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Danny DeVito’s retirement plan

By Jennie L. Phipps · Bankrate.com
Thursday, June 23, 2011
Posted: 2 pm ET

Actor and producer Danny DeVito must be doing a little retirement planning. Today, DeVito, 66, posted on Twitter (@DannyDeVito) his opinion of any move to cut Social Security or raise the retirement age:

"Don't raise da retirement age! You expect folks to bop till they drop? you gon have a truck driver on da road till he or she's 68?"

And then: "I know you dig it. We're living longer, but we still work our a**es off  -- need chill time. We pay the gov, so they should pony up."

I'm not sure what moved DeVito to post these opinions, but it could have been the report released yesterday by consultancy McKinsey & Co., which predicted that the unemployment rate is likely to remain about as high as it is now for another 10 years. In an accompanying white paper, McKinsey recommended keeping boomers on the job longer as a cure for the ailing economy. McKinsey said that if boomers keep working, they'll continue to pay taxes. They won't depend as heavily on Medicare. And they'll have more money to spend, which will stimulate the economy and create more jobs for everybody.

To encourage boomers to keep working, McKinsey recommended that employers and the government work together to make these changes to the way the things are now:

  • Reduce the cost of hiring older employees by making it easier and more affordable for boomers to buy private health insurance and less costly for employers to buy it for them.
  • Cut through legal and regulatory barriers to give employers incentives to keep older workers on their payrolls and to hire additional older workers.
  • Reform private pensions and Social Security to remove disincentives to working longer. One idea in this category that McKinsey suggests is to modify how Social Security is calculated so you earn more of it for working longer -- even if you aren't a high-wage earner.

Retired Rowan University Finance Professor Robert Pritchard offered some similar suggestions in last Wednesday's retirement blog. I urge you to go back and read it again -- even if you disagreed with him the first time around -- because Pritchard is clearly onto something. Adopting either his or McKinsey's approach could potentially be good for all of us, including people who don't want to work longer. It would take some of the pressure off Social Security and Medicare as well as reduce the stress on social programs like Medicaid and housing assistance that help really low-income seniors survive.

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17 Comments
roger watson
August 22, 2011 at 11:06 am

as a canadian i can look at the US situation neutraly. your deficits are skyrocketing and yet you cut taxes, you have private health care run by lawyers not doctors, you fight hugely expensive wars with no purpose, you government is paralyzed by partison politics, your politicians are increasingly resembling ken and barbie dolls, you cant provide health care to prison guards but you can pay judge judy 37 mill a year, its very sad but i have to say it looks to me that the average american is rude, stupid, entitled, fundamentalist

ron
August 21, 2011 at 3:36 pm

Have you ever taken notice that when retirement and other tax things are talked about you only hear about cutting government or cutting back personally ? Why is it that we never talk about cutting back on what things cost folks and the government ? We a are getting way to greedy in this country. And that greed is costing us more than we care to admit. Look around your home at the things you just had to have , then look at that car or truck you just had to have . But its the governments fault huh ?

Garrett
August 20, 2011 at 4:27 pm

We are ALL in this debt crisis together. So ALL (including the 51 % who don't pay any federal incomes taxes!!) should "fee the pain" of getting our nation's finances in order. We had the turkey - no, not Obama :-) - not it's time to eat the feathers until we match our nation's spending with our income.

Mary
August 20, 2011 at 12:09 am

Dear John,
Can you make any LESS sense while spouting your pompous rhetoric? Thanks.

Claude
August 19, 2011 at 10:35 pm

Watch'IOUSA!' Every American should have a plan that dictates they need to work and save $1,000,000 if over 55 years of age; $2,000,0000 if between 40-55 and $5,000,000 under 40 years of age. Tell me who would then rely on a failed system like Medicare or the Government for that matter? Build your own wealth and stop relying on entitlement programs as a long-term fix!

Joanne
August 19, 2011 at 1:31 pm

Hey McKinsey, how about sticking to just ruining companies instead of the entire nation? Last time I checked, it was the electorate that determined the course of its future, not management consultants. Oh wait, I forgot- corporations are people too. So, do we now have to pay your consulting fees for such empowering McKinseyesque advice, or will just keeling over at our desks be sufficient?