What's all this talk about pensions?

Taking a turn down the cul-de-sac called Retirement Drive recently, changed my focus from daily activities to thoughts about the future.  Having taken some turns in the past few years, that in all likelihood, when looking back, should have been handled differently, I started searching for solutions to my future plans. While I currently think my plans will work for me, I uncovered much information about which the average person might not be aware. Distracted by the smoke screens of the media such as the Coronavirus, presidential nominations, the stock market, or gas prices it is easy to lose focus. With 2 Billion people retiring over the next decade or so, many are in serious trouble and don't even realize it. The issue? Not enough savings for retirement, or less than expected.

According to the podcast put out by the Rich Dad, Poor Dad company, the median savings of people over 55 is only $60,000.00 and many retirees don't even have any savings.  With fees eating available pensions, and social security in peril, how will so many people sustain? As people age into retirement, they will be "too broke to retire and too frail to work". Furthermore, as life expectancies have increased what savings one has will then be stretched thinner and thinner. For example, take the average median savings divided by 20 years leaves $3000 a year or $250.00 a month.  As more people take from the social security pot than the number that contributes, the well runs dry. 

You say your pension is GUARANTEED?  What does that mean?  Does that mean the initial deposits are guaranteed?  Are all your deposits and interest guaranteed? Is your pension insured?  It is said the Pension Benefit Guarantee Corporation will be insolvent by 2025, just 5 years from now. So much for your guarantee!

How did we not see this?  Mis-information! Poor education! Illusion! Deception! The bottom line is we hear what we want to hear, not what we need to hear. Knowing this the perpetrators of these financial schemes focused on the benefits while hiding the truth.  Your money, at least in part was loaned to others who were charged interest.  Sound familiar?  As we saw in the housing market alignment in 2008, many of the lendees could not pay the money back causing rippling effects in the financial community.  Will this happen again?  Many truly informed believe the next time will make the depression, and the 2008 recession look insignificant by comparison.

So, is there no hope for the widow's son? First, of course, take the time to educate yourself about money and secure investments. Take control of your money.  Learn how to reduce spending you have control of, such as taxes.  Did you know that the government gives you incentives to reduce your taxes?  Tax refunds are not your friend! Then, change your investment vehicles to reflect realistic savings as opposed to hyper-inflated unreliable results and lower your taxes to keep more of your money. Lastly, study your investment yourself.  Do not rely on someone else's interpretation and be aware of financial deception.