This page has been archived and commenting is disabled.
More Bad News For Millennials, Who Face "Great Depression" In Retirement
Americans in their 20s and 30s are facing a retirement crisis that could plunge them back into the Great Depression, Blackstone President and COO Tony James said Wednesday. Appearing on CNBC's Squawk Box, James exclaimed "Social Security alone cannot provide enough for these people to retain their standard of living in retirement, and if we don't do something, we're going to have tens of millions of poor people and poverty rates not seen since the Great Depression." According to James, the solution is simple - government-imposed mandatory savings through a Guaranteed Retirement Account which employers are mandated to match (whose assets would be managed by?).
Blackstone COO James explains...
As CNBC details, the solution is to help young people save more by mandating savings through a Guaranteed Retirement Account system, he said.
Right now, young people cannot save enough on their own because they face stagnant incomes and heavy student-debt burdens.
The Guaranteed Retirement Account was proposed by labor economist Teresa Ghilarducci in 2007 as a solution to the problem of retirement shortfalls that inevitably arise when contributions are voluntary.
A GSA system would require workers to make recurring retirement contributions, which would be deducted from paychecks. Employers would be mandated to match the contribution, and the federal government would administer the plan through the Social Security Administration.
Ghilarducci has proposed a mandatory 5 percent contribution, but James said a 3 percent requirement rolled into GRAs could outperform retirement savings vehicles like IRAs and 401(k)s.
He noted that a 401(k) typically earns 3 to 4 percent, while a pension plan yields 7 to 8 percent. The average American pension plan has a 25 percent allocation to alternative investments — including real estate, private equity and hedge funds — with the remainder invested in markets, he said.
"The trick is to have these accounts invested like pension plans, so the money compounds over decades at 7 to 8 percent, not at 3 to 4," he said.
A 25-year-old who earns 3 to 4 percent per year would retire with $75,000, not nearly enough to annuitize and live on, James said. A 7-percent-per-year investment would yield $200,000 at retirement, he said.
Under the plan James is proposing, the government would offer a 2 percent guarantee on GRAs.
"The key to it is taking that capital, setting up the Guaranteed Retirement Accounts and investing it well for the very long term," he said. "We have to do that and we have to do that professionally."
And of course, who will that "professional" be? Why we assume Blackstone of course... And of course, with cash being banned by the time they retire, spending from a government-mandated savings account will be entirely free of oversight, we are sure.
Except, 2 things - Millennials don't trust financial service providers OR The Government...
While Blackstone claims Millennials will retire into a Great Depression without his and the government's help, it is student loans that are Millennials' biggest concerns...
»
- 37200 reads
- Printer-friendly version
- Send to friend
- advertisements -
Hopefully judge John Roberts ensures it remains in place, in case any of those greedy tea party people want to challenge it.
-A Concerned Statist
Oh good mandatory retirement savings. Then they will be able to tell you when (if) you can retire. And probably tax your retirement savings when you die as estate tax.
Its really no wonder millenials distrust gov. People putting this brainchild together are basically saying millenials arent smart enough to think for themselves and need mandatory programs to save them from themselves.
This Blackstone guy is a complete fucktard. He really expects a group of people that will witness Social Security fail, pay into Social Security AND a new version of Social Security???
Social security will never fail. And this is why. The federal ACT created a TAXABLE PRIVILEGE. Look at your paychecks withholding taxes. These are excise or privilege taxes based on your VOLUNTARY application and participation makinking you entitled for what the courts of law and equity would classify as extraordinay protections paid for with money from the public treasury. YOU have no liberty or property (contract) rights in public money. A statuatory right (privilege) that can be modified or taken away at the will of the legislative body that created it.
Void the SS Act and ALL the excises imposed under its umbrella VANISH. This includes ALL so called State income taxes indirectly imposed on the WAGE. The term INCOME would revert to that which has been circumscribed by the courts.
THE CLINTON HOUSEHOLD WILL ACT IN OUR BEHALF AGAIN:
After the Repubs handed Cunt Clinton the nomination and presidency with the Benghazi farce yesterday, we can look forward to some more Clinton household magic.
- Bill gave us NAFTA, the end of Glass-Steagall, and the deregulation of derivatives.
- Hillary is also an agent of Wall Street/.01-1%. Whatever happens, it blows my mind that two individuals totally lacking in character and with psychopathic tendencies will occupy the White House for up to 16 years.
- If one steps back and simply contemplates that from afar, it is truly astonishing.
- Between the FED and Clinton - the power of the financial industry and the .01-1% has been solidified. You think we've been stomped on so far, just wait..................
