Monthly Archives for November 2020

Study: COVID-19 Changes Way Americans Think About Retirement

Published in RINewsToday on November 23

The raging coronavirus pandemic is changing the fundamental way working adults think, plan and save for their retirement, underscoring the important role Social Security and Medicare play for retirees, according to the 2020 Wells Fargo Retirement study conducted by The Harris Poll in August. The annual research report examines the attitudes and savings of working adults, taking a look this year on the impact of the COVID-19 pandemic on retirees.

For those workers whose jobs were negatively impacted by COVID-19 over the last eight months, the Wells Fargo study found that planning for retirement has become even more challenging, with many survey respondents expressing “pessimism” about their life in retirement – or worried if they can even retire. 

This year’s Harris Poll conducted 4,590 online interviews, from Aug.3-Aug. 24, including 2,660 working Americans age 18-76 whose employment was not impacted by COVID-19, 725 Americans age 18-76 whose employment was impacted by coronavirus pandemic, 200 high net worth American workers age 18-76, and 1,005 retired Americans, surveying attitudes and behaviors around planning their finances, saving, and investing for retirement.

According to the Wells Fargo study’s findings, 58 percent of workers impacted by the pandemic say they now don’t know if they have enough savings for retirement because of COVID-19, compared to 37 percent of all workers. Moreover, among workers impacted by coronavirus, 70 percent say they are worried about running out of money during their retirement while 61 percent say they are much more afraid of life in retirement, and 61 percent note that pandemic took the joy out of looking forward to retirement.

The study, released Oct. 21, found that COVID-19 has driven some workers even further behind in saving for retirement: Working men reported median retirement savings of $120,000, which compares to $60,000 for working women, say the researchers.  Yet for those impacted by COVID-19, men report median retirement savings of $60,000, which compares to $21,000 for women.

“With individual investors now largely responsible for saving and funding their own retirement, disruptive events and economic downturns can have an outsized impact on their outlook,” said Nate Miles, head of Retirement for Wells Fargo Asset Management in a statement releasing the findings of this study. “Our study shows that even for the most disciplined savers, working Americans are not saving enough for retirement. The good news is that for many of today’s workers, there is still time to save and prepare,” he says.

Taking a Close Look on Retirement Savings

The Wells Fargo study also found that women and younger generations are falling behind, too. Women are less sure if they will be able to save enough for retirement, and appear to be in a more precarious financial situation than men. The study findings indicate that almost half of working women (51 percent) say they are saving enough for retirement, or that they are confident they will have enough savings to live comfortably in retirement (51 percent). Those impacted by COVID-19 have saved less than half for retirement than men and are much more pessimistic about their financial lives. In addition, women impacted by COVID-19 are less likely to have access to an employer-sponsored retirement savings plan (59 percent), and are less likely to participate (77 percent).

According to the researchers, Generation Z workers (born between 1997 to 2012) started saving at an earlier age and are participating in employer-based savings programs at a greater rate than other generations, they are nonetheless worried about their future. Fifty-two percent of Generation Z workers say they don’t know if they’ll be able to save enough to retire because of COVID-19, 50 percent say they are much more afraid of life in retirement due to COVID-19, and 52 percent say the pandemic took the joy out of looking forward to retirement.

Remaining Optimistic

“The study found incredible optimism and resiliency among American workers and retirees, which is remarkable in the current [pandemic] environment,” said Kim Ta, head of Client Service and Advice for Wells Fargo Advisors. “As an industry, we must help more investors make a plan for their future so that optimism becomes a reality in retirement,” she said.

The Wells Fargo study findings showed that despite a challenging economy, many American workers and retirees remain optimistic about their current life, their future. Seventy nine percent of the workers say they are very or somewhat satisfied with their current life, in control of their financial life (79 percent), are able to pay their monthly bills (95 percent).  Eight six percent say they are still able to manage their finances.

The study’s findings indicate that 69 percent of workers and 73 percent of retirees feel in control and/or happy about their financial situation. Ninety two percent of the workers and 91 precent of retirees say they can positively affect their financial situation, and 90 percent of workers and 88 percent of retirees say they can positively affect how their debt situation progresses.

The researchers noted that 83 percent of workers say they could pay for a financial emergency of $1,000 without having to borrow money from friends or family. However, the respondents acknowledged they could improve their financial planning. Slightly more than half — 54 percent of workers and 50 percent of retirees — say they a detailed financial plan, and just 27 percent of workers and 29 percent of retirees have a financial advisor.

