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The 140 billion in stock market losses in GE stock in just the last 12 months (2017-2018) ranks as the worst in history in the corporate world. In this report a retired GE worker at 61 years is shown looking for a second job after the losses wiped out a substantial part of his retirement savings in the form of company stock. This is the worst in history and is about twice that in market losses for Enron, and more than the losses in bankruptcies of GM and Lehman Bros. As a result GE is one of the worst funded pension programs in the corporate world. About $100 billion in pension obligations for 600,000 people who get GE pensions is underfunded by $30 billion. GE will need to borrow $6 billion in 2018 to contribute to the pension plan.

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The large inequalities in Chilean society are exposed after a transport fare increase leads to violent protests.  A climate tax and fare increases led to protests against inequality in France. The Chilean pension system does not provide the working lass with adequate pensions on which they can retire. Large inequalities in wealth under the Chilean model are seen as a result of free market principles which were enshrined in the constitution of Chile after the departure of Chilean dictator Pinochet. Some of the free market ideas worked to improve living conditions in Chile, others such as the financing of the pension system are seen as having failed to provide for a secure retirement for workers. some of Chile's success can also be attributed to demand and pricing of copper with Chinese demand in the past, a situation confronting Brazil and Argentina also. In Brazil the problem is just the opposite with politicians having granted extremely liberal pensions leaving little room in the budget for public services including basic sanitation.  There are also inadequacies in education and health care based on these free market principles, which favor certain groups and not society at large. Protest movement's goal is a rewriting of the Chilean constitution which president Pinera has declined. ...

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Phased retirement is becoming a popular option for many Americans nearing retirement. An example is a employee taking 25% less income for 13 weeks of additional time off to spend more time with a reitred spouse, for vacation, and for trying out new locations for retirement. It gives working Americans an opportunity to gradually adopt a more relaxed lifestyle, to better understand what it would be like in retirement. This option also has the advantage of using good health to add some working years and improve the retirement portfolio, with less demands of work.

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Living longer and healthier lives the sixty year old of today may look like a 40 year old. Working years may now be much longer say experts. Instead of 30 years, it could be 40 or 50 years. People may need to engage with meaningful work longer to have the stimulation that comes from work that interests them. The work may even be broken up in increments of 20 years, each devoted to different areas of interest. Experts say the friendship and stimulation from work is better than that in bingo halls, beaches or on a golf cart. Working part time or going back to school is in the works. It makes more sense too to accumulate savings longer as the official social security retirement ages are being extended to beyond 66 years. In fact the only age group where labor participation is already growing is in the over 55 years age group. In this sense the struggle to preserve older pension schemes retiring early look more like a thing of the past, even though they arouse passions such as in mass protests in France on this issue. ...

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Negative interest hurt the vulnerable the most- consider how much in interest would have to be deposited in retirement accounts savings of retirees to make up for lost interest over two decades. It could be in the hundreds of billions of dollars. It has added to the poverty in the Nation as interest income went gradually to negligible amounts. It also disincentivised savings,  and reduced the cost of capital so that hundreds of billions of dollars of retirees and other people's income was shifted into startups and dubious investments that did little to add to essential public services, education, healthcare, that would improve the quality of life for workers, families and children.It was in effect a misuse of economic policy to serve one section of the population at the expense of the large majority of the people in the Nation, and a shift of hundreds of billions of dollars over two decades from the vulnerable who needed it most to other uses. And aggravating the situation resulting from the failures in investing in manufacturing in the US that put whole communities at risk, neglecting the investment in infrastructure that helps ordinary people the vast majority in the nation the most. Only now are these investments being taken up by the Biden administration reallocating funds to infrastructure, manufacturing and clean energy, to retirees, and to communities across America. During this time of two lost decades for America, and into the future, the great nations of Asia, China and India, have advanced and are advancing with focused attention on the needs of all the people in their nations, and most importantly of all in advanced infrastructure and advanced manufacturing.  ...

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California Governor Schwarznegger points out that about 80 cents on every government dollar in California goes to public employees compensation and benefits. He says spending on state employees went up three times as fast as state revenues during the last decade. The result is crowding out of other programs such as higher education, parks and recreation. Because of large unfunded pension and retirement health-care benefit committments, California faces $550 billion of retirement debt. Costs of servicing that debt have grown at the rate of 15% for the last decade. The result is that California will spend more on retirement benefits than on higher education in 2010. Schwarznegger points to the fact that most employees in the private sector do not have $1 million in savings, but are in effect guaranteeing a retirement account of $1 million to state employees who retire at 55 years age- with a $3000 inflation protected check for the rest of their lives- as evidence that politicians in the State Assembly have made committments for the future that they cannot keep. And if they are kept they will leave little money for essential programs in education and public services....

