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Perhaps I will try to answer: 1. There is no evidence Boomers did not have enough income to put savings aside; rather, their years of prosperity, bubbles, and
by 6stringmerc 11y ago
Perhaps I will try to answer:
1. There is no evidence Boomers did not have enough income to put savings aside; rather, their years of prosperity, bubbles, and behaviors indicate they squandered or bilked each other out of large sums of money.
2. Historical interest rates are about 7% - at least that's the peg for most public pensions rate of growth, which is not unrealistic in a healthy US economy. The Baby Boomer population which did not save enough was tempted by higher returns in the equities or housing casinos, gambled, lost a great deal of whatever wealth they had in bubbles bursting, and now what? I should feel all happy that my government is going to lift the funds out of my pocket?
- tosseraccount 11y ago7% return is a goal. It consists of total (not real, inflation adjusted) returns from interest and dividends and capital appreciation. "7% interest", i.e. amount paid back from money you borrow out, is pretty rare these days. CDs did pay >8% in the 80s and junk and troubled sovereign might still pay that much. With lower inflation, some pension funds are targeting a lower return.