So just how does one live WITHOUT Social Security?Submitted by LibertyBaby on Sun, 01/27/2013 - 16:15
Originally published 2011-01-06 20:02:
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With all the energy now aimed at cutting Social Security (and not the Trillion Dollar Wars) by both political Parties (including Obama's own deficit commission), just how then is one supposed to live -- without Social Security?
Many jobs and occupations become unsustainable as you become older and older. People's physicial abilities and stamina simply diminish (through no fault of their own), and also the underlying technologies and skills required change and transform with time so rapidly that even well educated people can become de-facto obsolete in their jobs, and no longer marketable. And the stress level and exhaustion level for many jobs just aren't well suited for people that are in their 60s. Finally, its just a fact that health issues will make older people more frail, more vulnerable, and less effective than younger people. While there are some occupations that can be sustained into old age (successful book author, owning a successful business that's mostly run by others, etc.), many, many professions and occupations cannot be sustained. People simply need to retire, and they cannot just work until "they've fallen and can't get up" (and then how do the bills get paid?). Retirement is a necessity for most.
So to retire at the age of 65, you would need to create a yearly revenue stream for yourself that would support all of your expenses, and could last for up to 35 years.
So if you need $40,000-per-year to pay for all your housing/taxes/health-care/food/utilities/automobile/phone/internet/insurances/and other miscellaneous expenses, then this means one of two things:
1) You have savings of at least: $1,400,000.00 (40,000 * 35 years), and therefore can draw down $40,000 each and every year - until the point where you will eventually be totally broke then at age 100. Of course, if you live up to 100, or you have a major surgery or hospital procedure that Medicare won't cover, or you have some other unforseen expenses, then you're screwed anyway -- even with 1.5 million.
2) Your savings (however much that is) can be put into some investment that will predictably and safely generate back $40,000 a year, and also not lose its principal value. With interest rates at 0%-1% I don't know what the hell that would be -- such an investment simply does not exist.
So please tell me, how the heck do you retire without Social Security? This is just impossible for 95% of the population.
In today's times with the cost of living so damn high, people living from paycheck-to-paycheck, and Employers not giving raises, how does anyone possibly save up a whopping 1.5 Million dollars?
Most people can't even afford to buy one house (and those that do are borrowing virtually all the money).
And where oh where can you ever put your money and invest it in something -- such that it is not put at any risk, and can also generate back a steady $40K or so for paying all the bills over the course of the year?
There is no such investment. It doesn't exist.
So, for people who are not wealthy, what do you do without Social Security.
The vast majority of the people, are going to need it. But if there is some secret alternative investment strategy that I haven't heard about that will magically produce the scenarios of 1 or 2 (above) -- I'd sure like to know about it.