Tag Archives for U.S. Senate Special Committee on Aging

Social Security 2025 COLA expected to be small increase 

Published in RINewsToday on September 16, 2024

Stay tuned… Next year’s cost-of-living adjustment (COLA) will be announced by the Social Security Administration (SSA) in mid-October, upon the release of September’s annual inflation adjustment data.  SSA’s COLA for 2025 will be reflected in beneficiary checks starting in January of that year. Like clockwork, this happens annually, although beneficiaries may see their payments occasionally arrive a few days early due to holidays or weekends. 

The Senior Citizen’s League (TSCL) releases its COLA projections each month. The official COLA is determined by the Labor Bureau’s revised CPI-W data from July, August and September.

Some say SSA’s 2025 COLA is “Chump Change”

With one month left, TSCL’s latest COLA model results, released on Sept. 11, 2024, predicts that next year’s COLA will be 2.5 % based on a decline from 2.9% to 2.5% in consumer price data. While 2.5% is lower than the 3.2% received in 2024, that wouldn’t be far from the historical norm. The COLA has averaged about 2.6% over the past 20 years. It went as low as 0.0% in 2010, 2011, and 2016 and as high as 8.7% in 2023.

According to TSCL, by law, the annual inflation adjustment is based on the average inflation during July, August, and September as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The Bureau of Labor Statistics averages the CPI-W for these three months and then compares it with the same timeframe from the previous year, says the Alexandria-based nonprofit advocacy group whose mission is to protect Social Security, Medicare, and veteran or military retiree benefits.  

TSCL’s COLA latest analysis findings indicates that next year’s COLA of 2.5% would raise the average monthly benefit for retired workers of $1,920 by $48 or about $564 annually. The modest increase will not enable seniors to cover increasing cost of living expenses (including food, clothing, transportation, energy, and shelter costs).  “Rising grocery prices is creating food insecurity for many retirees. Feeding America estimated that 5.5 million Americans age 60 and above suffered from food insecurity in 2021, in the most recent study available on the subject, and that number is likely higher today,” note the researchers.

“Due to a higher cost of living, older Americans are using more and more of their income each month just to get by compared to a year ago. “Sixty-five percent of seniors reported monthly expenses of at least $2,000, up from 55% in 2023,” says TSCL’s COLA analysis, noting that statistical testing shows that there’s almost no chance that this gap is due to noisy survey variation. (The 2024 survey had 2,129 respondents; 2023 had 2,258 respondents.)

But low-income seniors aren’t the only ones who have seen their expenses rise, either, say the researchers, noting that more seniors are spending at least $4,000 or $6,000 per month compared to 2023, too, while fewer are able to get by on $1,000 or less. TSCL says that a rise in monthly expenses wouldn’t be much of an issue if seniors’ higher expenses were going to fun activities things, like activities with their grandchildren, or discretionary costs, like bucket-list vacations. However, this is not the case, says the Social Security advocacy group.  “Nearly 80% of senior households in the 2024 survey reported that their monthly budget for essential items like food, housing, and prescription drugs had increased over the last 12 months, with 63% saying they’re worried that their income won’t be enough to cover these basic costs in the coming months,” says the analysis findings.

Over the years, TSCL, along with other aging advocacy groups including the National Committee to Protect Social Security (NCPSSM) and Social Security Works, have called for higher COLAs.

Calls for Congress to change current COLA formula.

Last March, in correspondence to Sen. Bob Casey, Jr. (D-PA), chairman of the U.S. Senate Special Committee on Aging, NCPSSM, the Washington DC based Social Security advocacy group endorsed Casey’s legislative proposal, S. 3974, entitled the “Boosting Benefits and COLAs for Seniors Act.”  The proposal has been referred to the Senate Finance Committee.

Specifically, Casey’s legislative proposal, introduced March 19, 2024, would direct SSA to adjust benefits based on CPI-E rather than CPI-W, if CPI-E would result in a larger increase in benefits. The Bureau of Labor Statistics  (BLS) would calculate and publish the CPI-E on a monthly basis. The Senator believes it would be the most accurate measure of the real effect of inflation on the goods and services that are purchased by America’s seniors.

In NCPSSM’s correspondence, CEO and President Max Richtman strongly supported Casey’s call for requiring BLS to change the way it calculates SSA’s annual COLAs, using a CPI-E formula.

According to Richtman, SSA’s current formula for calculating COLAs is based upon the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is a measurement by the BLS of the changes in the prices paid for a market basket of goods and services purchased by urban wage earners and clerical workers.

