Ten days ago, the stock market was up for the year. Now its not. On any given day, the indexes gyrate wildly. On Monday, the New York Times told its readers that such wide market fluctuations may be the new normal.
Bonds are low. Certificates of deposit and money-market funds are low. Savings-account interest rates have no digits before the decimal point. Few people are going to be pulling big profits out of their real estate investments for a good long time; some may not even be able to sell and downsize.
Guaranteed pensions have turned out not to be. Company matches for 401(k) investments are less prevalent, and smaller than they once were.
Social Security, a mandatory investment for most workers, seemed like a pretty sure thing, but the formula didnt account for Baby Boomers or federal borrowing from the trust, and now benefit cuts are back on the table. GOP presidential candidate Rick Perry has called Social Security a Ponzi scheme, potentially alienating every voter who depends on it.
Lately, burying a coffee can full of silver dollars in the back yard doesnt seem like such a bad idea. Everyone knows thats not the right strategy, but what is?
And even that question doesnt matter for those who have no jobs and no money to invest.
A prolonged period of joblessness and market upheaval has profound implications for the golden years of todays adults, and their financial resources in turn will weigh heavily on the economy for many years into the future.
The question of what role the federal government should play in supporting a livable income for senior citizens is likely to crop up repeatedly in the 2012 race. Social Security needs to be redesigned, and presidential candidates should be encouraged to offer viable plans to do that.
Meanwhile, John and Jane Doe have a right to ask how each candidates fiscal views would affect their finances. These arent all people who expect to live on entitlements; most believe in personal responsibility but have lived and planned under a set of conditions that no longer exist.
The operative question isnt, What is the government going to do to secure my retirement? Its, How do you see working-class retirees faring under your proposals?
Right now, those workers dont have many good choices, and this countrys workers deserve better. The trillion dollar question is how to create an economic climate that serves them well.
