- In 2017, the average monthly retiree benefit is $1,360.
- Multiply that by 12 months and divide by 52, 40-hour weeks.
- That's $7.85/hour (or adjusting for the tax differential, ~$8.50/hour).
Think: Living on the salary of a hamburger flipper--a job which, Mauldin noted in his previous newsletter, is going the way of the Edsel with the rise of robotics.
- SSA benefits represent about 34% of the elderly population’s income. But, that figure is heavily skewed in favor of the wealthy because, among retirees, 21% of married couples and 43% of unmarried persons rely on Social Security for 90%+ of their income.
- 41.2M retired workers and 3M dependents receive Social Security benefits.
- Do the math: That's 15M+ retirees living on a subsistence income.
Bad, yes. But, it gets worse.
Yes, there's Medicare "income" to pay medical bills. Yes...but:
- Copays and deductibles aren't covered, that is, unless retirees purchase expensive supplemental insurance.
- Also: Medicare recipients are responsible for 20% of hospital bills. The cost of an average day in the hospital is equivalent to the cost of an day in an average 5-star, luxury hotel.
For those folks who are 40+ years old, here's the reality most will confront when they're 80: Social Security and other government benefits won't cover much. Where's the cash going to come from? Their children and grandchildren?
That's the grim picture of economic reality Mauldin wants those folks to cement in their minds.
There are some strategies those folks can implement. Read them here. Mauldin notes:
Can you do anything about your situation? Maybe. Find ways to save a little money here and there, and it will add up. Having a small nest egg is better than having none at all. At some point, you will be glad you have it.
Let the discussion begin...
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