Funny, I Don’t Feel Wealthy
Saturday, November 12th, 2011 © by Susan SwartzThe wealth gap between younger and older Americans is reported to be wider than ever. According to census bureau numbers young working families are worse off than older people. This would be expected if you consider that the longer you work the more your income goes up and the more you save for retirement. And when you’re starting out, you’re not making as much.
But funny thing about this is I don’t feel wealthy. And I sure don’t want young people thinking their elders are all sipping Glenlivet and perusing the cruise catalog.
I recognize the horrible squeeze on young people. I’m related to some. But older people have taken some of the same hits.
The numbers show the typical American household headed by a person 65 and older has a net worth 47 times greater than a household headed by someone under 35. That is, a median net worth of $3,662 for young families opposed to $170,494 for older ones.
The Pew Research Center analyzed the discrepancy this way. Young families are hurting because they’ve got mortgages on houses that aren’t worth as much as they paid for them and carry a load of student loans and credit card debt. The old are presumably doing better because we are thought to have paid off our houses and have investments. And on top of that we get Social Security.
And that’s when I thought uh-oh, this sounds like ammunition for generation warfare. And there it was.
Responding to the report, economist Harry Holzer from Georgetown University said, “It makes us wonder whether the extraordinary amount of resources we spend on retirees and their health care should be at least partially reallocated to those who are hurting worse than them.”
Oh Harry, I do agree. In part. If you are eligible for Social Security and don’t need it or you can tell Medicare no thanks it would be a grand gesture to pass it on to a young family, maybe your own children and grandchildren.
But while I know some retirees who are living quite well, I doubt the majority of oldsters are feeling fat on Social Security. According to the Social Security Administration most retirees count on those monthly checks for a major chunk of their income. And people over 65 represent the fastest growth in bankruptcy filings.
As for sharing the wealth that’s pretty much the message of the Occupy Wall Street movement. But the occupiers’ beef is not with greedy grannies. It’s with the one percent with all the dough. That’s why you see signs that say “Education is a Right” next to ones insisting “Save Medicare not Billionaires.”
I don’t know many older people who are leading a madcap life – okay, a few – but I do worry the image handily serves those wanting to gut retirement programs . We old ones are pretty mad at the system, too. Older people can remember when they were in their 30s and struggling and hoping that by the time they were in their 60s they would be feeling a lot more secure.
Older people are part of the dwindling middle class., too. We’ve seen our savings and investments shredded. We too have been hit by the housing bubble. If we have any extra we may be paying for our adult kids’ health insurance or paying on those students loans and even caring for elderly parents.
I know plenty in their 60s and early 70s who say, “I’m going to be working until I die.”
In fact the wage gap study noted that older Americans are holding onto to their jobs longer than ever while young people are facing the highest unemployment since World War II.
So, if we’re so wealthy why are we still working?


