The Golden Years My Arse And Retirement

[Mr Lee]

When I see people leave the Philippines because they find that they cannot afford to live there, it makes me wonder if the whole worlds financial system has gone down as bad as the US seems to have gone over the years. I am not talking about just Traveler as I have at least a few other friends who also seem to be having a hard time living on their fixed incomes and with the lower exchange rates they are getting. So this is not about politics or parties, because what I am talking about started during my whole lifetime and I remember back during my 20's and 30's when a car could be bought for between $2500 and $5000 and my salary was many times that but nowadays an average new car in the US costs around $20,000 and salaries of average blue collar or white collar workers are lucky if they are twice the cost of a reasonably priced car and many people do not make enough in a whole year to even equal the cost of a average car. I am just using car costs because the stick in my mind but candy, sodas, foods, clothing etc all seem to have outpaced salaries and in my younger years one salary seemed to be enough for a family, whereas today I see whole families working while trying to get ahead.I also remember buying my first second hand home for $38,000 while I was in my 20's and with a 30 year mortgage that was affordable, and salaries were maybe half of that back then, whereas a home of equal value today is many times the amount of money people make a year and that is even with the downturn, yet deals are there nowadays to be  had if a person does not mind moving to where they can be found. So I am wondering if others found the same thing in other countries, cities, or towns? What went wrong and how the heck did we get to where we are today where people have to struggle to survive?  Oh and I am not talking about myself or complaining for myself, since I feel that I am blessed to be in the position I am in today, so I am just trying to make sense of it all.

[roy2cebu]

It's the same in Australia now.Young couples priced out of the housing market, those that did manage to get a mortgage some years ago are now working flat out to keep heads above water. No proper family life, just work, work. Well and truly in the rat race.Electricity prices are the latest bone of contention.....increasing by around 30%...well beyond inflation figures.Major banks have just released their profit figures....4 to 5 billion dollars....with the CEO's on salaries of millions!Doesn't seem fair to the average folk on the street.Seems there is a plan in place to keep people from progressing....just keep being hammered from every direction.I am at stage where I'm thinking....bugger this! Get a campervan, work the harvests for 4 months of the year and then live the remainder in P'pines with sufficient income.Just to escape being another statistic that does the 'social norm'...works and works, then some sleep if not stressed to max chasing bills....getting nowhere and being trapped.

[Tom in Texas]

...this is not about politics or parties... ... how the heck did we get to where we are today where people have to struggle to survive?...

Good topic, Lee. I'll stick to a few troubling bits of information on the economy... that have everything to do with the conflicting interest of the "upper class" and "middle class"... and nothing to do with politics or political parties... other than that some people use politics as a weapon to further the interest of their preferred "class." Simply stated, the "middle class America" you and I have known our whole lives, with each generation improving in its basic standard of living, is simply disappearing before our eyes. In terms of wealth, the top 20% of the population holds about 93% of the wealth, with the top 1% holding about 43% of the liquid assets. The bottom 40% of the country holds less than 1% of the nations wealth. The remaining "middle class" about 6%. In inflation adjusted dollars, the wages and salaries of the "middle class" have been dropping for the past 10 years, while the price of goods and services has risen. The "middle class" has compensated by taking on debt to maintain a disappearing lifestyle, but that has only worsened their ability to remain in the "middle class" long term. Abundant jobs with a pay rate that keeps pace with or exceeds inflation and can be held for a lifetime are simply ceasing to exist. Without these jobs, the "middle class" as many of us have known it will cease to exist. Eventually, unless something changes, those percentages set out above will reflect that virtually all wealth and liquid assets have been pushed into the hands of a small percentage of the population, the "upper class," and a insignificant percentage of wealth and liquid assets will be in the hands of a huge percentage of the population, the "lower class,"... and there will be no "middle class." This is not a slow process, but rather a process in free-fall. Many of those "middle class" sustaining jobs were manufacturing. From 2001 to 2009, a total of 42,400 factories... which provided 32% of all manufacturing jobs in the US, closed. In 1960, 29% of workers were listed in the manufacturing sector... in 2009, 9% remained. In 1975, computer manufacturing alone employed 300,00 in the US... now it employs 166,000. Meanwhile, Asia's computer manufacturing sector has risen to about 1.5 million workers... with low wages and dangerous working conditions... reminiscent of American factories in the early 1900s. But, with wages averaging less than 100 U.S. dollars per month... that is where the Macs and PCs and smart phones are produced... and the bottom line for the "upper class" is all the better for it. Corporate profits for US corporations, and their owners and large investors, are able to increase their share of the "wealth pie" when they are not hampered by organized labor, unions, minimum wage laws, safety regulations, collective bargaining, reasonable working hours, retirement plans, health insurance, and the many other things that allowed America to build a strong "middle class" over the last 100 years... and without which, the "middle class" will disappear. Having these things certainly raise the cost of American-made goods, and decrease corporate profits which could be achieved by outsourcing all manufacturing jobs, and thereby decrease the "upper class's" percentage of the "wealth pie," ... but they also allow an American "middle class" to continue to exist. You would think that every person of whatever political party or leaning would want the American "middle class" to continue to exist... but oddly enough... many of these very things that have allowed America to build a "middle class" have become "dirty words" because they are not in the best interest of the highest possible corporate profits and increasing stock prices to meet the expectations of Wall Street and increase the wealth of the investors. If the American "middle class" is going to continue to exist... a lot of people are going to have to forget political party labels and liberal vs conservative... and instead start determining which politicians will honestly support the things that are the very foundation on which the "middle class" was built. So... that is my opinion concerning your question -- this is -- how the heck did we (the "middle class") get to where we are today where people have to struggle to survive?...Tom in Texas

