Sometimes the best solutions are the simplest. Wasn't it Einstein that said something to the effect concerning his theory of relativity "I wish that it were so simple that God might have written it." No such pretense here, but I do recognize how often we avoid the obvious. I have not been subject to this mortal coil for very long, but there is something that I remember clearly from my youth.
My elders commonly said that, and I quote loosely but for effect: "I hope that I live long enough to see a social security check." Back then, retirement age was 65. In my home town, the regular guy worked in a factory and was able to make ends meet. The classic story was that the poor bastard kicked off just when he started receiving the coveted check.
When was the last time you heard someone hope to receive social security before their demise? Not a once I would guess. The big dilemma these days involves whether to retire at 62 and take less money in exchange for earlier collection, or to hold out until 65 in order to not be penalized for continuing to make a living at that age. But that's the key phrase: continuing to make a living.
Only the few truly expect to be able to retire at 65. Given the recent hit on retirement portfolios, even those that previously felt secure looking at retirement do not intend to stop working. That option no longer exists. Why not?
Life expectancy. Find out what life expectancy was when FDR started social security. What is it today?
The solution is simple: one should not be entitled to Social Security until the age of 70. We are all working as long as we can. Just as our forefathers did. We should be entitled to collect when we need it, at a retirement age that reflects current reality. It never was intended to be a 20 year annuity.
I expect to live until the age of 79. I hope to live long enough to receive a Social Security check.
