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If Deposit Confiscation Happened In The US, It Wouldn't Impact 57% Of Americans

Tyler Durden's picture


The average US worker remains concerned about their retirement even as the stock market reaches new all-time highs. The WSJ reports new data that shows the impact of stagnating wage growth and aging demographics is combining to squeeze individuals as a depressing 57% of Americans reported less than $25,000 in household savings and investments. On the bright side, the latest and greatest 'Cyprus' tax limit appears to be €20,000, or roughly the $25K threshold in the US, freeing those 'un'-wealthy citizens to keep their hard-earned private property.

On the dark side, 28% have no confidence they will have enough money to retire comfortably - the highest level in 23 years.

Americans are living longer and their extended life spans are putting additional strains of pension plans as the percentage of workers who have saved enough for retirement plunged to 66% (from 75% in 2009). What is perhaps more worrisome is the fact that when asked if they could come up with $2,000 for an unexpected need, only about half were sure as the paycheck-to-paycheck lifestyle persists.

Though older workers fret, it is the younger generation is of more concern given the current central bank policies: "they're never going to be able to create wealth, other than what our generation leaves them and what they do with it, they have more uncertainty than we have."



Via WSJ,

Workers and employers in the U.S. are bracing for a retirement crisis, even as the stock market sits near highs and the economy shows signs of improvement.




Fifty-seven percent of U.S. workers surveyed reported less than $25,000 in total household savings and investments excluding their homes, according to a report to be released Tuesday by the Employee Benefit Research Institute. Only 49% reported having so little money saved in 2008.


The survey also found that 28% of Americans have no confidence they will have enough money to retire comfortably—the highest level in the study's 23-year history.




While Americans are living longer, the extended life spans will make it tougher for workers trying to stretch retirement savings and put additional strains on pension plans.




The percentage of workers who have saved for retirement plunged to 66% from 75% in 2009, according to the Employee Benefit Research Institute survey.


Only about half of the 1,003 workers and 251 retirees surveyed said they were sure they could come up with $2,000 if an unexpected need were to arise in the next month.


"Workers are recognizing there is a crisis," said Alicia Munnell, director of the Boston College Center for Retirement Research. She noted that companies continue to do away with traditional pensions.




According to the society, a male who reaches age 65 in 2013 is expected to live an additional 20.5 years, up from 19.5 in the earlier projections. Women turning 65 this year are now expected to live an additional 22.7 years, up from 21.3.


Although the increases might seem small, Bruce Cadenhead, chief retirement actuary with Mercer, a consulting unit of Marsh & McLennan Cos., MMC -0.78% said they are the largest he has seen in more than 25 years.


"It represents a meaningful jump in liabilities," he said.




The effect of longer life spans on pension obligations has been dwarfed by the impact of declining interest rates over recent years. Because of the way pension obligations are calculated, lower interest rates means that future obligations are higher today.


But interest rates are likely to rise at some point, which will lessen pension obligations. That is less likely with longevity assumptions.


"Rates can go up," said Rama Variankaval, an executive director in the corporate finance advisory group of J.P. Morgan Chase JPM -1.03% & Co.'s investment bank. "Mortality is more of a one-way street."


... is more concerned about what the future holds for his children, a 51-year-old art director-turned-roadie and a 49-year-old third-grade teacher.


"They're never going to be able to create wealth, other than what our generation leaves them and what they do with it," he said. "They have more uncertainty than we have."


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Tue, 03/19/2013 - 10:06 | 3346736 sunnydays
sunnydays's picture

So they are going to confiscate the Retirement funds for U.S. bonds for the good of the people.  That way they get the money and it is not insured.

Tue, 03/19/2013 - 10:09 | 3346756 MillionDollarBonus_
MillionDollarBonus_'s picture

I think a levy is a good idea. It's just like tax. The government needs to raise money for its essential functions. Functions that we all agree cannot be provided voluntarily.

