Tag Archives for AARP

We Need Congress to Step Up and Fix Social Security, Medicare

Published in Woonsocket Call on July 3, 2016

Expect the nation’s Social Security program to be fully funded for nearly two decades, and Medicare’s solvency to continue courtesy of health care reforms. Social Security beneficiaries may even get a very small .2 percent cost of living (COLA) adjustment next year but will get wacked with a Medicare premium increase. These facts are reported in the recently leased 262 page report issued by the Trustees of the Social Security and Medicare funds, transmitted to Congress and President Obama. This is the 76th report issued by the Trustees that financially reviews these two of the nation’s largest entitlement programs.

This 2016 Trustee Report, released on Jun 22, should be of interest to Rhode Island’s retirees who receive checks from Social Security, According to AARP, 153,349 Rhode Islanders received Social Security checks as of the end of 2014. Also, 22 percent of Rhode Island retirees depend on their Social Security check for 90 percent or more of their income. Their average benefit is $1,341 per month.
The Devils in the Details

The recently released 2016 Trustees Report notes there is now $2.81 trillion in the Social Security Trust Fund, which is $23 billion more than last year and that it will continue to grow by payroll contributions and interest on the Trust Fund’s assets.

Meanwhile, Social Security remains well-funded. In 2016, as the economy continues to improve, Social Security’s total income is projected to exceed its expenses. In fact, the Trustees estimate that total annual income will exceed program obligations until 2020.

The Trustees say that Social Security will be able to pay full benefits until the year 2034, the same as projected in last year’s Report. After that, Social Security will still have sufficient revenue to pay about 79% of benefits if no changes are made to the program.

Although the Trustees project a .2% Cost of Living Adjustment increase, retirees will be hit with a premium increase next year. Medicare Part B premiums are projected to increase by only a very small amount for about 70 percent of beneficiaries in 2017 from $104.90 to $107.60. The standard monthly premium is projected to increase from $121.80 to $149.00 while the annual deductible is projected to increase from $166 to $204 for all beneficiaries.

The Trustees peg Medicare solvency to the passage of healthcare reform, with the program paying full benefits until 2028, 11 years later than was projected prior to passage of the Affordable Care Act. However, this is two years earlier than projected in 2015.

Congress Must Step to the Plate

Responding to the Social Security Trustees report, recently released report, AARP CEO Jo Ann Jenkins, said, “While the Trustees once again report that the combined Old Age, Survivor and Disability Insurance Trust can pay full retirement, survivor and disability benefits for some time, we know that if no action is taken, benefits could be cut by nearly 25 percent in 2034, and families could lose up to $10,000 per year in benefits.”

“Social Security remains a critical part of the fabric of our lives to protect us from both expected and unexpected challenge,” says Jenkins.

Jenkins calls on Presidential candidates and those running for Congress and the Senate to make a commitment to strengthening Social Security and outline their plans for the fix. “Throughout the 2016 election, we’ll continue to push candidates to take action if elected,” she says.

As to Medicare, Jenkins adds, “This year’s Medicare Trustees report reinforces the recent progress that has been made through greater Medicare savings and lower costs per enrollee. The report also highlights the financial challenges that continue to face the Medicare program, which is projected to provide critical health coverage to 64 million Americans by 2020.”

“A typical senior today has an annual income of just under $25,000 and pays roughly one out of every six dollars of this in out-of-pocket health care costs. The more than 55 million older Americans who today depend on Medicare for guaranteed, affordable health coverage simply cannot afford more than they already pay,” says Jenkins.

The Solution Could Be Simple

Jenkins urges Congress to make simple solutions to bring stability to the nation’s Medicare program. She suggests Congress find ways to reduce high prescription drug costs, improve the nation’s health care outcomes, eliminate unnecessary diagnostic testing, curb excess paperwork, and identify waste and fraud in the program.

