Tag Archives for AARP

Is it Really a Happy Birthday for Social Security?

Published in Woonsocket Call on August 23, 2015

With the stroke of his pen, over 80 years ago, on August 14, 1935, President Franklin D. Roosevelt signed the Social Security Act into law.  Over the last eight decades, this domestic program has become one of the most popular federal programs, paying $848 billion to 59 million beneficiaries at the end of calendar year 2014.  During that year, an estimated 166 million people had earnings covered by Social Security and paid taxes.

Celebrating the 80th birthday of Social Security over two weeks ago, AARP released the results of its anniversary survey.  The August 2015 survey followed earlier surveys conducted during previous milestone anniversaries in 1995 (60th), 2005 (70th) and 2010 (75th).  The latest 29 page report found that Americans of all ages continue to have strong feelings of support for Social Security, and this latest survey found several key themes.

According to the national survey of adults detailed in “Social Security 80th Anniversary Survey Report: Public Opinion Trends,” Social Security remains a core part of retirement security, it also remains popular across the generations and political ideologies.

“As we celebrate Social Security on its 80th anniversary, our survey found that it remains as important as ever to American families,” said AARP CEO Jo Ann Jenkins. “We also found that although most want to continue living independently as we age, obstacles to saving often continue to occur in our lives. However, Social Security continues to help generation after generation to diminish these obstacles.”

“When it comes to how important Social Security is to Rhode Islanders, the numbers speak for themselves,” said AARP Rhode Island State Director Kathleen Connell. “210,975 is the number of Social Security beneficiaries in the state; 23.7% say that Social Security provides 90% or more of their total income. And about half say that Social Security represents 50% or more of their income. Without Social Security, many retirees would be living below the poverty line.

“It is plain to see that protecting this key earned benefit is critical. A recent AARP survey found 68% of respondents express at least some concern that they won’t have enough savings to last their lifetime. Imagine if they are given reason to worry more about the viability of Social Security. People who are working toward retirement need to make themselves heard and – as we approach the 2016 elections – hold politicians to their promises to protect Social Security.”

Social Security Key to Surviving Old Age

            Older American’s look to rely on their Social Security checks to pay bills, say the researchers.  Four in five adults (80%) rely or plan to rely on Social Security benefits in a substantial way.  Survey respondents (33%) say that Social Security is the source of income that they rely on or plan to rely on most during their retirement years.

The study finding’s reveal that Social Security has broad support, even across political ideologies and America’s generations, too.  Sixty six percent believe that this domestic program is one of the most important government programs when compared to others. This view has remained consistent over time in similar AARP anniversary surveys taken in 1995, 2005, and 2010.  According to the study, the vast majority of Americans (82%) also believe it’s important to contribute to Social Security for the “common good.”

Like aging baby boomer and seniors, even younger Americans value this program. Specifically, nine in ten adults under 30 (90%) believe Social Security is an important government program, and nearly nine in ten (85%) want to know it will be there for them when they retire.

The survey respondents also want to live independently in their communities at home. The findings indicate that four out of five adults (83%) consider it extremely important to have the ability to stay at home as long as they want; although 64% believe they won’t be able to do so as they age and become frail. Additionally, while 68% feel it extremely important to have family around, 80% want to be able to financially take care of themselves so their children and other relatives won’t have to support them financially.

While recognizing the importance of financial planning, survey respondents say they face a multitude of challenges that keep them from effectively putting away money for their retirement.  Specifically, 69% note that they must focus their income on current financial needs, while 47% believe they do not have enough money left over to put into their retirement savings after paying their monthly bills.  Survey respondents (39%) says health issues and family problems keep them from saving for retirement.

SS Trustee Report Gives Nation a Warning

The six member Social Security Board of Trustees issued its 2015 report, on July 22, giving the nation a snapshot of the fiscal health of the nation’s retirement and disability program.

Within the 257 page report, the Trustees gave a dire warning to Congress.  “Taken in combination, Social Security’s retirement and disability programs have dedicated resources sufficient to cover benefits for nearly two decades, until 2034.  However, the projected depletion date for the separate Social Security’s Disability Insurance (DI) Trust Fund is only a little more than one year away, in late 2016,” says the widely anticipated federal report.  “After the DI trust fund exhaustion, annual revenues from the program’s dedicated payroll and taxation of Social Security benefits will be sufficient to fund about three-quarters of scheduled benefits through 2089.”

According to the Social Security Administration, there were about 10.4 million Americans who received benefits from the DI Trust Fund in 2014, including roughly 42,429 in the Ocean State.  In order to qualify, these beneficiaries are required to have worked in a job covered by Social Security, and must have been unable to work for a year or more due to a disability. If Congress fails to act to direct more funding into the DI trust fund, disabled workers throughout the nation and in Rhode Island will be hit hard financially right in their wallets.

