Financially Surviving Your Retirement Years

Published August 10, 2012, Pawtucket Times

Moving into their mid-fifties and sixty’s a growing number of Baby boomers wonder if Social Security benefits in their retirement year’s will even pay the bills. Will they be able to survive in their “golden years”?

Federal officials say that there may be cause for alarm.

At the end of April, the released 242 page Social Security Trustee’s report, picked up by the nation’s media, gave bleak but “advanced” warning to future retirees that the Social Security program can pay full benefits until 2033, however, warning that probably only three-quarters of promised benefits could be paid out beyond that time.

So it is not so surprising that the Associated Press (AP), a media cooperative owned by its contributing newspapers, radio, and televisions in the United States, announced last week that the news agency will publish a four part series, to be released over four Sundays in August, examining the long-term financial viability of the nation’s Social Security program. The series plans to also take a look at policy proposals that will be debated during the upcoming election by Presidential and Congressional candidates, that might strengthen, the nation’s primary retirement program.

AP recognized that Social Security, a very politically-charged issue, is a topic that must be discussed meaningfully in the upcoming November election. Because of this AP has chosen to bring substantive coverage of this important policy issue to the upcoming political debates that will take place in the upcoming months.

“Few things affect more Americans than the future of Social Security, and yet it’s an issue most invisible during the current campaign, said AP Washington Bureau Chief Sally Buzbee, who is directing the series. “This series of stories tires to lay out complex issues in the most accessible way possible. This is part of the ongoing efforts by The Associated Press this fall to make sure issues [like Social Security] aren’t absent from the campaign, but front and center…”states Buzbee.

The headline of AP’s first report, published story on the upper fold of the August 6 issue of the Pawtucket Times, warn’s that “Social Security not deal it once was.” The AP wire story notes that today’s retirees will be the first to have paid more in Social Security taxes during their lifetime careers than they will ultimately receive in retirement benefits once they retire. Previous retirees paid less payroll taxes but got more benefits.

Planning Key to Adequate Retirement Funds

If Social Security bennies are chopped taking personal responsibility in planning your retirement may well become your financial safety net in your later years.

Economic woes fueled by the worst economic downturn since America’s Great Depression, have left many Baby boomers financially struggling to make ends meet and to save adequately for their retirement years, according to survey findings released in July 23, 2012 by the Consumer Federation of America (CFP) and the Financial Planner Board of Standards.

According to a 60-page report, conducted by Princeton Survey Research Associates International (PSRAI), nearly two-fifths (38%) of the 1,508 household financial decision-makers surveyed said they live paycheck to paycheck, while less than one-third (30%) indicated they felt comfortable financially and only about one-third (34%) think they can afford to retire by age 65.

Survey findings indicated that only 31 percent of respondents said they had a comprehensive financial plan, while about two-thirds (65%) indicated they follow a plan for at least one of their savings goals. Those who have prepared a personal savings plan feel more confident and report more success managing money, savings and investments than those who don’t.

By a margin of 50 percent to 32 percent, and for all but the lowest income bracket (under $25,000) where few have a comprehensive plan, those planning for retirement are more likely to feel they are on pace to meet all of their financial goals, such as saving for retirement or for emergencies, stated the survey findings.

Additionally, an even larger margin of 52 percent to 30 percent, and across all income brackets, those planning for their retirement years are more likely to feel “very confident” about managing money, savings and investments;

Kevin R. Keller, CEO of CFP Board: “Consumers understandably are more nervous about investing their money given recent revelations about financial fraud, manipulation and abuse of clients. This doesn’t mean that people shouldn’t create a financial plan and be prepared.

Taking Personal Action NOW

Unless strong political pressure is placed on Congress to act swiftly to enact needed policy changes to fix the nation’s ailing Social Security program, expect political gridlock to continue to block any efforts in both Chambers to come up with bipartisan solutions.

