Have the Boomers Pinched Their Children’s Futures?
Explore how Baby Boomers' financial advantages impact younger generations. David Willetts reveals the disparity in Social Security and Medicare contributions between Boomers and later generations.
I'm not sure it's even asking the question of whether or not boomers screwed the generations following them, perhaps the only relevant question is whether it was done intentionally or not. I highly recommend giving this a listen, I have the book on order (you can grab a copy here):
The post-war baby boom of 1945-65 produced the biggest and richest generation in British history. David Willetts discusses how these boomers have attained this position at the expense of younger generations.
Another thing I just cannot get out of my head when it comes to boomers, probably because I work in Medicare data all day long, is this. Ever since we Millenials/Gen‑X/Yers began working, we’ve paid 12.4 percent of our earnings to Social Security and another 2.9 percent to Medicare tax. In contrast, the Boomers entered the workforce in the late 1960s and paid only 6.5 percent of their earnings to Social Security and nothing to Medicare. For about half of their working years, the Boomers paid 10 percent or less to Social Security and less than 1.25 percent to Medicare. Only from 1990 on, when the Boomers had earned paychecks for a quarter‐century, did they start paying 12.4 percent to Social Security and 2.9 percent to Medicare — the same percentage we Gen‑X/Yers have paid our whole lives.
That’s the Boomers’ bargain: They’ve paid less of their earnings into Social Security than we, yet they’ll receive more in benefits and we’ll pick up the tab. And when we retire, well I wouldn't kid myself, I hope you're ready to foot your retirement bill and buy insurance.
I'll leave you with this:
