The recent passing of my 95-year-old cousin reminded me of “retirement”, something she enjoyed for 30 years. She retired from an insurance company with (I assume) a small pension, and later received social security, and probably some benefits from her deceased husband’s SS, too. In all, she had a fairly comfortable retirement.
According to The Economist, that’s something few of us can probably expect when we reach the magic “65″. When social security was initiated in the 1930’s it was for people 65+. The kicker was, the average person lived to only 62. There were something like 7 people working and paying SS taxes to support every retiree….not a huge burden. Today, however, due to people having smaller families (read: proportionally fewer workers/taxpayers) and with more people now living to an average age of 76-78 (?), those numbers are upside down. Now it’s 3 workers per retiree. Now SS taxes on workers are very onerous, and when the day comes (soon) when there are only 2 workers per retiree, that tax burden will be crushing. Somethin’s gotta give.
Understand this: Social security to this day takes in more than it pays out. The excess goes into a big SS savings account. Trouble is, with our @#%*#$%^&* congressmen shoveling money to all their favored constituents (Big Bidness, Big Agriculture, those on welfare, pork) the Gubment takes in too little $$$ to pay for it all. Then they found the SS piggy bank just sitting there and decided they would help themselves to a few billion (trillion?) dollars and replace it with an Uncle Sam IOU. Soon SS will be paying out more than it takes in, and they’ll be asking Treasury to convert some of those IOU’s back into cash.
“Ah, Houston…we have a problem.” Uncle Sam don’t got it.
Here’s what ticks me off: Social Security is a one-way contract. They’ve told us, “You pay in now, and we’ll pay you back when you’re 65.” But now they’re fudging. ”65? Er, let’s make that 66. No, better make it 68. Ummm…we’ll get back with you later on when you can expect your check.” They can change the terms, but we can’t? WTF??
My late cousin enjoyed 30 years of pleasant retirement. I doubt many of us can expect any at all. Because our Gubment watchdogs have been asleep at the wheel our private investments have recently been stolen from us, and now SS will soon have to admit they can’t pay us benefits until we’re….who knows what age.
Lucy, ’splain it to me again. The Gubment works for us? Really?
S