Tue, 03/19/2013 - 10:12 | 3346777 prains
prains's picture

or you could just pucker up and service the gov't yourself, a function you should gladly volunteer for

Tue, 03/19/2013 - 10:14 | 3346788 Pladizow
Pladizow's picture

SSSSSHHHHHH, be vewy vewy qwiet - Im hunting sheep!

Tue, 03/19/2013 - 10:46 | 3346881 hedgeless_horseman
hedgeless_horseman's picture



If you are not absolutely sure you...

...could come up with $2,000 if an unexpected need were to arise in the next month...

...but you have more than $2,000 per month in regular expenses, then you know you're a debt slave. 

If you do not want to be a debt slave your entire life:

  1. Cancel cable
  2. Cancel your cell phone
  3. Don't eat out
  4. Stop smoking and drinking
  5. Take public transportation, walk, or bike
  6. Work a second job

...until you do have $2,000 (90 days max), or be a debt slave and ward of the state.  It is your choice.



Tue, 03/19/2013 - 10:55 | 3347010 MiguelitoRaton
MiguelitoRaton's picture

So the 57% vote to steal from the 43% (mob rule after all is "fair"). The 43% decide to pull out their money in advance and bury it in the backyard...money velocity goes to 0 and we enter a new greater depression. People are so ignorant...

Tue, 03/19/2013 - 10:57 | 3347029 MiguelitoRaton
MiguelitoRaton's picture

I keep telling my friends that once they discover that taxing income is insufficient, they will tax wealth. Those that understand the difference simply refuse to believe it.

Tue, 03/19/2013 - 11:02 | 3347060 Muddy1
Muddy1's picture

"...It Wouldn't Impact 57% Of Americans",  and I'm supposed to feel good about this?????


Which 57% wouldn't pay, along with the 47% that don't pay taxes.  What a load of crap.

Tue, 03/19/2013 - 11:17 | 3347155 fourchan
fourchan's picture

The confiscation is happening right here to we the people right now.

the fed steals silently through inflation and it affects every single one of us.

frankly im suprised no zh'er has pointed this out yet. maybe its too obvious.

Tue, 03/19/2013 - 11:24 | 3347206 SilverRhino
SilverRhino's picture

The percentage of workers who have saved for retirement plunged to 66% from 75% in 2009, according to the Employee Benefit Research Institute survey.

Well points out that 9% of the workforce got tired of being 401k-fucked and cashed out.  


Tue, 03/19/2013 - 11:55 | 3347416 syntaxterror
syntaxterror's picture

Ben Bernake says inflation is only 1% sir.

Tue, 03/19/2013 - 10:58 | 3347037 Maos Dog
Maos Dog's picture

SToP DrinKing ?!?!?!??!?!?!?

Tue, 03/19/2013 - 11:14 | 3347120 GubbermintWorker
GubbermintWorker's picture


Tue, 03/19/2013 - 11:22 | 3347196 SilverRhino
SilverRhino's picture

Car and Housing are regular expenses and those EASILY got over 2,000 a month 


Tue, 03/19/2013 - 11:28 | 3347250 GubbermintWorker
GubbermintWorker's picture

Really? I'm retiring it less than two years and the house expense will be $725/m, incuding taxes and insurance. Both vehicles will be paid for but will require maintenance and fuel but no where near  $2,000 combined.

Tue, 03/19/2013 - 11:37 | 3347279 mirac
mirac's picture

Without smoking and drinking I would have to question whether life is worth living...sex is becoming work

Tue, 03/19/2013 - 13:53 | 3348307 caconhma
caconhma's picture

If a government takes away people checking and saving accounts and give it all to jewish bankers, how will people be able to pay their mortgages, loans or even their taxes?

I get it. It will be a slave society. Then we will need a new Moses to get us out from America so Jews will have it all just for themselves. Then, who will work and feed them?


Tue, 03/19/2013 - 10:18 | 3346796 MillionDollarBonus_
MillionDollarBonus_'s picture

How about this: We levy every bank account at a FIXED rate of 4%, NO exceptions. All the money goes into a Federal Stability fund, managed by a committee apointed by our elected congressmen. The money will be invested in the economy as and when it is needed.