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Mistakes to avoid in retirement, says Statman, are that after a lifetime of frugal habits to save for retirement, when one gets there he or she will spend so much less that they cannot enjoy life fully. He suggests taking a payout of 3%-4% from retirement accounts and dividends combined. Another mistake is to think one has more time to manage retirement accounts, and he warns that this is a bad idea as one cannot beat the market, and it is important not to take risks in retirement. Other mistakes are to ignore how important healthy living is at this point.

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Issues of inequality and lack of upward mobility came up in the last presidential election. A Federal Reserve Survey for 2018 shows the financial fragility facing many Americans. One quarter of working individuals say they do not have any retirement savings. About 17% of households say they cannot pay all their monthly bills. About 40% of Americans say they do not have enough cash to cover an unexpected $400 expense, and would have to rely on credit cards balances or loans from family to make the payment. This survey by the Federal Reserve is done each year since 2013, after the financial crisis hit in 2009 it became more important. Still Americans are showing unusual resilience and upbeat spirit. About 75% say they were doing Ok or living comfortably up from 63% in 2013. And two out of three described lovcal economic conditions as "good" or "excellent."  This shows that the financial vulnerability resulting in the loss of jobs in the U.S. both from jobs lost in manufacturing going overseas,  jobs lost through automation or industrial decline in some sectors, and the hit from job loss during the financial crisis and its aftermath years of 2009-2014 is still leaving a lot of families financially vulnerable. Low interest rates and stagnant wages also meant savings growth for ordinary Americans was less than it should be in a healthy economy without booms and busts. This is also the environment in which the U.S. is tackling challenges to its technological leadership in 5G following a decline in sectors such as autos and electronics, with job losses to Japan and South Korea. New trade agreements are focussed on correcting the imbalance, first with Mexico, South Korea, and now with China. Focus is also on fair wages and labour overseas to raise American wages in key sectors. The damage done by a low interest rate to savings of ordinary Americans outside the stock markets is also being seen as a downside in the boom bust cycle, that includes loss of jobs for vulnerable American families. The rise of the tech sectors has diluted the traditional protections of working class Americans with the shifts and realignment of the major parties. ...

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Retirement and close to retirement planning for 2015 from Jonathan Clements of the WSJ.

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The results of the February 24, 2011, CBS/New York Times poll show strong support for public workers in schools, firefighters, police and other functions. On collective bargaining 60% opposes weakening the bargaining rights of public workers, only 33% support it. On reducing the benefits and pay of public workers to reduce deficits, 56% opposed cutting pay or benefits, only 37% support it. Are public workers overpaid or have overly generous health and pension benefits. On this issue 61% -including over half of Republicans- say the salaries of public workers were either "about right" or "too low" for the work they do. So how are states to reduce their deficits? The people polled say they prefer tax increases over benefit cuts for public employees- only 22% chose to reduce the benefits of public employees, 40% said they would increase taxes, 20% said they would cut financing for roads, only 3% said they would cut financing for education. How this breaks down in politcal groups. 71% of Democrats opposed weakening collective bargaining rights, the opposition was also strong from Independents with 62% of Independents opposing weakening of collective bargaining rights. Followup interviews showed independents saying the public workers work hard and still struggle to have a home, saving for retirement, and sending their kids to college, with both spouses generally having to work, which is why they oppose weakening collective bargaining rights. Which segment of the populations support cutting pay and benefits of public workers? The one income group that showed support for cutting pay and benefits- those earning over $100,000 a year! There 45% said they favored cutting pay and benefits, even here 49% opposed it. On the intentions of the governors and state legislators trying to cut pay or benefits of public workers- 45% said they did this to cut the deficits, and as many as 41% said the saw this as an effort to weaken unions. Which takes one to the last question, so how are unions perceived in the U.S. in 2011? A far smaller number of people, 37% saw unions as having "too much influence" on American life and politics vs. 48% who said that unions had the "right amount" or "too little" influence....

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Carl Richards, a certified financial planner in Park City, Utah, says the most important question about an investment is how it fits into our plan, and how it fits into our lives, but investors today focus too much on the latest IPO, or specific stocks. He says it is important to set a limit of 5% of the portfolio on any individual stock or investment.

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The Bernanke Fed's low interest rates are hurting seniors and savers who are earning very little on their savings. This is taking money away from millions of savers and reducing consumption spending by seniors and savers. According to the Labor Department average annual investment income for 24.6 million American households headed by seniors over the age of 65 was $2,564 in 2009. This is down significantly from prior years. A survey by the Employee Benefit Research Institute shows that one in three retirees have had to dig deeper into their savings to cover basic necessities in 2010. With inflation at an annualized rate of 5.6% in the first quarter 2011, interest rates of 0.24% on savings accounts do little to cover inflation. There is a sense that this is hurting retirees who have lived prudently and worked hard and on savers of different ages. This actually discourages healthy savings that would protect Americans from job losses and build a safer future. American contributions to bank and 401 (k) accounts is only 4% of disposable income in 2010, according to the Fed. Another danger is that the smaller 401 (k) accounts of the average American family after losses in earlier stock market declines, will again be exposed to the fluctuations and risk in the stock market. This could happen as money is shifted to the stock market in the hope of earning better returns. Seniors are an active voting group, and voting patterns show a shift to Congressional candidates who question Fed policy....