AARP CEO Jo Ann Jenkins offered her observation about the released Social Security Trustees report. “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 approximately two more decades, we know that if no action is taken, benefits will be cut by nearly 25% in 2034.  As the campaign season gets underway, we will be urging all Presidential candidates to share their plans for the long term solvency and adequacy of Social Security.”

Democrats are calling for an easy fix to shoring up the DI Trust Fund, specifically shifting a small percentage of the Social Security payroll tax from the retirement fund to the disability trust fund.  This has occurred 11 times in the past with bipartisan support.  But, with the 2016 presidential elections now catching the attention of politicos, GOP Senators have threatened to block any transfer of funds, charging that following this strategy is just a way to push the political “hot potato” issue down the road.  Political observers say that this year’s Republican opposition to quickly fixing the DI Trust Fund is a way to force Democrats to the negotiation table to get concessions on higher Social Security payroll taxes or to cut program benefits.

Now, it’s time for Congress to pull together to fix the ailing Social Security program to ensure its future solvency and to adequate fund the DI Trust Fund.  Lawmakers from both sides of the aisle must stop their political bickering and craft a compromise to keep Social Security’s retirement and disability trust funds well-funded and up and running for years to come.  For the sake of older Americans who now rely on their meager Social Security benefits to survive, our elected federal elected officials must begin to act like Statesmen not simple-minded politicians.  Hopefully, the voters will push for this change in thinking when they go into the polls in 2016.

 

 

Bush Flip Flops on Politically Charged Medicare Statement

Published in Woonsocket Call on August 16, 2015

On July 30, aging advocates celebrated the fiftieth birthday of Medicare, the nation’s second largest social insurance program in the United States. This program provides health care to more than 53.8 million beneficiaries, with total expenditures of $613 billion in 2014.  Three weeks earlier one GOP Presidential candidate was not calling for the celebration of this golden anniversary, but for the dismantling of it.

On Wednesday, July 22, at a New Hampshire town hall meeting, GOP Presidential candidate Jeb Bush suggested that its time to “phase out” Medicare.  This event was sponsored by Americans for prosperity, a conservative group financially backed by the extremely right-wing Koch Brothers, who oppose President Obama’s Affordable Care Act, the expansion of Medicare, minimum wage and anything else endorsed by Democrats and Progressives. . .

Bush Gets Cozy with Koch Brothers

At the town hall meeting, the former Florida Republican Governor called on the left to “join the conversation” of reforming Medicare.  “But they haven’t,” he charges.

GOP Presidential candidate Bush reminded the attending conservatives that over a year ago Rep. Paul Ryan (R-WI) offered his proposal in the 2015 Budget plan to replace the health program with vouchers and to increase the age eligibility from 65 to 67.  After this, television ads began to appear with a Ryan look-alike pushing a senior off a cliff in a wheelchair, he said, quipping “That’s their [liberals] response.”

Bush went on to say, “And I think we need to be vigilant about this and persuade people that our, when your volunteers go door to door, and they talk to people, people understand this. They know, and I think a lot of people recognize that we need to make sure we fulfill the commitment to people that have already received the benefits, that are receiving the benefits. But that we need to figure out a way to phase out this program for others and move to a new system that allows them to have something – because they’re not going to have anything.”

The Democratic National Committee (DNC) quickly seized Bush’s politically charged talking points, posting his comments at Americans for Prosperity event on YouTube.  The DNC jumped on the opportunity to send a message out to older Americans and liberal groups that the Florida Republican opposes a very popular domestic program.

One day later, on August 23, Bush worked hard to dodge intense political flack generated by his call for seriously “phasing out Medicare.” He explained that the Democrats and media took his previous comments out of context, he was only trying to reform Medicare to save it.

Medicare is an “actuarially unsound health system,” says Bush, who called for something to be done before skyrocketing costs burden future generations with $50 billion dollars of debt.

Keep the Status Quo

Bush’s campaigning in New Hampshire has revealed what many seasoned Republicans lawmakers know, there can be a swift political backlash to tinkering with the widely popular Medicare program.  A newly released national poll bluntly supports what AARP and other national aging advocacy groups and Democrats clearly know, the American public is quite happy with their Medicare program.

According to “Medicare and Medicaid at 50,” a new Kaiser Family Foundation poll released on last month, a majority of Americans and the vast majority of program beneficiaries view both Medicare positively.   Simply put, respondents had a strong preference for the status quo over major structural changes that would reshape how the programs serve beneficiaries, say researchers in their 27 page report.

