No, seniors aren't drain on economy

Social Security is going broke.

Aging Boomers are a drain on the economy.

Younger workers are paying all the Social Security taxes, which all goes to seniors so nothing will be left when it's their turn.

Wrong, wrong, wrong.

A 2013 analysis by Oxford Economics, a global economic consulting firm, busts these myths with what it terms "The Longevity Economy." In short, Americans aged 50-plus bolster the U.S. economy something fierce. Moreover, their contribution is expected to double by 2032.

So while yes, there are more seniors than ever with the Baby Boomer generation (106 million), they're not sitting on their tuffs. They're contributing to the economy to the tune of $7 trillion per year and rising. And that doesn't count the tax contributions generated from their spending. This is not the generation known for saving, but that has its upside.

It also translates to Social Security benefits - and not just for the aged. Now people older than 50 annually generate $1 trillion in economic activity from Social Security benefits and, according to the AARP Public Policy Institute, $222 billion in tax revenue. Keep in mind that one in five Social Security beneficiaries is younger than 60 years old, including 4.4 million children.

In the report of the same title, "the Longevity Economy" means "the sum of all economic activity serving the needs of Americans over 50... including both the products and services they purchase directly and the further economic activity this spending generates." According to the report, this will account for more than half of the U.S. GDP by 2032.

The 20th century added 30 years to the average lifespan, and now those older than 50 comprise 51 percent of all workers older than 25. They're also generating jobs. Almost one-quarter (23 percent) of new U.S. businesses launched in 2011 were by entrepreneurs aged 55 to 64, up from 14 percent in 1996.

Boomers are more engaged in life than were previous generations. People less often retire "from" something; now they are retiring "to" something, with second careers, full- or half-time volunteering, a return to college or other learning.

Retirement is redefining itself. Gone are the days when turning 60 meant a rocking chair and eventless schedule. Today's seniors work longer, play harder, exercise more, and tend to stay productive. All this generates more consumer activity, boosting the economy.

So next time you hear someone call seniors an economic drain, feel free to set the record straight.

Sholeh Patrick is a columnist for the Hagadone News Network. Contact her at [email protected].