Problems of Retirement - Term Paper Example

Problems of Retirement The video Frontline presents a discussion of the changing pension schemes within the US with a view of answering the question: “Can you afford to retire?” Within the video, the theme of retirement is presented in relation to the inability to retire among the American people who have reached the retirement age. This inability has emanated from the bankruptcy that companies have experienced in the current economic crises. Nonetheless it is argued that “If you were making contributions to a company retirement plan, then your employers bankruptcy shouldnt affect your savings, unless fraud is involved (Wilcox 134). However this is not the case within America because the role of companies in providing pension models to their employees is being overlooked. Employees are therefore left to make their own choices on the model that they would use to achieve their savings for pension. This research paper presents the aspects of retirement and the changes in pension models as presented within the video Frontline. The research on the paper is based on the concepts within the video in relation to the implications of the problems which retirees are facing within the changing pension scheme regimes. The changing world of retirement is presented within the video in a very elaborate manner. When employees within different corporations are asked if they would afford retirement, they imply that they cannot. The personalized projection of the retirement problems is presented within the video to illustrate that individual roles have been now the center of focus for retirement especially the need for individual saving rather than the traditional pension and social security models. The plans for retirement are shown within the video as less considerate in enabling retirees to maintain their living standards even after retirement. It has been argued that the basic pension for the individual social security is the most important arrangement in ensuring that individuals maintain their living standards even after retirement (Salter 256). However, the presentation and discussion within Frontline show that there is failure within the pension schemes within the US organizations, corporations, companies and agencies. This is so especially in the planning for the retirement of the employees. The failure within planning is demonstrated that pension schemes are disrupted due to the bankruptcy that many American companies have faced in the near past. The implication of this poor planning is the inability of the employees to afford to retire (Muller 48). The pension schemes within the contemporary work arrangements have reduced drastically. This is one of the main cause that has led to the inability of employees t afford retirement once they reach the retirement age as presented within Frontline. The results of the reduction in the pension schemes of the employees are described as being far from favorable (Wilcox 135). For example it has been found that within many retail company employees who are aged between 50 and 55 are not able to retire effectively and satisfactorily as per their current living standards. This case is said to persist even when these employees reaches 70 years assuming that they would be still working (Wilcox 134). The coverage of social security for the retirement needs or benefits of married people has been estimated to be only 45%. This shows that the reduction in pension and social security within modern companies has negative implications on the lives of retirees. As a result of the reduced pension schemes, employees are therefore obliged to save extra cash so that they would afford to retire satisfactorily (Muller 50). Within the video Frontline the issue which arises as a result of this is related to the effectiveness of the individual initiated savings plans. The participants within the video are asked and evaluated whether they would effectively be able to plan for individual mediated saving for their retirement. It is evident from the video that the participants consider the pension scheme models within companies to be more effective as compared to the individual guided planning for retirement. Individuals are faced with hard economic times which make it difficult to save by themselves. The individualized savings model for retirement is therefore not effective as compared to the company pension models where individual salaries were deducted to ensure that workers would afford to retire once they were of retirement age (Salter 259). Within the video Frontline, it is demonstrated that the retirement saving models are shifting from the life pension plans to lifetime work processes (Wilcox136). This is a situation where individuals are forced to work thought their lives. Working past the retirement age is a result of the inability of people to afford their retirement (Salter 270). It is in this regard that it is evident that the modern work environment and the pension schemes are characterized by inability to plan and save sufficiently for the retirement period. As a result, older workers characterize the modern work environment as compared to the traditional retirement age even early retirement which characterized companies and government agencies (Wilcox 134). The implication of the shifted plans for retirement is demonstrated when individuals who are forced to retire are not able to afford the retirement. This leads to poor or lower living standards among the retirees. It is evident from the Frontline video that people are not able to save enough for their retirement. This is caused by two factors. Firstly, the pension schemes of companies have changed as described in the above sections. Secondly, individuals are unable to afford both savings and their current needs (Wilcox 134). As a result, individuals opt to reduce on their savings and as a result lead to a cyclic retirement problem. The height of the retirement problem is further revealed by the fact that some individuals are absolutely not able to save at all (Muller 58). This is mediated by both poor planning and the inability to achieve adequate financial ability to save. The increased living standards and taxation which has led to high costs of goods and services is also attributed to the failure of many people to afford saving for their retirement. Since the employer who used to take care of employees’ retirement has shifted his roles, it is now apparent that the country is facing serious retirement problems which need adequate solutions. The video Frontline also demonstrates inevitable responsibilities of individuals for their retirement. This involves advice on planning for saving and ensuring that one is able to afford retirement. It has been argued that regardless of the challenges which face the pension which emanates from individual savings, people can be trained or educated to be able to save sufficiently and thus afford their retirement (Wilcox 134). The ability that individuals have for savings can only be enhanced through proper training and education. This is because the personal retirement savings models require thorough discipline, planning and prioritizing (Salter 273). Therefore people must be enabled to understand the importance of being able to afford their retirement. The reality which is presented within the video Frontline is important in letting individuals to be aware and understand that the pension from employment retirement models have failed. Therefore everyone is mandated to ensure that self mediated planning and saving for retirement. Frontline actually acts as an educative forum for the ability of people to afford their retirement. This is because the video shows how important it is to enable individuals to save and ensure that their living standards are maintained even after they retire. This is shown as the necessary case regardless of the failure of the employer retirement models’ failure. Within Frontline, it is shown that the current retirement problem has not just happened. This problem has developed over a long time. This is because of the gradual changes in prioritization within individuals, competition, bankruptcy and the economic crises. The legal framework on employment and labor in general and its enforcement also has not been applied effectively (Muller 64). This means that the work environment is changing and the gradual transformation and liberalization in addition to the forces of privatization and globalization has affected the pension and social security models. This has negative implication on the retirement of employees and therefore the management and planning for retirement has to be prioritized. In this regard it is recommended that employers and employees must take responsibilities in the retirement plans. However the gradual changes in the retirement schemes reflects that the future is likely to be faced with more problems if something is not done. In the light to the above discussion and reflections from the video Frontline and the related research, it is evident that the retirement problems have emanated from the many changes within the work environment especially the changes within the pension and social security models. Therefore individual mediated models have been the current characteristic of saving for retirement. The implication of this situation is shown by the failure of many retirees to achieve affordability for their retirement. This means that the living standards among the retirees are not likely to remain the same as when they used to work. The problem can be solved through training on individual planning and saving for retirement among all people. This will overcome the retirement problems which result when people have retired. Works Cited Muller, Leslie A. "Does Retirement Education Teach People to Save Pension Distributions?" Social security bulletin 01 2001: 48-65. ABI/INFORM Complete. Web. 12 June 2012. Salter, Tony. "Retirement Age: Economic Outcome or Social Choice? Pension Flexibility and Retirement Choice." Pensions: An International Journal 9.3 (2004): 256-74. ABI/INFORM Complete. Web. 12 June 2012. Wilcox, Melynda Dovel. "Your Retirement: New Help with Your Pension Problems." Kiplingers Personal Finance 1994: 134-137. ABI/INFORM Complete. Web. 12 June 2012 Read More