“The current CPI-W has fallen far short of providing needed inflation protection because it fails to adequately measure the spending patterns of seniors,” says Richtman in his endorsement of Seniors typically spend more on out-of-pocket health care costs than other Americans, and in most years, the cost of health care rises more quickly than general inflation,” he says. “We believe adoption of your bill would go a long way toward protecting those on fixed incomes from the ravages of inflation,” says Richtman.

The following organizations have endorsed S. 3974: Arc of the United States; Alliance for Retired Americans; American Federation of Government Employees; American Federation of State, County and Municipal Employees; California Alliance for Retired Americans; Justice in Aging; National Committee to Preserve Social Security and Medicare; National Education Association; National Organization of Social Security Claimants Representatives; Social Security Works; Strengthen Social Security Coalition.

While former President Donald Trump and Vice-President Kamala Harris have both pledged to protect Social Security, nether have put out a specific plan to keep America’s retirement program solvent.

According to the last Social Security Trustees report, the Social Security Old-Age and Survivors Insurance  trust fund is projected to be depleted by 2033 at which point SSA will be forced to make a 21 percent across the board reduction.  The nonpartisan Committee for a Responsible Federal Budget estimates that this would be a $16, 500 cut in annual benefits for a typical dual-income couple retiring at the time of trust fund depletion. 

When the dust settles after the upcoming presidential election, the new president must make it a priority to hammer out a bipartisan fix along with pushing for requiring BLS to use the CPI-E Formula to accurately predict the impact of inflation on America’s retirees. 

Protecting your hard earned money from Holiday scammers 

Published in RINewsToday on December 18, 2023

f the Christmas holidays and consumers ramping up their holiday shopping, the Washington, DC AARP warns shoppers to be aware of the uptick of scams. A new 2023 AARP Fraud Watch NetworkTM report puts the spotlight on how criminals target consumers during the holiday season.  

According to the report, 80% of U.S. consumers say that they have experienced some type of fraud in 2023 – many occurring during holiday shopping season.  The researchers say that these scams have increased from last year’s report, from receiving fake notifications about shipments, to online ad scams, and more.

“The concerning findings from our annual survey are that fraud is on the rise and that knowledge about how to stay safe from fraud is dropping,” said Kathy Stokes, AARP Director of Fraud Prevention Programs in a December press release announcing this year’s findings. “Education plays an important role in combating fraud, but we can’t educate our way out of what is now a rampant issue,” she said.

AARP’s report noted that in 2023 significantly more consumers plan on shopping online compared to the last two years. With this increase in internet shopping, scammers often place fake ads online and across popular social media sites offering steep discounts on the hottest items. 

Although peer-to-peer payment platforms such as Venmo, PayPal, Square Cash, and Zelle, etc. have been around for awhile, they have become increasingly popular as a way to make online payments to businesses. Consumers turn to these platforms for convenience, speed and security.  

According to AARP’s findings, the use of these services have increased significantly for a second year in a row. A large majority of respondents shared they do business those, or similar, apps – such as sending money to businesses they have no previous relationship with. In the unfortunate event of fraud, these apps provide little protection to scammed consumers, warns the report.

Gift cards continue to be popular gifts, 66% of those surveyed planning to purchase them this holiday season. However, 27% of consumers have experienced either giving or receiving a gift card with no monetary value on it. “Criminals have old-school ways of manipulating cards hanging on retail racks and high-tech ways of searching online for cards with balances and draining them,” says AARP’s Stokes. “It may be safest to purchase a gift card directly from the card issuer’s website,” she notes.

In a 10-question fraud knowledge quiz that was again part of this year’s AARP survey, most respondents failed with only 28% of being able to answer only 7 or more questions correctly.   The quiz results call for the need to make consumers aware that retailers will never request your login information to provide customer support.  

AARP’s recently released report suggests: 

It’s better to use credit cards for purchasing gifts because they offer the most consumer protections of any payment method.

It’s important to regularly accept some upgrade prompts for your devices because these updates are to patch known fraud vulnerabilities.

It’s risky to do a web search for a company’s customer support network because criminals buy ads impersonating those companies. Check billing and credit card statements for customer service, use the number on the back of your credit cards, or go directly to the company by typing in their web address, like www.aarp.org.

AARP Rhode Island – Fighting Fraudsters

“AARP Rhode Island works hard every day to make sure that Rhode Islanders have all the information they need to protect themselves and their families from scams, especially around the holidays,” said AARP Rhode Island State Director Catherine Taylor. “We hold regular fraud-prevention tele-town halls, our Speakers Bureau volunteers give free Fraud Watch presentations to audiences across the state, and we fight fraud via AARP’s Fraud Watch network (www.aarp.org/fraudwatch), which provides vital information and scam alerts. Anyone can subscribe for free,” she says.

