[OPE-L:8685] Re: RE: retirement and the working class

From: glevy@pratt.edu
Date: Fri Mar 28 2003 - 12:06:51 EST

Re [8684]:

> A million bucks would probably yield about $70,000 in income per year,
> which  would be supplemented by another $20,000 or so of social
> security. Since most  WORKING people don't bring in that kind of money,
> you've gotta wonder what's  behind the estimate. The million dollar
> figure presumes a fairly affluent  lifestyle: that's what you'd need to
> live like a middle-manager or a  university professor after you stop
> working. Astonishing how the whole "what  you need for retirement"
> discourse operates on the assumption that no income  groups below that
> level exist or matter.

Hi Gary.

I agree with some of the points that you make above, but:

a) the claim that $1 million can be expected to yield $70K/yr
interest assumes that the rate of interest on savings or the
rate of return on investments will increase to a much greater
extent than current rates;

b) the claim of $20K/yr in social security benefits over-estimates,
I think, the amount of SS/yr that can be expected to be received
by most working people.  There is, of course, a further issue for
younger workers: will SS exist at all by the time they had planned
to retire or will it be cut to such an extent that the retirement
age will have been effectively raised?

In solidarity, Jerry

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