First, the financial aspect. I'm sure we all wonder, at least on rare occassions, about the inevitability of what all Gen Xers face with regard to Medicare and Social Security. Directly put, by the time we are ready to retire around 2030 (I'm using the median age for our group) it will not exist or will pale in comparision to what my annual Social Security statement tells me to expect. In fact, I noticed this year, for the first time, an almost Wall Street-like disclaimer that past performance does not guarantee future returns! This is interesting becuase according to the trustees of both programs, Medicare will crash by 2019 and Social Security by 2041. Here's the best part of their comments: to save these programs the White House and Congress need to cooperate and agree on a solution!
This brings me to the second issue, the behavour of our elected political leaders. (My disclaimer is we collectively put them there so we in part are responsible for their behavior.) I do not know about you, but I certainly do not expect them to agree on either of these hotly contested issues when there are powerful organizations and interests like AARP to protect this income stream to our seniors. I am not arguing to take it away from them, but how can we even have a reasonable debate if the "hurt the seniors" card is constantly played (see Shumer's comments in the article). How can we ensure that Gen X is not left holding a budgetary disaster, never mind not having the safety net of these programs.
This leads me to a series of questions:
- Why are the White House and the Congress jepordizing the future security of its citizens (economic and national security) through inaction?
- Is not this behavior by our leaders irresponsible?
- Is it not neglegent on their part to ensure that all citizens are looked after? Indeed, does their lack of action and behavior not violate the trust we place on our leaders as part of the "Social Contract"--i.e., as citizens we pay taxes and give up certain rights to the state so the state can act collectively in the best interest of the citizenry.
- Why are we, as a generation, sitting back and being quiet instead of making our voices heard?
- More importantly, why are we contributing to funds that will be sucked up by the Boomers (not their fault, it's the US population buldge) and leave us with nothing? Quite honestly, I could take the money going in to Social Security from my pay check on a yearly basis and turn a much better return for myself much less seeing it mismanaged by the goverment.
How do we ensure Gen Xers concerns are heard?
At a minimum, I would urge you all to think carefully about this and then write a thoughtful email to your House and Senate representatives. Send one to the White House, too. Some good resources follow (there are others).
- Tips for writing to your representatives: http://usgovinfo.about.com/library/weekly/aa020199.htm
- Contacting Congress: http://www.visi.com/juan/congress/ (Great resource to find your representative and their contact info.)
If we do not make our voices heard, no one in our elected leadership will look out for our well-being. As citizens we play a necessary role in oversight of our leaders. The last few years only has shown that they will not watch themselves.
And, in addition to be responsible citizens and making ourselves heard, INVEST, INVEST, and INVEST in your own nest-egg. Pay off all those high-interest debts (that primarily means your credit cards!). Get on a budget and plan to save. Take advantage of the free money that many employers give you in matching 401(k) funds and when that is topped out max out IRAs. Then, continue to diversity and broaden your investments. I know this is challenging for many of us who may still have educational loans, mortgages, or are starting to raise families. Nonetheless, it is necessary. One easy thing to do is take a modest portion of an annual raise or bonus and instead of comusming it, invest it before it even hits your wallet or purse by using an automatic payroll deduction.
In the event we are not heard and our government leaves the problem to our generation, we need to ensure that, at least, we have our affairs in order before trying to salvage that of the nation's.
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On the Net:
Social Security: http://www.socialsecurity.gov/
Medicare: http://www.cms.hhs.gov/
