Category Archives: Aging gracefully

AARP Says More Work And Less Retirement Is Good News

Remember when AARP was an organization for retired persons? Remember when the American Dream included a decent job, a house and yard, and retirement?

The acronym AARP was shorthand for “American Association of Retired Persons.” But the organization decided to change its brand. The spelled-out moniker was dropped in favor of just plain AARP.

The capital letters AARP became the full, official name. The letters don’t stand for anything. I’m beginning to wonder what AARP, the organization, stands for.

Did the organization that advocated for retired persons change its identity — and its mission — along with its brand? Has AARP decided that retirement is no longer cool? It almost seems as if they’ve  decided to support WORK and give up on RETIREMENT.

The cover story for the September issue of AARP Bulletin proclaims:

“Good News for Older Workers: Keep, Change or Improve Your Job After 50.”

The “RP” in AARP now stands for “Real Possibilities.” I’m not making this up.

“Tens of millions of older Americans are working today at ages when their parents and grandparents had retired.

Nearly a quarter-century ago, in 1991, only about 1 worker in 10 planned to stay in the workforce beyond age 65. Today, that number has risen to almost 4 in 10.

In 1991, according to the Bureau of Labor Statistics, some 30 percent of Americans age 55 or older were working. By 2013, the workforce participation rate for those 55-plus had passed 40 percent, and it’s rising steadily. The federal Equal Employment Opportunity Commission says the current era marks the first time in U.S. history when four generations — pre-boomers, boomers, Generation X and millennials — are engaged in the workforce at the same time.”

The above quote is from the article, “The Value of Older Workers: Experience makes them better problem solvers and more reliable,” by R.R. Reid in the September 2015 issue of AARP Bulletin. The September issue is not yet up on the website, but AARP Bulletin Today includes many related articles.

The hard copy of the September issue cites excellent sources for the claim that millions of older Americans who would have been enjoying their hard-earned retirement in the late 20th Century remain hard at work in the brave, new 21st Century. So it must be true. People of my baby boomer cohort are less likely to be retired — and more likely to still be working — than were our parents and grandparents, who were probably retired at our age.

300px-SocialSecurityposter2I’m constantly reading or hearing about the difficulties of retirement. Many people say they can’t afford to retire; some say they expect to work until they die. They believe they have little choice. For many, the cost of living outstrips retirement income based on Social Security, pensions, and savings. See the results of AARP’s latest survey of workers aged 55-64.

Retirement income is usually fixed income. The amount of our monthly income from Social Security, pensions, and savings is not likely to go up. Monthly income is more likely to go down, as a retiree burns through savings. Even the annual Social Security cost-of-living adjustment (COLA) is not guaranteed. See the earlier blog post.

Many people fear that their Social Security benefit will, in the not-too-distant future, be reduced to 75 percent of the present benefit. That fear is based on a drumbeat of negative news. (I personally believe that we can and will find a way to preserve full Social Security benefits, and also ensure that Social Security remains viable for our children and grandchildren. Call me an optimist.)

AARP views the trend to less retirement and more work through rose-colored glasses. But I’m wondering if the American Dream of retirement for nearly everyone has ended. Workers in the 1930s to 1970s era were likely to have pensions and to own houses with paid-up mortgages. But since about the mid-1970s, the trend has been away from guaranteed pensions. In the later decades of the last century, many workers began to rely on home equity loans. People refinanced their homes repeatedly, and never paid off the mortgage.

Only in recent years have many baby boomers started to wake up and smell the burned coffee. The new reality is retirement without adequate pensions and savings. And meanwhile, you’re still paying the monthly mortgage. Is the American Dream of retirement about to become a nightmare?

I can hardly wait to see how Robert De Niro plays a 70-year-old intern working for a much younger boss (Anne Hathaway). Watch the trailer. Is it a comedy or a horror movie?

