Income insecurity is not an important problem for retired Americans. Not at present. In fact, it’s just the opposite. Retired Americans probably enjoy more income security than the vast majority of people around the world and throughout history.
I’m a retired American on the brink of 70. I’m not wealthy or even affluent, but neither am I poor or insecure. I’m very grateful for the life and security I enjoy at this point.
The most privileged people in the world today are the following:
- The top one percent or five percent of Americans. I don’t know exactly where to draw the line. Maybe it’s the top 20 percent or 40 percent.
- Most elderly and retired Americans. (However, it must also be acknowledged that too many Americans, including elderly Americans, remain trapped in poverty.)
Just my opinion.
Some people reportedly believe that older Americans are a wealthy class, living the high life at the expense of impoverished children and struggling younger adults. That’s because we enjoy remarkable income security, thanks to Social Security and Medicare. Many of us also have some pension benefits and even some savings. Younger and middle-aged Americans are rightly skeptical that they will enjoy similar benefits. The stage is set for intergenerational contention. The future is impossible to predict. The income security of younger generations is a matter of politics and economics, and I don’t want to go there. At least not today.
What I want is to present an honest picture about the realities of retired life. It’s not all about money. It’s true that many will need to cut back spending and lifestyle to be in balance with our retirement income. But my previous post about income and spending may have left an incorrect impression linking income and spending issues entirely with retirement. In fact, people can suffer a sudden loss of income at any time in life, and for myriad reasons. Loss of job, divorce, recession, business failure, and illness, to name a few.
Most of the natural world and human life run in cycles. It’s Biblical. Seven wet years and seven dry years. And so forth. The business cycle of expansion and recession is notorious and causes much misery. Financial consequences can be cumulative. An adjustment of income and spending at retirement is simply a part of the much larger cycle of human life. It may be that we are at the peak of the Social Security and Medicare cycle. I hope not.
I will turn soon to lighter subject matter.