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How the Supercommittee Deficit Plan May Affect Seniors
Tweet Share on Facebook October 31, 2011 Comment (2)The Congressional Joint Select Committee on Deficit Reduction—aka the "super committee"—is still in partisan posture mode. Right now, we know what the Democrats and Republicans will and won't accept. But we know little of what the committee actually will do.
For older Americans, the best short-term outcome might just be failure. If the committee cannot adopt a package of at least $1.2 trillion in budget cuts, automatic budget cuts would occur. To avoid this outcome, an agreement needs to emerge by Thanksgiving and Congressional passage must occur by January 15.
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2012 Medicare Plans Will Lower Some Costs
Tweet Share on Facebook October 28, 2011 Comment (1)The enrollment period for 2012 Medicare plans began October 15 but will get more attention from Medicare users following this week's welcome announcement that 2012 consumer insurance premiums for a key part of the program are barely rising for most participants, and they'll actually decline for people who began Medicare in 2010 and 2011.
[In Pictures: The 10 Best Places to Retire in 2012.]
Nearly all Medicare beneficiaries receive Part A service for covered hospital care at no charge. However, Part B premiums for covered physician and out-patient services are a major expense for seniors using basic Medicare (Parts A and B) and are also included in premiums for Medicare Advantage plans.
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How You Can Protect Your Pension Benefits
Tweet Share on Facebook October 26, 2011 Comment (2)Reports of the death of the traditional pension, as with concerns about Social Security, have been greatly exaggerated, to borrow Mark Twain's famous phrase. There is no question that defined benefit plans are disappearing from the workplace. Nor that pensions, particularly public pensions, are under pressure. Employers are scrambling to adequately fund their plans and are also watching plan returns slide after finally regaining much of the losses they experienced during the 2007-2008 market swoon.
[In Pictures: The Best Places to Retire in 2012]
But pension benefits are generally not at risk, experts stress, particularly for existing employees who already have vested benefits from their plans. More likely, newer employees will receive less generous benefits and may have to contribute more to their plan than existing employees to secure benefits.
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6 Retiree Issues That Must Be Addressed
Tweet Share on Facebook October 25, 2011 CommentThe so-called Congressional "Super Committee" is doing its thing, whatever that is, to come up with a package of federal budget cuts and head off a fiscal train wreck later this year. The Republican presidential contest features no shortage of proposals to cut taxes and spending. They say that's the ticket to a stronger economy. At the same time, President Obama is barnstorming the country to sell his plan to raise spending and taxes. He says that's the ticket to a stronger economy. Small wonder that public approval rates for politicians would enter negative territory if that was possible.
[In Pictures: The Best Places to Retire in 2012]
And small wonder that almost none of what's being discussed these days will address the growing problems of America's older population. While the clock ticks, older Americans continue to be the nation's fastest growing population groups. Whatever economic, health, and quality-of-life issues seniors face today are getting bigger along with those population numbers. Neither the swelled ranks of seniors nor their needs are going away,
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Why is the Social Security Hike Seen as Bad News?
Tweet Share on Facebook October 24, 2011 Comment (20)Social Security payments will increase by 3.6 percent next year, the government announced last week. This is the first cost of living adjustment (COLA) for the program in three years. It will boost a typical retiree's payments by roughly $500 during 2012. Given price increases and tough economic times for many seniors, you'd think the extra money would be welcome.
[See 2012 Social Security Payments to Rise 3.6%.]
Many experts and seniors' organizations, however, responded to the increase as if they'd been slapped in the face. We were told that the gains might be wiped out by increases in Medicare premiums. We were told that the formula used to calculate cost-of-living increases for Social Security was badly flawed and unfair to seniors. Efforts to find a satisfied senior advocate were fruitless:
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How to Build Your Retirement Dream Team
Tweet Share on Facebook October 21, 2011 Comment (2)Great retirements don't happen by accident, so don't expect your later years to be golden without a solid plan in place and good people to help you along the way. Building your retirement team is especially important these days; the weak economy, volatile investment markets, and prospects for cutbacks in key senior support programs can make retirement a scary obstacle course.
[In Pictures: The Best Places to Retire in 2012.]
While approaches to retirement planning may begin and end with a financial adviser, financial adequacy is only one component of a successful retirement. To build a truly great retirement, you may need lots of talented players on your retirement dream team. Not everyone's team will or should look the same. But here are the skilled players that you may want to recruit.
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2012 Social Security Payments to Rise 3.6%
Tweet Share on Facebook October 19, 2011 Comment (4)Social Security benefit payments will rise by 3.6 percent in 2012. The increase in the program's annual cost of living adjustment (COLA) will be its first in three years. The increase translates into $42.57 more a month for the average retiree, who is now paid $1,182.40 a month.
[In Pictures: Great Places to Retire in 2012.]
Social Security payments also are linked to Medicare premiums. Next year's COLA will permit the first increase in three years in the Medicare premium paid by existing beneficiaries for Part B services for physicians and other outpatient expenses. The 2012 Part B premium will be announced by the end of the month, according to a spokesperson for the Centers on Medicare & Medicaid Services.
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6 Tips for Evaluating Longevity Insurance
Tweet Share on Facebook October 18, 2011 Comment (1)With life expectancies on the rise, millions of people are facing the challenge of how to support themselves into their 80s, 90s, and even beyond. Longevity insurance is one possible solution. That's the descriptive name for a specialized annuity designed to begin making lifetime income payments to recipients at a trigger date of their choosing.
[In Pictures: Best Places to Retire in 2012.]
Age 85 appears to be the most common start date for these annuities, but the date can be tailored by the recipient at the time of purchase. Usually, the type of annuity used for this protection is called a single-premium deferred annuity (SPDA), meaning the annuity is purchased with a single payment, and the date payments begin is deferred to a future time.
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15 Things You Need to Know for Retirement
Tweet Share on Facebook October 17, 2011 Comment (2)How high is your financial IQ when it comes to important retirement topics? MetLife's Mature Market Institute has quizzed pre-retirees three times (2003, 2008, and earlier this year) on these topics.
The good news is that Americans have become more aware of the big issues that will shape the quality of their retirement—longevity, spending needs, Social Security, and healthcare. This sensitivity has clearly been boosted because of the difficult economic times of the past several years.
[See the 10 Best Places to Retire in 2012.]
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Social Security's Shifting Role in Retirement Plans
Tweet Share on Facebook October 14, 2011 Comment (3)Fears about shaky Social Security finances often cause people to change their retirement plans, some financial advisers say. Experts generally support financial plans that are successful even with worst-case declines in Social Security benefits. But they caution consumers that concerns about future benefits should not lead them to make bad decisions about when to begin taking Social Security or how to invest their retirement nest egg.
[See 10 Places to Retire on Social Security Alone.]
Many experts feel that the weakness of Social Security finances has been overblown. The program is currently paying out more in benefits than it receives in payroll taxes, but it is still generating an operating surplus from the interest income on its huge $2.5 trillion surplus, accumulated before the baby boomers began reaching retirement age.
