The comptroller general of the United States Government Accountability Office, David Walker, uses Al Gore's term inconvenient truth to bring attention to what he calls a 'fiscal cancer.' By this he means the massive federal debt that will collide with the equally massive entitlement programmes of Social Security and Medicare in the US.

Walker argues that this fiscal conflict is a greater threat to the American way of life than any terrorist movement, particularly as approximately 78 million American Baby Boomers begin to take early retirement and claim their benefits in January 2008.

We know that when America catches cold, Bermuda gets pneumonia, so what does this inconvenient truth mean for all of us, Americans and Bermudians, regardless of age?

There are two main schools of thought on this subject. One, if we listen to David Walker, is that Americans are facing a catastrophic collision of massive federal debt with an enormous demand for the pay-out of Social Security and Medicare benefits that will lead to a spiral of ever-greater debt-servicing by the American taxpayer.

The second school of thought states that Baby Boomers are the healthiest, wealthiest generation of all time. When they retire they will begin to pay out their savings and pensions in leisure and health care services, thus turning these funds back into the service market that should employ a great number of people. This is certainly a more optimistic view, but only the wealthy Baby Boomers, and service workers, reap the benefits.

What happens to the others, those who do not have retirement funds and corporate pensions? Who is going to pay for all those people who have been clobbered by this thing we call "life", those without pensions, houses, medical insurance, retirement funds and investment portfolios, or paid work to provide an income stream?

Those who have enjoyed the "good life", and have healthy retirement funds that are socked away in professionally managed investment portfolios, can be forgiven for being somewhat complacent about the impact of our ageing population. But nevertheless they will be paying out a significant amount to fund a retirement that might last 30 or more years while the cost of medical care is growing exponentially.

For those who are facing retirement without a corporate pension or personal retirement fund, the future is not so rosy. Indeed, for those who fall into this latter category and do not own their own homes, or who have outstanding debt, the future is bleak.

The maximum pay-out from Bermuda's Social Insurance (often called the Government pension) is approximately $1,075 per month, and this only applies to those who meet the required formula of contributions. For others, the pay-out rate drops substantially.

Also, in Bermuda, affordable medical insurance is tied to employment. If you do not work, or your employer does not keep you on the company policy after retirement, you do not have medical insurance cover.

Buying a private policy can cost in excess of $900 per month, depending on your age, gender and state of health. Or you can choose the limited benefits of Government's Hospital Insurance Plan (HIP) at a much lower rate of approximately $200 per month. This does not leave much out of that Social Insurance cheque, especially when you have to pay rent, buy groceries, and need a few medical prescriptions to keep "Arthur" (arthritis pain) at bay.

We know our senior population is in the process of doubling to approximately 15,000 by the year 2030. Who is going to pay for all those who have a broken work history and won't get a corporate pension, or full pay-out under their Social Insurance? We might not have the entitlement programmes that they have in the US., but we have a similar ageing population and a national debt.

The impact of our ageing population is an inconvenient truth. How we work together to address it will determine our communal social and economic wellbeing.

Marian Sherratt is Executive Director, Bermuda Council on Ageing. She writes on issues concerning ageing each fortnight in The Royal Gazette. Send e-mail responses to info@bdaca.org