Retirement Survey Bleak for Ocean State

Published in Pawtucket Times on February 1, 2016

Here we go again. This month, America’s tiniest state gets outed as being the most unfavorable state to live out your retirement years. According to a new WalletHub study, “2016’s Best & Worse States to Retire,” when compared to all 50 U.S. states and the District of Columbia, Rhode Island came in dead last when compared against 24 metrics falling in one of these three categories (Affordability, Quality of Life and Health Care).

WalletHub, an internet site that calls itself “a personal finance Web site, taps Florida as being the top state to live your retirement years, followed by Wyoming, South Dakota, South Carolina and Colorado. The in-depth analysis, geared to identifying the most retirement-friendly states, gives the Ocean States the distinct of being the worst place to live in your later years, followed by the District of Columbia, Hawaii, Connecticut and Vermont.

As to affordability, WalletHub looked at the adjusted cost of living, tax friendliness of a state, it’s taxation on pensions and Social Security income, and annual cost of in-home services. Rhode Island was ranked 51 (the worst) in affordability for retirees. In zeroing in on this specific variable, the state came in 41st in adjusted cost of living; 45th in annual cost of in-home services and 48th in taxpayer rankings.

For a state’s quality of life, WallettHub zeroed in on an array of variables including the number of theatres, museums, music venues, golf courses. The researchers also checked out crime rates, weather, the number people age 65 and older and whether the state’s labor is elderly friendly. A sampling of Rhode Island specific rankings for this variable include a ranking of 35th for Museums per Capita; 42nd for Theaters per Capita; and 48th for the number of golf courses per Capita; and 32nd in having employed residents age 65 and over.

As for health care, the study examined the number of family physicians, dentists, nurses, and health-care facilities per 100,000 residents, the ranking of the state’s public hospitals, the resident’s life expectancy and emotional health, even taking a look at the death rate for people age 65 and older. Rhode Island ranks 49th in number of family physicians per 100,000 Residents.

WallettHub analyst, Jill Gonzalez, says that for Rhode Island to become a mecca for retirees, state lawmakers must reconsider how they tax Social Security and pensions. The state’s current tax policy “is not at “all friendly toward retirees,” she adds.

According to Gonzalez, the state’s cost of living index is also high at 122 while the national index is 100. This means that if the cost of goods and services nationwide is $100, the Rhode Island retirees will pay $122. Annual costs to pay for home care are nearly $54,000 per year in Rhode Island and state policy makers must find a way to reduce this key community-based service.
Statewide Reactions to Web site Survey

These surveys aggregate data that does not encourage retirement here,” observes AARP Rhode Island State Director Kathleen Connell. “They do not fully measure quality of life or how the proximity to Boston and New York City make Rhode Island attractive to many retirees. But you often hear people talk about retiring in states where lower taxes and deflated housings prices suggest that retirement income will go dramatically farther.

“The tax issue is a reality driven by the state’s so-called ‘structural deficits’ that have resulted in cities and towns raising property and excise taxes. Meanwhile, hikes in fees and new surcharges have added to the tax burden. Legislative leaders face a great challenge in reversing this trend.

“Many people in their 40s and 50s who want to retire in Rhode Island can save more wisely for retirement and find a way to make it work. Anyone entering retirement now with little savings and expecting to rely primarily on Social Security is faced with difficult decisions.

“So, clearly the survey means different things to different people. Few would disagree that Rhode Island is a great place to retire – maybe one of the best places in the nation. If you can afford it.”

Edward Mazze, Distinguished University Professor of Business Administration, says, “I cannot disagree with the quantitative findings in the study. Behind the numbers are two critical factors that have an impact on retiring in Rhode Island – first, the Rhode Island economy has barely grown in the last eight years – second, the negative reputation of the state with government leaders going to jail, high property taxes, poor school systems and unfunded public pension and health programs.”

Mazze calls on the Rhode Island General Assembly to raise the state estate tax level to the same level as the federal estate tax level and exempt social security benefits from state taxes no matter what the income level. “The legislature has to reduce sales taxes and fees, be more transparent in its operations so that individuals trust government actions and fund the social services that retirees need,” he says.

