Pretirement - What if?

Throughout my career I spent a lot of time asking the questions “Why?” and “What if..?” and I have to admit, by a repeatedly asking these questions (sometime to the point of nausea) I have been able to find better ways of achieving whatever goal I was after. This was especially useful in my position as Ops Manager of the branch I was working at and more recently all of operations for the company I work for.

So, it happened that I was looking at our 401K’s (rather sadly, I might say) and our last Social Security Statements knowing full well that I will be working until I am at a ripe old age, and was wondering what if (there’s that question again) retirement were reversed? As it stands now we are living longer and longer as each decade goes by and with retirement now at 70 years (up from 65).

What if, as a society, we subsidized our youth instead of our old age? Could we create a program that would pay us up to the age of say, 32 (an arbitrary age) and then enter the workforce? Entrance could be at the conclusion of high school or at the end of a military stint. Of course, this wouldn’t be mandatory. Either one could opt out after high school or before – it would be the individual’s choice.

To enter this program one would have to a high school diploma and commit to 2 years of community/military service through a more structured Americorp State or National Program. This way the community receives low cost services that address unmet community needs in area such as education, construction, the environment and public safety. While the participants receive guidance in responsibility, leadership, gain a sense of community belonging, discover untapped strengths and earn credit towards a college education and continued “pretirement”. While in the program the participant receives a small stipend to cover living expenses (on base housing) as well as free healthcare, childcare, pre-college education, and if there is a need in another region that calls for the relocation of the participant, then shelter allowance in off-base housing. In addition, one year of non-competitive status in a federal or state job after the completion of one’s service should they decide to opt out of “pretirement”.

At the conclusion of the two years of community service, the participant is now eligible to enter “pretirement”. This would involve an increase of the monthly stipend but with the requirement that the participant enter and successfully complete a five year, work-study based college program at an accredited state school or university. During this time, the “pretiree” would prepare, via study and internships, for the profession they wish to enter. They could take this time to marry, start a family, travel, and give full-time care to children. All with a monthly stipend, free healthcare and childcare (including Head Start). In order to remain in the program one would have to maintain a 2.7 (or better) GPA. Incentives could be granted of areas of specialized study based on national need. This program would last no more than ten years (enough time to attend a five year school and opt to attend graduate school) and allow time to enter the working world. Where one will work until they either can live without any government assistance (savings and investment), are incapacitated or have passed on.

I can see several advantages to this. First, there would be a lot more people working since the population over 32 is far larger than under 32. More tax revenue is being generated to support this program and budgeting for Social Security could be done with greater clarity. Second, the maturity and education level of the new entrants would be higher. While the healthcare and support needs would of these pretiree’s would be lower. Third, pretiree’s could enjoy the life while at the peak of youthfulness while paying attention, to a greater degree, to the matters of family. Fourth, and this may be the biggest benefit, no more bored elderly looked upon as useless by society. Think about that – here is an opportunity to enjoy retirement during the time of ones youth while at the same time increasing the education level of the population, reducing the healthcare cost and poverty levels while creating a better skilled workforce. Participants would be required to “give-back” to the program by volunteering time – say 10 hours a month – as a mentor to those in the program or those performing their eligibility requirement.

Now, I am no expert in this subject and I am only writing this to explore an idea. I am sure there are a million holes in this concept but it make for a good “what if?”