Pre-Boomer Musings

Because there will be no cost of living increase in Social Security (SS) next year or the year after, the administration is about to “give” those on SS a $250 check to help us get through the upcoming year. That’s hardly enough money to those of us living in California, for example, to pay the one percentage point increase in sales tax recently levied on the products we already need and buy.

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And, with the anticipated $500 billion plus reduction in Medicare benefits pre-boomers, and others on fixed incomes, will end up with fewer dollars to cover higher out-of-pocket expenses. Especially cruel is the proposed taxation of the so-called “Cadillac” health insurance plans. Many retirees were willing to take lower salaries in order to have premium coverage in their later years, so a tax on this benefit would be a double-whammy – less money during their income producing years and less money now.

The health care options coming out of Washington seem to ignore those of us born between 1930 and 1945. We are, quite possibly, the last generation who saved for the future, because we believed it was our responsibility to do so. This is something we learned from our parents who weathered the back-to-back storms of the Great Depression and World War II. As careful as we may have been, our investments were significantly reduced when the current recession hit.

Many of us had to sell off investments in order to survive. This money is gone and there is no way to replace it in the years ahead. Others held on as the market lost half its value. While the market has returned to the level where it was a year ago, it must increase by 50 percent to be where it was when the slide began. Along the way, we may have made our portfolio safer by switching from stocks to mutual funds or to non-taxable bonds. Therefore, the opportunity for appreciation and a livable return is greatly reduced. In addition, we couldn’t down-size and sell our homes at the price we needed to help us through the retirement years. So we are stuck. The only ones who may be worse off are those who did not save for the future. They have to depend on the government.

Whatever your financial situation may be; don’t be seduced by the $250 in “hush money” from Uncle Sam. Earlier we received $250 as part of the stimulus package. Can you remember what you bought with it? Inflation is lurking around the corner, so how can the government decide there will be no raises in Social Security for the next two years? Call your representative and let them know something must be changed prior to the 2010 election or you and other pre-boomer won’t be sending him or her back to Washington.

At the same time, let this politician know that you, and others like you, won’t accept Medicare being raped in order to finance insurance for people who can’t or won’t pay their own way. If you’re willing to accept what the government doles out, then you have to live with it. The problem is you may not be living the quality of life you worked so hard to secure, and you may not live as long as you thought you would a year or so ago. It’s your choice: fight for what you believe is right or let others decide your fate.

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