Fed Chair Jerome Powell is Concerned Over the Rapid Rise in Retirements
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31 comments on Fed Chair Jerome Powell is Concerned Over the Rapid Rise in Retirements
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31 Comments
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2 years ago
Why go to work when you get punished for working and putting in the bank? Inlaw 72 retired broke never worked ,lives in a new retirement building, food delivered to her suite, has home cleaned by building maintenance. Hard working relative 89 live at old paid off home, hard time paying utility and tax bills, shops for bargains and strugles to to maintain house. 2021moral RETIRE BROKE FOR A BETTER WORRY FREE LIFE
2 years ago
I suspect a good percentage of the retirements are based on people using their primary (and in most cases, their only) home as an ATM.
2 years ago
When you have to work hard for a couple thousand dollars per month and you see the orgy of trillions being printed by the government, one has to eventually ask themselves, what is the point?
2 years ago
Let’s say your 55 years old and in good health.
In my opinion you’re not old but you’re not young either.
The question you have to ask yourself is how many quality years do you have left and when will you pass away? You can’t answer them because nobody knows when it will happen.
If you can retire at 55 I would do it because you never know what will happen to your health tomorrow.
Life is to short and I have not read an obituary yet where a person said they wished they would have worked more.
2 years ago
I am eager to see your follow-up post for the whole picture.
2 years ago
Isn’t it because they still have worries about the virus and, different to other recessions, juiced up asset prices makes it an easier financial decision? Very different to, say, the post GFC recovery when assets took years to hit new all time highs..
2 years ago
“Fed Chair Jerome Powell is Concerned Over the Rapid Rise in Retirements”
Maybe governments shouldn’t have shut their economies down. Maybe the FDA shouldn’t have blocked HCQ and Ivermectin, for a vaccine agenda. It certainly has created a lot of distortions.
2 years ago
Government will open the borders/loosen immigration restrictions. Massachusetts did this due to flight from the state. For the first time in decades we didn’t lose a seat in congress. Of course we also ended up with the highest increase in welfare in the nation.
2 years ago
Haven’t people been retiring starting at around age 60 for decades? Why is this a bigger problem now than in the past? Could it be that retirees stop paying into the system and start collecting from the system and our economy is only staying afloat with massive constant stimulus from the FED? It can’t handle any more strain.
2 years ago
It’s fine if you retire at 60 if you plan to die by 65-70.
The system was never designed for people to live decades in retirement which is what is happening now. My own parents have been retired for 25 years now and are in their early 80’s and fairly healthy so could easily live another 10 years. If they do, they will have lived roughly as long in retirement as they did in their working life.
2 years ago
I have been retired for over 15 years. I was pushed into early retirement by my last employer and I decided that I had enough savings and that I did not have to go back to work. Although it is illegal for employers to discriminate against older workers (over 40) based on age, it is not difficult for them to get around these rules. In my case, my job was moved to another city and I took the buyout without creating a fuss. Employers have an incentive to get rid of older workers because of the high cost of medical insurance for such employees.
2 years ago
My parents are 97 years old. At 65 my father retired, played intensive golf for two years and then started his own company from scratch and worked there every workday till he was 91. He was definitely not a drag on the economy. There are many who retire and end up still working for years afterward because they like it or like the extra income and so forth. It’s a growing segment of the population I hear. How do they count in the statistics I do not know.
2 years ago
“Haven’t people been retiring starting at around age 60 for decades? Why is this a bigger problem now than in the past?”
-This is a bigger problem than in the past because retirees are slowly becoming a larger % of the population and this is expected to continue until 2060 when 25% of the US population will 65+.
-12,000 Baby boomer Americans retiring every single day, 1000 Canadians retiring every single day.
-Social Security insolvency likely in 8-14 years. Those receiving social security to expect possibly 30%+ reduction in benefits, increased taxes, etc.
-Changes are coming to Social security one way or another.
-In Canada, Canadians have been paying increasing premiums and Canadian social security is projected solvent for 75 years as compared to 8 years or so for Americans.
“It is well past the time for Congress to address Social Security’s financing problem, which it last did nearly 40 years ago with a link to fas.org of tax increases and benefit reductions”
link to thehill.com
2 years ago
Hell yeah, the Fed is concerned with numbers of people retiring. They thought their methodology would prevent anyone not in the top 10% from being able to retire at any time without living in poverty and squalor for the rest of their lives. E.g. spin the hamster wheel until death at the beck and call of their masters.
