Healthcare & The Future of Work: Haley Proposes Raising the Retirement Age

Nikki Haley, the former governor of South Carolina and a potential Republican presidential candidate in 2024, proposes raising the retirement age for Social Security and Medicare. Haley argues that the current retirement age of 65 is too low. She further argues raising the retirement age will ensure the long-term solvency of these programs.

Undoubtedly, this is a controversial issue. We must look at this proposal from a broader scope; we must pull back the curtains on work related injury, elder work discrimination and elder poverty to decide if raising the retirement age is a reasonable solution.

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Haley’s Proposal & My Reaction

Haley proposes to raise the retirement age for young people by stating, “I’ll raise the retirement age- only for younger people.” Specifically, people in their 40s, 50’s and 60’s will be spared from working to 70-years-old.

She further argues that retirement and social security benefits should be “tied to life expectancy.”

According to the World Health Organization, the average life expectancy in the United States in 1960 was 69.7 years old. In 2021, CDC estimates that life expectancy has reached 76.4 years old. This means people are living well up to 10, sometimes 15 years after they retire, thus America has a looming social security deficit problem.

I disagree with Haley’s stance on this one. Her proposal is controversial, but besides that, it is unfair to place this much burden on young Americans who are yet to achieve the American dream that their parents reminisce about.

Also, it is unclear what the specific retirement age would be under her proposal. This ambiguity adds to the uncertainty for young people, along with the inflation anxiety they feel with the ever-increasing cost of living.

Young Americans & The Current Work Landscape

Working Gen Zs and Millennials have been through enough.

In 2008 the US experienced a recession. Millennials were desperately looking for a job after college, but few companies were hiring. Many of my friends who majored in Liberal Arts had to work at Burger King to repay student loans and move back home with their parents. I got lucky that I chose a career in healthcare that was recession proof.

In 2020 when Millennials were raising their own families, saving for their retirement and at the prime of their work years; the COVID 19 pandemic hit causing a global shutdown and massive unemployment.

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In 2021 more Millennials are renting, and that hasn’t change much due to inflation. The average age for a millennial homebuyer is 34, greater than Baby boomers at 33 and Gen Xers at 32.

In 2020, Gen Z have experienced what Millennials have already experienced twice. Gen Z are now starting to realize that if they experience another blow to their financial future, such as a looming recession forecasted in 2024, it will be near impossible to afford basic standard of living, much less attain the American dream.

The emergence of the gig economy was birthed out of necessity to “make ends meet” and a distrust that a traditional job with benefits will secure their future.

Furthermore, artificial intelligence and automation in the workplace are here to stay. The benefits of AI in the workplace are great tech achievements, but let’s not forget that AI has forever changed the way how we work and think about work.

How will Haley be able to sell a later retirement to young Americans who have mastered the gig/side-hustle economy?

The Attitudes Towards Work: Understanding the “Quiet Quitting” Phenomena &Retirement Age

Politicians often believe that young Americans aren’t listening- but we hear loud and clear. We hear public figures saying Social Security and Medicare may go bankrupt by 2034, even though many of us have at least three or more decades to continue in the workforce.

Young Americans are not lazy; we are splitting our efforts somewhere else.

Why would anyone invest at least 30 years into something with a high probability of a zero return?

How can young Americans be assured that if they work beyond 70, they will be guaranteed reasonable social security benefits they have paid into all their working life?

The answers to those questions are the real reason for quitting the workforce among young Americans. Many who quit will not return.

Even though taxes have been deducted from our paychecks for years, there is a real possibility that Social Security and Medicare as we know it can be gone.

It’s simple. Many young Americans do not wish to continue in the workforce without the guarantee of basic benefits or healthcare access at the most vulnerable time in their lives.

The Problem with Haley’s Proposal

The fact is, there are other ways to raise the retirement age and ensure that Social Security and Medicare stays solvent. I wholeheartedly believe that this can be done in a reasonable way.

Raising the retirement age to 70 or above may seem unfair to workers who have physically and emotionally demanding jobs, such as blue collar and service facing jobs. A sentiment that Senator Rick Scott shared at the third Republican Debate.

It is reasonable to expect workers in these types of jobs to work until they are 70 or above?

I don’t agree with Nikki Haley’s assessment of the future of work. Let’s take a look at the work landscape before implementing such sweeping proposal. We should look at the health of our workforce, the attitude towards work and the state of the economy.

Health Care Policies & the Proposal to Increasing the Retirement Age

Centers for Disease Control and Prevention data shows that as people get older, they are more likely to have at least one chronic health problem. Therefore, the cost of care usually increases with age.

Do we really believe a 72-year-old jumping off an Amazon truck, hauling outdoor furniture to our porches is the best we can do to fix the Social Security and Medicare problem?

The future of work and healthcare is at a crossroads.

Haley’s proposal may create an environment where the elderly are underemployed. This can lead to older Americans losing their employer-based health insurance. Will there be any health care policy considerations for scenarios like this under Haley’s proposal?

