A Downsized Lifestyle Is Coming—Will You Make the Adjustment?

Our world is changing in ways we never considered. The dominance that affluent nations have enjoyed is about to end. Will peoples of the rich world downsize their lifestyle? Will people who have rarely if ever had to "tighten their belts" be able to make the painful change?

by Graemme Marshall

For most of their lives, working people have trusted that upon retirement they would be able to receive a livable pension or social security. Why? Because the government promised it! But many today now find that when retirement age comes around, they can no longer afford to stop working.

If you have been paying into a retirement fund, do you expect to get back your due? What change in lifestyle would happen to you if there were no retirement fund available? What social security could a government pay out if it is bankrupt?

Is government-funded retirement certain?

U.S. President George W. Bush sounded an ominous warning in a speech in South Carolina recently. Reuters reported on April 18, 2005, that President Bush painted a "dire picture of Social Security's future if nothing is done," saying the problems would start in three years when the first baby boomers retire.

He added, "By 2034 the annual shortfall will be more than $300 billion and by the year 2041 the entire system will be bankrupt." He urged younger workers to consider private retirement accounts. That's too late for older workers. Bush also cited a proposal to further raise the retirement age, perhaps even to age 70.

Canada's pension funds also are in jeopardy. Mercer Human Resource Consulting said of Canadian health and corporate pension plans, "The financial health of Canadian pension plans ended the first quarter of 2005 as weak as at any point in the last few years" (Canwest News Service).

They further explained that at the end of last year about 70 percent of pension funds wouldn't have had enough money to fully cover their pension promises if they were wound up, and that was no improvement over the year before. Think of that, 70 percent wouldn't have had the money to fulfill their pension promises!

Read the full article at www.wnponline.org/wnp/wnp0506/downsizedlifestyle.htm

Related Information on UCG Sites:

Table of Contents that includes "A Downsized Lifestyle Is Coming - Will You Make the Adjustment?"
Other Articles by Graemme Marshall

Canada:

Search Our Site
Key Subjects Index
General Topics Index
Biblical References Index
Good News Magazine Index
Booklets and All Literature Index
Home Page of this site