Don’t get caught up in the political spins and negative rhetoric as Presidential and Congressional candidates begin their debates on Social Security before the upcoming September primaries and November election. Become an educated voter and tell the Congressional candidates who seek your vote to seek bipartisan solutions to making the Social Security Trust fund solvent once and for all.

Watch out for AP’s upcoming reports on Social Security to learn more about this important policy issue. That’s a good first step. Second, learn more about AARP’s “You’ve Earned a Say’ initiative (www.earnedasay.org), a web site that can provide aging baby boomers with both factual and straightforward information about retirement policies being debated inside the Beltway by Congress, ones that hopefully will financially strengthen the nation’s Social Security program.

But on a personal level, until federal lawmakers get serious about financially shoring up the nation’s retirement program, developing a personal financial plan may well become an effective short-term solution to managing your money, savings and investments that could well supplement a shrinking Social Security check. One useful tool is the website LetsMakeaPlan.org, allows a person to learn more about preparing a financial plan, including working with a financial planning professionals.

Herb Weiss is a Pawtucket-based freelance writer who covers aging, health care and medical issues. He can be reached at hweissri@aol.com

On the Political Art of Compromise

Published on August 3, 2012, Pawtucket Times

The bipartisan spirit is briefly alive and well inside the Beltway. With the Presidential and Congressional elections looming, just a little more than three months away, top Democratic and Republican Leadership this week forged an agreement to pass a “continuing resolution” to keep the federal government afloat for six months after the current budget year ends at the end of September.

Politically speaking, who wants to face the wrath of American voters fueled by the possibility of a government shut down before Election Day on November 6, 2012? Not our lawmakers.

After the upcoming November election, America’s political system may well become more polarized creating Congressional gridlock, if Tea Party candidates come to Washington, DC supporting the philosophy of “no-compromise.” If this occurs major policy decisions like reforming the nation’s retirement system and keeping Medicare afloat might happen only when the proverbial “Hell freezes over.”

Tea Party on the Rampage

Tea Party backed candidate, Ted Cruz, won the Texas Republican Senate primary this week, potentially tilting the Senate toward the right if he wins in November. Over the years, we have seen moderate Republicans toppled by candidates aligned to the Tea Party who view working across the aisle as a weakness and compromise as a political sin.

In one instance, Sen. Richard Lugar of Indiana, a six-term GOP Senator lost his Republican primary race two months ago against State Treasurer Richard Mourdock, who was backed by a coalition of Tea Party-aligned groups. In his concession speech, the 80 year old Lugar warned Mourdock that his goal of riding “the Republican Party of those who stray from orthodoxy as they see it” won’t be able to problem solve or govern.” The longest serving Senator in the State’s history also warned that “unless he modifies his approach, he will achieve little as a legislator.”

Last February, Senator Olympia Snow, of Maine, chose voluntary to walk away from the U.S. Senate after being a moderate voice in that chamber of 33 years, noting her decision was based on intense partisan bickering that now echoes throughout the Halls of Congress.

“Politics has been defined as the art of the possible. That means compromise on both sides is needed to move the public business forward,” says Susan Sweet, a well-know lobbyist and consultant for nonprofit agencies and causes. While the Democratic Party encompasses people of wide philosophies, the Republican party has become a party of “intransient idealogues,” observes Sweet. “Their sharp turn to the right has distanced and alienated moderate Republicans who previously formed a bridge for compromise and progress. Moderates, like the late Senator Nelson Rockefeller of New York and the late Senator John Chafee were examples of the politicians who knew the art of politics, how to negotiate and when to compromise.

Reaching Across the Aisle

But wait, Senator Orrin Hatch, concludes in an opinion piece, “Ted Kennedy: Later Senator Sought Bipartisan,” in the October 22, 2009, published in US News, you can support your political party’s philosophy and still be bipartisan, too.

The Republican Senator from Utah, who has served his state since 1977, considered Kennedy, who fought for the principles and philosophy of the Democratic Party, one of the nation’s greatest leaders for reaching across the aisle.

