Author Topic: How is this sustainable?  (Read 2160 times)

cbr shadow

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How is this sustainable?
« on: December 05, 2012, 03:15:13 PM »
I used to live a consumerist lifestyle but I found my way to this blog/forum and changed my ways completely.  My wife is also on board.  Luckily we have a large enough income that turning things around wasn't TOO painful, but what about for people who have lower incomes and worse spending habits? 

I have friends that fall into this category..lots of them.  Also coworkers and relatives are this way.  Very little or no savings, have to have the newest apple product, very little 401k contributions, brand new $30k cars, tons of debt, and no plan to change anything.  So there are 100's of thousands of people like this in the US.. how is this sustainable?

I'm planning for my future and as long as there are no gigantic issues in my life I will have a very comfortable retirement, probably early.  This issue doesn't seem to worry a LOT of people, so what's going to happen with them?  Are we just going to have a lot of very poor people in the US in the future?

iamlindoro

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Re: How is this sustainable?
« Reply #1 on: December 05, 2012, 03:25:27 PM »
They're going to keep working until they die.  Then they'll be done working.  Alternately, they'll lose all their lifelong assets when they're forced to survive on Social Security, and have to adopt a sad standard of living because of lack of preparation.

I'd be more verbose, but that is more or less the way it will work.

tooqk4u22

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Re: How is this sustainable?
« Reply #2 on: December 05, 2012, 03:38:39 PM »
I used to think that a severe economic downturn would change all of that, but then it happened and it hasn't.  So who knows.

I think there will be fundemental shift as the boomers retire (not because they want to, but because they can't physically do it anymore) and you will see an signifcant increase in multigenerational households and/or cohabitation communities (think student housing for seniors - four small bedrooms with a common living room and kitchen).  Great business idea but probably a bit soon as expecations have to shift before demand is there - could be 10 years away. There are all kinds of senior housing options but most are still fairly lavish and sizeable, this will change too.

Tax burdens will rise as well to support the people in distress and the economy will stagnate (for evidence see Europe).

Another Reader

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Re: How is this sustainable?
« Reply #3 on: December 05, 2012, 03:51:18 PM »
Lots of folks in the older sections of the original Sun City in Arizona that are getting by on Social Security checks, some on very small checks.  Some have done it for 20 years or longer.   I think we will see the revitalization of the older retirement communities that have remained inexpensive when the boomers that did not save go to retire and figure out they can't afford what they thought they could.