The survey finds that a strong majority (70%) say that Medicare should continue to ensure all seniors get the same defined set of benefits. Far fewer (26%) say that the program should be changed to instead guarantee each senior a fixed contribution to the cost of their health insurance – a system known as premium support that has been proposed to address Medicare’s long-term financing challenges.

By a whopping two-to-one margin, majorities of Democrats, Republicans and independents favor keeping Medicare as is rather than changing to a premium support program. Adults under 65 years old are somewhat more likely than seniors to favor premium support (28% compared to 18%), though large majorities in all age groups prefer Medicare’s current structure.

But, despite the public’s lack of support for this change, the survey says that majority (54%) worry that Medicare will not be able to provide the same level of benefits to future enrollees, and two thirds (68%) say that changes are needed to keep Medicare sustainable for the future.

Improved Outlook for Medicare

While Bush, his fellow Republican Presidential Candidates and Republican Congressional Leadership say that Medicare costs are bankrupting the nation, a recently released Medicare Trustee’s 2015 Annual Report states the opposite.  This program will remain solvent until 2030, unchanged from last years analysis, but with an improved long-term outlook from the 2014 report, says the report released in July.   Under this year’s projection, the trust fund will remain solvent 13 years longer than the Trustees projections in 2009, before the passage of the Affordable Care Act.

“Growth in per-Medicare enrollee costs continues to be historically low even as the economy continues to rebound. While this is good news, we cannot be complacent as the number of Medicare beneficiaries continues to grow,” said Andy Slavitt, Acting Administrator of the Centers for Medicare & Medicaid Services (CMS). “That’s why we must continue to transform our health care system into one that delivers better care and spends our dollars in a smarter way for beneficiaries so Medicare can continue to meet the needs of our beneficiaries for the next 50 years and beyond,” he adds.

The Medicare Trustee’s 2015 Annual Report also noted that per-enrollee Medicare spending growth has been low, averaging 1.3 percent over the last five years. In 2014, Medicare expenditures were slightly lower for Part A and Part D, and higher for Part B than previously estimated. Over the next decade, and partially due to the cost-containment provisions in the Affordable Care Act, per-enrollee Medicare spending growth (4.2 percent) is expected to continue to be lower than the overall growth in overall health expenditures (5.1 percent).

Over the years, Republican Congressional Lawmaker efforts have been largely unsuccessful in changing a very popular Medicare program.  As Bush found out during his politicking in the granite state, touching Medicare can have instant negative political consequences.

Once the GOP whittles down its 16 presidential candidates to a chosen standard-bearer to push its conservative agenda in the upcoming 2016 Presidential elections, the party must reexamine its position of scrapping the existing Medicare program.  Recognizing future challenges in the nation’s health care system, AARP throws commonsense ideas into the national debate as to what is the best way of strengthening Medicare.  The Washington, D.C. aging advocacy group calls for lowering prescription costs, improving health care coordination, and cracking down on over-testing, waste and fraud.

As AARP suggests, simple fixes can lower costs, but it also continues health coverage to the program’s current and future beneficiaries.  That’s the way to reform a widely popular domestic program.  By small incremental steps.

 

AARP Report: Using Public Wireless Network Can Be Costly

Published in Woonsocket Call on August 2, 2015

This week Rhode Islanders learned about a secret NSA map obtained exclusively by NBC News detailing China’s cyber attack on all sectors of the U.S economy, including major firms like Google and Lockheed Martin, as well as the U.S. government and military.

But, they also learned that the stealing of personal and financial information isn’t just taking place nationally at federal agencies and Fortune 500 companies but throughout the state, too.  Internet users who put convenience ahead of protecting financial information stored on their laptops and mobile devices are becoming more susceptible to hackers, too, says a newly released 21 page AARP report.

Giving Hackers Easy Access to Your Personal Info

A new survey of internet users, ages 18 and over, released on July 29, 2015, shows that the freedom and convenience of public wireless networks may come at a cost. Nearly half failed a quiz about online and wireless safety, while tens-of-thousands admit to engaging in activity that could put them squarely in the sights of hackers looking to steal their personal information.

An AARP Fraud Watch Network report, “Convenience versus Security,” shows that among adults who access the Internet, a quarter (25%) use free public Wi-Fi once per week or more. “A free Wi-Fi network at an airport, hotel or coffee shop is convenient,” said Kathleen Connell, State Director of AARP Rhode Island. “But without a secure network, Americans risk over sharing, leaving themselves vulnerable to attacks by con artists and hackers.”

