The Business of Aging

Linette Lopez, Joan Lunden, & Ester Bloom discuss the money behind aging––what it takes to prepare for caregiving for a relative, planning your own retirement, & social security.

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64% of young people

don’t think Social Security
will be able to pay for them

when they retire.

Despite that fear,

41% of young people
have saved a grand total

of $0 for their retirement.

Ester, are these fears
well founded?

Is Social Security
going to be there for us?

Some version of Social Security
will definitely be there for you,

but that does not mean you
should not take care of yourself.

-  Also, fatalism is not a strategy.
- Yeah.

If you lack faith in Social
Security, put faith in yourself.

If you are lucky
enough to have a job,

that will actually match
your retirement contributions,

max out those
contributions every year.

And that’s only 50% of jobs,
which is crazy.

Can we just backtrack
for a minute, Linette?

Can you explain how it is that
Social Security is supposed to work?

Social Security is supposed to be
a pool that Americans put, you know,

a percentage of their income
in with every paycheck.

The problem is, because
our parents’ generation is so large,

we just don’t have enough to go
around right now, it seems,

for our demographic shifts in terms
of paying for people as they age.

My mom said, “I never
expected to live until 94”.

We’re all left kind of
financially responsible

for people who expected to die
at 60 and then they live.

My mom was almost 95,
that’s an extra 35 years, you know?

Yeah, basically,
unless you have a motorcycle,

you should plan that
you are re going to live until 95,

you should have that set.

And then even if
you don’t need all that…

Or buy a motorcycle if you don’t
want to live to 95, right?

Take up smoking
and buy a motorcycle.

But no one did that,
which is why we have

a $7.7 trillion retirement
savings gap in this country.

I’m 23 and I want to start thinking
about saving for my retirement,

but my job right now,
I don’t make that much money,

so do you have any tips
on how to start?

Yes. Put aside a little bit,
and it doesn’t matter how much.

Think about how much
you pay for Cable,

or think about getting rid of Cable

and putting that money
somewhere else, right?

- She’ll never do that.
- I did it.

Oh, you know what?
We hate Cable.

- No. Millennials hate Cable.
- I just use Netflix now, so…

- She uses Netfilx.
- Yeah, exactly, right?

But think about anywhere you can
cut down on the big ticket items,

and then shift that money
into a different account.

- And automate this as much as possible.
- What kind of account?

You can make different
Checking Accounts for yourself,

you can make different
Savings Accounts for yourself.

There are apps that
will do this for you.

It is pretty amazing these days.

Use technology
to your advantage, right?

And make it automatic

so that you don’t have to
think about it every month.

Some of that money, before you get
a chance to spend it, it goes away.

It disappears and it goes
into somewhere blessed,

some blessed, peaceful space
where it just compounds the interest

and you will not see it
again until you are 70,

but you will be so grateful
to yourself for having done it.

64% of young people

don’t think Social Security
will be able to pay for them

when they retire.

Despite that fear,

41% of young people
have saved a grand total

of $0 for their retirement.

Ester, are these fears
well founded?

Is Social Security
going to be there for us?

Some version of Social Security
will definitely be there for you,

but that does not mean you
should not take care of yourself.

-  Also, fatalism is not a strategy.
- Yeah.

If you lack faith in Social
Security, put faith in yourself.

If you are lucky
enough to have a job,

that will actually match
your retirement contributions,

max out those
contributions every year.

And that’s only 50% of jobs,
which is crazy.

Can we just backtrack
for a minute, Linette?

Can you explain how it is that
Social Security is supposed to work?

Social Security is supposed to be
a pool that Americans put, you know,

a percentage of their income
in with every paycheck.

The problem is, because
our parents’ generation is so large,

we just don’t have enough to go
around right now, it seems,

for our demographic shifts in terms
of paying for people as they age.

My mom said, “I never
expected to live until 94”.

We’re all left kind of
financially responsible

for people who expected to die
at 60 and then they live.

My mom was almost 95,
that’s an extra 35 years, you know?

Yeah, basically,
unless you have a motorcycle,

you should plan that
you are re going to live until 95,

you should have that set.

And then even if
you don’t need all that…

Or buy a motorcycle if you don’t
want to live to 95, right?

Take up smoking
and buy a motorcycle.

But no one did that,
which is why we have

a $7.7 trillion retirement
savings gap in this country.