On August 14, 1935, President Franklin D. Roosevelt signed the Social Security Act into law. It was a cornerstone of the forward-looking reforms that were packaged together as the “New Deal.”

Social Security was born at a moment in history when the Great Depression had put over half of the aged population in the U.S. in jeopardy because they could not support themselves. Prior to Social Security, destitute older Americans had only their families, “poorhouses,” and paltry social services to rely upon. While some states tried to remedy the situation by instituting state pensions, it was an inadequate solution for most seniors.

Labor Secretary Frances Perkins lobbied Roosevelt to support a package of social welfare benefits that would include Social Security. While Social Security had vocal critics, especially those who objected to a payroll tax, once the American public understood its value, Social Security became arguably the federal government’s most popular program.

Social Security today

Today, 96 percent of the population is eligible to receive Social Security benefits when they reach their retirement age. According to the Social Security Administration:

• In 2024, an average of almost 68 million Americans per month will receive a Social Security benefit, totaling about $1.5 trillion in benefits paid during the year.
• Nearly nine out of 10 people age 65 and older were receiving a Social Security benefit as of June 30, 2024.
• Social Security benefits represent about 30 percent of the income of people over age 65.

Social Security: looking forward

In 1940, five years after the Social Security Act was signed into law, the life expectancy of a 65-year-old was almost 14 years (79 years of age). Today it is over 20 years (85+ years of age). The number of Americans 65 and older will increase from about 61 million in 2023 to about 77 million by 2035.

There has been much reporting about the concern that, by 2034, the Social Security Trust Fund could be exhausted, causing a gap between Social Security tax revenues and benefits due. If Congressional action is not taken, Social Security tax revenues are projected to then cover only about 80 percent of benefits due. In the past, changes were made to Social Security to cover that gap when it existed.

Like millions of Americans, my wife and I currently draw Social Security benefits. Our combined work history, plus the fact that we waited as long as possible to take these benefits, enables us to draw monthly amounts that are essential in helping to ease the financial burden of retirement. I’d bet that is true for many Crow’s Feet readers.

So as I look forward to the future of Social Security, I very much want it to be financially sound for at least 10 years (for our selfish benefit!). Beyond that, I believe the payroll tax should be expanded so that wealthy wage earners pay their fair share into Social Security. This would make it more likely that future generations will not have to see a reduction in benefits.

The elimination of most company pensions, combined with the fact that the American populace in general has underfunded their retirement savings, suggests that Social Security will become more vital as America ages. I hope it remains a viable program that every older American can look forward to in retirement.

This article originally appeared in "Crow's Feet," a Medium publication. You can find the original article here: https://medium.com/crows-feet/social-security-is-89-years-old-84a765d98ba9?sk=ac18dd3800dd159edcb1b1a343b85c62

Image of Social Security card: Public domain via Wikimedia Commons

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Buried by national politics and international upheaval, the release of "A Strategic Framework for a National Plan on Aging" that was sent to Congress probably missed your attention. According to the "Interagency Coordinating Committee on Healthy Aging and Age-friendly Communities" (ICC) that issued the report:

The vision for the plan is aspirational and encouraging, even if it is a lofty statement:

"Our vision is an America that values older adults, embraces aging, and recognizes that all people have the right to live with dignity, make their own choices, and participate fully in society. We want to be a nation that prioritizes independence, inclusion, well-being, and health across the lifespan."

That just gives you an inkling of the implications of a "national plan on aging," You can read the entire Strategic Framework here.

While the framework appears to have a great deal of merit, Richard Eisenberg, reporting for Next Avenue, asked seven experts on aging about it. They "expressed skepticism about whether the government plan's goals were achievable given today's political climate and federal budget constraints."

As the well-known aging expert Ken Dychtwald, CEO of consulting firm AgeWave, told Eisenberg, "I really do hope that they're wildly successful, and reading it I thought, 'Wow, look at all they pulled together.'" But, he added, "I was struck by the baked-in complexity and the absence of a time-based game plan."