The study’s findings indicated that most respondents acknowledged that they could improve their financial planning. Slightly more than half — 54 percent of workers and 50 percent of retirees note they have a detailed financial plan, and just 27 percent of workers and 29 percent of retirees have a financial advisor.

Social Security and Medicare Key to Retiree’s Financial Security

The Wells Fargo study noted that despite an increasing shift to a self-funded retirement, in the midst of the pandemic, nearly all workers and retirees believe that Social Security and Medicare play or will play a significant role in their retirement.  According to the study, 71 percent of workers, 81 percent of those negatively impacted by COVID-19, and 85 percent of retirees say that COVID-19 reinforced how important Social Security and Medicare will be for their retirement. Sixty seven percent of workers say they have no idea what out-of-pocket healthcare costs will be in retirement, say the researchers.

The researchers say that workers expect that Social Security will make up approximately one-third of their monthly budget (30 percent median) in retirement. And even those high-net workers believe that Social Security and Medicare factor significantly into their retirement plans, expecting that the retirement program will cover 20 percent (median) of their monthly expenses.

The majority of the study’s respondents expressed concerns that the programs will not be available when they need them and worry that the government won’t protect them.  Specifically, 76 percent of workers are concerned Social Security will be raided to pay down government debt and 72 percent of workers are afraid that Social Security won’t be available when they retire.

The Wells Fargo study also found that 90 percent of workers would feel betrayed if the money they paid into Social Security is lost and not available when they retire and that 45 percent of workers are optimistic that Congress will make changes to secure the future of Social Security.

The Impact of COVID-19’s Social Isolation on Seniors

Published in RINews Today on November 16, 2020

As COVID-19 cases continued to surge across the nation, AARP Foundation in collaboration with the United Health Foundation (UHF), released a report last month taking a look as to how the COVID-19 pandemic impacts seniors who find themselves socially isolated.  According to the recently released report, “The Pandemic Effect A Social Isolation Report,” two-thirds of adult respondents say they are experiencing social isolation and high levels of anxiety since the beginning of the pandemic.  

The 60-page report, released on Oct. 6, noted that many seniors who are affected have not turned to anyone for assistance, because many find themselves socially isolation, because of lacking reliable and meaningful social support networks.  Previous research studies have found the health risks of being social isolation can be more harmful than being obese, and long-term isolation is equivalent to smoking 15 cigarettes a day. 

Social Isolation and Seniors

The study, funded by AARP Foundation with the support of a grant from United Health Foundation, was designed to explore the impact of the COVID-19 pandemic on adults of all ages, to understand levels of social isolation during the pandemic, and to assess knowledge of how social isolation can impact a person’s health.  The online survey contacted 2,010 U.S. adults age 18 and older, from Aug. 21-25. 

The researchers say that key signs to identify if someone is at risk for social isolation are access to food, healthcare, transportation and other vital resources. But they say that “it’s connections, companionship, and a sense of belonging that we need as humans.”

The AARP Foundation’s report found that for adults 50 and older who have experienced social isolation during the COVID-19 crisis, more than seven in 10 adults agree that this made it more difficult to connect with friends. Half of the respondents also said that they are feeling less motivated, more than four in 10 (41 percent) report feeling more anxious than usual and more than a third (37 percent) have experienced depression. 

The researchers also found that a third of women age 50 and over reported going 1 to 3 months without interacting with people outside of their household or workplace, and adults with low and middle incomes who report experiencing social isolation also say they felt more depressed than adults with higher incomes. Furthermore, only 11 percent of adults regardless of age turned to a medical professional when feeling down or sad, and almost a third reported that they did not look to anyone for support.

Getting Help to Strengthen Social Connections

Commander Scott Kelly, renowned astronaut who spent 340 days isolated in space, has teamed up with AARP Foundation and the UHF to spread the word about the seriousness of social isolation and provide tips on how to successfully emerge from it.  

“Living on the International Space Station for nearly a year with literally no way to leave wasn’t easy, so I took precautions for my mental and physical health seriously,” said Commander Kelly in a statement announcing the release of the report. “I’m advocating for individuals, particularly vulnerable older adults, to use available tools like Connect2Affect.org to strengthen their social connections,” he said.

Getting the Help You Need

Working closely with the UHF to help seniors impacted by the COVID-19 pandemic, the AARP Foundation recently expanded its website, (Connect2Affect.org) which was originally launched in 2016. The site offers a wealth of resources for socially isolated seniors to strengthen their social bonds.

