RetirementHomes.com - Social Security

Which countries have the best pension plans?

aadmin — Wed, 19 Jun 2013 12:11:15 +0000

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Social Security

Will the fiscal troubles ahead hit you?

aadmin — Wed, 20 Feb 2013 19:06:30 +0000

Economists, policymakers and journalists are fretting about the imperiled state of retirement for the incoming generation of people. Is there any hope for a vast number to turn back the tide of bad news?

New research indicates that a majority of retirement-bound Americans will be financially worse off than their parents, putting at risk a long era of high living standards, reports The Washington Post.

The Great Recession and the weak recovery are considered the culprits

. The economic downturn destroyed 40% of the personal wealth of USA citizens
. High unemployment and low-interest savings accounts have made matters worse
. The surge in the stock market is mainly benefitting wealthy Americans
. A growing number of retirees may be living with children or seeking social-service programs

Possible solutions may be:

. Bolstering of Social Security benefits federal government
. Creation of a new layer of retirement help for future retirees
. Encouragement from employers and goverment to bulk up on retirement savings
. Education to discourage workers from using the money for non-retirement purposes

Obstacles to these solutions, include:

. Concern about the nation’s fast-growing long-term debt
. The political climate to reduce Social Security and other retirement benefits
. Rise in health-care costs
. Growing debt among older Americans
. Rise in employers shifting retirement benefits to workers

Teresa Ghilarducci, director of New York City's Schwartz Center for Economic Policy Analysis at the New School for Social Research, told the Washington Post: “This is the first time that Americans are going to be relatively worse off than their parents or grandparents in old age.”

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Get Ready for Paperless Social Security on March 1

aadmin — Tue, 19 Feb 2013 17:49:40 +0000

According to the USA Social Security Administration, almost 58 million Americans will receive $821 billion in Social Security benefits in 2013. The breakdown is spread among retired workers, disabled workers, dependents, and survivors.

In a related story from FoxBusiness, 5 million Americans still receive their benefit payments by paper check. Beginning March 1, 2013, that's due to change when paper checks for U.S. government benefits will be phased out and be replaced by its Go Direct campaign. The 5 million retired and disabled people have had eight years to voluntarily switch from paper to the Go Direct campaign.

The change to electronic payments comes courtesy of the Social Security Administration, the Veterans Administration and other federal agencies that pay out benefits. The call has gone out for the 5 million Americans receiving Social Security benefits by paper check to enroll by direct deposit or sign up to get their money loaded into Direct Express.

The shift to Go Direct will save taxpayers more than $100 million a year, and eliminate theft of paper checks from mailboxes. But it comes with challenges, including confusion and physical difficulties for the elderly and disabled.

Walt Henderson, director of the Go Direct campaign for the U.S. Treasury, admitted to FoxBusiness that the electronic switch-over is sensitive for a lot of older people who are still on the learning curve with electronic payments. "There's a lot of misconception that they have to get a computer or have to get on the Internet," he commented. "It really doesn't change anything except they have to make one less trip to the bank."

Social service workers have remarked that it makes keeping track a lot easier, but that some senior citizens feel stressed without a check in their hands and fear money can be stolen through digital payments. Then there's always the fear on identity theft.

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The 5 financial issues for seniors in 2013

aadmin — Fri, 25 Jan 2013 15:13:37 +0000

U.S. President Barack Obama was re-inaugurated this past week, and he returns as president to a rocky relationship with congressional Republicans, who are locked in a battle with him on the country’s fiscal health and future.

Seniors, from those in Pennsylvania assisted living communities to those in Florida resorts, are one of the groups most likely to be affected by the United States financial crisis, so courtesy of U.S. News and World Report, here are five of the most pressing issues for seniors in 2013:

1. Will Social Security be changed in 2013 to help secure extra money? Will you be able to live a comfortable retirement without expecting any Social Security money?

2. Will inflation continue to eat away at the savings and fixed incomes that millions of seniors rely on to pay the bills?

3. As reported recently by RetirementHomes.com, a group of business executives recently proposed raising the retirement age to 70. Will this affect you?

4. Will the United States be able to reduce its federal deficit without deep and significant service cuts? If cuts are applied to Medicare, for example, will you continue to be able to pay for medical care?

5. How many immigrants will continue to be needed to help fuel the American economy’s growth? Should seniors have a say in the country’s immigration policies?

Tell us what you think in the comment section below.

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Business group proposes raising retirement age to 70

aadmin — Fri, 18 Jan 2013 14:14:19 +0000

If you are one of the people who are counting down the days until work stops and retirement begins, then brace yourself for this piece of news: a group of business executives are proposing that the United States government delay offering Social Security benefits to Americans until they reach the age of 70.

As reported by Reuters news wire, The Business Roundtable, a group of chief executive officers from 200 of the country’s largest companies, are pushing congress and the White House to adopt radical austerity measures which will help balance the country’s economic books, and that means Baby Boomers and soon-to-be retirees are being asked to delay their retirement.

“We are calling on President Obama and Congress to look at our plan and enact a package of gradual changes that will provide economic and personal security for generations to come,” Gary Loveman, CEO of Caesars Entertainment Corp, told the news source.

The Business Roundtable estimated that making such changes to Social Security and Medicare could save as much as $300 Billion, which could go towards avoiding the U.S. debt ceiling.

What do you think about the possibility of delaying retirement until the age of 70, or retiring earlier, but without the Social Security funds? Tell us about it in the comments below.

