Tag Archives for AARP

Seniors Can Expect Small Increase in Their 2020 Social Security COLA

Published in the Woonsocket Call on Oct. 27, 2019

The Social Security Administration (SSA) announces Oct. 10 that Social Security and Supplemental Security Income (SSI) benefits for nearly 69 million Americans will increase 1.6 percent in 2020 (Some recipients receive both Social Security and SSI benefits).

Social Security and SSI recipients will be notified about their new benefit amount by mail in early December. This COLA notice can also be viewed online through their my Social Security account. People may create or access their my Social Security account online at http://www.socialsecurity.gov/myaccount.

According to SSA, the 1.6 percent COLA increase will begin with benefits payable to more than 63 million Social Security beneficiaries in January 2020. Increased payments to more than 8 million SSI beneficiaries will begin December 31, 2019. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as calculated by the Department of Labor’s Bureau of Labor Statistics.

The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase from $132,900 to $137,700, says SSA.

The earnings limit for workers who are younger than “full” retirement age (age 66 for people born in 1943 through 1954) will increase to $18,240. SSA will deduct $1 from benefits for each $2 earned over $18,240.

The earnings limit for people turning age 66 in 2020 will increase to $48,600. SSA will deduct $1 from benefits for each $3 earned over $48,600 until the month the worker turns age 66.)

There is no limit on earnings for workers who are “full” retirement age or older for the entire year.

COLA Not Keeping Up with Rising Cost of Living

Over the years, Social Security’s COLA has not provided financial protection against rising costs, charge aging advocacy groups.

Social Security checks in 2019 are as much as 18 percent lower due to the impact of extremely low COLAs over the past 10 years, says an analysis recently released by the Arlington, Virginia-based The Senior Citizens League (TSCL). TSCL’s Social Security policy analyst, Mary Johnson authored this analysis.

Johnson’s analysis noted that from 2000 to 2010, COLAs routinely averaged 3 percent
annually. People who have been receiving Social Security checks since 2019, have only seen a COLA higher than 2,8 percent one time (in 2012), she said, noting that Social Security benefits have lost 33 percent of buying power since 2000.

Johnson’s findings reported that in 2010, 2011, and 2016 there was no COLA payable at all and, in 2017, the COLA was just 0.03 percent. However, in 2018, the COLA was 2 percent, but rising Part B premiums consumed the entire increase for roughly half of all beneficiaries.

Calls for Strengthening the COLA

According to the National Committee to Preserve Social Security and Medicare (NCPSSM), the upcoming COLA change will give a whopping $24 per month increase for the average beneficiary. With Medicare Part B premiums expected to rise around $8 next year, the net cost-of-living adjustment for most seniors will be only $16 per month. The new COLA brings the average monthly retirement benefit up to $1,503 — it’s just a $288 yearly raise for seniors living on fixed incomes.

NCPSSM notes that roughly half of America’s seniors rely on Social Security for at least 50 percent of their income, and 1 in 4 depending on the program for at least 90 percent of their income, the 2020 COLA increase does not go very far in helping these recipients pay their bills. A $16 per month probably won’t cover typical expenses, such as the cost of a single prescription copay, a month’s medical supplies, or transportation to a doctor’s appointment, adds the Washington, DC- advocacy group whose goal is to protect Social Security and Medicare.

“It’s ironic that as billionaires and big corporations continue to profit from the $1.5 trillion in Trump/GOP tax cuts, America’s seniors are to get by with a meager $24 monthly raise,” says Max Richtman in a statement after SSA announced the 2020 COLA increase. NCPSSM’s President and CEO. “The negligible 2020 COLA illustrates why seniors need a more accurate formula for calculating the impact of inflation on their Social Security benefits. For years, we have urged the government to adopt the CPI-E (Consumer Price Index for the Elderly), which reflects the spending priorities of seniors, including health care, as opposed to the current formula based on younger urban wage earners’ expenses,” says Richtman.

If the CPI-E were adopted, beneficiaries would see a 6 percent overall increase in benefits over 20 years compared to the current formula used, which yielded a zero cost-of-living adjustment three times during the past decade — and a mere 0.3 percent in 2017, says Richtman, noting that health care costs have increased about 6 percent in 2019 alone.

“The prices of the most commonly prescribed drugs for seniors on Medicare rose ten times the rate of inflation from 2013-2018. The cost of senior living facilities is growing at 3 percent annually – which adds up quickly over time,” adds Richtman.

Adds Webster Phillips, NCPSSM’s Senior Legislative Representative, “COLAs are out of sync with seniors’ actual expenses. Retirees have been living on very tight cost-of-living adjustments for a number of years now, which forces them to make hard decisions about their monthly budgets.”

In a statement, AARP chief executive officer Jo Ann Jenkins said, “Social Security’s annual COLA amount typically does not keep pace with all the increases in living expenses that most seniors face, including the costs of housing, food, transportation and, especially, health care and prescription drugs. AARP’s recent Rx Price Watch report found that retail drug prices increased by twice the rate of inflation during 2017, and have exceeded the inflation rate for at least 12 consecutive years,” she says.