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Obama proposes a 90 day moratorium on foreclosures and a moratorium on foreclosures by banks that get government help. He has also proposed that people should be able to take out money from their 401 K retirement plans upto $10,000 or 15% of retirement savings withot penalty. And he has proposed dobling the government loan guarantees to auto companies from $25 billion to $50 billion. These steps he proposes could be taken before January through current laws or by the Democratic controlled Congress acting in a lame duck session. Obama outlied these plans before an audience in Toledo, a struggling city in Ohio where working class Americans are facing the hardships of the current crisis.

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New rules from the Biden administration make it easier for people ages 60-63 years to make up for putting less into workplace savings in earlier years with the impact of the 2009 financial crisis, loss of jobs or working parttime for a period, and smaller savings during the pandemic. People in these ages can now put in a 14% higher amount. And a maximum of $34,750 into their workplace retirement plans. This is one of the many actions taken by Biden-Harris, including increasing the amounts for Social Security, that combined with a stronger economy and job growth, lower inflation, is correcting many of the problems of the past that left seniors without enough money to retire in dignity and safety. Small steps taken in the context of bigger steps on infrastructure and chips, science, rebuilding manufacturing by investing in old unused plants and reviving them with new products- all this is creating anew future for America and the ordinary Americans. Higher wages also pushed by Biden- Harris will enable many Americans put away more in savings that the were not able to do over the decades when government policy neglected the needs of ordinary Americans. ...

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Increasing use of opioids, suicides, chronic liver disease, are resulting in higher mortality rates for white Americans middle aged 45-54. This group has been hit hard by manufacturing losses, by the mortgage crisis of 2008 with its aftermath of job losses and low interest rates that slashed savings. Added to this is the effect of people with lower incomes needing to take retirement social security early, leading to another hit on incomes and the quality of lives, increasing uncertainty and even despair. People without a college education are hit harder in the current environment with fewer opportunities and greater uncertainty in life. The social security check being smaller for this group and its shorter life span means more of the social security pie is going to better off Americans who retire later, creating a uniquely American situation of widening economic inequality and unfair distribution of the economic benefits of society. This means disadvantaged groups are facing a crisis that will affect not just this generation but the children of these disadvantaged groups for the next generation- a failure to keep the promise of "life, liberty, and the pursuit of happiness," American ideal for most of its history. ...

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The austerity plan that prime minister Belusconi of Italy set before parliament on August 29th was quite different to the plan he agreed to in negotiations with the European central bank. The negotiations led to support by the ECB with purchase of $30 billion of Italian bonds. Berlusconi left out a surtax on top incomes in the private sector. It also left out savings to be made at the local government level by mayors and governors. Berlusconi proposed a new pension calculation which would postpone the retirement of Italians by excluding military and university service. Also being prosposed by Berlusconi and opposed by unions is the extension of the retirement age for women. Unions say this will make it harder for Italian women to care for their grandchildren in a country without an adequate system of daycare. Slowly the whole package of austerity measures seems to be coming apart and this alarms ECB President Claude Trichet and his successor Mario Draghi.

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The 3 week old government in Italy, led by former EU commissioner, Mario Monti, announced a three year plan of 30 billion euros in tax increases, spending cuts, reform of pension plans, and efforts to boost growth. Monti said at a news conference that "Italians are to blame for our public debt, and we risk compormising everything we've accomplished in the past 60 years." Under the new plan retirement age for women in the private sector would be increased from 60 to 66 years by 2018, bringing it in line with retirement ages for men. Italy's Labor minister, Elsa Fornero, broke down in tears as she described the change, saying it was necessary to avoid "collective impoverishment." Italy faces the difficult task of refinancing $400 billion in short term debt coming up for renewal in 2012, just as bond yields for Italy have spiked to over 7%. Because Italy lacks an extensive day care system, women helped raise grandchildren after early retirement at age 60. Other changes were to impose a 1.5% one time tax on money repatriated back to Italy under a tax amnesty scheme setup by former premier Berlusconi. Action was taken against widespread tax evasion by banning cash payments above 1000 euros. Stimulus measures of 10 billion euros are designed to boost small business and reduce high youth unemployment running at 29%. Companies get tax breaks of 2 billion euros if they hire young people....

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For senior executives of financial firms investing in August 2011- following weeks of extreme volatility in the U.S. stock market- is all about capital preservation. Executives interviewed here have moved all their money to high grade bonds and cash. This is happening even as the advisors of financial firms are telling the public to stay in the stock market for the long term, and even as many middle class investors have seen their savings shrink from the crash of 2008. It is the crash of 2008 that has made the executives interviewed here turn highly cautious.