Tag Archives for COVID-19

Study: COVID-19 Changes Way Americans Think About Retirement

Published in RINewsToday on November 23

The raging coronavirus pandemic is changing the fundamental way working adults think, plan and save for their retirement, underscoring the important role Social Security and Medicare play for retirees, according to the 2020 Wells Fargo Retirement study conducted by The Harris Poll in August. The annual research report examines the attitudes and savings of working adults, taking a look this year on the impact of the COVID-19 pandemic on retirees.

For those workers whose jobs were negatively impacted by COVID-19 over the last eight months, the Wells Fargo study found that planning for retirement has become even more challenging, with many survey respondents expressing “pessimism” about their life in retirement – or worried if they can even retire. 

This year’s Harris Poll conducted 4,590 online interviews, from Aug.3-Aug. 24, including 2,660 working Americans age 18-76 whose employment was not impacted by COVID-19, 725 Americans age 18-76 whose employment was impacted by coronavirus pandemic, 200 high net worth American workers age 18-76, and 1,005 retired Americans, surveying attitudes and behaviors around planning their finances, saving, and investing for retirement.

According to the Wells Fargo study’s findings, 58 percent of workers impacted by the pandemic say they now don’t know if they have enough savings for retirement because of COVID-19, compared to 37 percent of all workers. Moreover, among workers impacted by coronavirus, 70 percent say they are worried about running out of money during their retirement while 61 percent say they are much more afraid of life in retirement, and 61 percent note that pandemic took the joy out of looking forward to retirement.

The study, released Oct. 21, found that COVID-19 has driven some workers even further behind in saving for retirement: Working men reported median retirement savings of $120,000, which compares to $60,000 for working women, say the researchers.  Yet for those impacted by COVID-19, men report median retirement savings of $60,000, which compares to $21,000 for women.

“With individual investors now largely responsible for saving and funding their own retirement, disruptive events and economic downturns can have an outsized impact on their outlook,” said Nate Miles, head of Retirement for Wells Fargo Asset Management in a statement releasing the findings of this study. “Our study shows that even for the most disciplined savers, working Americans are not saving enough for retirement. The good news is that for many of today’s workers, there is still time to save and prepare,” he says.

Taking a Close Look on Retirement Savings

The Wells Fargo study also found that women and younger generations are falling behind, too. Women are less sure if they will be able to save enough for retirement, and appear to be in a more precarious financial situation than men. The study findings indicate that almost half of working women (51 percent) say they are saving enough for retirement, or that they are confident they will have enough savings to live comfortably in retirement (51 percent). Those impacted by COVID-19 have saved less than half for retirement than men and are much more pessimistic about their financial lives. In addition, women impacted by COVID-19 are less likely to have access to an employer-sponsored retirement savings plan (59 percent), and are less likely to participate (77 percent).

According to the researchers, Generation Z workers (born between 1997 to 2012) started saving at an earlier age and are participating in employer-based savings programs at a greater rate than other generations, they are nonetheless worried about their future. Fifty-two percent of Generation Z workers say they don’t know if they’ll be able to save enough to retire because of COVID-19, 50 percent say they are much more afraid of life in retirement due to COVID-19, and 52 percent say the pandemic took the joy out of looking forward to retirement.

Remaining Optimistic

“The study found incredible optimism and resiliency among American workers and retirees, which is remarkable in the current [pandemic] environment,” said Kim Ta, head of Client Service and Advice for Wells Fargo Advisors. “As an industry, we must help more investors make a plan for their future so that optimism becomes a reality in retirement,” she said.

The Wells Fargo study findings showed that despite a challenging economy, many American workers and retirees remain optimistic about their current life, their future. Seventy nine percent of the workers say they are very or somewhat satisfied with their current life, in control of their financial life (79 percent), are able to pay their monthly bills (95 percent).  Eight six percent say they are still able to manage their finances.

The study’s findings indicate that 69 percent of workers and 73 percent of retirees feel in control and/or happy about their financial situation. Ninety two percent of the workers and 91 precent of retirees say they can positively affect their financial situation, and 90 percent of workers and 88 percent of retirees say they can positively affect how their debt situation progresses.

