Moth IRA (And our need to lift the pencil)

    I was browsing the web recently, when I came across an article that put not having enough retirement funds as one of the biggest fears/concerns that Americans had on their mind. A sentiment we see carry down to the saving and work habits of most Americans. Americans work about 1,750 hours a year. A sizable increase from our neighbors across the pond, with countries like Germany only averages around 1,350 hours a week. All in an effort to raise their own standard of living and to stave off the depletion of their savings accounts and retirement funds.  Despite all the Woolf says about the inevitably of death and the futility of our effort, Americans continue to pour their lifeblood into preparing for their eventual exit of the labor force.

William dealing with getting sick all the time

   Despite the raging debate over the role of government assistance, America does lay out some provisions for the seniors in America. Various accounts, such as 401(k), Roth IRA, IRA, 403(b), and many others, are protected via some sort of government provision. Whether that be through required employer contributions or tax breaks, they encourage and help people avoid the nightmare scenario of running out of money. Similarly, Social Security offers a continuous stream of income to people over the age of 65 until they die. Almost 69 million Americans are currently on social security, and around 40% of those rely on Social Security for a majority of their income. A worrying development is the entrance of the Baby Boomers into the pool for social security.

    Aptly named, the Boomer generation saw an unprecedented spike in the birth rate of kids, as the veteran returning home from WW2 wanted to settle down and enjoy the material comforts that they fought so hard for. Great news for America, they would go on to form the foundation for American labor growth and productivity in the future. However, as they reach the end term of their lives, they represent one of the most challenging developments for future American prosperity. Labor force participation is plummeting, as Boomers exit the market to retirement, and the strain on future social security checks is rising. Life expectancy in America, largely due to our innovative health care system, is rising. Chronic disease are becoming more manageable with advances in medicine and a result of the rising hygiene in America. This puts the rest of American in between a rock and a hard place.

A graphical representation of the dependency index

    In the next 10 years, the number of people receiving social security is expected to balloon to over 77 million people. Workers how previously put money into the social security fund are getting more than they paid in. They’re living longer and the money they put in is worth less, younger Americans already feel this strain, with larger tax policies and interest rates appearing insurmountable to people looking to loan money. Is this to say that we should cut the system designed to support the elderly? Of course not. The simplicity of life that the moth exhibited is something that most would be hard pressed to find in modern society, with larger fears and the interdependence that we all experience. Should we go back to isolationist argrians, toiling constantly to put food on the table, only to die of typhoid? Probably not. But the growing moral need to support those who came before, something that Woolf notably didn’t do for the Moth, threatens to constrain the growth and aspirations of people in the future.