This website provides help to individuals to assess their risk for social isolation, and to find support services in their local area. The website includes a Social Isolation Risk Assessment, a questionnaire to help individuals determine how connected they are to others and which resources would benefit them most.

Individuals can also tap into Chatbot, a component of the website, designed to provide friendly conversation with the goal of helping rebuild social connections. Chatbot conversations are secure, private and accessible 24/7.

“Social isolation is taking a toll on individuals and communities nationwide, and it’s especially pernicious for those who are 50 or older. This survey shows that older adults who have lower incomes and who are women are at greatest risk,” said Lisa Marsh Ryerson, president of AARP Foundation. “The tools and resources at Connect2Affect.org are designed to help older adults build and maintain the social connections they need to thrive,” she said.

Adds, Dr. Rhonda Randall, executive vice president and a chief medical officer at UnitedHealthcare added, “Many people don’t know that social isolation can have lasting effects on not only mental health — but also physical health. We’re focused on finding practical solutions to the lack of connections, companionship and the sense of belonging that we all need as humans.” 

For a copy of “The Pandemic Effect: A Social Isolation Report,” go to https://connect2affect.org/wp-content/uploads/2020/10/The-Pandemic-Effect-A-Social-Isolation-Report-AARP-Foundation.pdf.

Cicilline Hopes Dems Take Senate

Published in Pawtucket Times on November 9, 2020

On Saturday, November 7, at 11:45 a.m. (eastern Standard Time), as the Trump campaign called for legal challenges looming over ballot counting, CNBC projected Joe Biden to win the U.S. Election, making him president-elect.  As the dust settles over this very divisive election, Pennsylvania’s 20 electoral votes propelled Biden over the 273 electoral votes needed to win.

With the Democrats now taking control of the White House and maintaining control of the House, even with a loss of seats, the battle for control of the Senate now turns to Georgia with one regular and one special election scheduled to fill a vacancy take place on January 5.  

With garnering less than 50 percent of the vote, in accordance with Georgia law, GOP Sen. David Perdue and Democratic challenger Jon Ossoff meet again at a January 5 runoff election.  Rev. Raphael Warnock, the democratic challenger, and governor-appointed Republican Sen. Kelly Loeffler, who replaced Sen. Johnny Isakson when he retired last year, battle in the Peach State for a Senate seat in special-election runoff.

Democrats now have a long-shot of taking control of the Senate with Kamala Harris being elected vice president and if they win the two Senate races in Georgia’s upcoming election. By winning the Senate, both parties will each have 50 seats, Harris tipping the balance of power to the Democrats. 

McConnell, Oversees “Least Productive” Congress in its History

Rep. David Cicilline (D-RI) says that the Democratic-controlled House has had one of the most productive Congresses in the institution’s history. “We’ve passed more than 600 bills in the House, but there are more than 375 of them stuck on Mitch McConnell’s desk, many of them bipartisan,” notes Cicilline, who serves as Co-Chair of the House Democratic Policy and Communications Committee.

“Obviously, both Georgia senate races are hanging in balance and it’s important we win them.  A Democratic majority in the Senate will allow for the passage of the “For the People” agenda which creates jobs, raises wages, lowers health care costs and increases access to affordable prescription drugs.  These bills are good for Rhode Islanders and all Americans,” states Cicilline.

“I look foward to working with the Biden Administration to put together a robust agenda for the first 100 days and get to work passing bills that will help Rhode Island’s economy, workers and seniors,” adds Cicilline.

With the release of its 2020 Democracy Scorecard in September, Aaron Sherb, director of legislative affairs for the Washington, DC based Common Cause, documents how a Republican-controlled Senate has resulted in legislative gridlock.  “What the 2020 Democracy Scorecard makes plain is the blatant disregard for democracy reforms in the Senate. “The House of Representatives passed nearly 10 democracy reform bills, often with bipartisan support, this session, but Majority Leader Mitch McConnell (R-KY) blocked debate and mark-ups on all of these bills and refused to allow a vote,” he said.

In fact, the Senate’s inaction has the 116th Congress on tract to be the least productive in history, with just one percent of the bills becoming law,” charges Sherb. author of the 2020 Democracy Scorecard,

The National Committee to Preserve Social Security and Medicare (NCPSSM) strongly agrees with Sherb’s assessment of McConnell’s successful efforts to block Democratic and bipartisan-sponsored common-sense legislation critical to protecting the health and well-being of Americans.  Seniors will not be better off with a GOP-controlled Senate, warns NCPSSM, calling for the Democrats to win the Georgia Senate special elections to take over the control of the Senate.

