At 77, Social Security confronts its own mortality
We have technologies to help us celebrate the program, but we still have to reinvent the way we think about aging.
How odd it is that we have technologies in this current century to help us celebrate the policies of Social Security (which turns 77 next week) and Medicare (which just turned 47), both formed in an earlier century. We have birthday cakes on Facebook pages and tweets from all quarters about both of these entitlement institutions.
And how interesting it is, too, that topics normally left to policy wonks inside the Beltway or among academics from Cambridge to Palo Alto have made their way into social media. Or that we are now being invited to take to the streets by the Alliance for Retired Americans in their summer campaign with the slogan, "Let’s Not Be the Last Generation to Retire." The group's goal seems to be to amass signatures on a petition calling for America to keep Social Security and Medicare far into the future. Not exactly the inspiration of the good old American work ethic and our understanding of virtue. And not anywhere in the vicinity of our current demographic realities which, as we live well into our 80s, hardly square with outdated ideas of retirement.
Yet the same crowd that so easily adopts this century’s newest communications technology is hopelessly stuck on ideas and institutions that were invented in – and for – an earlier time. And they are not alone, as was so clearly revealed in the groundbreaking AEGON Retirement Readiness Survey, which questioned 9,000 people across eight European countries and the U.S. who believe they’re worse off today and fear they will not be able to retire in 20th century style.
As we dramatically reduce birthrates across the globe, where there will soon be more of us over age 60 than under 14, it is the reverse that must begin to animate our thinking: What does a working life look like in the 21st century when there are two decades beyond 20th century traditional retirement age?
The campaign for retirement is not only peculiar in light of our longevity – how many people really want to play golf or garden for twenty years or more? Living for decades without an active income is also fiscally unsustainable in light of the dramatic demographic shift of what would be "working to retirement."
Sure, the Social Security and Medicare programs worked when they were invented. But even the vaunted UK National Health Scheme on which U.S. Medicare was modeled is unable to meet the demands of an aging population. And that’s against basic reforms year after year, including a change to the once-uncontested principle that you were either "in" or "out." Today, if you don’t like the health care you’re getting and can afford something on the outside, it’s OK.
In the hotly contested presidential campaign, there’s been barely a word from either of the candidates about these entitlement celebrations. Only in newly minted socialist France does there seem to be any public display of keeping 20th century retirement, but the confiscatory taxes that follow underscore the disconnect. Surely the demographic realities of our 21st century demand something more than retread 20th century policies.
Some may not want us to be the "last generation to retire," but the generations of the 21st century know they must reimagine and reinvent how they will live in their century.
Michael Hodin is a contributor at The Fiscal Times. Subscribe to The Fiscal Times' free newsletter.
More from The Fiscal Times
I am NOT willing to live with that. That's why I took the income leveling option when I took an early retirement package at 55. F***waiting; it will not be here when I reach 62 anyway!
I had my first job at age nine selling newspapers and paying Social Security. I had two other jobs during my youth and then I joined the Army when I turned 17. I have paild into this even now and I'm almost 62. I have worked hard all of my life and now they don't want to give me my due. Bull@#!&!!!
These guys sit up on capitol hill and in the white house and in just a few years they are set for life, free health care, pension, etc. Some of them including the squatter in the white house has never really had a job untll 2008, I know being President is a tough job even if I don't agree with him. That's where you 1%'s need to gather. Loook into how much money these people are worth, how much they've gained by being "our" elected officials.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Breaking up big banks is an untested solution to the too big to fail problem that attempts to isolate and dismantle large, troubled institutions while protecting the rest of the economy.
VIDEO ON MSN MONEY
[BRIEFING.COM] The major averages have continued their retreat with the S&P 500 widening its loss to 0.3%. Elsewhere, small caps have suffered from added pressure as the Russell 2000 trades lower by 0.6%.
The technology sector (+0.2%) continues trading in the green while the remaining nine groups sit below their flat lines. Most notably, the financial sector is now lower by 0.6% with bellwether names Goldman Sachs (GS 171.02, -2.49) and JPMorgan Chase (JPM 58.46, ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'