There is a good post post from the Dave Ramsey blog where he touches on several of the things i’m writing about. He lists them as 5 money problems we didn’t have 50 years ago. I think I can write up a small commentary on each one of these things because i’m doing extensive research into these areas for the book. For example, let’s take #1.
I love Dave, and respect his work, but my research has be come to some slightly different conclusions. Of specific note is the very first of the problems listed. I would say that the first problem we “didn’t have 50 years ago” is false but only as a matter of degrees.. Sorry, but 41% of workers being covered is still a major problem. If we are going to have retirement as a component of our society, then Retirement needs to be required by 100% of workers in ways that are beyond social security. For example, it would be wise to require a minimum 5-15% payroll deduction (with employer match) into a 401K account that can’t be touched unless there are extreme circumstances.
Sadly, Dave’s solution isn’t as realistic as I wish it was. Not when you have kids, student loans, mortgage payments, etc.. And yes, I do get that you have more to save if you have less debt, but in ’64 how many people had two working adults with all that’s required to support that (daycare, two vehicles, etc..)? How many people 50 years ago saved 15% of their after retirement dollars? In ’64 it was about 10%.. The best period was the boom of the mid 80’s and that only reached 12%.
Retirement is a huge issue, and one that every single person reading this needs to put some very serious thought into if you haven’t.