The researchers noted that 83 percent of workers say they could pay for a financial emergency of $1,000 without having to borrow money from friends or family. However, the respondents acknowledged they could improve their financial planning. Slightly more than half — 54 percent of workers and 50 percent of retirees — say they a detailed financial plan, and just 27 percent of workers and 29 percent of retirees have a financial advisor.

The study’s findings indicated that most respondents acknowledged that they could improve their financial planning. Slightly more than half — 54 percent of workers and 50 percent of retirees note they have a detailed financial plan, and just 27 percent of workers and 29 percent of retirees have a financial advisor.

Social Security and Medicare Key to Retiree’s Financial Security

The Wells Fargo study noted that despite an increasing shift to a self-funded retirement, in the midst of the pandemic, nearly all workers and retirees believe that Social Security and Medicare play or will play a significant role in their retirement.  According to the study, 71 percent of workers, 81 percent of those negatively impacted by COVID-19, and 85 percent of retirees say that COVID-19 reinforced how important Social Security and Medicare will be for their retirement. Sixty seven percent of workers say they have no idea what out-of-pocket healthcare costs will be in retirement, say the researchers.

The researchers say that workers expect that Social Security will make up approximately one-third of their monthly budget (30 percent median) in retirement. And even those high-net workers believe that Social Security and Medicare factor significantly into their retirement plans, expecting that the retirement program will cover 20 percent (median) of their monthly expenses.

The majority of the study’s respondents expressed concerns that the programs will not be available when they need them and worry that the government won’t protect them.  Specifically, 76 percent of workers are concerned Social Security will be raided to pay down government debt and 72 percent of workers are afraid that Social Security won’t be available when they retire.

The Wells Fargo study also found that 90 percent of workers would feel betrayed if the money they paid into Social Security is lost and not available when they retire and that 45 percent of workers are optimistic that Congress will make changes to secure the future of Social Security.

The Impact of COVID-19’s Social Isolation on Seniors

Published in RINews Today on November 16, 2020

As COVID-19 cases continued to surge across the nation, AARP Foundation in collaboration with the United Health Foundation (UHF), released a report last month taking a look as to how the COVID-19 pandemic impacts seniors who find themselves socially isolated.  According to the recently released report, “The Pandemic Effect A Social Isolation Report,” two-thirds of adult respondents say they are experiencing social isolation and high levels of anxiety since the beginning of the pandemic.  

The 60-page report, released on Oct. 6, noted that many seniors who are affected have not turned to anyone for assistance, because many find themselves socially isolation, because of lacking reliable and meaningful social support networks.  Previous research studies have found the health risks of being social isolation can be more harmful than being obese, and long-term isolation is equivalent to smoking 15 cigarettes a day. 

Social Isolation and Seniors

The study, funded by AARP Foundation with the support of a grant from United Health Foundation, was designed to explore the impact of the COVID-19 pandemic on adults of all ages, to understand levels of social isolation during the pandemic, and to assess knowledge of how social isolation can impact a person’s health.  The online survey contacted 2,010 U.S. adults age 18 and older, from Aug. 21-25. 

The researchers say that key signs to identify if someone is at risk for social isolation are access to food, healthcare, transportation and other vital resources. But they say that “it’s connections, companionship, and a sense of belonging that we need as humans.”

The AARP Foundation’s report found that for adults 50 and older who have experienced social isolation during the COVID-19 crisis, more than seven in 10 adults agree that this made it more difficult to connect with friends. Half of the respondents also said that they are feeling less motivated, more than four in 10 (41 percent) report feeling more anxious than usual and more than a third (37 percent) have experienced depression. 

The researchers also found that a third of women age 50 and over reported going 1 to 3 months without interacting with people outside of their household or workplace, and adults with low and middle incomes who report experiencing social isolation also say they felt more depressed than adults with higher incomes. Furthermore, only 11 percent of adults regardless of age turned to a medical professional when feeling down or sad, and almost a third reported that they did not look to anyone for support.

