-
Why Employers Value Older Workers
Tweet Share on Facebook April 30, 2012 Comment (5)As the imminence of baby boomer retirements becomes more of a reality for employers, many have realized that the departures of some of their most experienced and competent employees will create big gaps. There has been no significant erosion of the traditional retirement age of 65. But there is evidence that many more employers will be developing programs to retain or even recruit older employees.
[See Why the Early-Retirement Trend Reversed in 2011.]
A recent survey by the Society for Human Resource Management, conducted in partnership with AARP, found that nearly half of all employers think the loss of older workers over the coming decade could be a problem for them. Nearly 40 percent think their entire industries will be adversely affected.
-
The Case for Fixing Social Security Right Now
Tweet Share on Facebook April 27, 2012 Comment (9)Every time I write about the financial condition of Social Security, I get incredibly angry at Congress and the White House. They should step up to the plate and apply the relatively minor financial changes that would restore the program to complete financial sustainability. Next to the truly tough issues of healthcare spending, federal deficits, and taxes, Social Security is a walk in the park.
[See Social Security, Medicare Outlooks Worsen.]
Governments seem to do little right these days, at a time when the public desperately needs to see something positive from its elected leaders. Restoring the public's confidence in the staying power of Social Security would send a positive message to younger generations. They now have ample reason to doubt they will receive benefits that are anything like those being paid to current retirees.
-
10 Ways to Save Money on Insurance
Tweet Share on Facebook April 25, 2012 Comment (3)If you saw a friend turn giddy at the prospect of buying insurance, you would likely think him delusional. While insurance is one of the major consumer purchases we make, the product and the experience we derive from shopping for it share nothing in common with the exhilaration of buying, say, a new car, TV, or something else we really want.
[See the 10 Most Educated Places to Retire.]
That's understandable yet unfortunate. If you add up what you spend on all forms of insurance—auto, health, home, and life, just for starters—the total can easily exceed $10,000 a year even for basic coverage, and can be double or triple that amount for more affluent households. While the process of buying insurance will never be enjoyable, you would be well-served to use the same shopping skills you've honed through countless retail purchases.
-
Retirement Outside United States More Rhetoric than Reality
Tweet Share on Facebook April 24, 2012 Comment (1)The past two years have been tough times for many Americans. If the grass was ever going to look greener somewhere other than the United States, you'd think it would have been after the Great Recession.
There has been no shortage of stories extolling this country or that as a retirement mecca, due to a mix of lower living costs, pleasant climates, and cultural attractions.
Over the past several years, Americans' attitudes about their own country have fallen from lukewarm to cold. Going back more than 30 years, regular Gallup polls have asked people whether they are satisfied or dissatisfied with the way things are going in the United States.
-
Social Security, Medicare Outlooks Worsen
Tweet Share on Facebook April 23, 2012 Comment (10)Pressure to reform Social Security and Medicare intensified Monday with the release of key reports showing that the financial condition of both programs, particularly Social Security, continue to worsen.
[See 7 Steps to Reach Your Retirement Goals.]
The nation's primary retirement program has moved three years closer to being unable to pay all of its obligations, according to its 2012 annual trustees report. The program, financed by payroll taxes, will be unable to meet all its claims beginning in 2033, compared with 2036 as projected in last year's report. More ominously, the program's projected deficits reached their greatest level since major Social Security reforms were enacted nearly 30 years ago, and the year-to-year increase in the deficit was the program's second largest in any year since those reforms.
-
What the Longevity Economy Could Mean for You
Tweet Share on Facebook April 20, 2012 CommentAging Americans are often viewed as an enormous financial burden. They are racking up outsized healthcare and retirement obligations that are bankrupting the federal and state governments. Upwards of 10,000 baby boomers are reaching traditional retirement age each day, signing up for Medicare and Social Security, and for those with low incomes, using Medicaid services. Beyond lots of plans and even more talk, there is no overall government strategy in place to deal with these expenses.
[See Choosing Your Mutual Fund Lineup.]
But these very same people are also the dominant consumer-spending force in the U.S. economy and will continue to be for decades. In 2010, more than 32 percent of the nearly 309 million people in the United States were 50 or older. That's nearly 100 million people, with roughly 60 percent of them between the ages of 50 and 64, and 40 percent age 65 and older. Beyond lots of plans and even more talk, there is no overall business strategy in place to capitalize on this market.
-
Long-Term Care Needs Demand Your Attention Now
Tweet Share on Facebook April 18, 2012 Comment (6)The trend lines for the nation's long-term care needs are becoming distressingly clear. As a society, we are running out of both the financial and human resources to provide adequate care to our oldest and often most frail citizens. From an individual perspective, the bill for long-term care will become an increasing financial burden. People as young as their 40s ought to raise their retirement savings rate now to prepare for their later years.
[See The 10 Most Affordable Cities for Long-Term Care.]
If you are fortunate enough to reach the age of 65, the odds are 70 percent that you will need some form of long-term care during your remaining years. The duration and severity of care needs vary widely, of course, but on average, you'll need care for three years and it may cost you a boatload.
-
Seniors: How to Put Together the Right Medical Team
Tweet Share on Facebook April 17, 2012 Comment (1)For anyone past the age of 60, now is the time to carefully plan for your future physician needs. You will live, on average, into your mid-80s. Who will take care of you during this period? Will your current doctors be around then? Ask them. Do they have succession plans in their practices? Ask them. If you're not satisfied with the responses, build a personal action plan to locate doctors who will best meet your needs as you age.
[See Top 10 U.S. Cities for Well-Being.]
Healthcare reform could add more than 30 million people to the insurance rolls beginning in 2014. Of course, the Supreme Court could invalidate some or all of this mandate. But it's already hard to get access to a primary care doctor. Imagine what it might be like in five years.
-
6 Top Retirement Investments Not About Money
Tweet Share on Facebook April 16, 2012 Comment (5)Being obsessed with having enough money for a comfortable retirement seems like a national pastime. Almost daily, we are bombarded with worrisome messages about running out of money in our later years. From there, it's a short hop to living in unappealing senior housing, hoping our resentful children will keep paying our bills and occasionally visit.
While money is certainly important to personal security, the things it can buy are only part of a successful retirement, and often not the most important part. More money may give us a sense of satisfaction, especially as we compare our relative income to what other people make. But Daniel Kahneman, who won the Nobel Prize for his work on behavioral economics, says that after about $75,000 a year, additional income does not "buy" us any more happiness.
-
Why Nursing-Home Staffing Is Crucial to Health
Tweet Share on Facebook April 13, 2012 Comment (1)Loss of caregiving help is literally deadly for older folks, according to a study from the Center for Retirement Research at Boston College. Perhaps surprisingly, death rates actually rise when the economy is stronger. In researching why this happens, the Center found that when employment rises, nursing homes lose staffers who prefer other jobs. This loss of caregiving, in turn, is associated with higher death rates, particularly for older women, who tend to outlive men and thus are more likely to need old-age care.
[See Older Women Face Serious Money Inequality.]
The outlook for nursing homes and caregiving resources in general is sobering. It's a certainty that rising numbers of aging Americans will need more care in the future. People in their 80s are the nation's fastest-growing age group. Over this same period, the retiring baby-boom generation will be succeeded in the workforce by much smaller generations of younger workers. The result will be a growing shortage of care providers.
