Democratic Hopefuls and the Iowa Caucuses

Published in the Woonsocket Call on January 26, 2020

Just before the upcoming 2020 Iowa Democratic Iowa caucuses on Feb. 3, 2020, six of the twelve remaining Democrats presidential candidates came to Drake University in Des Moines on Jan. 14, 2020 to debate. While these candidates touted their positions on foreign policy,health care and rising drug costs at the Iowa Democratic Debate, not a single question was asked by the moderators about Social Security, the nation’s social insurance program, penned Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare (NCPSSM), in a blog article published on Jan. 15, 2020.

Seventy-three million viewers watched the two-hour Iowa Democratic Debate, the seventh Democratic presidential debate-hosted by The Des Moines Register and CNN.

Silence on Social Security

In this blog article, Richtman wondered why the Democratic candidate frontrunners in this debate never mentioned Social Security, a federal program that provides income to 64 million Americans during their retirement years. With prominent GOP lawmakers including Senate Majority Leader Mitch McConnell of Kentucky, Sen. Marco Rubio of Florida, and Sen. Joni Ernst of Iowa, calling for slashing Social Security entitlements, the need to expand and strengthen Social Security could have had a very visible platform for millions of viewers, he said. A discussion would have shined a light on the GOP’s continued efforts to slash retirement benefits that seniors rely on.

For the last seven months, NCPSSM had called upon media moderators at the various debates to ask the Democratic candidates to give their strategy on strengthening and expanding Social Security, says Richtman, noting “the appeals have fallen on deaf ears.”

While many of Democratic presidential candidates have touted their Social Security fixes on the campaign trail, those watching the Iowa debate had no clue about their positions, charged Richtman. He warned that a growing number of retirees will require a Social Security check to financially survive their later years, but this important domestic policy issue was never brought up in Iowa.

“Just one day before the Iowa debate [on Jan. 14,2020], the National Institute on Retirement Security released a new report which found that 40 percent of older Americans rely entirely on Social Security for retirement income. (Only 7 percent receive income from Social Security, a pension, and a defined contribution account like a 401K.) The average monthly benefit of $1,500 is barely sufficient to keep many seniors out of poverty,” penned Richtman to reinforce his point about the importance of Social Security to the nation’s seniors.

Health Care Tops Issue for Iowa Women Over 50

Although the Democratic presidential candidates were silent on Social Security during the Iowa Democratic Debate, the moderators allocated time to talk about access to health care. A recently released AARP poll found that health care is a top issue for Iowa women voters age 50 and up. As the Iowa Caucuses approach, the poll’s findings indicated that 48 percent of older women voters, including 57 percent of Democrats, rank health care as the most important issue facing the nation. And, 41 percent of women 50-plus give elected officials a failing grade on dealing with the cost of health care and prescription drugs.

“In 2020, older women plan to turn out in force, making them a key group that could decide this year’s elections,” said Nancy LeaMond, AARP EVP and Chief Advocacy & Engagement Officer in a Jan. 24 statement. “Candidates would be wise to listen to their concerns about issues like the cost of health care. It is by far the most important issue and has a real impact on older women’s day-to-day lives. Not being able to afford the care they need is putting their health and their financial security at risk,” she said.

The AARP survey was conducted by The Harris Poll on behalf of AARP from December 5 to December 25, 2019 among 1,001 age 50-plus, self-identified registered women voters in Iowa.

According to the AARP survey, among Democratic 50-plus women voters in Iowa, 60 percent say they will definitely or probably attend a caucus. More than one-third (37 percent) of the respondents say they can’t afford to pay for their health care, and 28 percent report skipping medical care because it was too expensive.

The poll’s findings indicate that more than half (53 percent) believe that drug companies charge too much for medication, and 45 percent say that health insurance companies prioritize profit over patient health. Close to half (43 percent) are not confident that they will have enough money to comfortably retire and 42 percent say it’s because their health care costs are too expensive.

Finally, almost all (87 percent) believe that health care is a right and not a privilege and that older people (89 percent) and those with pre-existing conditions (86 percent) should not have to pay more, says the researchers.
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The Iowa poll is the second in AARP’s “She’s the Difference” series, which will run throughout the 2020 election cycle. The series explores the priorities and concerns of women voters ages 50 and older – a key demographic that will likely determine the outcome of races across the country.

Before you Pull the Lever

In an interview, CNBC’s Joe Kernen recently asked President Donald Trump whether “entitlements” would ever be on your plate. He replied “At some point they will be…. And at the right time, we will take a look at that.”

When Kernen followed up, asking Trump about his “inclination to “do some of the things that you said you wouldn’t do in the past…in terms of Medicare,” the Republican president stated, “We’re going to look.”

Later, Trump would attempt to walk back on that politically charged comments on entitlements. Democrats quickly reminded the Republican president of a 2016 presidential campaign pledge he made not to touch Social Security and Medicare.

