CHICAGO (Reuters) – Paper Social Security benefits statements, which used to be mailed out every year and then fell victim to budget cuts, are going to make a partial comeback.
Starting this September, the Social Security Administration (SSA) will resume mailings at five-year intervals to workers who have not signed up to view their statements online, an agency spokesman told Reuters. The statements will be sent to workers at ages 25, 30, 35, 40, 45, 50, 55 and 60, he said, adding the agency would continue to promote use of the online statements.
CHICAGO (Reuters) – Location, location location: Not only is it key to the value of real estate, it’s also a big driver of the cost of long-term care.
A study of long-term care costs in the United States released this week shows that the cost of long-term services and support varies dramatically by location. For example, the national median cost of a private nursing home this year is $87,600 – but it’s $155,125 in Connecticut, $87,180 in Ohio and $57,487 in Oklahoma.
CHICAGO (Reuters) – It’s Tax Day, and a small number of wealthy Americans have something to celebrate: They are done paying Social Security taxes for the year.
The payroll tax that funds Social Security is levied only on a certain amount of income. This year it’s capped at $117,000. That means most wage earners will pay 6.2 percent of every dime they earn in 2014, but high earners will stop paying after passing the cap. If you’re among the 318,400 workers who will earn $407,000 or more this year, you’re done paying Social Security taxes today, according to the Center for Economic and Policy Research (CEPR), a progressive think tank. Some 2 million taxpayers will be done on June 15, and 3.7 million on September 15.
CHICAGO, April 10 (Reuters) – We reached a milestone last
week when the government reported that the U.S. economy has
regained all the jobs lost during the Great Recession. Yet for
many older workers the recession never ended; long-term
joblessness has morphed into de facto premature retirement. Now,
millions are performing financial triage on retirement plans
that had been based on assumptions of working longer.
The overall job market does look promising. Although the
national unemployment rate was unchanged in March at 6.7
percent, 192,000 jobs were added. And the Bureau of Labor
Statistics reported that the private sector has gained 8.9
million jobs since the employment low in February 2010, just
over the 8.8 million jobs lost during the economic meltdown.
CHICAGO (Reuters) – Where do retired recreational vehicle enthusiasts go when they get too old to hit the road? Some are parking – permanently – at the Escapees Care Center, an adult day-care center in Livingston, Texas, where they can live in their RVs and pay monthly fees that cover whatever care they may need and commune with other enthusiasts.
The center is just one example among dozens of innovative communal retirement living arrangements springing up around the country as boomers seek out alternatives to traditional senior living models. Some support aging in place, such as Beacon Hill Village in Boston, a grassroots community founded by a small group of neighborhood residents. Others involve moves to new communities of like-minded souls – retired postal workers, LGBT seniors, artists, Zen Buddhists and, yes, RV lovers.
CHICAGO (Reuters) – Imagine a Medicare reform plan that boosts your premiums 50 percent. If you like your doctor, you won’t be able to keep her. The wealthy will subsidize healthcare for poor seniors.
An Obamacare takeover of Medicare? Nope. It’s the latest iteration of “premium support,” the plan for Medicare unveiled this week by U.S. Representative Paul Ryan (R-Wisconsin).
CHICAGO (Reuters) – This should be good news: At a time when worry about the retirement security of American workers is rising, traditional pension plans finished 2013 in their best shape last year since the financial crisis of 2008. Yet that may only be setting the table for more corporations to stop offering them.
The funding deficit of the 100 largest pension plans sponsored by publicly traded U.S. corporations plunged 57 percent in 2013, to $125.9 billion in the year-ago period, according to Towers Watson, the benefits consulting firm. (Funding is a measure of the assets that plans have on hand to pay projected obligations to beneficiaries.)
CHICAGO (Reuters) – Millennials don’t seem to buy the traditional wisdom when it comes to investing. They’re the most risk-averse investors since the Great Depression, with the average portfolio 52 percent in cash, according to a recent report by UBS Wealth Management Americas.
That runs counter to what most investment experts will tell you – that young people need the greatest exposure to riskier stocks to meet long-range goals, and that equity allocations should decline as retirement approaches. That philosophy underpins the fastest-growing retirement savings product in the market today, the target date fund (TDF).
CHICAGO (Reuters) – Are high-income Americans gaming Social Security? The Obama administration wants to go after the wealthy for “aggressive” moves to “manipulate” their Social Security claiming decisions, according to the fiscal 2015 budget released by the White House earlier this month.
The administration hasn’t offered much elaboration, but a White House official, speaking on background, confirmed to me that the target is a benefit claiming strategy known as file-and-suspend – a twist on the more straightforward strategy of delayed filing to earn a higher monthly benefit down the road. Although it’s technically available to anyone, the White House thinks the strategy is being used to unfair advantage by high-income seniors and wants to shut it down because of the added benefit cost it imposes on the Social Security program.
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.