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The Dependency Ratio


In ten short years, 2030 to be exact, America’s dependency ratio–or the percentage of non-working citizens who rely on those who are employed–will exceed 70%. It doesn’t take a rocket scientist to figure out that when the scale tips on the dependency ratio, there will be a profound consequences for Social Security and Medicare, and that the Social Security’s $2.9 trillion reserve will be depleted by 2035.

Of course Congress can hike payroll taxes on an even smaller workforce which is likely to cause a reduction in programs and benefits. Worse yet, most pensions have been eliminated and Boomers have an average of only $152,000 in retirement savings, with 45% having no retirement savings at all.

The cascading effect of these statistics is enormous, and we are going to be ill prepared to address the issue. Imagine tens of millions of suburban residents when they are 85 and unable to drive or walk to stores, community centers, or their doctors. Alas, our government that is incapable of dealing with the gun control issue is certainly ill equipped to address massive social change that is looming on the horizon.


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