“Last summer, AARP Rhode Island held free document shredding events around the state where more than 900 people dropped off nine tons of documents,” Taylor added. “And we are so pleased that the General Assembly passed our bill to address gift card fraud this year. Retailers are now required to post warnings to consumers that it is always a scam if someone asks you to buy a gift care to pay a bill or fee.  If you can spot a scam, you can stop a scam,” she says.

Approaching holidays gives more opportunities for deception says RI Attorney General

“The best way Rhode Islanders can avoid falling victim to a scam during the holiday season, and year-round, is to stay vigilant and stay educated,” said Rhode Island Attorney General Peter Neronha. “Scammers are becoming more and more sophisticated in the way they target their victims, and the holidays provide new opportunities for deception. Rhode Islanders can and should call our office or visit our website for advice and information if they are faced with a possible scam situation.”

Watch out for text or phone scams that appear to be from UPS, FedEx, or other mail services, warns the AG’s Consumer Unit. This can be as simple as a text message stating that UPS tried to deliver a package, but was unable to do so, or as deceptive as a phone call telling a consumer they will not receive their package unless they pay money in cash or gift cards. Consumers should not click on any links they receive via text message or Facebook message from numbers they do not know.

The AG’s Consumer Unit says that paying by credit card gives consumers more protection than other forms of payment. The payment apps mentioned (Cash App, Zelle, PayPal, etc.) cannot offer the same level of protection as paying by credit card. Gifts cards and cash payments are a red flag that a consumer may be the victim or potential victim of a scammer. Do not buy from individuals who request payment outside of a trusted online marketplace’s payment system.

Always do your own research.  A consumer may be able to quickly determine whether they are being targeted by scammer from a simple online search including keywords and “scam” or “complaint.” User feedback on the Better Business Bureau website may also help consumers identify whether the company they are interacting with is legitimate or fraudulent, says the AG’s Consumer Unit.  

Before spending hard-earned money on an opportunity, good, or service that may be a scam, consumers can reach out to our Consumer Unit with questions or concerns at (401) 274-4400 (prompt 1). An investigator or attorney will get back in touch as soon as possible. Alternatively, consumers may file a complaint online at http://riag.ri.gov/forms/consumer-complaint.

To read the full 2023 AARP Fraud Watch Network Report and learn more visit: www.aarp.org/holidayscams2023

Additional Resources:

Finally, AARP Fraud Watch NetworkTM is a free resource that equips consumers with up-to-date knowledge to spot and avoid scams, and connects those targeted by scams with our fraud helpline specialists who provide support and guidance on what to do next. Anyone can call the helpline at 877-908-3360. AARP Fraud Watch NetworkTM also offers free, facilitated peer discussion groups that seek to provide emotional support for those experiencing fraud; and advocates at the federal, state, and local levels to enact policy changes that protect consumers and enforce laws.

For a copy of the U.S. Senate Special Committee on Aging, “Fighting Fraud: Top Scams in 2023, go to https://www.aging.senate.gov/imo/media/doc/fraud_book_2023__english.pdf.

Senate Aging Committee: Seniors urged to prepare for making financial decisions – Herb Weiss

Published in RINewsToday on January 31, 2022

Over two weeks ago, U.S. Senators Bob Casey (D-PA) and Tim Scott (R-SC), Chairman and Ranking Member of the U.S. Senate Special Committee on Aging, urged seniors and people with disabilities to make a New Year’s resolution to prepare for anticipated financial decisions.

The hearing highlighted the importance of President Joseph Biden’s Dec. 2021 executive order to enhance customer experiences across federal agencies and align services to support people at critical decision points in their lives, like turning 65. This executive order expands retirees’ ability to claim Social Security benefits online, receive updates on their application status and access personalized online tools for Medicare enrollment and coverage options.

At this Senate Aging Committee hearing held on Jan. 13, the Senators released a bipartisan report entitled, “Financial Literacy in Retirement: Providing Just-in-Time Information and Assistance to Older Americans and People with Disabilities” along with a brochure for consumers to help them navigate these decisions.

This Senate Aging Committee report examines the real-time information and help older Americans and people with disabilities need as they face changes in their lives, known as “just-in-time” financial literacy.

“This year, more than 10,000 Americans will turn 65 every day. Around kitchen tables all across the country, retirees and seniors are asking: ‘Should I take my Social Security or should I wait?’ and ‘Do I need to sign up for Medicare, or can I wait?’ These are not simple decisions,” said Casey. “As we begin 2022, I urge seniors to make a New Year’s resolution: take stock of your finances and get prepared for these upcoming decisions, says the Pennsylvania Senator in a statement.