Tue, 03/19/2013 - 10:19 | 3346816 Dr. Engali
Dr. Engali's picture

Hopefully it is managed by people who know how to spell "appointed".

Tue, 03/19/2013 - 10:26 | 3346840 francis_sawyer
francis_sawyer's picture

But MDB... What if those 'elected congresspeople' didn't attend Ivy League schools? [&/or the electoral district was full of nerdy, pimply faced, doomer libertarians]?

Tue, 03/19/2013 - 10:20 | 3346817 Pladizow
Pladizow's picture

I dont think 4% will be high enough to support banker bonus'!

Tue, 03/19/2013 - 11:38 | 3347294 whotookmyalias
whotookmyalias's picture

It's not.  Why should we think that "this time it's different" and the Bankers will not continue to rob us blind?  Fool me once shame on you......

Tue, 03/19/2013 - 10:23 | 3346822 krispkritter
krispkritter's picture

We do that already via all the taxes we pay, to be managed by Congress.  How's that working out? Oh, it's fucked up so we need ANOTHER tax and committee? And when that one FAILS we'll need ANOTHER tax and committee?  I honestly hope this is your sarcastic side. I'd really like to say nobody can be this stupid, but I've talked to some of them that are still walking around this country, and then look at what's been elected to office, so yes, people can be this stupid....

Tue, 03/19/2013 - 10:53 | 3346999 McMolotov
McMolotov's picture

According to people like El Krugmano, we have a revenue problem, not a spending problem.

I think MDB is just messing with us here, but if you read the comments on a Krugman article, MDB would fit right in and be welcomed with open arms as a "deep thinker."

Tue, 03/19/2013 - 10:23 | 3346830 johnQpublic
johnQpublic's picture

if you could trust politicians with any sort of fund at all, then social security system wouldnt be broke...it would have trillions in assets

Tue, 03/19/2013 - 10:40 | 3346907 max2205
max2205's picture

Levy by another name..rising property taxes...you have to pay out of your checking account....no different

Tue, 03/19/2013 - 10:25 | 3346834 prains
prains's picture

I'm sure if you can hit a treble C on Bennies sphincter you'll get your way on that too

Tue, 03/19/2013 - 10:26 | 3346842 Clint Liquor
Clint Liquor's picture

How about this: 'We' continue to have the FED fund the Governments excesses by printing money and buying Treasuries.  That way, the low information voters will never figure out they are the one actually paying for it through devaluation of their currency.

Tue, 03/19/2013 - 10:26 | 3346845 camaro68ss
camaro68ss's picture

MDB, How are you so brain dead and willing to fork over your capital to a bunch of elected officials you don’t know? Do you not see how there running this country into the ground yet you still want to give them more money? You sir are FUBAR!  

Tue, 03/19/2013 - 11:15 | 3347130 GubbermintWorker
GubbermintWorker's picture

No, MDB is a troll. Sometimes a very effective troll.

Tue, 03/19/2013 - 13:25 | 3348136 ILLILLILLI
ILLILLILLI's picture

Yes, subtlety is the hallmark of an expert.

Tue, 03/19/2013 - 15:20 | 3348962 stacking12321
stacking12321's picture

see, the problem with this site is there are so many know-it-alls, who can't stand it when someone has an opinion different from theirs.

our great nation is struggling to pay its bills, and our elected officials haven't been able to come up with solutions.

new and fresh ideas like those MDB has come up with, should be welcomed, not ridiculed.


Tue, 03/19/2013 - 10:59 | 3347042 Telemakhos
Telemakhos's picture

Besides that 4% is probably too low, there's one glaring problem with your idea, MDB:

All the money goes into a Federal Stability fund, managed by a committee apointed by our elected congressmen.

It should be clear from Congress' oft-demonstrated intransigence that the legislature is not to be trusted with such an important responsibility as appointing a Federal Stability fund.  Who knows how long they'll stall such appointments, just to spite the executive?  No, clearly control over the Federal Stability fund should rest solely with the executive branch without any legislative interference.  Clearly, that's the only path to a more stable Union.