[Art2ro]

Golden Years my Arse! Maybe when one is only relying on Social Security without any other source of income when one already squandered their lump sum retirement payment and or 401K plan too early before the age of 62 and refinanced their home before the recession and now can't afford their mortgage payments and the market value took a nose dive leaving them with no equity! Ouch! That really hurts for those who wanted to retire early and now can't due to no assets and the high cost of living in the U.S. and here in the Philippines, people living just on Social Security is feeling the pinch too! Yeah, it's really tough on everyone unless one has an adequate pension to live on here especially in the Philippines, because no way can some people live in the U.S. unless one has a part time job with Social Security and or an adequate pension! I too am not in the category that I've just mentioned, because we were fortunate that our long goals panned out for the best for us and am now living a comfortable life even if the currency rate dropped down to below P40, our comfort zone is between P25 to P35 to the dollar and I'm just a retired government employee with 30 years of service, where some of you out there has 35 to 40 years of service and doing better than I am! Anyway! Each to their own lifestyle in how we all live! Que Sera, Sera! Different Strokes for Different Folks!

[sjp52]

I think it all stems to Greed. the people with political clout and the rich are so greedy they will stop at nothing to get more and more money and they don't care if it hurts any one or not. The banks with there great profits are still every day thinking of ways to nickel and dime us to death. No one cares about people any more, Just money. I wish there was a way a government could step in and stop these businesses that raise there rates and prices way over the cost of living index. The foreigners in the Philippines always complain about things that happen there, like the electricity going up and most costs rising, But they don,t realize that it is happening all over. It amazes me how much food is going up in price here in Canada every 2 or 3 months and not by a small percentage, But are wages increase once a year by a measly 3 or 4 percent. I am afraid that it will continue as long as people are willing to put up with it. The old saying is true "united we will stand but Divide we will fall ".

[Gold Heart]

...this is not about politics or parties...... how the heck did we get to where we are today where people have to struggle to survive?...

