A digest of timely information and insight about finance, investing, and retirement.
Social Security is staring at its first real shortfall in decades | The New York Times
A slow-moving crisis is approaching for Social Security, threatening to undermine a central pillar in the retirement of tens of millions of Americans. Next year, for the first time since 1982, the program must start drawing down its assets in order to pay retirees all of the benefits they have been promised, according to the latest government projections. Unless a political solution is reached, Social Security’s so-called trust funds are expected to be depleted within about 15 years. Then, something that has been unimaginable for decades would be required under current law: Benefit checks for retirees would be cut by about 20 percent across the board.
Retirement
concerns show an uneven playing field for women
| PlanSponsor
Although many older Americans are
concerned about health care costs in retirement and outliving their savings,
women are even more so, due in part to earning less than men throughout their
careers, results from a recent National Council on Aging (NCOA)/Ipsos survey
show. Fifty-six percent of Americans age 60 and older are concerned that health
care costs will outpace their retirement savings, and 43 percent think the same
of prescription drug costs found. Women are even more concerned than men, with
60 percent worried about the rising costs of health care and 46 percent worried
about prescription drug costs. Of those over age 60, 51 percent of women are
worried about outliving their savings, outpacing the 48 percent of Americans,
overall, who share this same fear. Among those with household incomes of less
than $50,000, 61 percent are worried about outliving their savings. And
of women age 60 and older, 59 percent are worried about losing their
independence, whereas this is true for 54 percent of Americans overall.
Additionally, 46 percent of Americans in this age group are worried about being
a burden to their families. Among women, 52 percent share this fear, whereas
only 40 percent of men do.
Opinion: State pension funds shouldn’t be captive to politics | Buffalo News
The politicization of pensions continues plaguing [New York and other] states. In a misguided effort to fight climate change, New York State Sen. Liz Krueger introduced Senate bill 2126, the Fossil Fuel Divestment Act, earlier this year. This prompted an open letter from New York Comptroller Thomas DiNapoli, urging Krueger to reconsider this legislation on the basis that it limits his fiduciary responsibility to manage the state pension funds for the sole interest of its beneficiaries. DiNapoli is right — and the Legislature shouldn’t limit his ability to do his job. As a lifelong New Yorker and retired officer of the Fire Department of New York, the author believes in empowering fiduciaries to make the best decisions for the funds without the influence of politics. By cutting investments that have generated more than $4 billion over the past decade, the Senate bill would force DiNapoli to abdicate his fiduciary responsibility, which stands independent of political and social opinions.
The retirement quiz that everyone is failing | Forbes
Included here are 10 of the most difficult retirement questions someone will ever be asked. It’s a short but painful test that is designed to give people pause and question the ways they have been taught to think about and plan for retirement. Each question only requires a simple “Yes” or “No” answer. Scoring is simple, each “Yes” answer counts for 10 points. Anything below a 60 percent is failing and should garner immediate attention.
How much will your retirement cost? | Fox Business
How much will retirement cost? If that question stops you in your tracks, you’re not alone. A Bankrate survey found 61 percent of Americans don’t have a clue about how much they need to save for their future. That’s alarming news, considering pensions have dissipated and individuals are now expected to rely on themselves more than ever when it comes to saving for their future. You may have heard from some experts that a person needs about $1 million in the bank to retire comfortably, or perhaps even a more modest estimate of what it might take. But with all of the advice out there, how can anyone know which figure is most relevant to them?
Can you get what you need in retirement? | USA Today
The Rolling Stones kicked off their “No Filter” U.S. concert tour in June. It’s no secret this iconic band has been — and continues to be — the voice of a generation since they disrupted the music and cultural scene several decades ago. Equally impressive, however, is their ongoing demonstration that you can keep doing what you love in life regardless of age. While society has long labeled “retirement” as life after work, it seems increasingly more Americans — especially baby boomers — are following the Stones’ example by reimagining their later years and what they want out of them. Increased longevity, advances in medical care and dramatic social and cultural changes have given millions of Americans an additional 20 to 30 or more years of living life on their own terms.
Trust fundA fund in which money and/or other assets are held and managed by trustees on behalf of plan participants. PERA maintains trust funds for each of its Defined Benefit Plan divisions (State, Local Government, School, Denver Public Schools, and Judicial).FiduciaryA person who manages money on someone else’s behalf and who has a sworn responsibility to manage those funds in the best interest of the client. DivestmentThe act of selling one’s investments in a particular company or sector, often for philosophical or political reasons.
I think Social Security Tax is on a person’s first $155,000. With all the wealth being in the top 1% of the country, and with all the professional athletes making about $500,000 a year minimum and a majority of them making over a million dollars a year, why isn’t that cap of $155,000 raised significantly???