For many years, there has been much hand-wringing over the fate of Soc

For many years, there has been much hand-wringing over the fate of Social Security once the baby boomers reach retirement age. Baby boomers, people born between 1946 and 1964, represent the largest single sustained growth of population in the history of the United States. It is the sheer enormity of this generation that has had economists worried as retirement beckons. According to the U.S. Census Bureau, by 2020, an estimated 80,000,000 Americans will have reached or surpassed the conventional age of retirement. With so many boomers retiring and drawing benefits but no longer paying into Social Security, many fear that the Social Security fund itself could go bankrupt.

However, a study released by the American Association for Retired Persons (AARP) that examined baby boomers’ plans for retirement found that for the most part, this generation is not expected to adhere to the conventional retirement scheme, a fact that may please the worriers in Washington, DC.

In its survey, the AARP broke baby boomers into different categories based on their financial standing, degree of preparedness for retirement, and optimism toward the future. The AARP found that of all groups surveyed, only 13% planned to stop working altogether once they reached retirement age; the remaining 87% planned to continue working for pay. The reasons to continue working varied among the different groups. For some, the plan to continue working is a financial decision. Between 25% and 44% of respondents reported they are not financially prepared to retire and will therefore continue working past retirement age. For the remainder of those planning to work past their mid to late 60s, the decision is based on long-held goals to start a business and/or the desire to stay active in their industry or community.

Eventually, most baby boomers will need to stop working as they progress into their 70s, 80s, and beyond. But with such large numbers planning to continue working, thereby continuing to pay into the Social Security fund, perhaps Social Security will be able to withstand the end of the baby boom and continue to be a safety net for future generations.

1. Which of the following titles would be most appropriate for this passage?

a. The AARP and Social Security
b. Baby Boomers Bankrupt Social Security
c. Baby Boomers Will Work for Pay Beyond Retirement
d. Worries about Social Security May Be Unfounded
e. Economists Fear Baby Boomers’ Impact on Social Security


2. According to the author, baby boomers are not likely to bankrupt the Social Security fund primarily because

a. the government has raised the official age for retirement.
b. most baby boomers are financially prepared for retirement.
c. most baby boomers plan to work past retirement age.
d. most baby boomers are active in their communities.
e. most baby boomers will not need supplemental income.


3. The author cites statistics from the AARP survey primarily to

a. support the assertion that baby boomers are the largest group of retirees in U.S. history.
b. show that baby boomers will not retire en masse as feared.
c. suggest that better financial planning is needed for the elderly.
d. show how optimistic baby boomers are about their future.
e. show the correlation between retirement age and optimism.


4. It can be inferred from the AARP survey results that

a. many baby boomers do not have adequate savings.
b. many baby boomers are afraid of retirement.
c. most baby boomers are unaware of the actual cost of retirement.
d. few baby boomers are realistic about their retirement goals.
e. politicians do not understand the baby boom generation.