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ERICA JONG on FEAR OF DYING

Photo by Mary Ann Halpin

Photo by Mary Ann Halpin

“I’m 73, and my writing is better than it’s ever been. I’m freer, I have these beautiful grandchildren and a daughter who adores me, finally. I see that the greatest thing about getting older is how your judgment changes and how you come to understand the cycles of life. And you keep having these amazing flashes of understanding.”

— From an interview by Carole Burns with Erica Jong in The Washington Post, Sept. 9, 2015, p. C1. Erica Jong’s new book is “Fear of Dying.” It rhymes with “Fear Of Flying,” by the same author. Fear Of Flying was written and published in the last century. Click here: to see the Fear Of Dying book trailer.

Social Security And Medicare Are America At Her Best

Editor’s Note: Below is a column I wrote in February 2013, the year I turned 65. I began collecting Social Security earlier, at age 62. In June 2013, my Medicare coverage started, and I retired in October 2013. This article was originally posted on one of my other blogs. Because readers of Retirement Made Simple have shown a deep interest in Social Security and Medicare, I’ve removed it from the other blog and am reposting it here today, with minor updating, including additional links to other sources. As you can tell, Social Security and Medicare are American icons that I feel very strongly about.

An official-looking envelope arrived in the mail this week. (Yes, despite reports to the contrary, we still have mail delivery in the USA.)

Inside the envelope, my Medicare card! Thank God! But how did this happen? How did I ever get to be this old? Never mind.

medical_care_card_usa_sample

Amazing thing is, I didn’t even apply for Medicare. They just send me the card automatically, three months before I turn 65. Part A and Part B, both automatic. It’s effective in June, when I turn 65.

Many people are convinced that all government is inefficient. Anarchists claim government can’t possibly do anything right! Where do they get that idea?

Social Security and Medicare run like well-oiled machines.

The Social Security Administration +++   runs Social Security with amazingly low administrative expenses! And the honest truth is, it’s all been paid for, by me! And by you! Through specifically designated taxes! Is this a great country, or what!

As for Medicare,  +++   I’ve been paying a tax every week since 1966 (which happens to be the year I graduated from high school). For Social Security, I’ve been paying a couple of years longer, ever since I got my first part-time job at age 16. Every week, for 48 years! My money, invested prudently in the safest possible way — U.S. government bonds. Accrued interest!

+++   The two links in the two paragraphs above are the most authoritative sources regarding Social Security and Medicare, respectively.

Saving every week for 48 years. Investing the money prudently. Isn’t that what the investment gurus advise?

How could that possibly be wrong? It feels right to me. All younger workers (by which I mean everyone under 62) need to read the following article by Motley Fool, as printed in USA Today in September 2015:

“The average American is just plain wrong about Social Security’s importance.”

Why is it that so many poorly informed workers are ready to give up on Social Security???  And why is it that Social Security and Medicare are the two programs the wealthy hate the most? I don’t get it.

— John Hayden

Other related articles
Personal Finance Guide for Seniors (medicaresupplementalinsurance.com)
Watch out for Medicare card calls and other scams (utsandiego.com)

And finally, from Atlantic Magazine in 2012:

Don’t Cut Social Security, Double It

Selecting A Nursing Home, Or Call It A “Care Center,” If You Wish

Michelle, over at The Green Study, offers lots of insight and information, as all good bloggers should. And, she is an excellent writer. For example:

“And here’s a tip: If a waft of urine rolls over you when you open the front door of a nursing home (euphemistically now called a Care Center), this might not be the place for your loved one. Also, if the employees’ name tags are handwritten on pieces of paper taped to their uniforms, this might indicate also NOT A PLACE FOR YOUR LOVED ONE. I saw both during tours yesterday.”

Doesn’t “a waft of urine” just about say it all? The Green Study is located here.

Here’s hoping that, when the time comes, I will skip right past the nursing home, or care center, or whatever they call it, and go directly to hospice care. However, we’re not going to think about this any more today.