SOMETHING THAT MAY BE DECADES IN THE FUTURE, RETIREMENT.
HERE’S CHRISTINE
ROMANS.
>> Reporter:
88-YEAR-OLD JACQUELINE
JAMES TAUGHT PUBLIC
SCHOOL IN STRAUDSBURG,
PENNSYLVANIA, FOR
THREE DECADES BEFORE
RETIRING IN 1998.
YOU WORKED FOR 30
YEARS AND PAID INTO
YOUR PENSION.
>> EVERY SINGLE CHECK.
YOU PAY INTO SOCIAL
SECURITY AND YOUR
PENSION.
YOU KNEW YOU WERE
NEVER GOING TO MAKE A
LOT OF MONEY, AND YOU
KNEW THAT YOU WERE
BUILDING YOUR
RETIREMENT.
>> Reporter: YET
THROUGH A QUIRK OF
STATE LAW, SHE AND
ABOUT 70,000 OTHER
RETIRED PUBLIC WORKERS
IN PENNSYLVANIA HAVE
HAD ZERO
COST-OF-LIVING
ADJUSTMENTS IN OVER 20
YEARS.
THE $25,000 A YEAR SHE
GETS NOW IS THE SAME
IT WAS THEN WHILE THE
COST OF LIVING HAS
NEARLY DOUBLED.
SHE’S GIVEN UP CABLE
TV, CUT OUT SOME OF
HER FAVORITE FOODS,
EVEN STOPPED BUYING
MULCH FOR HER FLOWER
FLOWERBEDS.
>> I DO LESS AND LESS
AND LESS.
I’M ALWAYS FIGURING,
WHAT CAN I STOP DOING
NOW?
WHAT CAN I STOP DOING
NOW?
>> Reporter: OF
COURSE, MOST OF
TODAY’S WORKERS WON’T
HAVE PENSIONS.
ACCORDING TO THE
FEDERAL RESERVE JUST
22%.
FAR MORE COMMON NOW
ARE RETIREMENT
ACCOUNTS LIKE A 401(k)
WHERE THE BURDEN IS ON
YOU TO SAVE ENOUGH TO
LAST A LIFETIME.
JUST A WAYS UP THE
ROAD FROM STROUDBURG
VICTOR AND HIS SON RUN
A FAMILY CONSTRUCTION
BUSINESS.
>> DO YOU FEEL READY
TO RETIRE IN THIS
ECONOMY?
>> NO.
>> YOU’VE GOT A 401(k)
AND AN I.R.A.?
>> YES.
>> DO YOU THINK THAT
WILL BE ENOUGH FOR YOU
TO RETIRE ON SOMEDAY.
>> I DON’T THINK SO
PERSONALLY.
>> Reporter: THAT’S
EVEN THOUGH THEY ARE
SAVING.
NEARLY HALF OF
AMERICAN FAMILIES HAVE
NO SAVINGS IN
RETIREMENT ACCOUNTS AT
ALL.
THAT RETIREMENT
INSECURITY EXPLAINS
SOME OF TODAY’S
PESSIMISM IN A STRONG
ECONOMY
ECONOMY.
>> WE DON’T HAVE A
SYSTEM DESIGNED ON TO
LAST FOR AS LONG AS
PEOPLE ARE GOING TO
LAST TILL 90s AND 100s
AND PUTTING PEOPLE ON
LITTLE BOATS AND
FLOATING THEM OFF INTO
THE OCEAN AND SAYING,
YOU HAVE TO TAKE CARE
OF YOURSELF.
>> Reporter: FOR MANY
SOCIAL SECURITY IS A
LIFEBOAT BUT WAS NEVER
MEANT TO BE THE SOLE
SOURCE OF RETIREMENT
INCOME.
ON VICTOR MARTIN’S JOB
SITE BUSINESS IS BRINK
BUT WORRIES ABOUT THE
FUTURE.
>> WE’VE DIVERSIFIED
OURSELF.
I’VE GOT AN I.R.A.
WE’RE PUTTING MONEY
BACK INTO THE
BUSINESS.
SO HOPEFULLY I CAN
STILL, YOU KNOW, TAKE
A PAYCHECK FROM THAT.
>> Reporter:
DIVERSIFICATION IS NO
LONGER AN OPTION FOR
JACQUELINE JAMES.
>> I’M DISTURBED.
I’M DISGUSTED AND I
DON’T KNOW THAT I CAN
DO ANYTHING ABOUT IT.
>> Reporter: SHE’S
LEFT TO HOPE THE LAW
CHANGES SO SHE CAN
FINALLY GET A RAISE.