Dear FRONTLINE,
As a Generation X (born in 68), I'm actually disgusted by the failure of the retirement programs (Pensions; 401K or Social Security).
Since the reduction in population, it is clear that Generation X, Y and Z will have to bail out the Baby Boomers through higher taxes and increased working hours. I worry that this can't really happen due to other "bills" such as the Iraq War and the trade deficit.
Pamela Coin
Detroit, Michigan
Dear FRONTLINE,
Dear Frontline: While watching this show I noted that there were numerous mentions regarding companies offering 401K plans and employees not contributing enough, but there was no mention of companies offering 401K plans and employees not being able to contribute a dime towards their retirement. This is not because they are frivilous, materialistic, or periodically employed but it is instead because these people are "just trying to get by". After utility bills, house and insurance payments, property taxes, grocery money, medical expenses, and the fundamental cost of raising children for eighteen plus years are factored into a household income of two working adults, there often isn't any money left to contribute to anything. Let alone a retirement fund. And many of these people are also now facing the reality that Social Security benefits simply won't be an option for them in their retirement years. I think the next question we should ask after asking how the baby boomers are going to survive their retirement years on limited retirement funds, is how are their children going to survive on no retirement funds?
Jennifer Lewis
Hamilton, IN
Dear FRONTLINE,
Copies of last night's retirement program should be shown widely, especially in high schools, colleges and universities.on your insightful and disturbing piece on retirement.
This issue goes far beyond political persuasions. It is about justice and morality. Corporate, legal and political influences today are increasing making it okay to deprive workers of the fruits of their labors while rewarding banks, legal firms and acquiesing office holders, who tend to put their needs above most of their constituents.
Whatever your political persuasion, all of us must understand in our heads and guts that there is no such thing as a "comfortable retirement" for most workers. The one guarantee is that special interests will continue to use "global competition" as an excuse to tamper with corporate pension responsibilities to the detriment of retiring workers and all taxpayers.
I've been a metro news reporter a and university j-prof, and many things since, but I gained renewed hope for the news business after seeing Hedrick Smith's fine piece.
James Schwartz
Altoona, WI
Dear FRONTLINE,
401(k)'s are the save all?
What if you are limited by your company to buying its stock? And that stock takes a beating? You have lost your nest egg and no one cares. How many of these have we seen? What a shame.
Underhanded companies that slash benefits should be regulated harshly and penalized to the max. Executives should get the same as all employees. Shame on them when they benefit from loses of so many dedicated employees.
Frank Kammerer
Ft. Thomas, KY
Dear FRONTLINE,
I thought a Frontline report on retirement might be safe to watch. Unfortunately it was the same old Frontline. It's all the evil corporations fault. One point (of many): Yes the old defined benefit plan was great, but only for those few who stayed with one company for a long period of time. A typical plan provided for 2% for every year of service based on the final five years average earnings. Furthermore, it didn't vest for the first ten years. A great plan for the small minorityof today's workers that stay with one company until retirement. For young people and those who change jobs a few times during their career it was terrible. One of the many advantages of the typical 401K plan is that it is portable. Another is that it isabout the only way a middle class household can build wealth.
Also, I got a good laugh when Mr. Smith made the point (in the usual objective way) that individuals now fund a larger portion of their retirement dollar. To a corporation it's all compensation expense.
David Hanna
Phoenix, Arizona
Dear FRONTLINE,
Your show last night was great....it should help encourage folks to take responsibility for their future. We cannot rely on companies or the government. I early-retired in 2002 and in order to supplement my pension, I start a home-based network marketing business. I determine my own hours, who I choose to work with, and how hard I work. My network marketing business makes it possible to make friends all over the world and I'm helping people improve he quality of their health, finances and time freedom and everyone on the planet can benefit from the nutritional products we provide. Where there's a will, there's a way.
Estela Vega
San Antonio, Texas
Dear FRONTLINE,
I am close to retirement age. Can I retire? I don't see it happening for me and further, I am employed in a Company that may cease to exist by year-end. Today, I spend quite a bit of my time pondering my future, as I do not have the savings I will need to cover myself through retirement, and with my age, may not find a job that will allow me to even save additionally for the future.
