CHICAGO (Reuters) – If you want to understand the fight over Social Security’s future, look no further than your annual benefit statement – if you can find one.
The Social Security Administration stopped mailing annual statements in 2011 in a budget-cutting move that saves $70 million annually. The SSA rolled out an online statement the following year, but only 10 million American wage earners have signed up. That’s a paltry 6 percent of all workers.
CHICAGO (Reuters) – Americans who owned stocks in 2013 are feeling better about their retirement prospects than they did just a few years ago. For everyone else, not so much.
The longest-running survey of American retirement sentiment shows confidence rose in 2013, the first increase since sentiment plunged following the Great Recession of 2008-2009.
CHICAGO (Reuters) – A dwindling number of retirees get supplemental health insurance coverage from their former employers. But for those who do, big changes are afoot.
A growing number of companies are dropping single-employer group insurance plans in favor of privately run insurance exchanges, where a third party sets up a marketplace offering Medicare coverage offered by dozens of carriers, with costs subsidized by their former employers.
CHICAGO (Reuters) – When an infant is born, the hospital paperwork for parents includes birth certificate and Social Security number applications. Soon, though, there could be another document to fill out: a Roth IRA account setup form.
That’s the thrust of the Roth Account for Youths Savings Act, or RAYS Act, introduced last week in the U.S. House of Representatives by Ruben Hinojosa (D-Texas).
CHICAGO (Reuters) – What’s in seniors’ wallets? Most likely, a Medicare card that leaves them vulnerable to scams and fraud.
It’s a peculiar anachronism in this era of digital insecurity: Social Security numbers are printed on every Medicare card, and the back of the card instructs seniors to carry it with them at all times. (Medicare’s identification number is called the Health Insurance Claim Number, but your HICN is your Social Security number.)
CHICAGO (Reuters) – Seniors can breathe a little easier now that Social Security benefit cuts are no longer part of this year’s federal budget debate. But the other shoe hasn’t dropped in Washington. That would be Medicare cost shifting.
Last week, President Barack Obama’s administration ditched one of its worst retirement policy ideas, the “chained CPI” for Social Security cost-of-living adjustments (COLAs). But we still don’t know if the president or lawmakers will renew efforts to shift a higher share of Medicare costs to seniors as part of budget talks this year.
CHICAGO (Reuters) – If you’ve ever thought about getting some professional help with your retirement plan, this would be a great time to get going. Financial advisers may be in short supply in the years ahead.
A brain drain is about to hit the world of financial planning, according to Cerulli Associates, a financial services consulting firm. Cerulli reports that 32 percent of all advisers will retire in the next 10 years. At the same time, the industry isn’t hiring nearly enough new blood to replace them, let alone expand the ranks to handle the anticipated surge in demand.
18 (Reuters) – America is aging, and it’s
supposed to be a big downer. Pensions are crushing government
budgets, Social Security is in trouble and Medicare costs are
going through the roof.
But someone must be putting Prozac in our water supply,
because we don’t seem to be fretting. A recent Pew Research
Center study of attitudes about aging in 21 countries finds
Americans far less worried about the aging trend than others.
Just 26 percent say aging is a problem in our country, compared
with 43 percent of the British, 55 percent of Germans, 67
percent of Chinese and 87 percent of Japanese.
CHICAGO (Reuters) – When you change jobs, do you take the money and run? A large and growing number of young and low-income workers do just that with their 401(k)s, and it’s damaging their chances of building adequate retirement savings down the road.
Data released today by Fidelity Investments shows that 35 percent of all participants in plans it administers cashed out their 401(k) balances when leaving their jobs last year, and the trend was even worse for young and lower-income workers. Four out of 10 workers (41 percent) age 20 to 39 cashed out, and 51 percent of workers who left jobs grossing under $30,000 cashed out.
CHICAGO (Reuters) – “Without Social Security, nearly half of seniors would be living in poverty,” President Barack Obama said last month, noting the 50th anniversary of the war on poverty. “Today, fewer than one in seven do. Before Medicare, only half of seniors had some form of health insurance. Today, virtually all do.”
Is the war on elder poverty over? Fewer older Americans are poor than any other age group – we heard that often in retrospectives on the war on poverty, and it comes up often in debates about possible cuts to programs like Social Security and Medicare.