The authors are two NJ Senators, Sweeney and Sarlo. They throw out the question of what can be done to keep seniors in NJ during their retirement.
Original Article
Which information closely matched that which I found in searching. I do not qubble with their figures.
Immediately letters to the editor began pouring in. Senators I hope you get to read the correspondence that comes in everyday.. Judging from the response: There is little that you can do to keep seniors in place.
It seems as if many have made u their minds to leave. One thing that does tend to hold seniors in place is the presence of children and grandchildren. But with price of life being high and job availability being low children are quick to see that the pastures are verdant elsewhere. One of our children is quick to pronounce NJ as something of a social wasteland. I do not know if I can subscribe to that theory, if has been home to us forever. But I do know that many children who go afield seeking their educational fortunes never return, for they all have seen Paree and there is just no keeping them down on the farm. The result is that many seniors see their children off in the nation and make the choice to follow them, finding that their destination is to their liking.
Most of the responses were about property taxes. The tax one pays to live in one's home. NJ has the highest in the nation. It is not uncommon to hear people say that they pay upwards of 1000 per month for taxes. A family of two trying to live on 30K of social security and 10K of pension benefit finds itself hard pressed to stay if 12K is property tax. Do the math Senators.
The average benefit per worker from social security in retirement is 1331.00 per month, which is about 31000 per year for a married couple with both having average work history. It is rare that two spouses have similar work history. Private pensions and annuities $9,227 Federal government pension $22,537 State or local government pension $14,158 Railroad pension $23,992 (2013 data) Military pension $18,554 Veterans benefits $12,553 - See more at: http://www.pensionrights.org/publications/statistic/income-pensions#sthash.Zjh6CI3m.dpuf
The median household income from all sources is about $36,000 per year, half above, half below.
And as we all are aware, private defined benefit pension plans are almost extinct.
As for savings:
Total savings and investments reported by workers, not including value of primary residence or defined benefit plans such as a traditional pension.
Less than $1,000, 36%
$1,000 to $9,999, 16%
$10,000 to $24,999, 8%
$25,000 to $49,999, 9%
$50,000 to $99,999, 9%
$100,000 to $249,999, 11%
$250,000 or more, 11%
So Senators, it comes down to affordability and sadly NJ with its enormous tax burden is a no brainer in the affordability department. Just the other day it was reported that a Fire Chief in one of NJ cities put in for retirement, his pension alone was 111,000.00 per year after 27 years of service. He stands to collect that pension for 40 years assuming a normal life expectancy. He will collect more in pension benefits that he collected in working.
NJ has a known pension underfunding situation, perhaps the worst in the nation. Guaranteed by full faith and credit, seniors n NJ could very well see a doubling of their local taxes if the pension situation can not get addressed.
With that in mind seniors are getting while the getting is good, before the tax increase destroys value, al la Detroit. Your paltry attempt to stem the highly visible wealth flight from NJ is a little late. That season is over.
So when you start talking about "We Need to", get on with it. You are after all legislators.