AAEC 2104 Lecture Notes - Lecture 7: Coverdell Education Savings Account, Traditional Ira, Employee Stock Ownership Plan
18 Aug 2016
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40% of americans between the ages of 55-64 do not have any retirement accounts. Primary source of retirement income for many senior citizens: did not exist 50 years ago, abject poverty, weren"t that many because people didn"t live that long. Younger workers who won"t retire for another 40 years, social security may no longer be there: aver life expectancy of a 20 year old today, males: 88 years. Fica taxes paid today are providing benefits for today"s retirees: the money you pay is not being saved up and invested in an account for you. Changes will be necessary, possibly increasing the retirement age or limiting benefits for the wealthy: medicare. Pay into system to be eligible and receive credits. In 2011, earned 1 credit for each ,120 in earnings up to a maximum of 4 credits per year: with 40 credits, eligible for retirement, disability, and survivor benefits.