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What will your pension look like?

aadmin — Wed, 09 Jan 2013 19:42:42 +0000

With Baby Boomers and other soon-to-be-retirees, retirement advisors frequently offer suggestions for how clients can calculate how much money they think they will need to continue their desired lifestyle after they have stopped working.

And while there are different calculations being suggested for Baby Boomers, many experts advise people planning for their retirement to take a holistic approach, and consider their current lifestyle versus planned retirement lifestyle, and what role, if any, travel or part-time work will play in the future.

Writing recently in the Globe & Mail newspaper, Canadian economist Michael Wolfson argued that despite changes in lifestyle habits and sometimes even location, most people maintain a fairly consistent spending and consumption pattern even after they retire, and one of the consequences of this is that lower-income and higher-income individuals are affected in different ways.

For example, those who earn less during their working years are often hurt by the loss of that income in retirement, and they may struggle to avoid poverty, while wealthier people, while they may not be at risk for poverty, will not maintain their standard of living.

What do you think? Do you think government pension plans should aim to fully replace working income, or act merely as a supplement for the retirees’ own savings and investments?

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Connecticut senate candidates debate social security

aadmin — Fri, 28 Sep 2012 12:14:21 +0000

In the United States, 2012 is a national election year when the country will choose its next president. But in addition to the presidential election, there are also thousands of municipal, congressional and senate races going on. And like the contest between Barack Obama and Mitt Romney, many of these local campaigns have a strong focus on senior issues.

In the Connecticut senate race, voters will choose between Republican Linda McMahon and Democrat Chris Murphy. And as reported recently by WIBV.com, the two top candidates are regularly attacking each other on the topics of Medicare and Social Security.

“Obviously, the issue of Medicare and Social Security are very important to people who are utilizing it every day to live,” AARP’s Connecticut director Nora Duncan told the news source.

One of the main contentions is a position by McMahon that supports reviewing Connecticut’s Social Security policy every 10 to 15 years to ensure it is being funded appropriately, but her opponent Murphy says that is just a smokescreen in her longer-term plan to eliminate Social Security altogether.

In the campaign, McMahon’s spokesperson said she has visited more than two dozen Connecticut assisted living communities, while Murphy recently spoke with a number of seniors to discuss his candidacy.

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Don't make these common retirement mistakes

aadmin — Tue, 25 Sep 2012 16:12:34 +0000

Retirement is a time for new beginnings and a clean slate. Baby Boomers have the choice between traveling the world, spending their time volunteering, among countless other retirement ideas.

But some retirement ideas which sound great may cause more difficulty and frustration than they’re worth, and USNews.com recently compiled a list of retirement plans which recent retirees (or soon-to-be retirees) should think twice about before jumping in:

1/ Retiring in an exotic location- While sandy beaches and waterfront villas sound attractive, the biggest problem Boomers might face is a lack of familiarity with the area, and a lack of people they know. In the event there are challenges or problems, friends and family can be helpful, but it’s harder when they are hundreds or even thousands of miles away.

2/ Overestimating travel expenses- As the news source noted, some expenses tend to fall in retirement, such as those related to work and careers, but it’s easy for travel and vacation budgets to balloon out of control, putting a strain on the recently-retired Boomer.

3/ Taking social security early- As noted elsewhere, the earlier you take social security payments, the less money you will receive, so think about whether you really need the money now. If not, it may be a better idea to wait longer and take more money when you might need it more.

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Should you take social security payments early?

aadmin — Thu, 13 Sep 2012 16:16:47 +0000

Is it a good idea to take your pension earlier, or later? A recent article in the Middletown Journal reports that a growing number of Baby Boomers in the United States are opting to collect their Social Security payments as early as they can, partly because of the weak economy and as an insurance policy to protect against future stock market trouble.

But the Journal says that while collecting Social Security early might be tempting, it could mean less money for retirees. In some cases, as much as tens of thousands of dollars could be lost by taking Social Security earlier.

But that doesn’t mean it’s not right for anybody.

“For some people it’s worth taking early, like if you are unhealthy, you become unemployed or your investment returns are low or you really, really need income,” economics professor John Bowblis from Miami University said.

To get full Social Security rates, one must be 65 years old for people born before 1960, and 67 years old for people born after 1960, but Americans can collect as early as 62 years old, but the difference in payments can be as much as 25 or 30 per cent, according to the news source.

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Seven costly Social Security mistakes to avoid

aadmin — Fri, 27 Apr 2012 15:12:21 +0000

All American citizens are entitled to receive Social Security payments when they reach 62 years old, and for many seniors, it can be a big help.

But to get the most out of Social Security, and to make sure it works for you, make sure you don’t make these seven common mistakes, as reported recently by Money-Rates.com.

First, don’t wait past the age of 66 to file.

Second, don’t wait past the age of 70 to start collecting.

Third, don’t forget to include your spouse as a recipient if he or she is also eligible.

Fourth, don’t forget former spouses, either. As reported by the media outlet, if you have been married for at least 10 years and divorced for at least two years, you may be able to claim their benefits as well.

Fifth, don’t assume that you and your spouse need to file for Social Security benefits at the same time, especially if one partner is eligible for higher benefits than the other.

Sixth, if you have health problems, don’t wait indefinitely to file. It may be better to file earlier rather than later if you are in this situation.

Seventh, if you decide to defer your benefits and wait for a lump sum payment, don’t forget to apply for it. If you forget, your loved ones may not receive the money.

All seniors, whether they live at home or in assisted living communities, can take advantage of these simple tips to make sure Social Security works as well for them as it can.

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Social Security