Young and Worried About Retirement
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Melissa, a college senior, says she never thought about retirement until she saw her parents dip into their retirement savings to help make ends meet after her father lost his job. Now it’s one of her top worries.
Melissa told her story at Retirement USA, where an online survey finds that 83 percent of respondents say younger workers will fare worse in retirement than current retirees. There are some real good reasons for this pessimism, too.
First off, Social Security—which is even more vital than ever for younger workers, most of whom don’t participate in any kind of retirement plan—is under attack. Even though Social Security does not contribute a cent to the nation’s budget deficit, the federal budget deficit commission has it in their sights and there are reports the commission could recommended raising the retirement age or cutting benefits.
Then there are the Republican candidates on the campaign trail like Senate candidates Rand Paul in Kentucky, Joe Miller in Alaska and others who want to privatize Social Security. Do they really think it’s a smart idea to put Social Security on the same Wall Street roller coaster that made most 401(k)s go off the track when the market crashed?
Social Security’s a Vital Lifeline for Older Women
The Alan Simpsons and John Boehners of the world talk about raising the retirement age and cutting Social Security benefits for “greedy geezers.” If they have their way and the federal budget deficit commission—of which Simpson is co-chairman—ends up recommending raising the retirement age, cutting benefits or even privatizing Social Security, women will be the hardest hit.
Here are some sobering statistics from Retirement USA and the Social Security Administration (SSA) that show just how vital Social Security is to older women.
The estimated income that older Americans need to meet basic needs, depending on homeowner status, is between $16,163 and $20,869, according to the Elder Economic Security Standard™ Index.
But half the women ages 65 and older have an annual income of less than $14,429 (men’s median income is $25,344). On top of that, 11 percent of women 65 years and older live below the federal poverty line of $10,326 for single persons ages 65 and older. That is well below what is necessary to meet basic needs.
Trumka: Retirement Security Promise Must Be Kept
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The ability to retire after a lifetime of hard work is not just an economic issue, it’s a moral one, said AFL-CIO President Richard Trumka, speaking today at the Retirement USA “Re-Envisioning Retirement Security” conference.
Joining U.S. Secretary of Labor Hilda Solis and an array of experts and leaders, Trumka took part in a conversation about the breakdown of the promise of retirement security and what we need to do to restore it.
Trumka called the retirement security crisis one that
threatens American workers with yet another painful consequence of the “you’re on your own” social and economic model of the last thirty years.
