Are retirees really “living off the backs of the young”?

Photo above - Wadleigh High School in NYC. It has a 57% dropout rate. Teacher salaries that begin at $70,000 and reach $150,000. Newsweek says that retirees are the reason NY schools are failing.

My mind was blown when I read Newsweek’s claim (link below): “Retirees living off the backs of the young.” I have never seen a more audacious anti-boomer rant.

Newsweek's premise is that Social Security is unfair to kids. After a worker is forced to contribute 7.X% of their gross pay to the fund for a lifetime, if they live long enough to collect any benefits then those retirees are screwing . . . the schools?

Retirees probably have a different take on the situation, but Colombian-American reporter Jesus Mesa seems to have dodged the opportunity to interview any of them for his scoop. Jesus now lives in NYC, and most retirees from there flee to places like Florida and Texas. This because their social security benefits checks are subject to tax. It's double taxation- they were bled when their SSI taxes were withheld, and again when those monthly checks arrive now. If they live long enough. The legal age of retirement keeps going up.

This year the social security cost of living increase could actually be a net REDUCTION after mandatory Medicare premium increases are factored in.

Okay, enough of the retiree bashing, Jesus. It’s clear they had nothing to do with any school funding problems. Retirees are simply trying to avoid becoming homeless. Many of America’s homeless are late-in-life workers who lost their jobs, never had pensions, and every time they turn on the TV they get bad news about the cost of living.

Jesus, I get it: the public schools you walk past in New York do seem like a dystopian horror film. But let’s stay focused on the numbers. New York has some of the highest taxes in the universe. State income tax, city income tax, property tax, a giant retail sales tax. $22 bucks just to cross the GW Bridge. And now a new tax just to enter the borough of Manhattan once you do make it over the bridge.

If NYC schools are screwing kids, it’s possibly due to government spending priorities. In the past couple of years the city has built monuments; hired robots to patrol the subways (this failed, predictably); legalized weed and created a bureaucracy to oversee door dash style pot deliveries. Billions spent to house throngs of undocumented migrants in hotels, feed them, and provide medical services. The incoming mayor wants to make all municipal buses trips, and triple the number of apartments subject to rent control. Not sure what Mamdani plans to do with the schools. Oh yes, sorry - we do know sorry: The presumptive winner wants to end charter schools as too elitist. Has anyone interviewed that parents about THAT idea, Mr. Mamdani?

So you might conclude that schools are circling the drain because elected politicians are incompetent and corrupt. And that’s correct up to a point. But one of the most powerful voting constituencies in the city are the teachers. Starting salary – right out of college – is $70,000, before health benefits, retirement funds, etc. Experienced teachers top out at $150,000.

The most recent NY teachers' contract (link at bottom) is a nightmare. Average 4% annual salary increases over the length of the deal. PLUS a $3,000 dollar “retention bonus” (bribe if they don’t quit). The $3,000 is separate from their annual pay. Notably, the teachers' union did NOT have go on strike to score all their demands. The city government rolled over and agreed to it all. Teachers do vote, after all. In fact, lots of schools are actually polling places.

Jesus – the problem is NOT retirees collecting social security. It’s high taxes, insane spending priorities, and school administrators and staff getting paid huge salaries with no accountability for job performance.

I’m just sayin’ . . .

How retirees are living off the backs of the young

NYC teachers get 20% pay hike in 5 year, $6.4 billion deal

SunshineGirl · 36-40, F

Are pensioners in the USA really doubly taxed? It's a common misapprehension in the UK that national insurance contributions are taxed (they are not). In many cases pensioners are taxed at a lower marginal rate than they would have been during their working lives, which represents a generous subsidy.

According to my tax return from last year, 12.8% of my income tax was used to fund retirement pensions.

SusanInFlorida · 31-35, F

@SunshineGirl social secuity receipients are distinct from pensioners. In america, if you have a pension, you're lucky. you have 2 sources of retirement income - both SSI and your employers pension. Less than 10% of americans have pensions. they have largely been replaced by "defined contribution plans" which encourage (but do not require) workers to contribute to a tax deferred account for future withdrawals. corporations often make matching contributions to a worker's account if he/she at least contributes something.

social security is a 7.X tax out of workers GROSS pay (before income tax). Workers are paying income tax on their entire gross paycheck. if they are liable for state income taxes, property tax, they can deduct those against income later. there is no deduction for mandatory social security taxes.

when someone retires, and begins to collect social security benefits, 85% of the monthly payout is subject to income tax, even though income tax was paid on the gross income when it was earned years ago.

if a private corporation tried to pull something like this, there would be a gazillion lawsuits immmediately.

thanks for your reply