{{{ something along the lines of this Blackstone situation is a preview. Forced directing of even a pittance of any earnings towards the financial industry is the goal. The better the economy, the more that rolls in. The worse the economy, offset the fewer contributions by goosing the stock market to squeeze more out of what you already have. A so-called "all-weather" fund. }}}
"the solution is simple - government-imposed mandatory savings through a Guaranteed Retirement Account which employers are mandated to match"...so Social Security II....Makes sense, the first ones insolvent and there is nothing guaranteed about it. Another tax grab to save a ship that's already sunk. when the taxation on the citizenry becomes so onerous and extreme, the system crashes
Wait, mandatory savings matched by employers? Didn't they just describe what everyone THOUGHT Social Security WAS 70 years ago?
That plan only works if everyone is EMPLOYED, moron...
duh, duh, duh...
Go back and work on that plan some more, you muttering, stuttering fuck...
God, these people are unbelievably stupid. It's sad, really.
Hilarious! The new Social Security Scam wherein the government can mandate that most or all funds go into Treasuries to keep the sheeple's retirement "safe".
What a bunch of crap.
We are near a currency crisis NOW...not 30-40 years from now.
Fiscally Social Security is in deficit NOW...not 30-40 years from now.
Millenials will have some time to determine how to handle their elder years. They may want to re-consider the concept of 'retirement'. Perhaps a better answer is to aim for lower stress work. Who has shown that idleness was good for you in your later years, anyway?
It is not the Millenials who are screwed for retirement...but the Baby Boomers who recycled all funds available for their retirement into government-current-account boondoggles and socialist non-sense. To be fair, they had little choice in the matter, as all of it was an inevitable consequence of a constantly inflating debt-based monetary system. But to the degree they've cheered it and advocated it their entire lives, as a group they don't deserve a lot of sympathy. The Welfare State has been the Baby Boomer's standard solution to every problem - not every Baby-Boomer, of course, but overwhelming numbers of them. To that extent, the bed they will lie in is of their own making.
The GEN X-ers paid everything in that the Baby Boomers did...but at gunpoint, without enthusiasm or belief. It was they who took the biggest wealth hit in the increasingly bubblicious economy of the last 20 years...having lost on average HALF OF EVERYTHING....ON AVERAGE!!!! They know they will get nothing. Such is life.
If the GEN-X-ers and Millenials fail to tell Tony James and those like him to take a swim with lead boots, or buzz off, and instead cheer Uncle Gun-verment under the theory that wealth multiplies during round trips through the many greedy hands of Washington...then they too will deserve what they get. Just like the Baby Boomers.
Baby Boomers... It isn't going to continue long enough for you to exit unscathed by the legacy of your policies.
And this fucking clueless dipshit is a COO
If you like your retirement savings you can keep your retirement savings.
Since the current government mandated retirement tax has been raided by the politicins and is now insolvent, we should have a second government mandated retirement tax to solve the problem. What could go wrong?
Since the current government mandated retirement tax has been raided by the politicins and is now insolvent, we should have a second government mandated retirement tax to solve the problem. What could go wrong?
I wonder who is going to sell the "retirement" instruments that the .gov mandates (John Roberts will undoubtedly approve)? Oh this guy?
Of course John Roberts will approve, they (financial mafia) have dirt on him.
Retirement? You're assuming most millenials will try to get a real job in the first place. Why move out of mommy and daddy's basement when you don't have to?
This is Social Security 2.0, but instead of the assets going into a government "lock box", the assets go to "honest Abe" Wall Street firms such as Blackstone or Goldman Sachs.
Create a lost generation encumbered by economic depression, debt and servitude and then fix it for them by skimming off what little extra money they might have and putting it into a government sponsored crony capitalist Ponzi scheme...sad.
Translation:
Govt. screwed you out of your SS money so now it's our turn to do the same.
And who will guarantee the guarantee?
Millennials have rejected Christianity as the foundation of their values, embraced political correctness, support radical feminism, abortion, affirmative action, recreational drug use, the "LGBT community" and everything else evil and sick. Millennials DESERVE to retire at 75 (or even later). The lousy economy we baby boomers are leaving the millennials is our way of getting revenge on them. This baby boomer will be laughing at them all the way.
Old guy here, baby boomer. Compulsory pension enrollment is nothing new and I got signed up for similar in UK when I was 21. I was absolutely fucking livid for all the reasons already posted in here. You know though if I hadn't been forced into it then I would have done that money instead on hookers and blow. People mostly won't save for their future unless you make them.