It's well worth reading Eisenberg's reporting on the Strategic Framework, as well as reviewing the Framework for yourself.

My first impression is that, like many visionary plans, this one looks great on paper. However, an attempt to implement or coordinate a national plan on anything that suggests the need for broad consensus and agreement on funding likely has little chance of gaining traction.

Until the branches of the U.S. government can coalesce around what's important in caring for and meeting the needs of our aging population, I regret saying I don't think we'll approach something resembling "a national plan on aging."

Still, let's remember that there was great skepticism when Social Security and Medicare were new ideas -- but somehow, they became law. Today, Social Security and Medicare provide vital support to those 65 and older and prove that, to some extent, the federal government can do right by seniors.

It is important to note that the ICC was only just funded in federal fiscal year 2023, so its work has just begun. One can only hope that it will continue on the visionary path it has already established -- and that it will make a real difference in the future.

Image from the cover of the report, "Aging in the United States: A Strategic Framework for a National Plan on Aging."

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On June 11, 2024, a class action lawsuit was filed by the AARP Foundation and two law firms in U.S. District Court in Massachusetts. The complaint accuses RTX Corporation, formerly known as Raytheon Technologies, of discriminating against older workers, specifically through “Recent Graduate” employment ads.

The complaint reads, in part:

“The language and content of these job advertisements discourages and deters many older workers from even applying for the Recent Graduate Positions and prevents older workers who do apply from advancing in the hiring process because too much time has passed since they graduated … and/or entered the workforce.”

The suit claims the ads indicate a preference for younger workers in violation of the federal Age Discrimination in Employment Act (ADEA).

While the only named claimant is Mark H. Goldstein, it is being brought on behalf of “all others similarly situated.”

Goldstein, a 67-year-old engineer, has some forty years of professional experience, including as a contractor for the U.S. Department of Homeland Security. He has held a federal government security clearance and has certifications in information security and privacy.

Goldstein applied for at least seven positions at Raytheon between 2019 and 2023. The suit alleges that he met all qualifications for the “Recent Graduate” positions except for those which referenced recent degrees and short duration of experience. He was not granted interviews for any of the positions.

The complaint said:

“Despite the fact that Mr. Goldstein has been genuinely interested in a position with Raytheon, committed to relocating, if necessary, and has skills that Raytheon needs to address a years’ long labor shortage, Raytheon has not hired Mr. Goldstein for any of the positions to which he applied, has never offered him an interview, and has failed to seriously consider Mr. Goldstein’s applications based on his age.”

The EEOC is on board

The Equal Employment Opportunity Commission (EEOC) in 2021 already found that Goldstein’s complaint has merit. A letter from the EEOC stated at that time that its “investigation revealed that [Mr. Goldstein] was denied the opportunity to be considered for the [Recent Graduate Positions] he had applied for because of his age, and not because he did not meet the minimum qualifications required for the jobs.”

After Raytheon slightly modified the ads in question, Goldstein filed another claim in 2023 with the EEOC, which it is still investigating.

Just another example of age discrimination

Targeting job ads to younger workers with less experience is just one way companies discriminate. Another is firing older workers under the guise of layoffs or “restructuring.” For example, a 2018 investigative report by Pro Publica in association with Mother Jones found that IBM “targeted people for layoffs and firings with techniques that tilted against older workers” and “told some older employees being laid off that their skills were out of date, but then brought them back as contract workers, often for the same work at lower pay and fewer benefits.”

In September 2023, two plaintiffs ages 62 and 66, both top-performing HR professionals with decades of experience, brought a suit against IBM alleging they were unlawfully terminated because of their age. The suit claims job cuts included “IBM’s best and brightest” HR workers, who “were also some of the Company’s oldest and most senior HR partners.”

Why the class action lawsuit is important

For years, companies have used job requirements to classify older workers as “over-qualified” for positions — effectively a form of age discrimination. Even when older workers are willing to take a cut in salary requirements to accommodate hiring companies, they are excluded from consideration as a matter of course.

