Is the Government Ready to Cut Funding For Seniors?

By Don Potter
(News-and-Society / Pure-Opinion)

Pre-boomers (those born between 1930 and 1945) may consider circling the wagons, because our generation, now known as New Seniors, is under attack. Have you noticed? It is mainly below the radar. But, it is there. The subtle, almost subliminal, message is, "Programs for those 65+ are too expensive, will add to the deficit and ultimately be paid for on the backs of the recipients' children, grandchildren and great grandchildren."

Why blame us? Because we are no longer the revenue source we once were. This year Social Security (SS) will pay paying out more in benefits than it takes in for the first time since 1982. The reason is simple. In 1960 there were 5 workers for each person receiving SS. This number fell to just 2 workers for each recipient in 2010. The problem is soon to be compounded with the first of the 76 million baby boomers reaching 65 next year. In fact, millions of boomers will turn 65 every year until 2030.

The SS contributions by individuals and their employers never made it to a lockbox, so it could be invested for the future. Instead Congress, over the years, spent the money it collected on unfunded projects, leaving the American citizens with a great big I.O.U. Due to this lack of foresight the government must borrow money from China, Japan and other countries. The effect this will have on the national debt as the SS recipient pool increases in the years ahead is not a pretty prospect.

Months of debate stirred the murky waters of health care reform and brought many issues to the surface. For starters, the government intends to cut $500 billion from Medicare. This is to be accomplished by reducing waste, fraud and abuse - something that could and should have been done as a matter of course, but was not. Seniors can expect current benefits plans to be altered with the result being lower quality of care, fewer patient choices, higher costs and/or more taxation.

As politicians revisit the floundering heath care bill, it is unclear what will emerge. In the meantime, insurance premiums continue to increase while SS cost of living adjustments (COLA) are frozen for the next two years. Will Washington do anything to help retirees on fixed incomes during these difficult times? Or, must we fend for ourselves and hope lost savings will be recovered, home prices rebound and the economy improves enough to make us financially healthier than we are now?

We are not looking for handouts. We paid into the system for years and were promised certain benefits. We expect them, because it's our money. Unfortunately, the SS funds are gone and Medicare is under the budget knife as the retiree population continues to grow. This adds up to great concern about the future. Our earning days are over, or soon will be, so we can't generate more income. If our elected representatives don't consider us worth preserving, then we must replace these tone-deaf politicians with people who respect our situations and are willing to respond to the needs of all New Seniors.

Don Potter, a Philadelphia native, was born in 1936 and is a 50 year veteran of the advertising agency business. Now living in Los Angeles, he has written two novels in retirement, frequently writes on marketing issues, and has a blog dedicated to pre-boomers (those born between 1930 and 1945).