But even with these negative findings retirees should Rhode Island as place to live because of its strategic location, transportation facilities and cultural and recreational activities. However, he acknowledges that “with the high cost of living in Rhode Island and fewer part-time job opportunities for retirees it is difficult to promote the state as a place to retire.”

Ernie Almonte, Rhode Island’s former auditor and partner at RSM US, LLP, a company that performs audit, tax and consulting services, says the changes in how the state taxes Social Security made by lawmakers last year was a good first step. But the former candidate for State Treasurer urges Governor Gina Raimondo and House and Senate Leadership to take a look at the state’s estate tax in the upcoming session. “I believe last year’s changes made by lawmakers was a move in the right direction but we cannot forget the legislative change to the estate cliff effect. “This certainly is a deciding factor for retirees looking to a place to settle down in their retirement years,” he adds.

Almonte also encourages state lawmakers to sit down with the Rhode Island Society of CPA’s to discuss tax policy. “Having a robust discussion on the role of tax policy to pay for necessary services and investments balanced by the ability to pay and the need to pay would be quite helpful to the long run,” he says.
House Speaker Nicholas Mattiello sees the business climate and economic outlook improving as he works to make the state’s tax structure more competitive with neighboring states. He says that the WallettHub survey did not take into account the repeal of state income tax for most Social Security recipients. The State offers retirees “a great quality of life with easy access to our beaches and we have excellent cultural attractions, restaurants, hospitals and universities, he says.

As she has said over her first year, Governor Gina Raimondo is “laser focused” on improving the quality of life for all Rhode Islanders, says deputy press secretary Katie O’Hanlon. “We’ve made a lot of progress over the past year, including eliminating state taxes on Social Security benefits for low and middle-income seniors and increasing funding for Meals on Wheels. However, we can always find ways to improve, says O’Hanlon.

It’s time for the Rhode Island General Assembly to get serious with enacting legislative proposals to attract retirees, more important to keep them from leaving for other retirement havens. Why not do a thorough review of tax policies of WalletHub’s best five places to retire and seek out best tax practices of other states? In the upcoming legislative session, Governor Raimondo and House and Senate leadership might consider reaching out to AARP Rhode Island and aging groups, along with the Rhode Island Society of CPAs, to organize a tax summit, seeking creative ways to tweak the state’s tax code to retain and attract retirees.

This WebHub study can be found at  http://www.wallethub.com/edu/best-and-worst-states-to-retire/18592/.

 

 

Experienced Workers to Seek Greener Pastures in 2016

Published in the Pawtuket Times on January 25, 2016

In 2016, you can likely expect to see an increasing number of experienced workers seeking new employment. According to the recently released AARP survey, making “more money” was the key motivator for 74 percent of the survey respondents.

“The economy may be doing better these days,” said AARP Senior Vice President Jean Setzfand. “But a lot of workers are still worried about their paychecks. While our survey, which included many Baby Boomers and Gen Xers, found most people looking want more money, we also found a wide variety of reasons for their job search rationale.”

Looking for Greener Pastures

The “Experience in Work” survey (with its findings detailed in a 47 page report released this ), conducted for AARP’s new career website, aarp.org/work, finds that of the approximately 4 in ten inclined to seek new work this year, 23% are either extremely or very likely to try to find a new job this year, and another 16% say that they are somewhat likely to job-seek during that period.

Researchers say that respondents, ages 35 to 64, cite career growth potential (21%), better work flexibility (25%), more enjoyable work (30%), as well as better health benefits (28%) as reasons they plan to seek new employment this year.

Added Setzfand: “Things are so fluid that many of those likely to switch jobs this year say they do not expect to stay in the same industry. An even larger group of job searchers do not know what type of business they will end up in at all.”

The 10-minute, online, unbranded survey (a nationally represented sample of 1,291) conducted by Phi Power Communications, Inc., found that that experienced workers who are already looking for a new job say the tools most commonly used in their search are online listings (62%), personal contacts (40%), and company career listings (33%).