It is common practice to discriminate using a number of devious methods that are unethical and immoral even if not blatantly unlawful. Despite the existence of the ADEA, proving age discrimination in the courts has not been easy.

The most recent class action lawsuit brought against RTX Corporation is significant because it directly challenges the use of employment advertising that openly discriminates against older workers.

Going forward, such a suit if successful could have vast implications, because projections indicate that one in four U.S. workers will be 55 or older by 2032, and almost 10 percent of them will be 65 or older.

This article originally appeared in "Crow's Feet," a Medium publication. You can find the original article here: https://medium.com/crows-feet/older-workers-have-had-enough-79be170b4101?sk=67e813cd316071fdc84985924b6919a0

Image by Imagine That Studio on Pixabay.com

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Guest Post
by Jack Wallace, Director at Yrefy

Jack Wallace is the Director of Governmental Relations at Yrefy. With over 40 years’ experience in corporate, education and housing finance, Jack has and continues to collaborate with clients and the financial community to develop debt and equity funding sources for new and existing asset classes and businesses.

Image by Andreas Lischka, Pixabay.com

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One of the persistent realities of ageism is the obvious schism between old and young. Aging boomers are sometimes confronted with reactions from younger generations that are insulting (sometimes unwittingly) if not rude. A common example is when a younger associate at a retail store calls an older customer "dear" or "honey." On the other side, older people might scoff at what they perceive to be the "laziness" of younger generations.

According to the World Health Organization (WHO), an important way to combat ageism is by closing the generation gap or, in their language, to utilize "intergenerational practice." This concept consists of  engaging old and young generations in "mutually beneficial activities that promote greater understanding and respect."

Here are the "seven levels of intergenerational contact" offered by the organization as starting points. These levels increase in intensity, but any can be an appropriate place to start closing the generation gap, promoting better understanding between older and  younger generations, and contribute to the reduction of ageism.

1. Learn about the age group
   Participants discuss "age" in relation to another generation, explore aspects of the lives of that age group and express their views, perceptions and assumptions
2. Seeing the other age group but at a distance
   Younger and older people learn about the other age group and connect positively, with no face-to-face contact
3. Meeting each other
   Younger and older people meet for the first time but not as part of a structured intergenerational activity
4. Annual or periodic activities
   Annual or regular meetings organized as part of established events in a local community or an organizational celebration, such as "World Children's Day"
5. Demonstration projects
   Regular meetings and shared activities to promote the formation of relationships, with dialogue, sharing and learning among different age groups
6. Regular intergenerational programs
   Programs that have been demonstrated to be successful or valuable from the perspective of the participants, integrated into their general activities and maintained as part of working practices and approaches
7. Intergenerational community settings
   The values of intergenerational interaction are introduced into the planning, development and functioning of communities.

WHO has published a free comprehensive "Connecting Generations" guide that offers a wealth of information about intergenerational practice. You can get it here.

Image from Agewithoutlimits.org

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In previous generations, claiming children under 18 as dependents for income tax purposes was a given. In today's world, a growing number of adults claim adult children as dependents. Even more surprising are the number of adult children who claim their parents as dependents.

In a collaborative effort this March, Caring.com and Pollfish conducted a comprehensive survey among 4,000 American adults aged 25 or older. The goal was to shed light on the financial challenges faced by families providing for senior parents amidst escalating living costs.

The results of the "2024 Senior Financial Dependency Study" have just been released. It reveals some startling facts:

• When asked why they financially support their parents, more than 4 out of 10 American adults cite insufficient income due to the rising cost of living.
• Over half of those who claimed their parents as dependents on their taxes started claiming them in the past two years, 2022-2023. 
• 3 out of 4 adults who claim their parents on their taxes are also financially responsible for one or more children, joining what is known as the “sandwich generation.”
• 4 out of 10 “sandwich generation” parents say they financially support their adult children because they are unemployed.

