65 for every person older than 65. By 2030, that ratio will drop to 3.7, according to the U.S. Census Bureau. This year, boomers constitute 27 percent of the U.S. population and 47 percent of all U.S. households. As they grow increasingly dependent on Social Security and Medicare, there will be more people drawing from these systems and fewer people contributing to them.

That's the bad news. The good news is that if you're 25 years old, you've got 40 or 50 years to figure this out. By that time, most of us boomers are going to be in a plot much smaller than an acre.

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2 Comments
End the Ponzi scheme
August 05, 2010 at 8:54 am

Yes the boomers will be in smaller plots, but they will have taxed those same 25 year olds to death as well. The 25 year olds are right to be concerned about having anything left after paying off the enormous Social Insecurity debt, 2.5 trillion at the end of last March. Where is this money? It's all "invested" in US Government debt. Where does the money come from to pay this debt back? That's right those 25 year olds who need to learn to live on probably 25% of what they make, since that about what they will have to live on after SSA decides to cash their bonds in and they are taxed into oblivion. Or crank up the printing presses and print our way out. Any way you look at it, those of us under 40 are going to get soaked.

Those of us under 40 have figured it out. We want out of the system. Let me take care of myself, I'll take nothing from the SSA system, in exchange for not paying another dime to keep the Ponzi scheme afloat. Hey you can even keep what has already been taken. Never going to happen, but the beast has morphed into something it was never intended to be, a primary retirement plan. The trust fund is already empty, as the taxpayers that are already carrying 50% of the population that pay nothing in income tax, will also have to pay for the retirements of those same 50% too.

It almost doesn't seem profitable to be prudent in investing, planning, or deferring things to the future.