Income Inequality Among Retirees

For many older Americans, the rat race is over. But the inequality isn’t., By Peter Whoriskey, October 18, 2017, Washington Post: “While the rat race ends with retirement, one of its principal features extends well past a person’s last day of work. Income inequality in the United States spills over from the job into the last decades of life, according to a new survey that ranks the differences among U.S. retirees as among the most extreme in the 35-country comparison. The report being issued Wednesday by the OECD, or Organization for Economic Cooperation and Development, reports levels of inequality in a survey of member countries…”

Finances in Retirement

The new reality of old age in America, By Mary Jordan and Kevin Sullivan, September 30, 2017, Washington Post: “Richard Dever had swabbed the campground shower stalls and emptied 20 garbage cans, and now he climbed slowly onto a John Deere mower to cut a couple acres of grass.  ‘I’m going to work until I die, if I can, because I need the money,’ said Dever, 74, who drove 1,400 miles to this Maine campground from his home in Indiana to take a temporary job that pays $10 an hour.  Dever shifted gently in the tractor seat, a rubber cushion carefully positioned to ease the bursitis in his hip — a snapshot of the new reality of old age in America.  People are living longer, more expensive lives, often without much of a safety net. As a result, record numbers of Americans older than 65 are working — now nearly 1 in 5. That proportion has risen steadily over the past decade, and at a far faster rate than any other age group. Today, 9 million senior citizens work, compared with 4 million in 2000…”

Retirement Savings for Low-Income Workers

Trump Administration ends low-income retirement savings plan, By Paul Davidson, July 28, 2017, USA Today: “The Trump Administration said Friday it’s shutting down an Obama-era program aimed at encouraging low- and moderate-income households to save for retirement because the scant participation didn’t justify the cost…”

Retirement Savings for Low-Income Workers – California

Congress targets a California law that aims to give low-income workers retirement security, By Evan Halper, February 9, 2017, Los Angeles Times: ” An ambitious California law intended to help create retirement security for low-income workers is in the crosshairs of the Trump-era Congress, which is moving to block the state and others from launching programs to automatically enroll millions of people in IRA-type savings plans…”

Social Security and Student Loan Debt

The disturbing trend of people losing Social Security benefits to student debt, By Danielle Douglas-Gabriel, December 20, 2016, Washington Post: “To recoup student-loan debt, the government is leaving people who rely on Social Security with benefits that fall below federal poverty guidelines, the Government Accountability Office said Tuesday.  The number of older Americans defaulting on education loans has steadily increased in recent decades, as many have returned to college or co-signed loans for family members. Unpaid debt has resulted in the government garnishing the benefits of 114,000 people age 50 and older in the past year, more than half of whom were receiving Social Security disability rather than retirement income, the GAO report said…”

Medicaid and Long-Term Care

Medicaid safety net stretched to pay for seniors’ long-term care, By Anna Gorman, August 3, 2016, National Public Radio: “Donna Nickerson spent her last working years as the activity and social services director at a Turlock, Calif., nursing home. But when she developed Alzheimer’s disease and needed that kind of care herself, she and her husband couldn’t afford it: A bed at a nearby home cost several thousand dollars a month. ‘I’m not a wealthy man,’ said Nickerson’s husband Mel, a retired California State University-Stanislaus professor. ‘There’s no way I could pay for that.’  About half of all people turning 65 today will need daily help as they age, either at home or in nursing homes. Such long-term care will cost an average of $91,100 for men and double that for women, because they live longer…”

Retirement Security

Women more likely than men to face poverty during retirement, Associated Press, July 10, 2016, Chicago Tribune: “During their working years, women tend to earn less than men, and when they retire, they’re more likely to live in poverty. These are women who raised children and cared for sick and elderly family members, often taking what savings and income they do have and spending it on things besides their own retirement security. The National Institute on Retirement Security, a nonprofit research center, reports that women are 80 percent more likely than men to be impoverished at age 65 and older. Women age 75 to 79 are three times more likely…”