Considered to be one of the most liberal Democrats in the last 50 years, who spearheaded almost every Democratic cause, Senator Hatch applauded his friends “ability and willingness to set party aside when there was some good to be done.”

According to Senator Hatch in his opinion piece, the failing of American politics results from “politicians being too willing to toe the party line,” not wanting to compromise their political agenda, “even when accepting the ideas and contributions of those outside their Party will advance their cause.”

Sen. Hatch also viewed the late Democratic Senator’s lasting political legacy was “his unwillingness to let partisanship ruin a good opportunity to help those in need, and his ability to inspire others to follow his example.”

Also, noted in Sen. Hatch’s USNews opinion piece, when in the minority, Senator Kennedy successfully enacted legislation because of his willingness to “move to the center or even the center-right when he recognized that Republicans shared his goals, even if they had different ideas on how to achieve those goals.”

When the Democrats-controlled Congress, Senator Kennedy reached out to the minority GOP to get his legislation passed. Senator Hatch noted that Massachusetts Senior Senator “had the political courage to defy interest groups and even his own party in order to reach bipartisan compromise,” to move legislation, specifically, the Children Health Insurance Program, the Ryan White AIDS Act, the Americans with Disabilities Act, and, the Edward M. Kennedy Serve America Act.

Darrell West, Vice President and Director of Governance Studies at the Washington, D.C.-based Brookings Institution, views Senator Kennedy’s most famous bipartisan legislation to be No Child Left Behind. “He worked closely with President George W. Bush to pass this bill. He reached across the political aisle and was able to bring Republicans and Democrats together to pass this education reform, said the former Rhode Islander, noting that this was one of many such bipartisan successes on the Senator’s part. There are few people left in the Senate who have the interest in or credibility for this type of outreach.

Campaigns Gearing Up for Votes

By now, political candidates are mailing campaign literature to aging baby boomers and seniors, hoping to effectively deliver their political messages and ultimately to influence their votes.

As the nation pulls out of the economic doldrums, voters must educate themselves to the real issues and read in between the lines of campaign literature to learn more about the candidate’s background and issues.

Marking the ballot in the voting booth becomes even more difficult in heated partisan campaigns where you must separate political bickering, rhetoric and negative innuendoes from the substance of issues.

Keeping Social Security afloat, fixing a broken Medicare program, or bringing fairness to the nation’s tax codes, will not happen if Congress cannot compromise or negotiate on legislative proposals. No longer can our elected officials view issues either black or white, but can be shades of gray.

Rising to the Political Occasion

Even with his human frailties, Sen. Kennedy rose to the political occasion time after time and to confront legislative challenges by reaching out to both political friends and foes. One might say he wrote the tome on the art of political compromise and negotiations, a guide for both his Democratic and Republican Congressional Colleagues to follow.

The rise of the Tea Party and its political philosophy of “no-compromise” and “torch and burn” to ensure ideological purity, will have an adverse impact on every generation, from today’s seniors, their aging baby boomer children, and finally, to their young grandchildren and great-grandchildren.

Where are the Republican Congressional moderates of today when the nation sorely need’s them to do the public’s business.

Herb Weiss is a Pawtucket-based freelance writer who covers aging, health care and medical issues. This commentary was published in the August 3, 2012 issue of the Pawtucket Times. He can be reached at hweissri@aol.com.

AARP Brings Main Stream America into Social Security Debate

Published July 27, 2012, Pawtucket Times

With Congressional and the Presidential elections looming, just a few months away, aging baby boomers and seniors might well consider the recently released Social Security Trustees’ annual report as “a canary in a mine.” Like a dead canary that warns miners that a deadly gas is seeping underground, the 242 page report details the fragile health of the nation’s Medicare and Social Security Trust Fund, giving early warning to drastically cut retirement benefits if the President and Congress takes no action.

