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How to save retirement

By Jennie L. Phipps · Bankrate.com
Wednesday, March 9, 2011
Posted: 3 pm ET

What's going to happen to Social Security and Medicare?

Humphrey Taylor, chairman of research giant Harris Interactive, has taken a personal interest in the latest Harris poll on the future of Social Security and Medicare.

Taylor, who is 76 years old, has not yet taken retirement. He continues to work daily -- except for 14 weeks annual vacation spent skiing and visiting his children and grandchildren in Europe.

Humphrey Taylor, chairman of Harris Interactive

Taylor has led Harris to look thoroughly at retirement planning issues -- as Mel Brooks said, "It's good to be king" -- including examining the future of Medicare and Social Security. As a result, he believes that both are unsustainable in their current form because of dramatically rising costs. Taylor thinks Medicare is in greatest jeopardy, and within the next 15 years, he predicts the need to raise the age of eligibility, increase taxes, and reduce benefits to avoid adding trillions of dollars to the national deficit and having Medicare collapse under its own weight.

If that doesn't sound acceptable to you, join the club. A Harris poll of people over age 18 released today reported that when given these choices about how to fix Social Security and Medicare, and told they had to pick two, most people selected:

  • Encourage more people over 65 to work -- 40 percent.
  • Increase the age of eligibility for Social Security and Medicare -- 37 percent.
  • Increase taxes -- 27 percent.
  • Reduce Social Security benefits -- 11 percent.
  • Reduce Medicare benefits -- 11 percent.
  • Do none of these things -- 33 percent.

When Harris asked respondents to identify their political persuasion, people who considered themselves Republicans chose the "encourage more people over 65 to work" option 46 percent of the time compared to 36 percent of Democrats.

And when Harris segmented the answer to that question by age, 54 percent of people older than 65 would encourage people to work longer, while 37 percent of baby boomers felt that way. Younger people were even less enthusiastic about working longer, with only 39 percent of Gen Y (ages 18 to 33) and 35 percent of Gen X (ages 34 to 45) choosing that as a good idea.

Taylor said he wasn't surprised by this response. "One of the sad truths -- that we've seen in many of our surveys -- is that the worse your job is and the more eager you are to retire, the less likely it is that you can afford to quit.

"People like me who want to keep on working because it is fun are the only ones who can afford to quit."

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2 Comments
afraid4me
April 11, 2011 at 4:49 pm

Fascinating that far less Democrats want folks to work past 65 (I certainly plan to) than Republicans. The culture of work vs. entitlement, I guess.

martha aguirre
March 10, 2011 at 1:02 pm

I agreed with still working for a few years after 65, because today most people when they get to the age of 65, their no even look old, I'm 60 years old, and I will be working for a good 10 more years if God let me. My grandfather died when he was 96, he told me that he secret was that he always work until age 85,he told me that people that just go into retirement aged faster than people that work.