I once heard, that in order for $100,000 to last for 20 years with a pay-out of $750 per month, that money would have to be invested at a minimum return of 6%! Is this even available anywhere in our economy that is avoidable of risk of losing the principal amount? Yet, Employers and the Government have asked workers to invest in their own retirement at their own risk, which they have to pay for themselves!
How in the world can a hourly or middle income salaried worker save up to 20% of their salary per month in order to insure they are able to retire with enough money to support themselves in their non-working years?
Already, housing eats up anywhere from 35% - 50% of "NET" inclome. Then you include expenses for the basic necessities such as food, utilities and transportation. And, if you have children, the cost for parenting and schooling simply keeps you in the red! Why is there dismay that credit card debt is up and personal savings is down or non-existant? Why is there further dismay that the 401k monies that are saved are used to fund purchases of housing, education expenses, and other miscellaneous expenses. For those individuals making under $50,000 or even higher, that money is a like noose around their neck. If you use it for an emergency, you have to pay it back. If you don't you are penalized by paying taxes on money you have already paid taxes on! What bright mind thought that up? Let me guess, someone who had options to place their money elsewhere.
For Employers, the shame of this will last only for a generation or two, because in time, mostly all jobs will be off-shore'd, and/or they will find a way to save even more money by having employees self-contract their employment, or perhaps the new best thing to land in their laps will be to hire "Temporary Workers" through the new immigration program they are trying (again, Employers and Govenment) to push through.
Then America and its Government will be where they are destined to become...a third world country in chaos.
Sherrille Marcelin
Brooklyn, NY
Dear FRONTLINE,
I enjoyed your program on Retirement, but I was surprised that you did not touch on companies who switched their employees from a Traditional Pension Plan to a Cash Balance Plan. I work for a major corporation and was switched after eight plus years of service to a Cash Balance Plan from a Traditional Plan.
After an additional nine plus years of service, my Cash Balance Plan still has not reached my frozen benefit achieved under the Traditional Plan. So for the last nine plus years and counting, the company has not added one cent to my retirement, because of the switch to the Cash Balance Plan. I'm hoping that the Courts (I know there are litigations in progress) will determine that switching to Cash Balance Plans is discriminatory to certain employees.
Like any normal person, I thought that my benefit achieved under the Traditional Plan would be my starting point and the new Plan (understanding that it uses a different formula) would add on to it. Now I have to hope that the Courts see it that way.
Dennis Brennan
Bethpage, New York
Dear FRONTLINE,
Dear Frontline:
I enjoyed the report however I think you should devote an entire episode to a big reason that many people are not saving enough for retirement. It's called "keeping up with the Joneses"! Americans are obsessed with having the newest model car, biggest house on the block, most up-to-date big screen TV and the list goes on and on. It comes as no surprise that many people are saving little to nothing in their 401-k plans. I will grant you that there are lots of people in this country who live very frugally and still go paycheck to paycheck. But there is a massive number of people who, by choice, spend upwards of $500 a month (or more) for a car payment rather than buying a car with a $300 payment and saving the other $200 a month for their retirement. It is simply a matter of priorities!
Roger Camp
Dallas, TX
Dear FRONTLINE,
None of the retirement calculators or other tools available on-line help if you are already in retirement. Why won't someone make a quick look tool that says I've got X amount in these types of investments (taxable, Roth IRA and 401K or regular IRA) my expenses are running at X per month or year, I am this old and give an indication of the burning question, will my money last? It should have an option for with and without social security and should handle those who have retired early and so cannot take out 401K money yet.