Good topic, Lee. I'll stick to a few troubling bits of information on the economy... that have everything to do with the conflicting interest of the "upper class" and "middle class"... and nothing to do with politics or political parties... other than that some people use politics as a weapon to further the interest of their preferred "class." Simply stated, the "middle class America" you and I have known our whole lives, with each generation improving in its basic standard of living, is simply disappearing before our eyes. In terms of wealth, the top 20% of the population holds about 93% of the wealth, with the top 1% holding about 43% of the liquid assets.The bottom 40% of the country holds less than 1% of the nations wealth.The remaining "middle class" about 6%.In inflation adjusted dollars, the wages and salaries of the "middle class" have been dropping for the past 10 years, while the price of goods and services has risen. The "middle class" has compensated by taking on debt to maintain a disappearing lifestyle, but that has only worsened their ability to remain in the "middle class" long term. Abundant jobs with a pay rate that keeps pace with or exceeds inflation and can be held for a lifetime are simply ceasing to exist. Without these jobs, the "middle class" as many of us have known it will cease to exist. Eventually, unless something changes, those percentages set out above will reflect that virtually all wealth and liquid assets have been pushed into the hands of a small percentage of the population, the "upper class," and a insignificant percentage of wealth and liquid assets will be in the hands of a huge percentage of the population, the "lower class,"... and there will be no "middle class."This is not a slow process, but rather a process in free-fall. Many of those "middle class" sustaining jobs were manufacturing. From 2001 to 2009, a total of 42,400 factories... which provided 32% of all manufacturing jobs in the US, closed. In 1960, 29% of workers were listed in the manufacturing sector... in 2009, 9% remained. In 1975, computer manufacturing alone employed 300,00 in the US... now it employs 166,000. Meanwhile, Asia's computer manufacturing sector has risen to about 1.5 million workers... with low wages and dangerous working conditions... reminiscent of American factories in the early 1900s. But, with wages averaging less than 100 U.S. dollars per month... that is where the Macs and PCs and smart phones are produced... and the bottom line for the "upper class" is all the better for it. Corporate profits for US corporations, and their owners and large investors, are able to increase their share of the "wealth pie" when they are not hampered by organized labor, unions, minimum wage laws, safety regulations, collective bargaining, reasonable working hours, retirement plans, health insurance, and the many other things that allowed America to build a strong "middle class" over the last 100 years... and without which, the "middle class" will disappear. Having these things certainly raise the cost of American-made goods, and decrease corporate profits which could be achieved by outsourcing all manufacturing jobs, and thereby decrease the "upper class's" percentage of the "wealth pie," ... but they also allow an American "middle class" to continue to exist.You would think that every person of whatever political party or leaning would want the American "middle class" to continue to exist... but oddly enough... many of these very things that have allowed America to build a "middle class" have become "dirty words" because they are not in the best interest of the highest possible corporate profits and increasing stock prices to meet the expectations of Wall Street and increase the wealth of the investors.If the American "middle class" is going to continue to exist... a lot of people are going to have to forget political party labels and liberal vs conservative... and instead start determining which politicians will honestly support the things that are the very foundation on which the "middle class" was built.So... that is my opinion concerning your question -- this is -- how the heck did we (the "middle class") get to where we are today where people have to struggle to survive?...Tom in Texas

Outstanding summary and response. No one can argue with these facts, yet " middle class" are not making choices and selections in their own self interest .

[Gold Heart]

Golden Years my Arse! Maybe when one is only relying on Social Security without any other source of income when one already squandered their lump sum retirement payment and or 401K plan too early before the age of 62 and refinanced their home before the recession and now can't afford their mortgage payments and the market value took a nose dive leaving them with no equity! Ouch! That really hurts for those who wanted to retire early and now can't due to no assets and the high cost of living in the U.S. and here in the Philippines, people living just on Social Security is feeling the pinch too! Yeah, it's really tough on everyone unless one has an adequate pension to live on here especially in the Philippines, because no way can some people live in the U.S. unless one has a part time job with Social Security and or an adequate pension! I too am not in the category that I've just mentioned, because we were fortunate that our long goals panned out for the best for us and am now living a comfortable life even if the currency rate dropped down to below P40, our comfort zone is between P25 to P35 to the dollar and I'm just a retired government employee with 30 years of service, where some of you out there has 35 to 40 years of service and doing better than I am! Anyway! Each to their own lifestyle in how we all live! Que Sera, Sera! Different Strokes for Different Folks!

I guess some are in this position through their own fault -- not saving enough, investing unwisely or relying on the promise of social security. It is even worse as a result of the economy, those on social security have not seen cost of living adjustments for a couple of years now too. You can't blame people who have this misfortune as it is due to circumstances beyond their control. They trusted their 401K investments which crahsed or they had rely on to survive. They trusted the govenment commitments for social security they paid into over their lives. They trusted stable home prices which proved to always rise. They trusted a sound economy which despite recessions would never again see a great depression. They trusted companies they worked for and believed in loyalty to them. Companies disposed of pensions / guaranteed payments to employees and forced employees into risk - market based investments, forced early retirements while moving jobs overseas. Sometimes people just have bad luck or fall on hard times and it is not because they squandered these things or were negligent or irresponsible.My goals of retiring at 40 moved to 50 then moved to 60 .... and still moving not by my choice.Like you, I am one of the lucky ones -- thats the only difference. Edited October 31, 2010 by Gold Heart

[ekimswish]

Tell me about it... I'm 28! I'm hoping we can make our living in the Philippines owning and running small businesses with a cheap start-up cost, rather than grinding away at it in the west for a paycheck for my hours put in.