Unsustainable Assumptions

Sustainability—it’s the new “it” word used to discuss everything from the environment to family budgets. But when we look at the federal government and money spent on retirees, sustainability has a whole new meaning—or perhaps it’s a warning. Because what’s going on at the federal level regarding money spent on retirees is, in fact, not sustainable.

Our society seems to assume that we will perpetually be able to provide for our elderly. But the fact is that when you look at the numbers, what we’ve done historically simply will not be feasible in the future.

Here are a few things to think about.

In 2009, a study on government expenditures found that our government spends 2.4 percent more per capita on the elderly than they do on children, although children are twice as likely to face hardship and poverty than baby boomers. The current analysis found that in 2033 Social Security will no longer have sufficient funds to pay full benefits. Milllennials will pay more for baby boomers’ health care, social security, and other benefits than boomers did for their parents’ generation. This is not a criticism. But it is a warning that future generations will need to be prepared for a retirement without the type of government assistance that’s been possible in years past.

It is critical for workers out there take a serious look at their finances. Keeping your head in the sand and having an “ignorance is bliss” attitude about your retirement is not only unwise, it can be devastating to your future. Sit down and look hard and critically at your spending. Money may seem tight, but what are the “wants” that can be cut out? How can you divert money into funds for your retirement?

Because after all, you’d probably like a retirement lifestyle that is comfortable, enjoyable and sustainable!

If you are nearing retirement, look for sustainable income sources that will keep your life savings secure.

For more information, visit my website, www.warenelkin.com, or call me at 1.877.476.5051.

Photo courtesy of hoover.org