Combine Trump’s comments on CNBC with Senate Majority Leader Mitch McConnell of Kentucky and other GOP Congressional lawmakers who have not hidden their intent on cutting Social Security and Medicare to rein in a skyrocketing federal deficit that has resulted from a massive GOP tax break given to corporations, look for these programs to be put on the budgetary chopping block if an emboldened Trump takes control of the White House next November and the GOP becomes the majority in both chambers in Congress.

For those receiving a monthly Social Security check or enrolled in Medicare, voting becomes even more important than ever. Think carefully before you pull that lever in the voting booth.

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/.

NCPSSM Says It Pays Off to Delay Claiming Social Security Benefits

Published in Woonsocket Call on April 28, 2019

You have an eight-year window to choose to sign up for Social Security to collect your monthly benefit check. Some may be forced to collect Social Security at age 62, because of their finances, health and lifestyle. Others make a decision to wait until either age 66 (if you were born after 1954) or 67 (or born in 1960 or after) to collect full monthly benefits. While some even choose to wait until age 70, if they financially can, to get the maximum program benefits.

For this age 64-year old writer and to many of my older peers in their 60s, determining the right age to collect Social Security can be confusing at best. Will my decision, to make less by collecting at age 62 or more by waiting until full benefits are paid at age 66 or 67 or waiting to receive maximum benefits at age 70, provide me with adequate retirement income to pay my bills into my eighties or even nineties? The National Committee to Preserve Social Security and Medicare (NCPSSM) hopes to assist older workers to make the right decision for them through a new educational campaign, Delay & Gain.

Educational Campaign Kicks Off in Five Cities

This month, the NCPSSM kicks off a new educational campaign, Delay & Gain, to urge workers in their 60s to opt for more money, up to thousands of dollars per year in additional Social Security benefits, by working at least until their normal retirement age 66 or 67. Filing for Social Security at age 62 locks you into a lower benefit, permanently. You are not entitled to 100 percent of the benefit calculated from your earnings history unless you apply at your age 66 or 67
Launched by the Washington, DC-based NCPSSM, Delay & Gain includes a six-figure ad campaign targeting five U.S. cities where workforce participation is high, but too many workers are losing money by choosing to retire early.

According to NCPSSM, more than one-third of American workers claim Social Security at the early retirement age of 62, lowering their monthly benefits for the rest of their lives. In a recent survey of American workers, nearly half of respondents did not know that their monthly Social Security benefits will be reduced by claiming at the earliest eligible age of 62 — and boosted up to 25 percent for waiting until the full retirement age of 66. Seniors who delay claiming until age 70 receive an even larger financial bump — up to 44 percent more than if they had filed for benefits early. For the average beneficiary that can mean a difference of roughly $1,000 per month in extra income.

“We understand that not all workers have the option of working longer due to poor health, caregiving demands, age discrimination or physically demanding work. But we consistently hear from seniors who retired early because they were sick and tired of working, who soon discovered that they were more sick and tired of not having enough money in retirement,” says Max Richtman, NCPSSM’s President and CEO in an April 8 statement announcing this new initiative.

Many Benefits of Working Longer

The risks of running out of money in later life are very evident, says NCPSSM. “Some 8 percent of seniors under 70 live in poverty. But the poverty rate jumps to 12 percent for those over 85. Older women are in greater jeopardy than men, because they tend to live longer, saved less for retirement and lower Social Security benefits. Some 11 percent of all elderly women live in poverty compared to 8 percent of older men,” says NCPSSM, whose chief mission is to protect Social Security and Medicare.

“Because Social Security helps keep seniors out of poverty — and because benefits are adjusted for inflation — it’s imperative that workers maximize their future benefits,” says NCPSSM in its statement. “Retirees rely more and more on Social Security as they age. One-half of all retirees receive most of their income from Social Security. But 42 percent of seniors over age 80 depend on Social Security for almost all their cash income. With one in four 65-year-olds expected to live past 90, it’s evident why workers should try to reap the highest possible monthly benefits. As they say, you can outlive other sources of income, but not Social Security,” notes the aging advocacy group.

The Delay & Gain campaign was rolled-out in Baltimore, Maryland, Davenport, Iowa. Detroit, Michigan, Louisville, Kentucky, and Pittsburgh, Pennsylvania, on April 8, 2019. NCPSSM’s campaign will reach out to older workers through radio ads, videos, social media and mobile billboards while providing educational material for distribution and publication to Human Resource departments, community centers and libraries, and financial institutions. The campaign website, delayandgain.org offers additional resources including Ask Us, a free service where Social Security experts answer personal questions about benefits, filing a claim and more.

“We want seniors to be able to pursue a comfortable retirement, with the least amount of stress about paying the bills,” says Richtman. “This campaign will show older workers how to get there,” he notes.

Simply put, NCPSSM’s Delay & Gain initiative, can provide older workers with a simple strategy for planning their retirement, one that just might make their retirement years more comfortable.

Herb Weiss, LRI ’12, is a Pawtucket writer covering aging, health care and medical issues. To purchase Taking Charge: Collected Stories on Aging Boldly, a collection of 79 commentaries, go to herbweiss.com.