5.06.2013

401s and old workers

A good rant from Gin and Tacos today.

BUT IT'S CHEAPER, RIGHT? | Gin and Tacos:

401's just don't work as a person's only retirement plan. They can be a piece of you retirement stash but most people won't save enough or will dip into it for some emergency cash so they just won't have enough to cover retirement. Also, there have two large hits to most 401s in the last 15 years so people probably are postponing retirement so their 401 can recover but I see many old workers hanging on for "The Insurance".

I'm lucky to be working in an industry that still pays pretty well and has defined pension plans (for now) but there are still many people working way past their prime. The main excuse for non-retirement is that they can't afford insurance while they wait for medicare to kick in. These people have the cash to retire. Many would have an annual income from their pension far in excess of the average worker's working wage but they just can't bring themselves to pay for medical insurance that the company has paid for them all these years.

Medicare for all,... good quality, pay-everything Medicare, would lead to a mass exodus of the 55 and above crowd from our workforce.

tnb

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