Reply #55: For many Americans it is all they can squeeze out from their

[JDPriestly]

paychecks to save for retirement.

In the 1930s, there was a huge exodus of Americans from their farms. Prior to that time, but very quickly in the 1930s, we switched from an agrarian society to an urban society.

Traditionally and very commonly, in the US, a farmer owned land. Gradually, as he aged, his child or children would take over the farm. Granddad and Grandma continued to either receive part of the proceeds from the farm or to live on the farm with their children.

As people moved from the countryside into towns and cities beginning some time before the 1930s, they no longer had this nest egg of a farm or income or help from their children. So, the need for some kind of retirement plan became a necessity.

That is why we have Social Security.

If you are retired now and have saved in a 401(K), you are probably beginning to realize what a lousy way to save for retirement that is. You have to save far more than most people realistically can save during your working life in order to receive enough monthly earnings or income from your 401(K) to live.

So, pensions resulting from work and Social Security are the basis for your monthly income. Those of us who do not receive pensions have learned after retiring just how little our savings in a 401(K) really can provide.

If you are earning $70,000 and you have a couple of kids to care for and educate and maybe a couple of periods in which you repay student loans or have healthcare costs or other unusual costs, then relying on savings in your retirement is unrealistic.

The money earned by the corporations you invest in with your 401(K) goes to the CEOs and other managers of the companies you invest in.

And right now interest rates are so low on savings as to be laughable.

So, enjoy your illusion while you can.

Social Security is a necessity and the primary retirement income for most middle class people who do not qualify for other pensions.