Adds, Max Richtman, President/CEO of the National Committee to Preserve Social Security and Medicare, “What’s likely to be missing in headlines about today’s Social Security Trustees Report is that the program remains well-funded with total income, again, projected to exceed expenses. However, in order to head off a benefit cut in 2034 Washington should embrace the growing movement to lift the payroll tax cap and expand benefits for the millions of seniors struggling to get by on an average $1,300 retirement benefit.

The Trustees also project a tiny .2% cost of living adjustment next year yet Medicare premiums will increase in 2017, says Richtman. “Seniors continue to see their modest Social Security benefits eaten away by growing healthcare costs which illustrates, once again, that the current Social Security COLA formula isn’t accurately measuring seniors’ expenses. Congress needs to adopt a fully developed CPI for the elderly (CPI-E) and begin work on the many Social Security expansion bills now languishing in the House and Senate,” he adds.

This [Trustee’s] report reinforces the importance of ensuring that Social Security and Medicare are preserved and guaranteed, especially for working and middle class Rhode Islanders,” said Rep. David Cicilline (D-Rhode Island) who is a co-sponsor of the Protecting and Preserving Social Security Act. “Reasonable measures, such as raising the cap on high-income contributions, should be considered by Congress to extend the solvency of these programs. I will continue to advocate for commonsense legislation that strengthens benefits for working families and ensures the long-term stability of Social Security and Medicare,” he says.

RI. Reps Protect Social Security

Like Cicilline, Rep. Jim Langevin and Democratic Senators Jack Reed (D and Sheldon Whitehouse both view Social Security as an earned benefit and the primary source of income to millions of retirees that must be protected. The Rhode Island Congressional Delegation has fought off Republican efforts to privatize Social Security and have supported legislation to strengthen this program and Medicare.

It is very clear to aging advocates and to the Trustees of the Social Security and Medicare trust funds that the next President and Congress put political differences aside to make legislative fixes to strengthen and ensure the long-term stability of Social Security and Medicare.

The Trustees say this very clearly in their report, “Lawmakers have many policy options that would reduce or eliminate the long-term financing shortfalls in Social Security and Medicare. Lawmakers should address these financial challenges as soon as possible. Taking action sooner rather than later will permit consideration of a broader range of solutions and provide more time to phase in changes so that the public has adequate time to prepare.”

Political compromise will be the way to hammer out Social Security and Medicare reforms. When the dust is settled after the upcoming November president elections hopefully this message was delivered at the ballet box.

And No, We’re Not Talking Pong: New Survey Captures Attitudes and Habits of Older Gamers

Published on June 19, 2016 in Woonsocket Call

Although the millennial generation grew up being surrounded with interactive technology, spending thousands of hours playing video games, baby boomers are technologically plugged in, too. According to a new survey released in the beginning of June by AARP and the Entertainment Software Association (ESA), 41 million Americans, more than one of every three people over age 50, play video games on a regular basis.

According to Oscar Anderson, AARP Research, “The video game industry is one of the fastest growing industries in the U.S. economy with more than $23 billion in sales last year. Innovation present in this industry affects not only entertainment but also business, engineering, health, and education.”

Older Adults and Technology

The 93 page report, Video Games: Attitudes and Habits of Adults Age 50-Plus, found that three-quarters of gamers age 50-plus play weekly, with four in 10 playing daily. Among gamers age 60 and above, 43 percent play video games every day.

Researchers say that the top reason gamers say they play video games is to have fun (26% say this is an extremely important reason and 52% say it is very important). Maintaining mental sharpness also was cited by the survey respondent as an important reason for playing video games.

The researchers also found that a greater proportion of older gamers compared to younger gamers report playing video games weekly or more often (37% of 50-59 year olds compared to 43% of 60-plus say they play every day).

“With the explosion of dynamic, compelling, and diverse content and the growing popularity of online gaming, video games are now an experience shared across generations of Americans,” said Michael D. Gallagher, president and CEO of ESA, which represents the U.S. video game industry in a statement on June 2, 2016 with the release of the survey findings. “As Gen X turns 50 and Millennials raise tech-centric families, participation will only continue to expand just as games continue to evolve.”

