I’ll bet everyone’s favorite subject in school (way back when) was math.  Right?  Ok, I like to tease.
However, there’s a purpose here.

Here’s an addition problem for you: What is the sum of one thousand, nine hundred and forty-six
PLUS sixty-two?  Alternatively: 1,946 + 62 = ????

Of course, the answer is 2,008.  What if I told you the real answer was 2,009?  To be sure, I am not
really focusing on the arithmetic here, but U.S. demographics, more specifically SOCIAL
SECURITY RETIREES.

The problem above really is supposed to measure the base year (or 1946) when the “baby
boomers” started to be born.  But, think back for a moment.  World War II didn’t end until the
fall of 1945, which started the period when members of the U.S. armed forces began to return
home.  In turn, adding 9 months from the late fall of 1945 and, in reality, only the very end of
1946 saw a swelling in the birth rate.  Indeed, 1947 was the first real complete year which
witnessed the beginning of the baby boomers! 

Thus, you add 62 years to the base year of 1947, and the result is 2009, or the year just
completed.  And, indeed, although perhaps accentuated by rather hard economic times, the
number of total retired workers (including all those which took “early” benefits) began to
increase rapidly in 2009.

In fact, here are the data.  As reported very recently by the Social Security Administration,
the total number of “retired worker” beneficiaries as of January 2010 was 33,687,642.  In
comparison to January of 2009, this represented an increase of an unbelievable 1,202,834,
or +3.4% in just 12 months---that‘s about 3.5 times the overall growth of the total population.
Indeed, the boomers have arrived and, while the benefit level may be reduced at this early age,
many have opted for “early” benefits.

Some other pertinent data include the fact that the total U.S. population increases by about 3
million persons each and every year.  Well, this means that the increase in retired workers
under the Social System in 2009 represented about 40% of the entire growth rate of the U.S.
population.  For our elected officials, and certainly the swelling budget deficit suddenly appears
to be on everyone’s mind, this means that this same fraction, or 40% of the population’s growth
rate began receiving a public pension.  Indeed, the Social Security system will soon need another
fix, AND A BIG ONE.

Moreover, the Disability Income trust fund, which is also part of the Social Security system (and
of vital interest to Unum Group) finds itself in an even greater financial predicament.  Perhaps
more on that in a future piece.

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