Getting Help to Strengthen Social Connections

Commander Scott Kelly, renowned astronaut who spent 340 days isolated in space, has teamed up with AARP Foundation and the UHF to spread the word about the seriousness of social isolation and provide tips on how to successfully emerge from it.  

“Living on the International Space Station for nearly a year with literally no way to leave wasn’t easy, so I took precautions for my mental and physical health seriously,” said Commander Kelly in a statement announcing the release of the report. “I’m advocating for individuals, particularly vulnerable older adults, to use available tools like Connect2Affect.org to strengthen their social connections,” he said.

Getting the Help You Need

Working closely with the UHF to help seniors impacted by the COVID-19 pandemic, the AARP Foundation recently expanded its website, (Connect2Affect.org) which was originally launched in 2016. The site offers a wealth of resources for socially isolated seniors to strengthen their social bonds.

This website provides help to individuals to assess their risk for social isolation, and to find support services in their local area. The website includes a Social Isolation Risk Assessment, a questionnaire to help individuals determine how connected they are to others and which resources would benefit them most.

Individuals can also tap into Chatbot, a component of the website, designed to provide friendly conversation with the goal of helping rebuild social connections. Chatbot conversations are secure, private and accessible 24/7.

“Social isolation is taking a toll on individuals and communities nationwide, and it’s especially pernicious for those who are 50 or older. This survey shows that older adults who have lower incomes and who are women are at greatest risk,” said Lisa Marsh Ryerson, president of AARP Foundation. “The tools and resources at Connect2Affect.org are designed to help older adults build and maintain the social connections they need to thrive,” she said.

Adds, Dr. Rhonda Randall, executive vice president and a chief medical officer at UnitedHealthcare added, “Many people don’t know that social isolation can have lasting effects on not only mental health — but also physical health. We’re focused on finding practical solutions to the lack of connections, companionship and the sense of belonging that we all need as humans.” 

For a copy of “The Pandemic Effect: A Social Isolation Report,” go to https://connect2affect.org/wp-content/uploads/2020/10/The-Pandemic-Effect-A-Social-Isolation-Report-AARP-Foundation.pdf.

COVID-19 Key Issue for Older Voters

Pubished in the Pawtucket Times on November 2, 2020

With Tuesday’s presidential election, hopefully most voters will have reviewed the policy and political positions of President Donald J. Trump and his Democratic challenger, former Vice President Joe Biden.  Throughout the months of this heated political campaign, especially during the two debates and at the town meetings each candidate held on the same evening, their positions diverged sharply on major issues, specifically the economy, immigration, foreign policy, global warming, abortion and COVID-19. In the final stretch of the presidential campaign, winning the war against COVID-19 has quickly become the top issue of voters. 

Over the months, Trump, 74, has barnstormed throughout the country, especially in battleground states, hoping to capture enough electoral votes to win a second term on Nov. 3.  While states reduce the size of gatherings to reduce the spread of COVID-19, throughout the campaign Trump’s rallies have continued to bring thousands of supporters together, with many flaunting local and state coronavirus-related crowd restrictions by not wearing masks or social distancing.  

However, Biden, 77, is always seen wearing a mask, urging his supporters at online and drive-in events to support his candidacy.  At those events, the former vice president called Trump rallies “super-spreader events,” and he stressed the importance of following the advice of public health and medical experts as to preventing the spread of COVID-19.

Differing Views on COVID-19

The 2020 presidential campaign has been overshadowed by the COVID 19 pandemic, with 9 million confirmed cases, 227,000 Americans dying from the coronavirus and an economic downturn forcing more than 31 million people to file for unemployment. During his rallies, Trump claimed “the nation has turned the corner,” calling for the country to “return to normalcy” even as COVID 19 hot spots were popping up across the nation.  Trump also promised the development of a vaccine and distribution after the election and treatment regimens.  Lately, he has suggested that physicians and hospitals are just inflating the number of COVID-19 deaths for profit, drawing the ire of the American Medical Association.

At an Oct. 18 Nevada rally, Trump charged that if Biden is elected there will be more coronavirus pandemic lockdowns because “he’ll listen to the scientists.” The president charged that will result “in a massive depression.”