Most of those surveyed (62%) are currently employed, and a solid majority (66%) have been in the same job for at least five years, pointing up the need for likely job seekers to update their skills.

Meanwhile, experienced workers are willing to take the leap outside of their job sector. A quarter (24%) of those likely to switch companies say that they do not expect to remain in the same industry. An even larger percentage (42%) do not even know what type of business they will end up in.

But, finding new a new job is not a piece of cake. Age discrimination (42%) is listed as the biggest obstacle to gaining a new higher paying job, followed by “not being offered enough money” (37%), a poor regional or local labor market (24 %) and “lack of availability of full-time jobs with benefits” (23%).

According to Kathleen Connell, AARP Rhode Island State Director, the survey findings capture how older workers value their job experience. “They see career growth continuing at 50 rather than experiencing a decline in their value to employers; they believe they bring experience and knowledge to the table that can be leveraged to find flexibility that meets their financial needs and lifestyles; and many, for the first time, may be doing the math and realizing how much health benefits play a factor in their overall compensation,” she says.

While the survey respondent’s attitude reflected in this AARP phone survey seem obvious at age 50, Connell believes that many workers now think this way as they turn sixty years old and they anticipate another decade or more of full-time employment.

Connell adds, “Conversely, one can infer that people are insecure in a fragile economy and a culture of mergers and acquisitions that result in the arbitrary elimination of jobs. So, career flexibility is a means of adapting, if necessary. In Rhode Island, our scale makes it difficult for most people to easily replace a lost job. And therefore, people in their 50s may be looking to advance to new job possibilities before they hear footsteps.

“Still, what the survey may show most clearly is that older workers are looking for a bigger paycheck in order keep pace with inflation and, hopefully, to save more for retirement,” says Connell.

The Secret to Keeping Employee’s satisfied

Edward M. Mazze, Distinguished University Professor of Business Administration at The University of Rhode Island, sees the New England region and the Ocean States Economy slowly improving. Businesses are hiring employees with specific skills, to replace individuals that have either retired or left for new job opportunities, he says, adding that a company’s growth and new technology also create the need to expand and hire new employees.

“The needed skill set and knowledge base for many jobs have changed as a result of the way businesses compete in today’s market-place. Individuals with experience and a willingness to continue to learn will find jobs because they add value to their organizations, adds Mazze.

“Employees are an important asset of an organization no matter what their age or educational background,” says Mazze, noting that this intangible asset does not appear on the balance sheet.

The widely acclaimed economist sees the major challenge companies face today is how to keep their employees satisfied. This goes beyond pay for performance, he notes.

The formula for retaining employees is quite simple, says Mazze. “To build a good workforce, the company must make work interesting, recognize the accomplishments of its employees, provide good working conditions, have a competitive compensation system and an opportunity for the employee to be promoted and continue to learn, he notes.

But, Mazze adds a major key to keeping employees satisfied is the culture of the company and the values of management. “It is not unusual for experienced workers to have five or six job changes in their career – some because of better opportunities and others because of down-sizing and right-sizing companies as a result of economic and financial factors,” he says.

AARP’s website (www.AARP.org/Work) provides useful information, tools and connections to an array of resources. This website includes a job search engine, a list of companies that recognize the value of experienced workers and recruit across diverse age groups, and tips for workers of all experience levels seeking employment or exploring new workplace options.

Herb Weiss, LRI ’12 is a Pawtucket Writer who covers aging, health care and medical issues. He can be reached at hweissri@aol.com.

Kleyman Gives Post Mortem Report on 2015 WHCoA

Published in Woonsocket Call on January 17, 2016

In 1958, Rhode Island Congressman John E. Fogarty, a former bricklayer, introduced legislation calling for a White House Conference on Aging (WHCoA) to “promote the dignity, health and economic security of older Americans.” President Dwight D. Eisenhower signed the enacted legislation and the first conference was held in 1961, with subsequent conferences in 1971, 1981, 1995, 2005 and 2015.

Looking back, the 1961 WHCoA played a major role in the creation of Medicare and Medicaid, even the Older Americans Act. Ten years later, the conference’s recommendation’s for automatic cost-of-living adjustments for Social Security ultimately became law in 1975. The founding of the Senate Aging Committee came from recommendations at the 1971 WHCoA.

