Latest news with #babyboomer
Yahoo
5 days ago
- Business
- Yahoo
Americans are filing for Social Security at record rates. Here's why.
Older Americans are filing for Social Security benefits at a record rate this year, a surge that could reflect growing anxiety about the stability of the retirement system amid cutbacks under the Trump administration, experts say. The number of people claiming Social Security jumped 17% to 1.8 million this year through May compared with the same period a year ago, according to the most recent data from the Social Security Administration. For the federal fiscal year, new filings are on track to reach 4 million, up 15% from the prior fiscal year, the Urban Institute said in a new analysis of claims data. The spike in early benefits claims comes as the Trump administration has slashed jobs and made other changes at the Social Security Administration, an agency already struggling to provide services to the nearly 70 million retirees, disabled people and survivors of deceased workers who rely on the program. These developments are likely prompting the surge in new filings, as well as an increase in calls and in-person visits to Social Security offices since January, the Urban Institute said. Although Mr. Trump has vowed not to touch Social Security, his administration is has cut the agency's staffing to 50,000 workers, down from its current level of about 57,000 workers. The agency's workforce has been shrinking for years, with the AARP noting that the Social Security Administration had 63,000 workers in 2015. Even as its workforce shrinks, the Social Security Administration is serving more people, with the number of beneficiaries rising 19% from about 59 million people in 2015 to about 70 million today, its data shows. "I have attended several town halls around the country, and many people have asked if they should claim benefits early given Trump and [Elon] Musk's interference in the system," Max Richtman, president of the National Committee to Preserve Social Security and Medicare, an advocacy group for the two retirement programs, told CBS MoneyWatch. He added, "People are scared, and they're not sure what to do." To be sure, Americans have long held concerns about the stability of the Social Security system. Because the agency is paying out more in benefits than it's taking in through payroll taxes due to the nation's aging demographics, the program is currently dipping into its trust fund to pay beneficiaries. Without changes to the program, the trust fund is slated to be depleted in 2035, which will trigger a benefits cut of about 20%, the agency has forecast. An aging society Other factors could be driving the increase in early Social Security filings, the Urban Institute said. For one, the baby boomer generation is hitting "peak 65" as a record number of people hit retirement age, although that demographic shift isn't enough to entirely explain this year's surge in claims, the think tank noted. Another cause could be the Social Security Fairness Act, which provides more retirement benefits to public servants such as teachers, firefighters and police officers, and could encourage more people to file, the Urban analysis said. The Social Security Administration didn't respond to a request for comment. Frank Bisignano, the agency's new commissioner, told CBS News last month that the program will be able to provide services to beneficiaries despite the staffing cuts "through technology and process engineering." He added, "Everybody is committed to Social Security for the rest of time." The downside to claiming early The agency is receiving more early claims from higher-income Americans, especially at age 62, which is the earliest age at which a worker can start receiving their monthly Social Security benefits, the Urban Institute said. But there's a major cost to claiming at 62. While it might seem prudent to claim early if you're worried Social Security won't be around in a few years — something that experts say is extremely unlikely — the tradeoff is a permanently lower monthly benefit. People who claim Social Security benefits at 62 receive about 30% less in their monthly checks than if they wait until they turn 67, which is currently the program's full retirement age. Older Americans can collect even greater benefits if they delay filing past their full retirement age, getting an extra 24% boost to their monthly check if they wait until they turn 70. Because of that math, Richtman said his group recommends holding off on claiming, even though people might be fearful about the program's health. "Their concern is understandable. But we advise workers not to claim early out of fear, because filing for Social Security before full retirement age results in a lifetime reduction in benefits," he said. Sneak peek: Where is Jermain Charlo? Baldwin grills McMahon on unallocated funds for students, schools, approved by Congress Hegseth orders Navy to rename USNS Harvey Milk, Jeffries calls it "a complete and total disgrace"
CBS News
5 days ago
- Business
- CBS News
Americans are filing for Social Security at record rates amid fears about its future
