Each generation funding its predecessors is not sustainable.
America must adapt. When is as important as how.

Last night, Congressman Paul Ryan hinted at what’s in store for those under 55 when they retire.

“If we act soon, and if we act responsibly, people in and near retirement will be protected.”

Meaning, if we don’t act soon, those who aren’t won’t.

Ryan is talking about reform of Social Security in his GOP reply to Obama’s State of the Union message. The President sidestepped the issue last night, but his Blue Ribbon Fiscal Commission reported recently that changes are inevitable.

“Today, Americans on average live 14 years longer, retire three years earlier, and spend 20 years in retirement. In 1960, there were 5 workers per beneficiary. Today, the ratio is 3:1 – and by 2025, there will be just 2.3 workers ‘paying in’ per beneficiary.”

So . . . now that Washington seems willing to acknowledge that funding current Social Security benefits through current payroll taxes is not sustainable, what should a savvy family do?

Save more, of course. Change our plans to reduce retirement expenses, yes. Plan to work longer. Keep ourselves as healthy as possible. I’d like to have your thoughts on these and more.

But there are two things we should do immediately:

1. Get over it. Acknowledge that our world has changed, that entitlement is a misnomer, and that the culprits are demographic, not political.

2. Push hard for America to start horse-trading. Now, in this session of Congress. Every analyst says that waiting will be costly and painful.

“The [Fiscal] Commission recommends that the precise details of tax reform be developed under a fast track procedure over the next two years.”
“Every year, there is one year less of surplus and one year more of deficit. Once those permanent deficits start in 2015, they will never end. Each year, reforming Social Security becomes more expensive.” [Heritage Foundation]
“Taking action now will ensure that the necessary adjustments to Social Security are spread over several generations.” (Center for American Progress)

Sure, tell your Congress members where you stand on privatization, retirement age changes, benefit levels, and all the other points at issue. But most important, tell them to get started now.

They are scared stiff. Social Security reform is a lose-lose proposition for politicians. We need to make them even more scared of pushing the issue down the road to their successors.