The Candidates Face the Baby Boomers

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Thompson and some other Republicans want to base future Social Security benefits on the inflation rate rather than on wages, and Thompson has acknowledged the effect of doing this would be to lower benefits for future retirees. Edwards and Obama advocate shoring up Social Security by raising the ceiling on the worker income subject to payroll tax. For 2008, the limit is $102,000.

Medicare Fund in Danger

Considering the potential limitations of Social Security in the future, some candidates have suggested other ways to beef up Americans' retirement income and savings. Obama would exempt seniors with up to $50,000 in income from income tax, arguing that it would improve their quality of life by relieving them of tax preparation, as well as by providing extra cash. The Democrats say they'll scrutinize and probably reform bankruptcy laws to make sure employers don't evade pension obligations.

Clinton's proposals include new laws that would prohibit companies from cutting employee pensions "when they sell off subsidiaries," and creating "American retirement accounts," similar to 401(k)s, with federal matching of up to $1,000 in contributions for families making up to $60,000 and a 50% match for families earning between $60,000 and $100,000.

The Medicare hospital trust fund, predicted to spend more than it receives starting in 2013, is in more immediate danger than Social Security. Cutting health-care costs and emphasizing preventive and chronic care show up as goals in pretty much everyone's position papers. Several of these candidates have released broad health-care reform plans (BusinessWeek.com, 12/14/07) they hope would bring down all medical costs, but few have made specific proposals for Medicare reforms.

A Long Look at Long-Term Care

McCain would change the program's payment systems to "compensate providers for diagnosis, prevention, and care coordination" and offer beneficiaries the choice of a public prescription drug plan as well as the private ones now offered. The three Democrats want to allow the federal government to negotiate prescription drug prices with pharmaceutical companies, and Edwards wants to restrict the companies' direct advertising to consumers.

As boomers retire, long-term care of older and frail Americans also looms as a challenge. Clinton's $5 billion per year long-term care agenda, the most comprehensive offered by a candidate, would provide a $3,000 tax credit to caregivers and double the funding of current caregiver support programs. She would also create consumer advocates to fight long-term-care insurance abuses and help improve nursing home quality, and she would fund recruitment and training of personnel.

My survey suggests that at this point in the campaign, retirement issues rank far from the top of the candidates' agendas. Once the primaries are over and the nominees have been chosen, perhaps a nationally televised debate on retirement would spark more focus and momentum. After all, the Census Bureau reports that in 2006, one-third of all registered voters were in the 45- to 64-year-old age group, and when voters 65 and older are added in, the total rises to fully 50%.

Hoffman is the author of The Retirement Catch-Up Guide and Bankroll Your Future Retirement with Help from Uncle Sam. Her Your Retirement column may be found at businessweek.com/investing/. You can contact her through her Web site, retirementcatchup.com.