Adds Scott, “Financial literacy is key to making the most out of the financial opportunities our country has to offer. And much like education, it never loses its power — no matter your stage of life,” noting that the report will empower seniors to make wise financial decisions, laying the groundwork for security and peace of mind in their golden years.

The 26-page report identifies the six common decisions that require, and can benefit from, this kind of financial literacy: claiming Social Security, enrolling in Medicare, annuitizing a 401(k), giving to charity, downsizing a home, and responding to a natural disaster.

Putting the spotlight on Financial Literacy in Retirement

Four witnesses testified at the one hour and 18-minute hearing.

In her testimony, Gerri Walsh, President of the Washington, DC-based Financial Industry Regulatory Authority, applauded the timeliness of the hearing because “financial literacy in America is low and has declined over time.”  She cited a 2009 study that found 42 percent of American adults demonstrated high levels of financial literacy, this figure deceasing to 34 percent in 2018. “Despite increasing low levels of financial literacy, 71 precent of Americans believe they have a high level of financial knowledge, suggesting widespread over confidence,” she told the attending Senators.

According to Cindy Hounsell, JD, President of the Washington, DC-based Women’s Institute for a Secure Retirement, many workers are not knowledgeable about issues they will face during their retirement.  The impact of future inflation and taxes is not known by most and is not included in financial planning for retirement. This can have an impact on retirement income. Individuals also are oftentimes confused about how much income they will need to cover their expenses in retirement.  Many retirees struggle to plan how they will draw down assets.  Longevity risk is poorly understood and not widely planning for.  Finally, women assume they will keep working beyond age 65 but will end up retiring earlier than expected due to job loss due to health issues, or caregiving.

“As a nation with an aging population, we need to educate the public on strengthening existing retirement programs wherever possible,” said Hounsell, “That means focusing especially on the links to both Social Security and Medicare, employer-sponsored retirement programs and emergency saving initiatives, and educating average workers about how these systems work to prevent penalties and loss of benefits,” she added.

Workers Not Knowledgeable About Retirement Issues

According to Hounsell, many workers are not knowledgeable about issues they will face during their retirement.  The impact of future inflation and taxes is not known by most and is not included in financial planning for retirement.  This can have an impact on retirement income. Individuals also are oftentimes confused about how much income they will need to cover their expenses in retirement. Many retirees struggle to plan how they will draw down assets.  Longevity risk is poorly understood and not widely planning for. Finally, women assume they will keep working beyond age 65 but will end up retiring earlier than expected due to job loss, health issues, or caregiving.

Dorothea Bernique, founder and executive director of North Charleston, South Carolina-based Increasing H.O.P.E. a financial training center, reported that 14.9 percent of the South Carolina households have income below the federal poverty threshold and have a lack of basic financial knowledge, this resulting in a very low well-being score of 18 percent in the state.

Bernique noted that lack of basic financial knowledge can result in seniors not having the ability to make choices during retirement. “Hence this is how our seniors end up as greeters at the nearest Walmart when they should be enjoying the golden years of their lives,” she said.

Finally,  Patti Szarowicz, a certified Aging and Disability Resource Connection (ADRC) Counselor at the Atlanta Regional Commission Area on Aging,  stated that she plays a critical role in assisting seniors navigate complex systems.  She helps callers to locate the nearest senior center and to find rides to medical appointments, to identify financial assistance in paying bills, securing home and community-based services and respite support groups for caregivers.

“I can hear the pain and despair in the voices of callers, who say things like, ‘I’m in trouble, and I don’t know what to do. Please call me back, I’m going to be homeless,’” she says.

Szarowicz called on Congress to support ADRCs to hire additional councilors, allocate more funding to enhance user-friendly technology for documenting client data and better integration across technology systems used, which includes telephone, resource database and client management systems. Public awareness of the national network of Area Agencies on Aging is also key to directing people to unbiased guidance for resources.

Take advantage of the Senate Aging Committee’s resources to make financial decisions, in your retirement years. You won’t regret it. 

To obtain a copy of the Senate Aging Committee report, go to https://www.aging.senate.gov/imo/media/doc/Financial%20Literacy%20Booklet.pdf.

To obtain a copy of the brochure, go to https://www.aging.senate.gov/imo/media/doc/Financial%20Literacy%20Brochure.pdf

Contact financial_literacy@aging.senate.gov to request printed copies of the brochure.

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