Paonia, Colorado
Dear FRONTLINE,
I watched your show last night with a sense of dread. We have not been able to save hardly anything. We barely make ends meet, however, my husband and I pay quite a bit in taxes, we cannot afford to buy a home here in Florida because of the sky-high prices, so we rent a small townhouse with not much space. Our daughter lives with us along with her 3-year old son. Retirement is something that may not happen at all. I have heard several colleagues comment that they will probably work until they die. I feel the same way. I began working when pensions were guaranteed and I thought that I would work until age 58 (I am 57 now) retire and do something that I really want to do. It is not shaping up that way. I am familiar with the United situation. A brother-in-law has lost a third of his pension, and a neighbor's daughter is also caught up as well - making 1988 wages in the year 2006. The United employees gave up so much, as is always the case. But the lawyers and CEO are sitting pretty. There is so much wrong with that picture. My husband worked for Eastern airlines and is able to draw a very small pension. It is a pitable amount. I am concerned about the future and how we will cope.
Winter Springs, Florida
Dear FRONTLINE,
I gave up on PBS sometime ago because of it's consisant liberal bias but watched your retirement show last night and again you lived up to my expectaions. Some thoughts you missed
Is it some kind of a moral obligation of an employer to take care of old people?
What % of workers had pentions and how much typically did they recieve in the 50's & the 60's,70's etc?
How many hours/week did that flight attendant work (not be away from home-many jobs include being away from home) before and now for her pay and what does her total package cost her employer?
Why didn't you compare Goverment workers including all teachers pensions with the private sector? Goverments don't go chapter 11, they just raise taxes.
Did you think United's unions were blameless in the tailspin of United's financial condition? Ever look at a pilots workload/compensation?
It's to bad everyone can't have a job with great benifits,high pentions, full health insurance all paid for by your employer including into retirement, every holiday off, extra time off around Christmas and maybe some extra time off to celebrate spring,summers off,garantied right to your job forever,and not worry about your employer going broke.
Lynn Mellenthin
Cottage Grove, wi
Dear FRONTLINE,
Middle Class, hard working Americans better wake-up. There is a WAR going on in this country between corporate america and labor, in which we are in the middle.
After reading my corporate report on what the upper management has in its portfolio's makes me sick to my stomach, from wages, bonus, other perks let alone what retirement package they offer each other on their corporate boards.
I hope and pray whether Hillary Clinton, or Lou Dobbs, will address this situation in the next election.
" Work Hard boy, one day your find a job like mine" Cat Stevens.Yeah, right.
Levittown, New York
Dear FRONTLINE,
A lot of good points were made, on the show, and on this discussion board.
My sister worked for United as a flight attendant, and was handsomely compensated all her working life. She got the 'free' (not quite, but damned near) flight benefit, and is now bitter since her ridiculously generous pension benefit is not there any more. The system is changing, Hedrick, but why should we be the second generation (our WWII era parents being the first) to make our kids support us through 15 to 40 (or more depending on medical advances) years of economic leechcraft.
Our parent's parents had the good manners (and uninformed medical practitioners) to fall over dead a few years after social security kicked in, assuming they made it that far. If they did, they lived cheap in the house they had burned the mortgage for before their kids knew that they had any retirement plan. Stocks were for the wealthy.Why should we get 30 or 40 years of leisure after 30 or 40 years of work? I can't make that equation add up to good sense somehow. Well, we are still retiring when granddad did
Its true, they were promised one thing, and given another, but if you try to make me believe its 'fair' to make their children pay two generations worth of sins, I'm not going to go for it.
bruce smith
sacramento, ca
Dear FRONTLINE,
Brooks Hamilton says we should save 10-12% in our 401(k)'s. PBS fave Suze Orman says we should not contribute beyond the employer's matching limit.
What gripes me the most is that we can "invest" in physical gold in an IRA, but not in a 401(k). It's not really an investment, but it's a good way to hedge against inflation. In a 401(k), you can't even invest in a gold-stock mutual fund.
I'm a poor lost soul who was born a few years before the baby boom started. When the baby boomers start to draw cash out of their 401(k)'s, stocks will have to be dumped on the market. Who's going to buy all those shares? It won't be the illegal aliens, they send all their money back home.
A. Burnette
Englewood, Colorado