The report prepared by GfK Public Affairs and Corporate Communications, explored the attitudes and habits of people age 50 also examining what how and what older gamers play. Older gamers most commonly play on laptops or computers (59 percent), followed closely by phones or mobile devices (57 percent) to play video games. They prefer video games that mimic traditional forms of play; card/tile games (46 percent) and puzzle/logic games (44 percent) are the most popular among older gamers.

Crossing Generational Lines

“Video games have come a long way since the days of Pong. Today’s online video games give people 50-plus fun ways to stay connected with their family and friends through online gaming communities across a variety of devices,” said Jo Ann Jenkins, CEO of AARP, in her statement. “Video games and apps are truly ageless, offering gamers of all ages—a grandfather as well as his granddaughter—the opportunity to share entertainment and social interactions with one another.”

The study found that Gamers age 50-plus are more likely to be women (40 percent) than men (35 percent). More of the female respondents reported playing games daily (45 percent) than their male counterparts (35 percent). Meanwhile, women (57%) are significantly more likely than men (43%) to say they play more today than they did five years ago.

Additionally, researchers say that card/tile games (46%) and puzzle/logic games (44%), followed distantly by trivia/word/ traditional board video games top the list of respondents’ three favorite types of video games.

In total, 22% of gamers have not made any video game related purchase in the past 6 months. Of the gamers who made purchases, 77% bought for themselves, while 52% bought for others.

Half of older gamers say that learning about new video games and gaming hardware came from sources other than internet websites, with one in six reporting their children and grandchildren influence their choice of games.

With the exception of those who are trained in their jobs, most people 50+ have learned most of that they know about computing from their children and their grandchildren,” said AARP Rhode Island State Director Kathleen Connell. “So, it should come as no surprise that plenty of people 50 and over have been exposed to, if not addicted to video games.

Promoting Brain Health and Other Bennies

“Recently, I observed a member playing the online Scrabble game ‘Words With Friends’ on her tablet while waiting for a meeting to start,” Connell added. “She was connected with a grandchild and loving it.

“We know that certain video games promote brain health, which is something we all are hoping to strengthen. And the so-called ‘passive-learning games’ are a way to connect people with useful information.  Just last month, AARP launched the Pop Up! Family Caregiver Game, which challenged players to learn more about valuable resources for family caregivers. Throughout June, you could download the free app and play daily with a chance to win prizes. It was a refreshing way to engage people, provide some fun and spread the word about our organization’s ongoing efforts to support caregivers.”

Researchers are telling us that playing video games can increases social interaction, enhance your mood and improves physical health, social and cognitive functioning. Some games can even improve hand-eye coordination.

AARP’s Video Game study findings indicate that older persons are becoming comfortable with newly emerging technologies. A growing number of baby boomers and seniors are now easily communicating with family and friends on Facebook and other social media, playing video games, streaming movies or even reading digital E-books.

Most important research studies are now looking at gaming and brain functioning are are finding that regularly playing video and internet games just might positively impact your physical and cognitive health and well-being.

As to methodology of AARP’s Video Game study, the online survey took place between March 9 through March 17, 2016, with a nationally representative sample of 2,964 adults age 50 and older (gamers, n=1510; non-gamers, n=1454). For additional details about this newly released report, contact G. Oscar Anderson of AARP Research at GAnderson@aarp.org.

Survey: Many Put Retirement on Hold

Published in Woonsocket Call on May 15, 2016

The Associated Press (AP)-NORC Center for Public Affairs Research, funded by The Alfred Sloan Foundation, released a study this month that finds that departing the workforce at the traditional retirement age of 65 is no longer a reality for most older Americans. This new study extends the research of an earlier 2013 retirement study to look at efforts made by older workers to improve career skills and their plans to adjust the parameters of work in later stages of their work life. It also takes a look at a variety of implications of the trend of working longer along with the motivations for doing so.

