A Retirement Story

Even though I retired in 1995, an expert I am not. Bear with me in this fictional conversation with an anonymous senior nearing retirement but is a bit baffled by it all. 
 
"Sir, may I call you that?" I had no problem with it and he began to air his concerns about retirement. He wanted to know about Social Security, Medicare, Medicaid. The works. Fair enough I told him and so we began. 

"You have worked all your adult life, right?" He had. A few jobs but he worked most of the time. "First off," I said, "you paid into Social Security and Medicare, right?" He nodded and I continued.

"Good. You know that Social Security was never intended to pay for your entire retirement, don't you?" He gave me that blank look so I assumed he had figured on Social Security taking care of his entire retirement. Then I went on and asked him if he had set any money aside for his retirement.

That same blank look was there. He stared at the floor, and then answered, "Um, no. Not really. I figured that all those years paying in would take care of it. You don't mean it won't be enough for me and my wife, do you?"

I answered slowly and said that many Americans had not been great savers. We continued as I explained the procedure for applying for Social Security. I told him what he would need and to apply three months before he planned to retire. Then he asked how much he would get. A good question I said but he asked me what Medicare was before I could answer.

I explained best I could and he nodded as though he understood. Then he asked me about Medicaid and I said that was for those who had a low income or who ran out of money in their retirement. Another nod. Then he said that he paid into the fund all his life and that money should be his. I politely informed him that the money he paid in was used for people who were retired and that moneys now being paid in would cover him. "Really? he said, "You mean they spent my money?"

"Well, sort of," I muttered, "but Uncle Sam will take care of you." He breathed a sigh of relief. When I told him that in 2012 the average couple received $1,994 a month he said, "What? We can't live on that." I tried to remind him that this was the average, not the maximum, and he sank even lower into the chair.

Since he had no savings, some debts, a scary mortgage and a wife who had never held a job, I gave him a Social Security booklet "Understanding the Benefits" provided by the Government. My parting words echoed rather somberly, "My friend, I think you'd be wise to hang on to your job for a while if you can and . . ." 

He left abruptly, slamming the door. I wept inwardly but no tears would come.