Social Security and Older Workers

In 2019, nearly 90% of older adults in the U.S. received Social Security, formerly known as an “old-age pension" (Edleson, 2020). With all the talk of Social Security running dry in 2035, and now the pandemic with massive layoffs and loss of income, is it something Americans can count on in the future? It depends on who does the math.

The majority of the projections for Social Security running dry are based on faulty actuarial projections with older workers retiring from the workforce at age 65 and remaining unemployed. According to the U.S. Census, about 20% of older adults are employed and surpassing other age groups in earnings (McEntarfer, 2018). Further, they are paying INTO the system, not draining it.  Former Wyoming Senator Alan Simpson labeled older adults “greedy geezers,” stealing from younger cohorts by “gutting the system” (Miller, 2020). 

More older adults are working now than ever before for a variety of reasons including necessity, good health, maintaining a work ethic, building wealth, and social interaction.  However, the majority of employed older adults have educational attainment and high-paying white-collar jobs. Conversely, blue-collar jobs are typically more physically demanding and younger workers are needed to perform those tasks, thus leaving lower-earning older adults out of the job market post-retirement (Edelson, 2019). While they may have the desire and the need to work, many older blue-collar workers cannot find employment.

According to an analysis by a recent AARP analysis, the Baby Boomers born 1946-1964 are living longer and thereby collecting benefits longer. That, combined with lower birth rates means that fewer workers pay into the Social Security system (Edleson, 2019). Again, that projection did not account for 20% of older adults remaining in the workforce. The Chicken Little “sky is falling” projections are not totally absurd, as the pandemic has negated all previous projections.

The year 2035 is just around the corner and discussions by policymakers and lawmakers are underway (AARP, 2020).  Become part of the discourse! Write your congressional representatives and have your voice heard. Keep writing them and be part of the solution. Then, go vote!

References:

AARP (2020, April 28).  How much longer will Social Security be around? Retrieved from https://www.aarp.org/retirement/social-security/questions-answers/how-much-longer-will-social-security-be-around/

Edleson, H. (2019, April 22). More Americans working past 65. Retrieved from  https://www.aarp.org/work/employers/info-2019/americans-working-past-65.html

McEntarfer, E. (2018, April 24). Older people working longer, earning more. Retrieved from  https://www.census.gov/library/stories/2018/04/aging-workforce.html

Miller, M. (2020, February 14). The truth about ‘greedy’ seniors and the ‘war’ between generations. Retrieved from https://www.reuters.com/article/us-column-miller-elderly/the-truth-about-greedy-seniors-and-the-war-between-generations-idUSKBN208299