The Financially Comfortable Retiree

Author: James Eichenlaub, October 1, 2024 —

Eleven Thousand New Retirees Every Day…

If you read the current administration’s pundits’ pages regarding retirement, they claim that the retiree is better off today than ever!

Signing Of The Social Security Act 1935

Well, let’s think about that.

The Social Security Act was signed into law by President Roosevelt on August 14, 1935.
In October of 1929, the “Great Depression” began.
By the time that FDR was inaugurated president on March 4, 1933, the banking system had collapsed,
- nearly 25% of the labor force was unemployed.
Then, on September 1, 1939, a little more than four years after the signing of the act, World War II began.
The American workforce was reeling and struggling for survival.
Then, in 1945, the war ended, the men came home, and BABY BOOM started!

The United States Census Bureau statistics show that between 1940 — 1960, there was a booming population increase of nearly 45 Million, and those 45 million are now at, in, or approaching retirement.

However, are today’s BOOMERS better off? Well…sure they are! They have had 65 — 75 years to work, save, and build that money that the government promised would be there for them! But how much BETTER OFF is better off?

According to Richard J. Leider, an Education Fellow with the Alliance for Lifetime Income’s, Retirement Income Institute, and Founder of Inventure – The Purpose Company,

While many will struggle financially to live comfortably throughout their retirement, no generation has retired with as much money saved as the Boomers.

So, then, what does this mean to you? What is being said about our current and future prospects in regard to Social Security and how it relates to those of us who depend upon it for our LONG TERM BENEFIT?

The question is, will what they took from us, and what we put away, keep up with the changing economy?

Being born in 1951 and 52, my wife and I (respectively) are doing okay at the moment! But, the sad thing is that if we live too long, we won’t have enough to sustain us. Cross my heart and hope to die? If not, what’s left?

The many factors can and do affect us include:

Inflation: Our income increases and decreases constantly with the cost of food, clothing, personal products, etc.
Rising Cost of Living: Healthcare and housing costs have increased significantly
Corporate Greed: Large corporations are buying up the retirement market, continually raising rents and fees on 55+ communities, condos, senior living facilities, and so on.
Wealth Inequality: There were very few of today’s retirees who held jobs that did much more than sustain them. Saving was a secondary consideration to the daily cost of supporting themselves and their family.
Increased Longevity: Somebody in our community recently said, “When I was approaching retirement, I went to my financial adviser and asked, “Am I ready to retire?” He looked at me blankly and said, “Oh yes, you can retire now if you wish. But, you will have to die within a couple of years if you don’t want to run out of money.” We are living longer than ever due to advanced medical techniques, meaning many of us will not have enough to sustain us through those final days.
Economic Challenges: Interest rates and market volatility can dramatically impact the returns on retirement savings and affect financial security. We rarely know what tomorrow will bring.
Debt Levels: Sadly, many Boomers are retiring while carrying large debts, which, regardless of how much they saved, diminishes their retirement options. The burden with large payments for credit cards, mortgages, and medical expenses, they will most likely have to continue to support themselves through augmented forms of income.
Social Safety Nets: The reliability of Social Security Incomes is in flux, which affects the overall financial security of retirees, even those who have saved well. Granted, each year, there is a COL (cost of living) increase, and each year, we see it eaten by the rising cost of Medicare and supplemental insurance cost increases made to offset and take from us any hope of having more in our futures.

With so many unforeseen events, and so many more possible changes, we should not deceive ourselves! Why? Because “American Giveth, and America Taketh Away!” We are capitalists, meaning we all want money! We live for money, we work for money, we ask for money, and we even beg, borrow, and steal money. So, it should not be surprising to anyone that America has its hand out to take back what every retiree has worked for, thereby diminishing the hope of a comfortable retirement.