My Generation Delays, Your Generation Pays

From my inbox, this morning, from Fidelity Investments:

In 2011, Social Security withholdings taxes are being reduced by 2%. Since this money was intended for retirement savings, why not consider putting it into your own workplace savings plan? Check the amount that you are currently contributing and, if you are eligible to do so, consider increasing your contributions now to take advantage of this opportunity.

Why not?  Officially, because I am going to spend that money on things I would never have purchased otherwise, so that I may do my part to ensure enough aggregate demand to continue the recovery.  Technically, because the 2% was not intended for retirement saving — it is being covered by the General Fund and my Social Security benefits are not any lower because of it.  My generation delays, your generation pays.

About Andrew Samwick 89 Articles

Affiliation: Dartmouth College

Andrew Samwick is a professor of economics and Director of the Nelson A. Rockefeller Center at Dartmouth College in Hanover, New Hampshire.

He is most widely known for his work on the economics of retirement, and his scholarly work has covered a range of topics, including pensions, saving, taxation, portfolio choice, and executive compensation.

In July 2003, Samwick joined the staff of the President's Council of Economic Advisers, serving for a year as its chief economist and helping to direct the work of about 20 economists in support of the three Presidential appointees on the Council.

Visit: Andrew Samwick's Page

Be the first to comment

Leave a Reply

Your email address will not be published.


*

This site uses Akismet to reduce spam. Learn how your comment data is processed.