The 10 page report, released on May 10, 2016, finds that there are large numbers of older Americans who are currently, or who expect to be, working longer. However, researchers caution that this does not necessarily mean that older workers are continuing with the same employment circumstances indefinitely. Many are either reducing their hours to part-time status or are planning to switch to a new employer or even a new field. (The AP-NORC study confirms the findings of an AARP retirement study reported in my September 14, column, entitled “Still Getting the Job Done” that noted “new retirement activity.”)

The Graying of America’s Work Force

The AP-NORC survey comes at a time when the size of the nation’s older population is larger than it has ever been and projected to keep growing, say the researchers. Between 2003 and 2013, the number of Americans age 65 and older rose from 35.9 million to 44.7 million. In the next quarter century, this number is expected to rise to 82.3 million. The percentage of the overall population that falls within this group will rise from 14.1 percent in 2013 to 21.7 percent in 2040, notes the study.

“The circumstances and future plans of older Americans must be well understood by decision-makers,” said Trevor Tompson, director of The AP-NORC Center. “Not only are older Americans going to work longer, but 4 in 10 respondents are planning to change career fields in the future. These results point to significant changes in the American workforce with impacts likely felt by workers and employers.”

No Plans for Retirement

Here is a sampling of key findings reported in The AP-NORC’s “Working Longer” study:

According to the survey, a quarter of older workers say they plan to never retire, with this response being more common among lower-income workers than higher-income workers. Specifically, 33 percent of those earning less than $50,000 a year saying they will never retire, compared with 20 percent of those who earn $100,000 or more.

The findings also indicate that more than half of older workers plan to be employed past the traditional retirement age of 65 or already have worked past this age. Additionally, six in 10 older workers age 50 to 64 plan to work past the age of 65. Nearly half of those who are 65 and older say they already work or plan to work during this later stage of life, notes the study.

The study reveals that members of the workforce who are age 65 and older are not limiting themselves to occasional work–this group reports an average of 31 hours per week in the workplace.

Additionally, more than 4 in 10 Americans age 50 and older have spent at least 20 years working for the same employer at some point in their careers. These workers are more excited and less anxious about retirement than those without such long histories with a single employer, says the study..

The findings also show that a majority of the older Americans who are planning to remain in or rejoin the workforce are planning to switch either professional fields or employers in the future. Those who are age 65 and older are especially likely to plan a change. In addition, a sizeable minority of older workers are taking steps to keep their skill sets fresh by pursuing job training or additional education.

Finally, a quarter of adults age 50 and older have looked for a job in the past five years. Many of them are encountering difficulties in the job market, with a third reporting that it has been so difficult that they’ve given up looking at some point during their search.

Fear of Outliving Retirement Savings

“One could say that the [The AP-NORC] survey simply leads us back to the same ‘old’ story,” said AARP Rhode Island State Director Kathleen Connell. “But what is ‘old’ and what are we going to do about it? The survey provides more data to underscore the need for policy changes as well as a refocusing on employment and retirement. In a single generation, the world has changed. On the upside, the numbers reflect people in better health working longer, and many of those folks continue to be fulfilled in their jobs. But we all know that for most people this trend stems from the fear of outliving savings, often compounded by the inability to save substantially for retirement.

“Worries about Social Security are in the mix, also, as people worry that benefits someday may not cover the cost of housing, food and healthcare. The thought of any future reduction in Social Security benefits is daunting. That’s why AARP continues to ask presidential candidates to ‘Take a Stand,” by providing specific plans to address necessary changes in the program. As we have been saying, doing nothing is not an option.

“One of the encouraging trends revealed in the survey is that many workers over 65 say they are certain that they will change jobs or careers before they retire. It says to me that the message is kicking in that reaching what we once accepted as ‘retirement age’ no longer holds people back.”

A total of 1,075 interviews were conducted for this AP-NORC survey with adults age 50 and older representing the 50 states and the District of Columbia. Interviews were conducted in English and Spanish. The combined response rate is 14.2 percent. The overall margin of sampling error is +/- 3.9 percentage points at the 95 percent confidence level, including the design effect. The margin of sampling error may be higher for subgroups.