2 years ago
Been noticing that the recruiter contacts I get for tech director positions are offering some rather eye-watering salaries in the very first email. Up until this year, salary info was really hard to get. Unfortunately, thus far they’ve been office-only in urban areas, so I haven’t pursued, but it does make me feel loved.
2 years ago
I’ve seen the same.
I’ve also seen some offering work from home even if you live in another state.
2 years ago
i just moved 50% of my 401k from cash to s&p500. if it triples, i’ll feel comfortable calling it a day. when do you guys think the s&p500 hits 12000?
2 years ago
Today marks the 4th day of the DXY making a near flat-line sideways move…..but examined closely, it is making higher highs and higher lows . Metals have made a tepid bounce this morning, but nothing to get very excited about.
I closed my SLV trade at a 3,7% loss. I simply have no wish to be exposed until the dollar decides which way it wants to go.
2 years ago
I’m still down about 4% on OUNZ, and I think I’ll hang on as a hedge against the deflation of my cash.
2 years ago
Gold is a better hedge for deflation than inflation. And deflation has to get pretty bad before it really shines.
I try not to let my trades morph into “investments” because they’re losing….my trade has not worked out, and the forces I was counting on to make it work out……did not pan out. Metals might go up, but I’m not confident they will, over the next week or two.
The juice seems to be back in equites since the Fed announcement and associated jawboning. I’m not interested in equities, and nothing else looks great to me…..except the RE I already own. Prices for single family homes here are still going exponential for the moment. My net worth continues to go up a few hundred thousand bucks a month. Crazy, and who knows when it will turn? Does it feel like a top to me? Damn right it does,
I’ve had several things that have put a hickey in my cash flow this year. Two hail damaged roofs that the insurance company failed to pay enough to fix….and now a tree down last week that has to be removed. It damaged two neighboring fences and a garden shed in a neighboring yard….could have been worse, but still not cheap. I have a minor fence repair on another house…..minor repairs always start around $1500 these days, it seems like.
If I were smart I’d retire and sell my house and most of my investments. It’s just a tough decision, and irreversible once the decision is made.
2 years ago
Feels like the house market is turning… at least compared to a couple months ago. If I had investment houses, I’d probably be looking at selling now.
…and if I could retire now, I would. Sort of. I’d still be doing the same kind of work, just on projects of my own. I watched my dad work to 62 and die at 69. You never know if you’re gonna get gypped that way.
2 years ago
It would be a mistake to sell now. Things are going much higher. Private equity doesn’t buy houses for a quick flip. They are in it for the long haul. They know that at least for now house prices are headed only one way — up.
2 years ago
They know they can’t get yield anywhere else, but I don’t think they know anything about what prices will do. Besides, if they lose the money they have, the government will give them more, so why not?
2 years ago
My guess is that Powell will think about this, buy some more assets to drive up asset prices even more, and then……retire himself, and leave the mess to the next Fed Chairman.
Hey, it worked for Bernanke and Yellen.
2 years ago
Powell is concerned about the rapid rise in retirements but he isn’t concerned about financial repression(interest earnings below even his massaged PCE inflation measurement) and stoking inflation. These policies absolutely butcher the senior population.
2 years ago
not at all. most people retiring are celebrating the meteoric rise in their stock portfolios which they attribute to their smart choice of taking a risk and betting on capitalism.
2 years ago
Wasn’t capitalism that got them their stock winnings… it was corporate socialism. Without those government trillions splashing around, a lot fewer of them would be retiring.
2 years ago
Then this is deflationary. This lends me to believe that some portion of the inflationary price increases will stick, but rest will come back to earth. As to when, No clue. Maybe 12 months? Maybe Fed is trying to get ahead of deflation by ramping up inflation? I don’t think a little deflation is bad, but as with most things, too much of a good thing is no good lol
2 years ago
if stocks keep going up, then we have a perpetual motion machine of sorts because those retiring are doing so because they feel comfortable with their portfolios and will continue to spend as long as the markets keep going up.
2 years ago
Maybe… maybe not. Looks like it will drive up wages, meaning more proletarian dollars chasing the stuff proles buy.
Probably good news if you’re in the market for a penthouse or megayacht though.
2 years ago
The last time a major baby boon retired was back in the mid to late 1970’s. I don’t recall that it caused deflation.