Excerpts 
          From  Can You Afford to Retire  by Hedrick Smith http://www.pbs.org/wgbh/pages/frontline/retirement/view/ The 
          baby boomer generation is headed for a shock as it hits retirement: 
          many of them will be long on life expectancy but short on savings. The 
          two main strategies for funding retirement -- lifetime pensions 
          and 401(k)-style 
          savings plans -- are in serious trouble. In "Can You Afford to 
          Retire?" FRONTLINE correspondent 
          Hedrick Smith ("Is Wal-Mart Good 
          for America?") investigates this looming financial crisis and the 
          outlook for middle-class Americans. "I 
          think this is a crisis in the making," says Alicia 
          Munnell, director of the  "I 
          would say, unless you're fortunate to be in the upper-income quartiles, 
          that you're probably going to be in for a very rough ride," 
          adds Jack 
          VanDerhei of the Employee Benefit Research Institute 
          (EBRI). "You're not going to have sufficient monies to pay the predictable 
          expenses -- your housing, your utilities, your food -- plus the potential 
          catastrophic medical care costs."  Half 
          of  A 
          major driver behind this shift is a CORPORATE 
          BANKRUPTCY strategy that enables companies to terminate lifetime pension 
          plans through Chapter 
          11 bankruptcy. 
          "Chapter 11 has become an effective tool for reorganizing a business," 
          says Elizabeth Warren, a  FRONTLINE 
          takes viewers inside the Chapter 11 bankruptcy of United Airlines. United dumped its pension plans, 
          which were under funded by nearly $10 billion, on the Pension 
          Benefit Guaranty Corporation (PBGC), the federal agency insuring 
          pensions that is running a $23 billion deficit. Because the PBGC only 
          insures pensions up to a certain amount, many United employees and retirees 
          saw their pensions slashed dramatically. Robin 
          Gilinger, a 42 year-old United flight attendant, has seen her pension 
          drop by nearly 30 percent and her other benefits cut. Gilinger says 
          she now expects to have to work five to 10 years longer than she originally 
          planned. "I feel very uneasy about where I'm going 
          to be in 20 years," Gilinger says, "And I'm 
          afraid that I'm going to end up having to work my golden years doing 
          things that I didn't necessarily want to be doing." With 
          their lifetime pensions gone, the current workers of United have joined 
          the millions of Americans trying to save for retirement in 401(k) plans. 
          "Most 
          people we -interviewed have no idea what it costs to replace a lifetime 
          pension," says Hedrick Smith. "And they don't realize that as they're 
          living longer, there is an impact on their nest egg." To 
          maintain their standard of living, experts 
          say Americans will need to save ten times their annual pay in their 
          401(k)s by the time they retire. That means saving 15-18 percent of 
          their salaries, every year, over an entire career. By 
          this standard, most Americans are simply not saving enough. 
          According to VanDerhei of the EBRI, the 
          typical baby boomer is approaching retirement with only three times 
          annual salary -- enough to last seven or eight years. 
          But with life expectancies after age 65 approaching 18 years, many retirees 
          may be living on nothing but Social Security for a decade or more.  "The 
          nightmare I have," says pension expert Brooks 
          Hamilton, "is the vision of people … outliving their retirement 
          income and being down to Social Security." And the shock waves may reverberate 
          through the entire economy. "What holds up our economy," says  The change is already happening, 
          as retirees 
          find they are having to go back to work to make ends meet. Pat 
          O'Neill, a retired United Airlines mechanic, is now driving a truck 
          after his pension and benefits were cut. Winson 
          Crabb and Gil 
          Thibeau, two National Semiconductor retirees with widely different 
          financial results from their company's 401(k) plan, are both still working 
          in retirement. "What 
          is the meaning of retirement if the only way you can live is to work?" 
          asks Notre Dame professor Teresa 
          Ghilarducci "The answer is there is no meaning to retirement anymore. 
          We are now shifting from lifetime pensions to lifetime work. It's the 
          end of retirement." T: 949 596-4115 
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