In stark contrast, Biden countered Trump’s call for normalcy and his rosy assessment of a COVID-19 vaccine release by stating, “We’re about to go into a dark winter…He [has no clear plan, and there’s no prospect that a vaccine is going to be available for the majority of the American people before the middle of next year.”

 Oftentimes, Trump’s messaging of the importance of wearing a mask has not been clear, often times contradicting the Centers for the Disease Control and Prevention and the White House COVID-19 Task Force.  “I was okay with the masks.  I was good with it, but I’ve heard very different stories on masks,” he said during his town hall on NBC on Oct. 15.   The president opposes a mandate requiring the wearing of masks and favors leaving this decision to state governors and local leaders.

Turning a Deaf Ear to Public Health Experts

As COVID-19 spreads like wildfire across the nation, Trump and many of his supporters at his large campaign gatherings and even some GOP lawmakers continue to not wear masks or practice social distancing to stop the spread of the disease, their actions ignoring the warnings of the Centers for Disease Control and Prevention and Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases and a member of the White House COVID-19 Task Force.

According to an Oct. 12 CNN tweet, “Dr. Fauci says Pres. Trump resuming in-person rallies is “asking for trouble” and “now is… a worse time to do that because when you look at what’s going on in the United States it’s really very troublesome. A number of states, right now, are having increase in test positivity.”

During an interview with CNBC on Oct. 28, Reuters reported, that Dr. Fauci stated, “We are in a very different trajectory.  We’re going in the wrong direction,” noting the COVID-19 cases are increasing in 47 states and hospitals are being overwhelmed by these patients.”

“If things do not change,” Dr. Fauci warned, “If they continue on the course we’re on, there’s gonna be a whole lot of pain in this country with regard to additional cases and hospitalizations and deaths.”

Now researchers are beginning to shed light on Trump’s large rally gatherings and the spread of the COVID-19 among the supporters who attended the events.

Zach Nayer, a resident at Riverside Regional Medical Center in Newport News, and a colleague reviewed the number of new COVID-19 cases for the 14 days before and after each Trump rally from late June to a Sept. 25 Newport News event, and published their findings on Oct. 16 on the health news site STAT.

According to the researchers, the spikes in COVID-19 cases occurred in seven of the 14 cities and townships where rallies were held: Tulsa, Oklahoma; Phoenix; Old Forge, Pa.; Bemidji and Mankato in Minnesota; and Oshkosh and Weston, Wis.

Meanwhile on Oct. 30, Stanford researchers, studying 18 Trump rallies (between June 20 and Sept. 22) concluded that those large events resulted in more than 30,000 confirmed cases of COVID-19 and likely caused more than 700 deaths among attendees and their close contacts.

No End in Sight

Don’t expect the COVID-19 pandemic to end soon as the number of those infected and deaths continue to spiral out of control.  

According to the COVID Tracking Project, COVID-19 cases increased by 97,080 on Oct. 31, by far the largest one-day jump since the beginning of the pandemic last March, with Midwestern states leading a wave of infections, hospitalizations and deaths across the nation just before the Tuesday’s presidential election.  Experts say that those statistics refutes Trumps charges that the number of COVID 19 cases is growing due to increased testing. 

America’s oldest seniors have lived through the 1918 flu pandemic, the stock market crash of 1929, the Great Depression and World War II. Now they, along with aging Baby Boomers, face the risk of severe illness and death from COVID-19.  Among adults, the risk for severe illness from COVID-19 increases with age. According to AARP, 95 percent of the people across the nation that have died of COVID-19 were 50 and older even though most of the coronavirus cases have been reported in younger than 50.

Before older voters cast their ballots they must consider which presidential candidate’s leadership style can marshal the nation’s resources and devise the best strategy to combat COVID-19 and stop its spread. 

Do we reopen the nation, opening schools and businesses or do we consider lockdowns if recommended by the nation’s public health and medical experts?  Do we consider a “national mask mandate” or do we just leave it up to state governors to decide whether to implement an order requiring people to wear them in public? 

Your vote matters. For you older voters, it just might save your life.

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