More than likely not due to their retirment savings in 401k accounts being pushed down. Anybody who has reached a certain status at a corperation after 20+ years of employment will take a few decades enjoying themselves at "The Top". You can't blame them. A person would be a fool not to hold on to a secure job and status. That is why more often than not incentive packages are brought forth to entice the demographic. Akuma
I think the boomers will work longer than previous generations. Many of the people that are financially able to retire will continue to work longer than in the past. The exception will likely be the government employees, who retire at roughly 55, despite the fact that they will live another 30-40 years.
A: The unemployment rate if far higher than 9.4%-10.%. More like 15% if not higher. B: The under-employment rate is near 20%. So, you add the two and do the math. Today's unemployment numbers are weak, period. Job growth is stale at best. Soon, those numbers will be trumpt by State and City lay offs near spring. 50% of the Unemployed are caught in Structual Unemployment. US Public Companies have no will power to create jobs in the US. Period. They are running at optimum speed, less employees more profits. "Since December 2009, the private sector has added 112,000 jobs per month, but most of those have been in government subsidized health care and social services, and temporary business services. Netting those out, core private sector jobs creation has been a paltry 58,000 per monthâthat comes to 18 per county as compared to more than 5000 job seekers per county" The above Quote from Bloomberg TV is a reality check for all the cheerleaders in the Stands. As I have said and continue to stand by....we are not even close to being out of the "Depression".
How are they going to be able to retire? Only government employees get defined benefit pensions. Those prudent enough to save up in 401ks saw them get wiped out in 2001, again in 2008, and have basically tread water for 10 years. Most Americans in their 50s have less than $100,000 saved up for their retirement, less than 10% of what is needed. The only certain thing is that inflation will wipe out what they have.
I just read today that 33% of homes in the U.S. are under water -- worth less than the loan balance. I wonder how many of those are repeatedly refinanced homes originally purchased in the 1970s. I've heard it said that people used the increasing value of their homes like ATMs during the boom, borrowing up against the ever increasing values. If true, then there goes those capital gains that should have been there.
The reason why unemployment is at 10% is..... 10% of people claiming to want to work AREN'T working. Notice that I didn't say aren't able to work. Likely breakdown of the 10%; 1% -- Qualified and diligently looking for work that matches their skill set. Will likely have to accept a drastic pay cut until things get better. 2% -- Under-qualified for any higher paying jobs but not really wanting to settle for $10/hr. 3% -- Claim to want work, but don't really put any effort into finding it, so in effect, they don't really want to. 4% -- Flat out not employable. Anyone hiring them is simply doing so out of charity. This is the portion of the workforce that I believe not to be worth the effort it takes to motivate them. They only find work during boom years because employers are scraping the bottom of the barrel.
you're forgetting there's a floor in the UE rate. the minimum unemployment rate is around 3%. it never goes below this, even if GDP is growing 10%. the reason is, there's always some people who are between jobs. maybe their company went bankrupt and it takes 1 week to find a new job. or perhaps someone got fed up and quit before even finding a new job, but they're confident they can find something soon. or maybe someone was an incompetent employee and was fired.