In response to these cyber threats recognizing the need for greater awareness of the risks of internet scams, the Washington, DC-based AARP is launching the “Watch Your Wi-Fi” campaign to educate Americans about the risks of free public Wi-Fi and how they can protect themselves.

Researchers identified a high incidence of risky online behaviors that might lead to financial theft and fraud.  According to the findings, among those who say they use free public Wi-Fi, more than a quarter of respondents (27%) say they have banked online via public Wi-Fi in the last three months.  Similarly, 27% of those who use free public Wi-Fi have purchased a product or service over public Wi-Fi using a credit card.

Additionally, the findings noted that 26% of the respondents who use smartphones do not use a pass code on their phones.  Sixty one percent do not have online access to all of their bank accounts.  Finally, among those who have set up access to all or some of their online banking accounts, almost half (45%) say they have not changed their online banking passwords in the past 90 days. Experts say that online bank account passwords should be changed every 90 days.

Ignorance Is Not Bliss

The researchers found that nearly half of survey respondents (45%) failed a quiz about online and wireless safety.  The findings also indicated that approximately 40% of respondents were not aware that it is not okay to use the same password on more than one site even if it contains a complex mix of letters, numbers and symbols.  Even if you are not using the Internet, if you’re in a location with a public Wi-Fi network, you should disable your wireless connection, say the researchers, adding that it is NOT safe to access websites with sensitive information, such as banking or credit cards, while using a public Wi-Fi network, even if the website is secured by https.

More than 8 in 10 (84%) people surveyed did not know that the most up-to-date security for a home Wi-Fi network is NOT WEP — Wired Equivalent Privacy.  Experts advise using at least WPA2 wireless encryption for better protection.

“The Fraud Watch Network’s “Watch Your Wi-Fi” campaign is giving Rhode Islanders the information they need to stay connected without sacrificing their personal security,” Connell added.

Protecting Yourself on Public Wi-Fi

A newly launched FWN cyber scam website features “Four Things Never to Do on Public Wi-Fi”   You can protect your financial data by following these website pointers.  First, “Don’t fall for a fake.”  Scam artists often set up unsecure networks with names similar to a legitimate business, coffee shop, hotel or other free Wi-Fi network.  Always “Mind your business.”  To reduce indentity theft and fraud, do not access your email, online bank or credit card accounts using public Wi-Fi.  Always “Watch your settings” too.  Keep your mobile device from automatically connecting to nearby Wi-Fi.  Finally, “Stick to your cell:” Don’t surf the internet by using an unknown public network if the website requires sensitive information – like online shopping.  Your cell phone network is safer to use. .

“The survey by AARP on Americans’ knowledge of how to protect themselves online is alarming.  With more people online than ever before, the public needs to be more aware of the dangers that lurk in cyberspace and take the necessary measures to protect to protect themselves from being a victim of cyber crimes and scams,” said Attorney General Peter F. Kilmartin, whose Consumer Protection Unit is often the first place consumers call when they have been victimized online.

Attorney General Kilmartin offers these pointers on how to protect yourself while cruising cyberspace:  When creating a password for an online account, the key to remember is to make it “long and strong,” with a minimum of eight characters and a mix of upper and lowercase letters, numbers, and symbols.  Always use dual verification and ask for protection beyond passwords based on information only you would know, like your first elementary school or the name of your first pet. Many account providers now offer additional ways for you verify who you are before you conduct business on that site.  Finally, use different passwords for different devices and different accounts.

According to Kilmartin, it may be easier to remember one simple password for all your accounts, but you make it easier for hackers to figure out your password and gain access to all your online accounts.  “I write down my passwords in a notebook which is kept in a safe place, separate from my electronic devices. This may seem like a cumbersome step, but trust me, it’s much easier than trying to reclaim your identity and clean up your credit if someone steals your identity,” he says.

Pawtucket Police Chief Paul King sees increase in identity theft and fraud in the City of Pawtucket.  It’s a national trend, he notes.

“In many incidences these crimes are perpetrated far beyond the borders of the United States,” says King, noting that Detective Hans Cute is assigned to the cyber and financial crimes beat.  Detective Cute has received specialized training and works very closely with the US Secret Service, US Postal Service, and other state and federal agencies when this type of crime occurs, he says.

Pawtucket residents can report a cyber and identity theft crime to Detective Cute at (401) 727-9100, Ext. 758.  For Woonsocket residents, call the Woonsocket Police Department at (401) 766-1212.

If you would like to schedule the Attorney General’s Office to visit your organization for a consumer protection presentation, please visit www.riag.ri.gov or call 401-274-4400 and ask for the Consumer Protection Unit.

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