“AARP will continue our advocacy for bipartisan solutions to help ensure the long-term solvency of the Social Security program, as well as adequate benefits for recipients. We will also continue to fight for lower health care and prescription drug costs, which are eating up a growing share of Social Security benefits,” adds Jenkins.

TSCL’s Mary Johnson says that her group calls on Congress to require a minimum COLA of no less than 3 percent every year, even in years when inflation falls below that amount. “Strengthening the COLA,” she says, “would help slow the drain of retirement savings and help keep older Americans out of poverty.”

For information about Social Security benefits and claiming strategies, those approaching retirement age may visit AARP’s Social Security Resource Center, at https://www.aarp.org/retirement/social-security/.

Kidnapping Scam” Hits the Ocean State

Published in the Woonsocket Call on October 6, 2019

Last Monday, local media picked up a warning issued on the Pawtucket Police Department ‘s Face Book page that called on residents to watch out for the “kidnapping scam” that has recently resurfaced.

According to a Pawtucket Police spokesperson, a Pawtucket family was targeted with the “kidnapping hoax” scam, this incident triggering the social media warning on Sept. 30, with the case being referred to the Rhode Island State Police.

The Alexandria, Virginia-based International Association of Chiefs of Police’s Law Enforcement Cyber Center (LECC), say the scammers “use fear and threats over the phone to manipulate people into wiring them money. First noted by the FBI in the Southwest border states, it has now spread throughout the country.

LECC warns that the scammers are using “increasingly sophisticated tactics” — extensive online reconnaissance utilizing social media and other digital information — to convince victims that a loved one is being held hostage.

Here’s how the “kidnapping hoax” works.

This extortion scam typically begins with a phone call, usually coming from an outside area code and sometimes from Puerto Rico with area codes (787), (939) and (856), saying your family member is being held captive. The caller may allege your son or daughter has been kidnapped and you may hear screaming in the background. Callers will typically provide the victim with specific instructions to ensure a safe return of the family member. Callers go to great lengths to keep you on the phone line until money is wired. Ransom money is only accepted via wire transfer services. The caller may claim not to have received the money and may even demand additional payments.

Advice on Keeping Out of Harm’s Way

The Pawtucket Police’s Face Book posting gives a simple tip on how you can protect yourself from this scam. Just hang up.

Or you can attempt to contact the alleged victim, either by phone, text or other social media, and request that they call you back from their cell phone. Do not disclose your family member’s name or identifying information. Also, avoid sharing information on digital profiles about yourself or your family.

The police also suggest that when responding to the scammer, request to speak to your family member, asking “How do I know my loved one is OK?” Always ask questions only the alleged kidnap victim would know the answers to.

The police warn people to not agree to pay ransom, by wire or in person. The kidnappers often have you go to multiple banks and multiple locations and have you wait for further instructions. Delivering money in person can be dangerous.

If you suspect a real kidnapping is taking place or you believe a ransom demand is a scheme, always contact your local or nearest law enforcement agency immediately, urge the police.

Rhode Island Attorney General Peter Neronha notes that the “kidnapping scam” is just a newer version of the Grandparent or Bail scam. “Most scams continue to evolve as more people start to recognize them,” he says. “All of these scams use fear to quickly manipulate people into sending their money away,” he says.

Neronha also gives advise as to how to protect yourself from becoming a victim of a scam. He says beware of scammers seeming to be legitimate organizations, agencies or companies such as the IRS, a utility company, bank or credit card, among others. If it doesn’t seem right, it probably isn’t. Don’t answer unrecognized calls or e-mails. Keep in mind that scammers can also make their number appear to be one that you may know or recognize. Finally, never give out solicited personal information.

AARP Continues its Fight Against Cybercrime.

“AARP has been fighting fraud and cybercrime for some time with education and resources – most notably the free AARP Fraud Watch Network,” says AARP Rhode Island State Director Kathleen Connell. “You can join and get email alerts and updates by registering at http://www.aarp.org/fraudwatchnetwork.
“Fraud Watch – free to both members and non-members – keeps people abreast of latest dangers, such as the nasty virtual kidnapping scam we first reported on in 2016. Some of these crimes never go away, they just get re-invented in subtle ways,” she added. “Once you’ve heard about a scam, you become far less vulnerable.

“During October’s National Cyber Security Month, AARP is getting the word out on three keys to staying safe online: Own it, secure it, and Protect it. The ‘it’ is your digital profile – the personal things about yourself that you put online. Living in the digital age means putting a lot of personal information online such as your home address, where you work, family members, and much more.

“Keeping that information safe requires a bit of work. First, you need to own it by understanding what you’re putting out there (such as what you’re posting on social media). Next, you have to secure it with strong passwords or using a password manager and enabling two-step authentication where available. Lastly, you need to protect it by staying current with the latest security updates on your devices and using Public Wi-Fi safely,” Connell said.

Another site Connell recommends is staysafeonline.org.