Tag Archives for AARP Rhode Island

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.

New Uniform Act Good News for Rhode Island Caregivers

Published in Woonsocket Call on November 29, 2015

With the quick stroke of her pen, Rhode Island Governor Gina Raimondo signed guardianship legislation into law during the 2015 legislative session that would help Rhode Islanders avoid costly and time-consuming red tape when exercising health care, financial and other legal responsibilities for their out-of-state, elderly loved ones. It takes effect on January 1, 2016.

Like motherhood and apple pie, the changes made to the State’s guardianship law had broad bipartisan support in the Rhode Island General Assembly. The House bill and a similar Senate companion measure (entitled the “Uniform Adult Guardianship and Protective Proceedings Jurisdiction Act”) passed overwhelming by votes of 72-2 and 37 to 1, respectively.

Representative Robert E. Craven (D-North Kingstown) who Chairs the House Committee on Municipal Government, says his legislation (introduced with Representative Michael A. Morin (D-Woonsocket) simply helps to protect those who are unable to protect themselves.  “When appointing guardians and instituting protective orders for adults, the law must be clear and concise to ensure someone’s rights are not violated while also keeping them safe,” he says, noting that the new law makes the rules and procedures very clear for this process and it will offer both the protected persons and petitioning guardians the legal causes and safeguards that are needed in such complex situation,” he said.

Fixes Jurisdictional Issues over Guardianship

According to Division of Elderly Affairs Director Charles J. Fogarty, the new law “provides consistency, reciprocity, and procedural efficiency in the best interest of seniors, creating a hospitable and healthy Rhode Island for our elders.”

Fogarty says that the new law would benefit caregivers in many way.  It clarifies state jurisdiction issues and even facilitates the transfer of guardianship from one state or another.  It also would enhance interstate recognition and enforcement of guardianship orders and simplifies communication and cooperation between courts.

Fogarty notes that Rhode Island’s new guardianship law is a law that 37 other states, as well as the District of Columbia and Puerto Rico, have already enacted, allowing for cooperation on and simplification of inter-state issues.  “It will be easier for out-of-state caregivers to focus on supporting their loved ones as opposed to becoming mired in current laws.  This legislation ensures that seniors and caregivers don’t waste time and resources in cases involving simultaneous and conflicting jurisdiction,” he says.

“We are very pleased that our staff, our terrific State House advocacy volunteers and a strong network of partners worked hard together to ensure that Rhode Island became the 42nd jurisdiction to enact the Uniform Adult Guardianship and Protective Proceedings Jurisdiction Act,” said AARP State Director Kathleen Connell. “Now, Rhode Island joins the national effort that focuses on care, not courts, by removing the barriers that prevent caregivers from providing for their loved ones, regardless of where they live.”

According to the AARP Public Policy Institute’s recent report “Valuing the Invaluable: 2015 Update,” the number of caregivers in our state is 134,000. Their work has an economic value of $1.78 million. That, Connell said, is why AARP Rhode Island strongly supported the legislation and was joined by judges, lawyers and families throughout Rhode Island.

Many Benefits, No Cost to Rhode Island Taxpayers

Connell notes that when the uniform guardianship jurisdiction becomes law, it will carry no cost to taxpayers and makes no changes in the state’s substantive guardianship procedures. However, Rhode Islanders will benefit as it will save them time and money. In addition, they will be safeguarding the health and financial well-being of their loved ones.

“It may seem very technical,” Connell continued. “But the bottom line is easy to understand:  We all recognize that we are a mobile society, and with that we need laws pertaining to caregivers and their families to reflect that reality. AARP strongly supports legislation that removes barriers that prevent guardians in Rhode Island from providing for their loved ones, regardless of where they live. “For Rhode Islanders, the uniform guardianship act is a step in the right direction to help protect the interests of vulnerable incapacitated adults who need guardians,” Connell said. “With this law, our guardianship system will function more efficiently, fairly, and cost-effectively.”

Court-appointed guardians step into the shoes of at-risk adults who can no longer make their own decisions, and make judgments about property, medical care, living arrangements, lifestyle and potentially all personal and financial issues. As a judicial proceeding, guardianship can be expensive, time-consuming and combative. It can remove fundamental individual rights. It can prevent or redress elder abuse – or can create an opportunity for exploitation or abuse of vulnerable adults.

This new uniform act addresses initial jurisdiction regarding a guardianship case; recognition of one state’s guardianship orders by another; and interstate transfers of guardianship cases when such transfers would benefit the incapacitated person.

Another key reason AARP strongly supported enactment stems from concern over elder abuse, neglect and exploitation. It will reduce the enticement of a vulnerable person to another state ― to gain control over assets. The law now will permit a court to consider which jurisdiction can best protect a person subject to abuse, and facilitate communication between courts in different jurisdictions about allegations of abuse.

Partners included the Uniform Law Commission. The Commission provides states with non-partisan, well-conceived, and well drafted legislation that brings clarity and stability to critical areas of state statutory law. In addition, the Act has a broad range of support from organizations including the National College of Probate Judges, National Academy of Elder Law Attorneys, National Guardianship Association, Conference of Chief Justices and the Alzheimer’s Association.

With the graying of Rhode Island’s population commonsense laws like the “Uniform Adult Guardianship and Protective Proceedings Jurisdiction Act” need to be enacted.  Last session, state lawmakers worked together to pass this legislation that makes guardianship system more efficient, less time-consuming and costly for Rhode Island caregivers.  At no cost to Ocean State taxpayers.  Hopefully, best policy practices from across the nation can be brought to the Rhode General Assembly for full consideration.  If it happened once it might just happen again.