“As the Baby Boomer generation continues to age, we see how stretched thin the sandwich generation truly is,” says John Farrell, Director of Financial Planning and Analysis at Caring.com. “Add to this recent economic shocks, growing income disparity and a tight labor market, and you have a perfect recipe for a caregiver crisis. We talk with caregivers every day who are trying to hold down a job, provide for their children, and care for their aging parents at the same time.” 

According to the above-referenced survey, of all those who claimed their parents on their taxes, more than 50 percent started doing so in the last two years. Among adults with senior parents who are claiming them on their taxes, 3 out of 4 have at least one parent living with them in their family home. 

When asked what the primary reasons were for their parents’ financial dependency, 4 out of 10 say they are financially supporting their parents because their parents’ savings, investments and income, including Social Security payments, are insufficient to cover the current cost of living.

I know Boomers who routinely have to step in and care for their elderly parents themselves or help arrange for their care. At the same time, many of these Boomers are aging and dealing with their own health issues. It is also not unusual for younger Boomers in particular to provide support to their adult children -- even to the extent of having those children return home to live with them due to financial hardship.

Parent-child dependency is a growing trend. It demonstrates the real need for family members to shift their perspective on typical relationships. Adults might not anticipate that their parents or adult children would ever become dependent on them, but that is apparently becoming more common. It could suggest a dramatic change in American society.

Image from Agewithoutlimits.org

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Ken Dychtwald and his team at Age Wave are renowned for proactively lobbying for older Americans and against ageism. In a recent article for Harvard Business Review, Dychtwald and two researchers from Age Wave, Robert Morison and Katy Terveer, discuss "Redesigning Retirement" and why they believe "It's time for a new deal between employers and older workers."

The authors first cite some remarkable statistics:

"Altogether, more than 10 million Americans who are 65 or older are currently employed, and that number is projected to rise to nearly 15 million by 2032. Today 27% of Americans ages 65 to 74 work or are actively looking for jobs, up from 20% in 2002. And people who are 65 or older now represent the fastest-growing segment of the labor force—by far. It’s projected that by 2032 one in four U.S. workers will be 55 or older, and close to one out of every 10 will be 65 or older."

They urge employers and Americans in general to understand this changing dynamic:

"We need to overcome lingering ageist stereotypes and start thinking of older and retired workers as a large, versatile, and valuable labor pool—one that’s significantly underutilized. Nearly 60% of people who are in or nearing retirement say they would be open to working during their retirement. That includes some 20 million retirees under the age of 75. If employers can get better at hiring, retaining, and engaging older workers—redesigning the employment deal—they’ll discover countless options for mutually productive matches."

The remainder of the article, which is largely targeted to employers, discusses several common myths about older workers and strategies for employers to retain older workers or seek them out. They share five specific steps:

"If you are experiencing labor and talent shortfalls and have found that many of your valuable employees are exiting into retirement, it’s time to act. We recommend that you take five steps: Preserve experience, replenish experience, share experience, offer flexibility, and leverage age diversity."

The above steps are discussed in detail in the article. The authors conclude:

"Today more and more older people want or need to work longer—and more organizations than ever need their help. In this “new age of aging,” the strategies and initiatives we’ve described present a clear win-win: When older adults stay active and engaged, it’s good for them and their families, for employers and the economy, and for society at large."

It is encouraging that such organizations as Age Wave are making a strong case for retaining and hiring Boomers. I encourage you to follow Dychtwald and Age Wave as they help employers and older employees navigate a dynamic and changing workplace. 

Image from AgeWave.com

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Ageism is, literally, an age-old problem. The youngest Boomers turn 60 years of age in 2024. If they haven't faced the effects of ageism that older Boomers have already experienced, they soon will.

Ageism is a pervasive societal issue globally, not just in the United States. It is evident in the workplace, in healthcare, in the media, in consumer interactions and in everyday life. Older people are subjected to unwarranted firings, impatience and ridicule. Very simply, ageism is prejudicial and discriminatory.

Anti-ageism legislation and public awareness are helpful, but change comes slowly. As with most problems of social injustice, those affected must not be discouraged. They must be proactive and take individual action.

