COMMENTARY: The “Golden Years” Are Not “Golden” For All

Another Morning Cup Of Coffee “News”

The “Golden Years” Are Not “Golden” For All

By Dannie McIntire

My wife and I are now retired, like many American “baby boomers”, who worked all their lives and saved for their eventual retirement, are now watching their “comfortable retirement days” buffeted by the fiscal policies of the current administration that seems to know only one thing, how to spend money that our country does not actually have.

This month, our federal deficit is expected to hit over $31 trillion dollars. If the reader is much like me, that is an amount of money that is hard to fathom. 

Let me try to put that amount into perspective; One trillion dollar bills if lined up, would stretch almost one-quarter of the way to our moon. Now consider a national debt of $31 trillion lined up, that’s over seven trips to our moon and back with change to spare. 

Since President Biden has been in office, most “retirees” have watched our retirement investment portfolios take a heck of a beating. Currently, what I once looked upon as my “golden years”, has changed to more of my “pot metal” years.

I am mad. My fellow retirees should be mad. For many “baby boomers” who grew up following the “rules”, working hard, providing for their family, pay their bills, while trying to save for their retirement, it suddenly seems we were wrong in our thinking.

Why follow what we thought were the “American Dream:” rules when our government has so much “free money” to give away? The “American Dream” is quickly becoming the “American Nightmare” for many. 

While I feel my wife and I are fortunate, we followed “the rules”, making wise money decisions in our earlier years, we have no debt, and we should be able to weather the current financial storm until we can elect a more responsible government, (well, if ever). However, many retirees are not so fortunate.

The Federal Poverty Income Level set by the government for a single person in 2022 is $13,590. 

In January 2022, the average Social Security benefit was $1,657 per month, which translates to an annual income of $19,881. That puts their annual income above the 2022 federal poverty guideline, but not by much. 

In researching the percentage of retirees “who rely solely” on their Social Security income to make ends meet, I found a wide range of estimates. First, the term “rely solely on”, is generally defined as being at least 90% of annual income. 

An eye-opening report from the “National Institute on Retirement Security”, (NIRS), stated that approximately 40% of older Americans rely exclusively on Social Security for their income. However, a 2017 study released by the U.S. Census Bureau found that only 12% of Americans aged 65 and over received 90% or more of their income from Social Security, while another 2017 study by the Social Security Administration put that figure at 19.6%.

Statics can be confusing and easily manipulated to make your case. While I suspect the above 40% figure to be highly inflated, the average between the other two estimates, a figure of 15.8%, would still be a good number of retirees who financially rely solely on their Social Security benefits.   

I tried to imagine myself ending up in my “golden years” with no retirement savings trying to exist on an annual income of $19,881. It has to be a daunting task for retirees who are in such a scenario.

While our current government seems keen on giving away “free money” such as student loan debt relief to those that have not yet “been through the trials and tribulations of living in the real world”, senior citizens are being buffeted by the “free money” policies. 

I, like other retirees, worked all my life to build the Social Security retirement benefits I now receive. Social Security benefits are not “free money”, retirees during their working careers paid Social Security taxes to earn their benefits.

Many economists say the deluge of “free money” has been one of the contributing factors driving the current inflation rate, with retirees on fixed incomes being one of the groups most hurt by spiraling inflation.  

Now some readers may say “wait a minute”, but don’t Social Security beneficiaries receive an annual cost of living adjustment? Yes, but the annual adjustment has not kept pace with actual inflation. The Senior Citizens League estimates that seniors have lost 30% of their buying power since the year 2000 due to inflation. 

Adding to many retirees’ financial woes, in 1984, Social Security income became taxable when they file their taxes if their total adjusted earned income exceeds certain government-set income thresholds. 

Why?  Our congressional leaders at that time decided it was a necessary step to “save the Social Security program from going broke”; it was a “nifty way” to add tax money back into the government coffer while avoiding the appearance of cutting Social Security benefits.

Perhaps it’s just my delusional thinking, however, I’d prefer to see more help for our senior citizens who may be in need of forgiving student debt relief than someone who borrowed thousands of dollars for a college degree in “basket weaving”. 

Congress should repeal the taxation of Social Security retirement benefits.

As a retiree, it’s a benefit we earned while working and paying taxes. No retiree having “earned the benefit”, should be taxed on it at any income level, it’s a potential punishment for having responsibly planned for your retirement.    
That said, I applaud the State of Indiana, our governor, and legislators, for the recent Indiana state budget surplus tax revenue rebate, I’m sure for many retirees, as others, it helped with necessities they may have been struggling to afford. 

It’s finally time for a fresh pot of coffee, my rant is done. 

FOOTNOTE:  The City-County Observer posted Dannie’s article without bias or editing.