According to NCPSSM, a Washington, DC-based advocacy group with a mission to protect Social Security and Medicare, “Since 2019, the Democratic-controlled House has served as a firewall against Trump’s efforts to defund, cut and privatize Security and Medicare.  But as long as Republicans control the Senate, legislation to protect and expand seniors’ earned benefits will remain in limbo. Under a Democratic majority, though, seniors would likely see real progress where their financial and health security are concerned.”

NCPSSM charges Senate majority leader McConnell, who gave himself the nickname, the “Grim Reaper,” has buried hundreds of House-passed bills during the 116th Congress that would have benefitted America’s seniors.  He even refused to take up last May’s House-passed COVID-passed relief bill, and the lower chambers recently passed COVID-19 legislation, as the nation’s public health officials battled the spread and spiking of the deadly virus. 

McConnell also blocked consideration of H.R. 3, the Lower Drug Costs Now Act, which the House passed almost a year ago, says NCPSSM. 

H.R. 3 would allow Medicare to negotiate prescription prices with Big Pharma, which would save the government and seniors nearly $350 billion in drug costs. The bill would also expand traditional Medicare by adding dental, vision, and hearing benefits.

NCPSSM says that the GOP Senate Leader will not even allow a bipartisan crafted bill, the S 2543, the “Prescription Drug Pricing Reduction Act, introduced by Senators Chuck Grassley (R-Iowa), and Ron Wyden (D-OR), to be considered on the Senate floor.  According to the Congressional Budget Office, this legislation would save taxpayers $95 billion, reduce out-of-pocket spending by $72 billion and finally reduce premiums by $1 billion.

The eyes are now on the Supreme Court, where three Trump-appointed Justices will rule on legal issues coming before the nation’s highest court. “If the Supreme Court strikes down the Affordable Care Act, which strengthens Medicare’s finances and included enhanced benefits for seniors (not to mention protecting older patients with pre-existing conditions), a Democratic House and Senate could replace or revise it,” notes NCPSSM. 

House Democrats are considering HR 860, The Social Security 2100 Act, to strengthen and expand Social Security.  The landmark legislation, introduced by Rep. John Larson (D-CT), referred to the Subcommittee on Social Security would keep the program financially healthy through the end of the century, while boosting benefits for all retirees. NCPSSM notes that president-elect Joe Biden has incorporated many of the proposals in this bill into his own plan. 

NCPSSM adds that a Democratic-controlled House and Senate could reduce the financial impact on COVID-19 on current and future retirees’ Social Security benefits.  Under Democratic Senate leadership, notes the Washington, DC-based advocacy group, the upper chamber could work with the House to increase the tiny 1.3 percent cost-of-living adjustment (COLA) to 3 percent for 2021.  which would be welcome news for older Americans who were laid off during the COVID-19 pandemic that sweep the nation, forcing many into early retirement

Finally, NCPSSM says that a Democratic-controlled House and Senate could prevent aging Baby Boomers born in 1960 (and possibly 1961, as well) from suffering a lifetime reduction in their future benefits caused by a COVID-related drop in average wages.

A Final Note:  Let’s Bring Back House Aging Committee

During the last two Congresses, Cicilline introduced a resolution three times to re-establish a House Permanent Select Committee on Aging. Two of the times a GOP-controlled Congress blocked consideration.  Democrat House efforts to impeach President Donald Trump and a continual battle over policy issues with the Trump Administration and the Republican-controlled Senate put Cicilline’s resolution on hold the third time.  

The previous House Aging Committee was active from 1974 to 1993 (until it was disbanded because of budgetary issues) put the spot light on an array of senior issues including elder abuse, helped increase home care benefits for older adults and helped establish research and care centers for Alzheimer’s disease.  

After introducing his resolution this Congress, Cicilline says that a reestablished House Aging Committee could initiate comprehensive studies on aging policy issues, funding priorities, and trends.  Like its predecessor, its efforts would not be limited by narrow jurisdictional boundaries of the standing committee but broadly at targeted aging policy issues, he notes.

According to Cicilline, the House can easily create an ad hoc (temporary) select committee by approving a simple resolution that contains language establishing the committee—giving a purpose, defining membership, and detailing other aspects.  Funding would be up to the Appropriations Committee. Salaries and expenses of standing committees, special and select, are authorized through the Legislative Branch Appropriations bill.

During the 117th Congress, as the House begins its debates on Social Security, Medicare and Medicaid, the Older Americans Act, and other issues of importance to older adults, it will be important to have a House Aging Committee that once again puts the spotlight and attention on America’s aging issues.