While thousands of media outlets across the nation reported on the impending bankruptcy of these programs, the Social Security Trustees called for immediate action. Meanwhile, the upcoming November elections keeps Congressional Democrats and Republications along with the Obama Administration from working to find a viable bipartisan fix. Fear of turning away older voters has truly derailed needed policy reforms for this year.

The Trustee’s reaffirm that the Social Security program can pay full benefits until 2033, however, they warned that probably only three-quarters of promised benefits could be paid out beyond that time. If this observation is correct it will become more difficult for aging baby boomers to plan their retirement.

Fixing Social Security Ranked High

Fixing Social Security is a high priority for the nation’s growing older population and will most likely be a key domestic policy issue to be discussed by Congressional candidates looking for votes to put them into office in Washington, DC next November. Congressional and Presidential candidates be warned… According to an AARP survey, released in January 2012, of respondents age 50 and over, Social Security and Medicare ranked three out of 13 issues, with job growth and rising health care costs being number one and two respectively.

AARP Rhode Island, the OceanState’s largest aging advocacy group, has geared up its “You’ve Earned a Say,” initiative to gather grassroots feedback from “Outside the Beltway” to bring to Congressional lawmakers as they continue their debates as to how to bolster the solvency of the nation’s Social Security and Medicare programs. AARP hopes that this initiative will create a national conversation to ensure that every worker, who has contributed into Medicare and Social Security, has a direct say in the future reforms of these programs.

According to AARP Rhode Island State Director Kathleen S. Connell, AARP’s “You’ve Earned a Say” initiative was created to bring balanced information to people — both the pros and the cons — about the policy options being debated during the upcoming Presidential and Congressional elections for both programs.

“You’ve Earned a Say’ is giving the American people a strong and visible voice in the Social Security and Medicare discussion,” says Connell. “We are reaching out to our 130,000 Rhode Island members and nationally to nearly 40 million members. Television commercials are now playing in Rhode Island, raising the awareness of viewers to AARP’s initiative and its website, www.earnedasay.org. The website provides both factual and straightforward information as to policies that are being considered and enables a person to share their ideas with Congress and those running against Congressional incumbents, as how to strengthen these programs.

According to Connell, one million people have participated in the “You’ve Earned a Say” grassroots initiative nationwide that kicked off in early Spring. Their opinions have been shared online. Meanwhile, tens of thousands have participated in more than 1,400 community meetings throughout the nation, she said, noting that more than a dozen have been held in the Rhode Island.

No More Political Spins, Jargon

Americans are just plain tired of the political spins, jargon and rhetoric surrounding fixing the Social Security and Medicare programs, says Connell, even the backroom deals to change these programs in smoke filled rooms. Over the years policy debates in Washington, DC have focused too much on budgetary line items and numbers and not on the immediate concerns, and real needs, of older Americans, she says.

But there is a central theme that comes from AARP’s dialogue with mainstream America. That is most people feel that Washington is out of touch and not listening “They’re not listening to the concerns of people or talking about the real health and retirement income needs of older Americans. They’re not talking about what’s fair or about the effects of proposed changes on real people, quips Connell.

A Bleak Retirement…

Connell says that in Rhode Island 200,202 residents depend on Social Security benefits to help pay the bills every month, and 181,264 count on Medicare to help them afford health care, including guaranteed coverage for doctors, hospitals and prescription drugs.

Yes, policy decisions impact people’s lives. If the President and Congress next year don’t find a bipartisan solution with input from those outside the Washington, D.C., a significantnumber of older Rhode Islanders might just well find their retirement year’s bleak at best.

AARP’s “You’ve Earned a Say” grassroots initiative may be just the way to finally educate older American voters, those who might just begin to put intense pressure on both the Democrats and Republicans alike, to make a long-term policy fixes. Band aide solutions will haunt the upcoming generations who will financially suffer in their twilight years. Shame on Congress if this occurs.

Herb Weiss is a Pawtucket-based freelance writer who covers aging, health care and medical care issues. The article was published in the July 27th issue of the Pawtucket Times. He can be reached at hweissri@aol.com.