Haley’s Proposal in Action: A Real-Life Scenario

Let’s imagine, Bob at 72 years old usually works part-time (24 hours a week) delivering packages. Yesterday he had to visit his doctor and needed 3 hours off from work. That means Bob will only have worked 21 hours this week.

If Bob has any emergencies or doctor visits for the remainder of the month (and his average hours a week are less than 24 hours), he may be at risk of losing his employer-funded health insurance.

Bob may not want to stay at a job where he doesn’t get health insurance coverage.

Elder Work Discrimination and Elder Poverty Considerations with Raising the Retirement Age

He may have to find full-time work and get all the insurance perks of a full-time employee, buy insurance through the marketplace or through a private insurance agent, out of pocket.

It is unreasonable to think that Bob at 72 will never get sick, never need an urgent health procedure done or work less than 24 hours a week. The fact is healthcare premiums are higher as we age-and employers know this.

Before this proposal takes flight…the question lingers

Will there be more incentives to hire and keep older workers? Age discrimination is real. Older workers are displaced every day for younger workers who are often healthier.

The Arguments from Both Side of the Isle to Increase the Retirement Age

Americans are healthy enough to support the economy, even if the retirement age is raised. However, among the developed countries we are behind.

According to the Centers for Disease Control (CDC), the number one cause of death for Americans is heart disease. Heart disease is preventable by maintaining a healthy lifestyle.

If the retirement age is raised, I’m concerned that some Americans with poorly controlled health conditions will continue to work even though they’re not healthy enough.

Politicians should make sure that any changes to the retirement age are fair, non-punitive and equitable for everyone.

Here is an outline of those in favor of raising the retirement age and those who are against it:

Arguments in favor of raising the Retirement Age

Since Social Security and Medicare are facing long-term financial challenges, proponents believe raising the retirement age is the most effective. They argue that Haley’s proposal has the following benefits:

• Raising the retirement age will increase tax revenue. This can fund other government programs or reduce our growing deficit.
• There is some evidence that working longer can improve health outcomes for older workers due to increased physical activity and cognitive sharpness.
• It would allow people to work longer and earn more money, which could help them save more for retirement.

Arguments Against Raising the Retirement Age

• Raising the retirement age would be unfair to younger Americans. If the retirement age increases, the average number of years people would work would increase by five years.
• Increasing the retirement age could put older workers at a disadvantage in the job market. Employers may be more likely to hire younger workers for lower pay, leaving older workers struggling to find jobs. This could lead to a rise in unemployment rates among older workers.
• Raising the retirement age would disproportionately impact low-income workers. These workers are more likely to have physically demanding jobs that they may not be able to do until the new retirement age.
• Many seniors rely on Social Security and Medicare to meet their basic needs and live on a fixed income. Raising the retirement age would increase the number of seniors who are living in poverty.
• Older workers who work longer may have more difficulty accessing affordable quality healthcare. Also, workers who work longer may have less time to take care of their health needs.        

If the retirement age is raised, policymakers must take steps to help Americans stay healthy and productive as they age. Additionally, they must ensure that those who are unable to work due to health reasons can retire early without penalty.

Increasing the retirement age as the primary solution to address the Social Security and Medicare financial issues is a slippery slope.

Four Proposals for the Future of Work Without Raising the Retirement Age

Some of the proposals I have outlined below would create a healthier nation that could affect the future of work where it benefits everyone without increasing the retirement age:

•          Promoting healthy lifestyles: The government can promote healthy lifestyles through public education campaigns and by making it easier for people to access healthy foods and opportunities for physical activity.

•          Expanding access to healthcare: The government can expand access to healthcare by making Medicaid and Medicare more affordable and by expanding coverage to more people. This would particularly help people who opt out of the workforce before the new retirement age due to ongoing health issues, but do not yet qualify for disability benefits.

•          Providing job retraining opportunities: The government can revamp job retraining opportunities to help workers transition to new jobs as they age. Less physically demanding jobs for older Americans can reduce job injury and disability claims.

•          Creating age-friendly workplaces: Employers can create age-friendly workplaces by offering flexible work arrangements and by providing accommodation for workers with disabilities. Government must provide more incentives to employers for hiring mature workers.

•    There also needs to be flexibility in working so that older workers can continue to work if they choose despite physical limitations. Employers can also create mentorship programs where older workers serve as a resource to younger workers.

Conclusion

Overall, the impact of raising the retirement age is a complex issue. There is no easy answer to maintain solvency of Social Security and Medicare. It is important for policymakers to weigh the pros and cons carefully when making decisions about the future of retirement policy and access to Social Security and Medicare benefits.

I would encourage all younger Americans to consider retirement planning.

It is important to be prepared for whatever comes our way- just in case there are sweeping changes in the future of work and retirement. Things can change in the quickly, especially with a strong presidential candidate like Nikki Haley.