So what can you do about ageism? A new British campaign, "Age Without Limits," offers some guidance. Here are a few specifics from the campaign's website:

"There's lots you can do to challenge ageism as an individual. Taking an active stance against ageism is the only way we can change attitudes. You can do this in the following ways:

1. Challenge ageism both internally (in both your own thinking and the words that you use) and ageism that you see in everyday conversations. 
2. Formally complain about ageism when you come across it in the media and advertising.
3. If you feel you have experienced direct or indirect discrimination, harassment, or victimisation in the workplace, you should follow your employer’s grievance procedure."

You'll find many more suggestions on the campaign website about how you can take action against ageism in the workplace, in your community, in everyday conversations, in the images you use, and in your communications and writing.

Another way in which you can combat ageism is to rekindle your youthful activism. Boomers were renowned for their activism in the Sixties and Seventies -- so why shouldn't our generation speak up again for the things we hold dear? Activism by people our age can dramatically change the perception that we are "old," "tired" and "washed up."

An organization designed to marshal people over sixty years of age is Third Act. According to the organization's website:

" 'Experienced Americans' are the fastest-growing part of the population: 10,000 people a day pass the 60-year mark. That means that there’s no way to make the changes that must be made to protect our planet and society unless we bring our power into play.

"...as a generation we have unprecedented skills and resources that we can bring to bear. Washington and Wall Street have to listen when we speak, because we vote and because we have a large—maybe an overlarge—share of the country’s assets. And many of us have kids and grandkids and great grandkids: we have, in other words, very real reasons to worry and to work."

Everyone who practices ageism wittingly or unwittingly may not fully appreciate that they too will someday be older. Don't let others define you by your age!

Image from https://www.agewithoutlimits.org/image-library

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In a January 2024 research paper, the Retirement Income Institute reports that 2024 "marks the beginning of the 'Peak 65® Zone,' the largest surge of retirement age Americans turning 65 in our nation's history. Over 4.1 million Americans will turn 65 each year through 2027, which is more than 11,200 every day. By the year 2030, all baby boomers will be age 65 or older."

The Retirement Income Institute says that "fewer employers offer a traditional defined-pension retirement plan that provides much needed protected income throughout retirement. The old retirement system no longer fits the needs of today's American workforce. The result is that more Americans are currently at risk of entering retirement with Social Security as their only means of protected income, leaving many exposed to financial insecurity and lacking sufficient, reliable, and protected  retirement income that will last for the rest of their lives."

This assessment is troubling for millions of Boomers who are part of the "Peak 65" surge. It is likely one of the compelling reasons why a significant percentage of those age 65 and older remain in the workforce. According to the Pew Research Center, 19 percent of Americans age 65 or older were employed in 2023 -- nearly double the rate of those who were working 35 years ago. On average, they are working more hours than in previous decades. Today, 62 percent of older workers are working full time. In addition, older workers are twice as likely as younger workers to be self-employed.

Working may generate income today, but it may not result in enough to support our lifestyles in later years. That's why the Retirement Income Institute sees the old "three-legged stool" retirement model of an employer-provided defined-benefit pension plan, personal savings and Social Security as outmoded. Today, Social Security is the principal source of retirement income for most retirees, with Social Security benefits representing about 30 percent of the income for those over the age of 65.

So what is the answer for Boomers? Many, but not all, have been able to use investment vehicles such as 401(k) plans and IRAs to help secure their future retirement. Others plan to work as long as they possibly can. The Retirement Income Institute suggests potentially adding annuities to the mix to create what it calls a "personal pension plan." They point out, however, that annuities can be confusing to consumers, so Boomers need to educate themselves about these investments.

Many Boomers recognize that today, it is more important than ever to work in partnership with a financial advisor to develop a prudent plan to fund a comfortable retirement and be sure enough capital can be available when needed. If you haven't already worked with a financial advisor, don't wait. You are part of "Peak 65" and time is running out.