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View Diary: Krugman says "The Geezers Are All Right" (45 comments)

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  •  also (3+ / 0-)

    As Bruce Webb explained it to me, holding down the cost of Medicare in years to come undercuts the mathematical arguments for Chained CPI for Social Security.  

    •  yes, but let me repeat something (4+ / 0-)

      the projections are based, as far as I know, on the presumption that people will (a) retire when eligible for full social security benefits, and (b) pick up full medicare at age 65.

      One might draw Social Security but still be working and thus paying into the system while drawing out.  Similarly one might turn 65 and be eligible for Medicare and automatically be in Part A but elect nothing else because one is covered either under a medical plan from one's employer or as in my case from my wife's status as a federal employee.  If I am still working - as I am part-time now and may again be full-time in the Fall, I will continue to be paying into Medicare without drawing out except should I be hospitalized.  In part that is because I get better coverage than I would under Medicare, and some providers will not accept new medicare patients because of the low reimbursement rate.

      I know I am far from alone.  I have certainly heard that from attending reunions the past two Springs.

      The trustees are conservative in assuming that all will stop paying into both systems and begin drawing full Medicare as soon as eligible, and that does not seem to be the case, so the actual projection may be even better than the current scenario -  assuming that there are enough jobs.

      "We didn't set out to save the world; we set out to wonder how other people are doing and to reflect on how our actions affect other people's hearts." - Pema Chodron

      by teacherken on Mon Jun 03, 2013 at 05:06:53 AM PDT

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      •  actually (0+ / 0-)

        Actually, the percentage of people who reach Full Retirement Age before retiring and money made after retirement are factored in to the economic assumptions.  Now, the trustees assume that people will be keeping similar patterns as today, that we won't suddenly have more people working after retirement or fewer people working after retirement.  

        They also assume that the same percentage of people will elect Medicare as they do today.

        They also make some life expectancy assumptions that may be too optimistic.  I'd been reading that life expectancy could very well remain stagnant in the coming couple of decades, what with the crap in our air and food and the obesity epidemic

        •  Global climate change will chip in also. (1+ / 0-)
          Recommended by:
          Nina Katarina
          I'd been reading that life expectancy could very well remain stagnant in the coming couple of decades, what with the crap in our air and food and the obesity epidemic.
          The next El Nino summer will remove retirement age people preferentially, since older people are more vulnerable to heat stress.  

          Renewable energy brings national global security.     

          by Calamity Jean on Mon Jun 03, 2013 at 09:49:57 AM PDT

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      •  I'm seeing the same thing (0+ / 0-)

        with my peer group, bunch of early Boomers who are planning/likely to work into their 70's. And not because they need to, but because they want to. They are almost all white-collar workers, so no physical requirements to speak of. I'm one of them that plans to work until 75.

        As you point out, they will be collecting SS benefits, but also paying payroll taxes at the same time with a similar recipient/beneficiary effect with Medicare. Personally, because I will be vacationing yearly with my family to Thailand, we will take care of elective and dental needs in Bangkok at one-quarter the US cost.

        Broadly, I think Boomers are in the process of redefining the post-65 stereotype of retirement, with positive effects for SS and Medicare.

        There was only one joker in L.A. sensitive enough to wear that scent...and I had to find out who he was!

        by virginislandsguy on Mon Jun 03, 2013 at 01:09:04 PM PDT

        [ Parent ]

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