A Year Marked with Anniversaries

The one-day 2015 WHCoA (usually three days) was actually held at 1600 Pennsylvania Avenue, but with a much smaller assembly than in previous years at Washington hotels, such as in 1995, which had 2,221 delegates and 2005, where about 1,100 selected delegates gathered. But his time, new technologies allowed others to tune in. The White House could only accommodate a few hundred dignitaries.

Over 700 watch parties were held in every state and thousands of people tuned in on Monday, July 13, 2015, to watch the day-long proceedings by live webcast. Over 9,000 people participated, too, through social media on Twitter and Facebook.

But, Paul Kleyman, editor of the Generations Beat Online (GBONews.org), a E-Newsletter for age beat journalist, noted in the Jan. 17, 2016 issue, that this year’s aging conference had no delegate selection process like previous ones. “As we’ve noted previously, though, more than one expert expressed disappointment that the Obama Administration made little effort to muster bipartisan support among GOP congressional members who might well have wanted some representation on the issue going into the 2016 election season. Historically, governors and members of Congress got to pick local constituents in fields from retirement finance to health services with a prestigious delegate appointment to the conference,” says the seasoned journalist who served as a delegate at the 1995 WHCoA.

A Call for an Expansion of Social Security

The WHCoA’s scheduled date in 2015 fell in the year where advocates in aging celebrated the 50th anniversary of Medicare, Medicaid and the Older Americans Act as well as the 80th anniversary of Social Security. Kleyman notes that the newly released 34 page WHCoA report (with 49 pages of appendices) says, “The 2015 White House Conference on Aging (WHCOA) provided an opportunity to recognize the importance of these key programs as well as to look ahead to the next decade.”

President Obama was sent a letter with 74 Congressional cosigners reminding him that over half of today’s older workers are not expected to be able to have sufficient resources upon their retirement to maintain their current standard of living. Although they called for an expansion of Social Security, Kleyman says discussion was “barely audible” at the aging conference.

In addressing the WHCoA attendees, Obama called for “keeping Social Security strong, protecting its future solvency,” pledging to fight “privatization of the program. Kleyman observed that proposed new rules to help workers increase their retirement “stopped short of supporting stronger benefits that they need.”

It’s a Mixed Bag

But, Kleyman says that aging advocates consider the WHCoA’s recommendations a mixed bag. In his E-newsletter article, he references a Jan. 6, 2015 blog penned by Kevin Prindiville who serves as executive director of Justice in Aging. “The report details piecemeal public actions and private initiatives, but ignores the opportunity to lay out an ambitious policy proposal to address pressing systemic challenges,” he says.

Kleyman also zeros in on Prindiville’s observations as to why this year’s WHCoA was of the scaled down. He observed, “To those who followed the WHCOA closely, this was not a surprise. Congress’ failure to reauthorize the Older Americans Act, and the lack of appropriate funding for the conference, meant WHCOA organizers had to produce a conference without a budget. With little infrastructure and support, the White House did not propose any new big, bold ideas to prepare for a population that is literally booming.”

Kleyman says that attendees were pleased to see a recommendation calling for improving the quality and safety requirements in the nation’s 15,000 long-term care facilities and a proposal to allow low-income and frail home bound elders and people with disabilities to use food stamps for meals on wheels.

Meanwhile, attendees were told at this event that physicians would be paid starting in 2016 to counsel patients about their end-of-life care, adds Kleyman, noting that recommendations did not address the nation’s increasing diversity.  Yet, there was no discussion on hospice and palliative care, affordable senior housing issues, and little discussion of elder abuse, the need for adequate transportation and long-term care, he says.

See You in 2025

According to the Census Bureau, in 2050, the 65-and-older population will be 83.7 million, almost double of what it was in 2012. The 2015 WHCoA conference has taken place with a skyrocketing older population, referred to as the “Graying of America.” Can this year’s conference provide policy makers with a road map to shape the delivery of services for years to come? As Kleyman says, probably not. “So it goes, at least until 2025,” he says.