The document discusses the declining state of retirement in the United States. It argues that this is likely the last generation that can retire at 65 due to dwindling savings, collapsing pensions and 401k plans, and the looming bankruptcy of Social Security. The economic recession has further weakened retirement prospects through job losses, falling home values that many relied on for retirement income, and fewer workers contributing to Social Security. As a result, many Americans will have to work far longer than planned or may not be able to retire at all.

1. The Retirement of Retirement 1
“The Retirement of Retirement”
University Composition and Communication II
Robyn Wolfe
COM/156
April 2, 2011
Instructor Madeline Palenzuela

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“The Retirement of Retirement”
Retirement is a time that every working American dreams about. One can experience the joy
of leaving the job and just relishing in the freedom of not pounding the pavement every day. In
the past money from savings, a 401K, pension, and Social Security have given the working class
of Americans the financial independence to retire. Today people are seeing their savings
dwindle. Employee pension programs becoming nonexistent and 401K plans are collapsing from
a poor economy. What is worse is the governments forecast of a bankrupt Social Security fund.
One could ask how did this happen and what lies ahead for those planning their golden years of
retirement. According to statistic’s this is possibly the last generation of 65-year-old Americans
able to retire. One will not be able to retire with no money to count on. Employers could force
those more than 70 to retire. Social Security may be gone forever. Destitution will be the new
retirement. People will face fear and many questions. One must first look at how retirement came
about to understand fully how to reach their financial and retirement goals. This is the last
generation of 65-year-old’s that can afford to retire in the United States.
President Franklin Delano Roosevelt’s “New Deal” created after the Great Depression was
the beginning of the retirement era. Created in 1935, the New Deal made the United States
prosperous again by creating jobs. Social Security was part of that plan by paying those 65 and
older to leave the workforce and make room for the younger worker. According to a government
website Social Security Online (para. 1) it stated that the life expectancy in the 1930s was 58 for
men and 62 for women. This may lead one to believe that people would not live long enough to

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receive benefits but not so. People did begin living longer and the second generation of retirees
created the ability to spend, travel, play golf, and enjoy life after retirement.
Retirement begins with a lifetime of financial planning. Even the best laid plans of personal
saving, investments in a company sponsored 401K, pension plan, and Social Security may not
ensure an adequate income after retiring. The current grueling recession accompanied by a lack
of savings and dismal investments have left many Americans facing an uncertain future. In the
past Americans used income generated from the sale of their home as a source for retirement
income. A report from Amherst Securities (Irving Housing Blog, 2010, para. 1) projects that 20%
of all mortgages will default and 11 million people will lose their homes. Another bleak indicator
that retirement may be out of the question. One could ask what about the fate of Medicare and
Social Security. The New York Times (Robert Pear, 2009, para. 2) reported in May 2009 that
Medicare will run out of money in 2017 and Social Security in 2037. According to the February
4, 2011 report from the United States Bureau of Labor (para.1) the unemployment rate is 9.0%.
With fewer people paying into the system; this is a bad place for younger workers and those over
the age of 50 to be.
Statistics show that people are either not savings or investing adequately for the future. In an
article published by the American Dream (“10 Incredible Statistics about America’s Coming
Retirement Crisis that will blow your mind,” 2010, point seven) only half of all America workers
have less than $2000 saved for retirement. The same article (point eight) stated that 36% of
Americans say that they do not contribute to any type of retirement savings plan. Instead of
saving, people are paying for

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what their parents did not have to spend money on like cell phones, cable, and the Internet. One
could ask what about the older worker losing his or her job. They will probably have to rely on
their savings just to survive. The loss of retirement savings and a weak economy does not give
those over the age of 50 much time to re-coop losses. The other fear factor is that employers are
not interested in hiring and training the older worker. The truth is that retirement is not a right
but a privilege.
On the bright side, if continuing to work one need not worry about retirement. Remove the
pressure away from oneself and just continue to work until death. Consider working as long as
possible and draw short-term disability. Better yet trip over the AFLAC duck and break a hip just
to pay the bills. This may not sound realistic but with fewer people saving and a bankrupted
Social Security system more Americans will be working into their seventies and possibly into
their eighty’s. Today’s trend of adult children moving back home or so called “Boomerang Kids”
living off their parents only exacerbates financial bliss. An article in the Pew Research Center
(“Recession Brings Many Young People Back to the Nest: Home for the Holidays…And Every
other Day,” 2009, para. 2) reported that 13% of parents with grown children have at least one
grown adult child has moved back with home in the last year. Imagine how the American family
will look in the next 10, 20, or 30 years.
In conclusion this is the last generation of 65-year-old’s that can afford to retire in the United
States. President Franklin Delano Roosevelt’s vision for a prosperous America over 75 years ago
was a promise to the old worker his or her many years of hard work would not be

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forgotten. A Social Security benefit for those more than 65 was the promise of a job well done.
For most Americans it will take more than his dream or professional financial planning to reach
the goal of retirement. One cannot depend on the merits of hard work, owning a home, a saving
account, and Social Security. Times have changed and the once gilded era of retirement will be
for the gifted few. In 2010 CNNMoney.com staff reporter Chavon Sutton reported “that 24% of
Americans say they have postponed their planned retirement.” Even the best made plans can
come crashing down as inflation, unemployment, and an uncertain world of Social Security
weave a web of uncertainty. Instead of preparing for retirement at 65 it may be wiser to prepare
for working longer and saving more. American actress Mae West said that “Growing old isn’t for
Sissy’s.” Concerning retirement and Social Security, no truer words have ever been spoken.

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References
Pear, R. (2009). Recession Drains Social Security and Medicare . New York Times. Retrieved
from http://www.nytimes.com/2009/05/13/us/politics/13health.html
Renter, Irving. (2010). 20% of Mortgages Will Default: 11 Million to Lose Their Homes. Irvine
Housing Blog. Retrieved from http://www.irvinehousingblog.com/blog
Social Security Administration. (n.d.). Social Security Online. Retrieved from
http://www.ssa.gov/history/lifeexpect.html
Sutton, C. (2010). 43% have less than $10k for retirement. CnnMoney.com. Retrieved from
http://money.cnn.com/2010/03/09/pf/retirement_confidence/
The American Dream. (n.d.). Waking People Up And Getting Them To Realize That The
American Dream Is Quickly Becoming The American Nightmare. Retrieved from
http://endoftheamericandream.com/archives/10-incredible-statistics-about-americas-
coming-retirement-crisis-that-will-blow-your-mind
Wang, W. (2009). Home for the Holidays...and Every Other Day. Pew Research
Center. Retrieved from Sutton, C. (2010). 43% have less than $10k for
retirement. CnnMoney.com. Retrieved from
http://money.cnn.com/2010/03/09/pf/retirement_confidence/http://pewresearch.org/pubs/
1423/home-for-the-holidays-boomeranged-parents