Posts tagged with: retirement

In a recent interview in the Wall Street Journal, billionaire Stan Druckenmiller discusses his recent university tour sounding the alarm on intergenerational theft. The article paraphrases his case:

[W]hile today’s 65-year-olds will receive on average net lifetime benefits of $327,400, children born now will suffer net lifetime losses of $420,600 as they struggle to pay the bills of aging Americans.

It goes on:

When the former money manager visited Stanford University, the audience included older folks as well as students. Some of the oldsters questioned why many of his dire forecasts assume that federal tax collections will stay at their traditional 18.5% of GDP. They asked why taxes should not rise to fulfill the promises already made.

Mr. Druckenmiller’s response: “Oh, so you’ve paid 18.5% for your 40 years and now you want the next generation of workers to pay 30% to finance your largess?” He added that if 18.5% was “so immoral, why don’t you give back some of your ill-gotten gains of the last 40 years?”

He has a similar argument for those on the left who say entitlements can be fixed with an eventual increase in payroll taxes. “Oh, I see,” he says. “So I get to pay a 12% payroll tax now until I’m 65 and then I don’t pay. But the next generation—instead of me paying 15% or having my benefits slightly reduced—they’re going to pay 17% in 2033. That’s why we’re waiting—so we can shift even more to the future than to now?”

In my recent commentary, I examined the recent projections of the Congressional Budget Office: (more…)

polish moneyPoland’s prime minister, Donald Tusk, announced Wednesday that the government would attempt to cut government debt by taking money from its citizens’ private pension funds. Poland currently has a two-fold pension system: mandatory contributions are made to the state pension fund and then to private funds. It is the state funds, known as ZUS, that the Polish government plans to “transfer” money from. According to Reuters:

…Prime Minister Donald Tusk said private funds within the state-guaranteed system would have their bond holdings transferred to a state pension vehicle, but keep their equity holdings.

He said that what remained in citizens’ pension pots in the private funds will be gradually transferred into the state vehicle over the last 10 years before savers hit retirement age.

(more…)

“Retirement as a cultural concept needs to go away.” So says Pascal-Emmanuel Gobry in a thought-provoking piece today over at Forbes.

I agree with the sentiment, in large part because good work never ends.

But as Gobry also illustrates, we need to rethink our conceptions of work as well as retirement, which for many is just another way of talking about the end of work.

Blog author: jballor
posted by on Wednesday, June 20, 2012

In my Acton Commentary this week, “Good Work Never Ends,” I look at the example of two local personalities, John Izenbaard of Kalamazoo, Michigan, and Fred Carl Hamilton of Wyoming, Michigan, to argue that “the good work of service to others ought never end as long as we live.”

Izenbaard in particular is a striking example of perseverance in serving others. The 90 year-old Izenbaard has been working at Hoekstra’s True Value Hardware for 74 years, and has no plans to retire.

During his conversation with Rev. Sirico at Acton University last week, Michael Novak observed that at the heart of every business is an idea, some new good or service that is produced. In my talk on “The Church and God’s Economy,” I outlined what I call the 4 P’s of God’s economy. The P for the realm of work is that of “production,” precisely in the same sense used by Novak. Work is the realm of productive service of others. When work is defined in this way it causes us to rethink from the ground up the worldly notion of retirement.

In this week’s piece I also refer to the formula “from success to significance.” As I point out, a good way of understanding this formula is not necessarily as a temporal transition from career into retirement, but rather as a shift in perspective. On that score, we might also talk about moving “from success to service,” or even defining success in terms of productive service.

Dietrich Bonhoeffer has a helpful insight into what this might look like in relation to the challenge of being faithful in the midst of the daily grind:

The unity of prayer and work, the unity of the day, is found because finding the You of God behind the It of the day’s work is what Paul means by his admonition to “pray without ceasing” (1 Thess. 5:17). The prayer of the Christian reaches, therefore, beyond the time allocated to it and extends into the midst of the work. It surrounds the whole day, and in so doing, it does not hinder the work; it promotes work, affirms work, gives work great significance and joyfulness. Thus every word, every deed, every piece of work of the Christian becomes a prayer, not in the unreal sense of being constantly distracted from the task that must be done, but in a real breakthrough from the hard It to the gracious You.

I also note Lester DeKoster’s fine book on work in the context of this week’s piece, and his argument helps us realize that the dynamic of serving others and serving God is not an either/or proposition. As he writes, work “gives meaning to life because it is the form in which we make ourselves useful to others, and thus to God.”

Last Thursday at Rome’s (but technically part of Vatican City) Pontifical Lateran University, Istituto Acton held a day-long conference on “Ethics, Aging and the Coming Healthcare Challenge.”

It was a successful event, if a bit unusual compared to some of our other Roman gatherings. It’s not often that an Acton conference is so focused on the finality of death, after all; we often stick to the other “inevitability” of life, i.e. taxes. Yet in both spiritual and economic terms, there’s no sense in denying it.

The conference covered many different aspects of the changing demographics affecting health care, ranging from declining fertility rates to pharmaceutical research to pensions to hospice care. One of the main objectives of the conference was to help participants understand how both ethics and economics can work together to help us confront the challenge of aging populations.

The conference was co-sponsored by the Pontifical Council for the Family, the John Paul II Institute for the Study of Marriage and Family, the Centro di Orientamento Politicio, Associazione Famiglia Domani, Human Life International, and Health Care Italia. As you can tell from the nature of these organizations, we sought to place health care issues in the context of the family, following Catholic social teaching’s emphases on this fundamental institution and the principle of subsidiarity.

Here are audio clips from three of our speakers who appeared on Vatican Radio’s English World News service:

Bishop Jean Laffitte, secretary of the Pontifical Council for the Family, click here

Dr. Daniel Sulmasy of the University of Chicago, click here

Dr. Michael Hodin, executive director of the Global Coalition on Aging, click here

For the first time, we live-streamed a conference on the Acton website, and we’ll soon post the conference papers and presentations as well as related media on the Istituto Acton webpage.