Tue, 03/19/2013 - 11:51 | 3347390 One of We
One of We's picture

WTF? 4% wouldn't cover the skim! "Managed by a committee...". LMFAO! Those fucking crooks we "elected" can piss away money faster than Chris Mattews can give Dear Leader a reach around. The solution is there is no solution because the rules are there are no rules. Cyprus, then New Zealand, soon Mainstreet USA for outright deposit removal......

Tue, 03/19/2013 - 11:54 | 3347411 GubbermintWorker
GubbermintWorker's picture

Go ahead, I no longer have any bank accounts.

Tue, 03/19/2013 - 14:26 | 3348556 House-of-Cards
House-of-Cards's picture


"Federal Stability Fund"....you mean like our Social Security Trust Fund? .... what a novel idea....except...Something tells me that putting politicians, money and trust together just doesn't work too well. 

Tue, 03/19/2013 - 17:04 | 3349503 theprofromdover
theprofromdover's picture

MDB special ""We levy every bank account at a FIXED rate of 4%, NO exceptions""

But mdb, there will have to be exceptions. The committee and the congressmen shirley can't be expected to pay up.

Why, that might make them poor, they have had to work very hard to turn that miserable salary into countless millions in their savings accounts.

Tue, 03/19/2013 - 10:12 | 3346778 Cognitive Dissonance
Cognitive Dissonance's picture

Dear government,

Please make me stop writing bad checks.



Ben Bernanke

Tue, 03/19/2013 - 10:29 | 3346854 Dr. Engali
Dr. Engali's picture

I think technically  Jacob Lew is writing the bad checks....the Bernank is kiting them for him.

Tue, 03/19/2013 - 10:33 | 3346875 madcows
madcows's picture

Is it check Kiting or Money Laundering.  I tend to think that the FED is playing the same role as HSBC did for the drug cartels... thus laundering.

Tue, 03/19/2013 - 10:13 | 3346779 SheepDog-One
SheepDog-One's picture

'Essential Functions'...that generally being keeping 400 pound baby mammas and their 5 illegitimate kids full of Cheese Doodles and Snacky Cakes and having a free computer phone!

Tue, 03/19/2013 - 10:18 | 3346810 Aguadulce
Aguadulce's picture

Grape drink will enter a huge bull market phase this year.

Tue, 03/19/2013 - 10:23 | 3346832 Ancona
Ancona's picture

Hey man, don't be fuckin' wit my joose!

Tue, 03/19/2013 - 10:25 | 3346839 Leopold B. Scotch
Leopold B. Scotch's picture

What, Me Worry?

Tue, 03/19/2013 - 11:12 | 3347115 MiguelitoRaton
MiguelitoRaton's picture

Grape drank will enter a huge bull market phase this year. Fixed it for you

Tue, 03/19/2013 - 15:55 | 3349185 marathonman
marathonman's picture

Beat me to it.

Tue, 03/19/2013 - 21:30 | 3350658 jumbo maverick
jumbo maverick's picture

Technically that demographic calls the grape drink and/or grape kool aid...


Tue, 03/19/2013 - 10:28 | 3346829 xtop23
xtop23's picture

"Rates can go up..."

Of course that means our debt service achieves escape velocity and we go Bill Paxton in Aliens.

"Game over, man! Game over! Now wtf are we supposed to do!? We're in some real deep shit now, man!"

Tue, 03/19/2013 - 10:29 | 3346858 McMolotov
McMolotov's picture

Yeah, how can rates ever possibly go up? They can't, at least not in a controlled manner that isn't forced on us. Bernanke has painted himself and all us into a corner.

Math hurts, America.

Tue, 03/19/2013 - 10:39 | 3346905 xtop23
xtop23's picture

Seriously. Bond implosion ... parabolic rate spike... frn's with ever increasing zeroes and Alfred E. Neuman on the face.......and then things get decidedly easier to project.

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