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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
Lyberty Belle
August 17, 2011 at 9:47 pm

The reason most people work into their late 60's is because they're making higher wages. The government should eliminate income taxes, corporate taxes and capital gains taxes.
When you're age 70 you need to make deductions from your retirement accounts per the federal government or they will take a large chunk of your money. They government needs to leave people alone.

Nestor E. Barolin
August 17, 2011 at 8:35 pm

Wise up America!!
Everybody ought to shoulder the burden; let's face it, everybody talks about having money to spend ... well...money to spend will be a lot easier to get by producing goods and selling to other countries .... what we are doing is like; I make shoes, sell it to the neighbors; the neighbors make something else and I buy from them... which is good and dandy but there will be more money left if we all produce instead of being "professional" suckers and our government gives them money to produce nothing!
sell at least something to other countries.
Bring back what it used to be "MADE IN USA" .... now it's all "MADE IN CHINA"

John
August 17, 2011 at 5:52 pm

Bless Danny for his straight talkin' candor. But he concedes too much when he says "we're living longer." We're not. This is a Tea Party lie. The truth is that more of us are getting to live the natural human lifespan. The lifespan itself (its natural upper limit) has not changed in millennia. Isocrates (the ancient Athenian orator, but of course you have all heard of him--this is America, right?) lived to be 98. He died in 338 BCE after hearing of Athens's defeat at Chaeronea (that dishonest victory that killed with report that old man eloquent, and of course I don't have to remind you said that, we are all old and eloqent here, right?). So . . . rock on, Danny, and (hello, Washington) "pony up"(love that expression) the moolah (much have I traveled in the realms of moolah).

DanH
August 17, 2011 at 4:13 pm

Hey! I have a novel idea!!

HOW ABOUT THE GOVERNMENT TIGHTENS IT'S BELT!!

WHY DON'T THEY SHRINK & CUT BACK!!

THAT would be very appropriate!!

LESS Government = LOWER taxes!

PS: Social Security is a Ponzi Scam. Don't support it.

KEN
July 03, 2011 at 10:32 pm

WHAT IF WE ALLOWED 55 AND OLDER TO TAP THE 401K AND IRA ACCOUNTS TAX FREE THAT WOULD FREE UP INCOME FOR SPENDING.

Frank Sanfilippo
July 02, 2011 at 11:13 am

1- get rid of tax loopholes from American businesses (12000+ companies registered in Cayman Islands to AVOID TAXES !!) (American ?) 2- Tax credits and holidays for job creation and economic expansion 3- ReVALUE the American WORKER. Wages ABOVE SUBSISTANCE. Middle class with discretionary spending is the GROWTH Hormone of Capitalism ! More products and innovation. THINK AMERICAN! 4- Stop the bankrupting of American by the PRIVATE health industry. HAVE PUBLIC HEALTH SYSTEM. Eliminates the burden to the ENTIRE SOCIETY !! Dont get rid of social programs under a banner of ANTI SOCIALISM . manufacturing jobs are in COMMUNIST China for $.30/hr. ???? Show some Corporation PATRIOTISM !!!

Greg B
June 29, 2011 at 1:19 pm

There are a lot of motivated, healthly, and energetic older workers but also those that have long been "burned out" working in cruise control and not productively contributing. Time for the next generations to have the opportunity to develope. They will not initially make as much as those they are replacing but perhaps you can get two younger workers for whats being paid to the "old timer". Help toward reducing unemployment and the two workers contributing to SS might be better than the one at a higher salary which has hit the SS cap.

Paul Hughes
June 28, 2011 at 12:55 pm

Wouldn't encouraging older workers to stay on the job also make it harder for those entering the workforce to find jobs? Assuming it (unemployment) is going to stay about the same for 10 years -- and nothing stays the same for 10 years, but leave that out for now -- if older workers work longer, younger workers can't find jobs. If younger workers can't find jobs what do they do? Not learn how to work, borrow money for education they don't need, and generally do enter society even less than they don't already. That 30-year-old son playing World of Warcraft in your basement? Make that 40 ...

jsoster
June 27, 2011 at 6:23 am

leo68

the longer old people are forced to work the less jobs there are for young people just saying

Gregory Gill
June 24, 2011 at 8:30 pm

The decision to retire comes down to a very simple mathematical calculation which eliminates all the variables you read about. This calculation is SIMPLE
FIRST, What are your yearly expenses, VS what will be your retirement FIXED income.. (i.e.;1; SS, 2; Pensions, (These 2 can be considered as secure Annuities), 3, Personal savings or Assets.
SECOND, Understand your yearly Expenses or LIFE STYLE as for what is Discretionary vs Nondiscretionary spending.

Knowing your INCOME( Life Style) vs Your Spending (Discretionary / Nondiscretionary) provides a graphic visual to help for making necessary adjustments to trim spending or needing more income
These are the BASICS to start with....

BIG Thanks to Danny from long ago "TAXIE" DAYS.
Greg