What are Americans more afraid of than dying? I bet you guessed wrong. The answer is running out of income in retirement. It’s true. 75% of those over the age of 44 are more worried about outliving their income than they are of dying. Looking at the first month of the Trump administration, their concerns are more well-founded today than ever.
Almost half of all people nearing retirement have exactly zero dollars in retirement assets, according to the National Institute on Retirement Security. Zilch; nada.
We are in the midst of a retirement crisis, and with private pensions all but gone, it’s going to get worse – unless we do something. That’s why there is a movement to push an aggressive agenda that will protect and expand Social Security, Medicare and Medicaid. These hugely successful programs are a lifeline for most of our nation’s 46 million seniors and will be soon for the 10,000 Americans who turn 65 every single day.
Are they at risk? Well, during the campaign, Donald Trump seemed to share those goals. He famously stated, “I’m not going to cut Social Security like every other Republican, and I’m not going to cut Medicare or Medicaid…” He challenged Congressional Republicans like Speaker Paul Ryan who, year after year, have offered budgets that would threaten Social Security, slash funding for Medicare and Medicaid, and shift those costs to the elderly and their families.
He asked seniors to “Believe me” during the campaign, but actions speak louder than words. President Trump has appointed to his Cabinet two of the loudest Congressional proponents of cutting Social Security benefits, privatizing Medicare, and crippling Medicaid.
Mick Mulvaney, head of the Office of Management and Budget, wants to raise the Social Security retirement age to 70 and reduce eligibility for Medicaid. He promised in his Senate confirmation hearings to continue his push for deep cuts in Social Security and Medicare.
Rep. Tom Price – the author of Republican budgets slashing Medicaid by $1 trillion and replacing Medicare’s guaranteed benefit with a voucher – is now Secretary of the Department of Health and Human Services. That’s the agency that runs Medicare and Medicaid.
His other hiring picks are just as hostile to seniors. Steve Mnuchin, the new Treasure Secretary, was the head of OneWest Bank which is being investigated by New York Attorney General Eric Schneiderman for reverse-mortgages that allegedly defrauded seniors (including those with dementia) and push elderly borrowers into foreclosure.
President Trump has been busy in his first month overturning protections for retirees that were enacted by the Obama Administration. They are trying to get rid of the “fiduciary rule,” a rule that simply says that investment advisers must give advice that is in “the best interest of the client,” not their own profit-making interest. Estimates are that retirees lose $17 billion every year because of “conflicted” financial advisers.
Trump and Republicans are also targeting state plans, like one in my state of Illinois, that improves retirement savings for the 55 million working men and women who are not offered retirement plans by their employees. Illinois Secure Choice would automatically enroll private-sector workers into saving plans, expanding retirement savings while placing virtually no burden on employers and allowing workers to opt out if they choose. This week the House majority voted to thwart these plans. A New York Times editorial asked and answered, “Who’d want to Limit Retirement Plans? House Republicans.”
Here’s my warning to Donald Trump and the Republicans: It’s not a good idea to piss off Grandma. She’ll get mad and stay mad right into the 2018 election.