Older Americans are filing for Social Security benefits at a record rate this year, a surge that could reflect growing anxiety about the stability of the retirement system amid cutbacks under the Trump administration, experts say. The number of people claiming Social Security jumped 17% to 1.8 million this year through May compared with the same period a year ago, according to the most recent data from the Social Security Administration. For the federal fiscal year, new filings are on track to reach 4 million, up 15% from the prior fiscal year, the Urban Institute said in a new analysis of claims data. The spike in early benefits claims comes as the Trump administration has slashed jobs and made other changes at the Social Security Administration, an agency already struggling to provide services to the nearly 70 million retirees, disabled people and survivors of deceased workers who rely on the program. These developments are likely prompting the surge in new filings, as well as an increase in calls and in-person visits to Social Security offices since January, the Urban Institute said. Although Mr. Trump has vowed not to touch Social Security, his administration is has cut the agency's staffing to 50,000 workers, down from its current level of about 57,000 workers. The agency's workforce has been shrinking for years, with the AARP noting that the Social Security Administration had 63,000 workers in 2015. Even as its workforce shrinks, the Social Security Administration is serving more people, with the number of beneficiaries rising 19% from about 59 million people in 2015 to about 70 million today, its data shows. "I have attended several town halls around the country, and many people have asked if they should claim benefits early given Trump and [Elon] Musk's interference in the system," Max Richtman, president of the National Committee to Preserve Social Security and Medicare, an advocacy group for the two retirement programs, told CBS MoneyWatch. He added, "People are scared, and they're not sure what to do." To be sure, Americans have long held concerns about the stability of the Social Security system. Because the agency is paying out more in benefits than it's taking in through payroll taxes due to the nation's aging demographics, the program is currently dipping into its trust fund to pay beneficiaries. Without changes to the program, the trust fund is slated to be depleted in 2035, which will trigger a benefits cut of about 20%, the agency has forecast. An aging society Other factors could be driving the increase in early Social Security filings, the Urban Institute said. For one, the baby boomer generation is hitting "peak 65" as a record number of people hit retirement age, although that demographic shift isn't enough to entirely explain this year's surge in claims, the think tank noted. Another cause could be the Social Security Fairness Act, which provides more retirement benefits to public servants such as teachers, firefighters and police officers, and could encourage more people to file, the Urban analysis said. The Social Security Administration didn't respond to a request for comment. Frank Bisignano, the agency's new commissioner, told CBS News last month that the program will be able to provide services to beneficiaries despite the staffing cuts "through technology and process engineering." He added, "Everybody is committed to Social Security for the rest of time." The downside to claiming early The agency is receiving more early claims from higher-income Americans, especially at age 62, which is the earliest age at which a worker can start receiving their monthly Social Security benefits, the Urban Institute said. But there's a major cost to claiming at 62. While it might seem prudent to claim early if you're worried Social Security won't be around in a few years — something that experts say is extremely unlikely — the tradeoff is a permanently lower monthly benefit. People who claim Social Security benefits at 62 receive about 30% less in their monthly checks than if they wait until they turn 67, which is currently the program's full retirement age. Older Americans can collect even greater benefits if they delay filing past their full retirement age, getting an extra 24% boost to their monthly check if they wait until they turn 70. Because of that math, Richtman said his group recommends holding off on claiming, even though people might be fearful about the program's health. "Their concern is understandable. But we advise workers not to claim early out of fear, because filing for Social Security before full retirement age results in a lifetime reduction in benefits," he said.
The Hindu
7 days ago
- Business
- The Hindu
Can emojis aid workplace communication?
Almost nine in ten (88%) of Gen Zers say emojis are useful at work. They enhance workplace communication, spark the right emotion and help build connections, says an Atlassian survey. Atlassian, in collaboration with YouGov, surveyed 10,000 knowledge workers from the USA, Australia, France, Germany and India regarding their workplace communication and productivity from August 8 to 24, 2024. A joint report by Boston Consulting Group (BCG) and Snap Inc projects that Gen Z already makes up 25% of India's workforce, a figure set to grow to 47% by 2035. But a general misalignment in communication practices between newer workforce entrants and their older colleagues is exemplified by the emoji debacle: less than half of Gen X and baby boomer knowledge workers think emojis have a place at work. This disagreement can ladder up to major cultural issues, especially in workplaces where written communication is the norm: Almost all respondents (93%) regularly communicate in writing; nearly half (44%) said written communications are their primary mode of contact, ahead of speaking in-person. According to the report, emojis are part of Gen Z's digital body language, a term for the day-to-day behaviours, such as how quickly someone responds to a message, whether they use emojis, their punctuation and tone. Digital body language is a crucial form of workplace expression and a key to forming enduring bonds. Dominic Price, Work Futurist at Atlassian, in a communication, says: 'The way we talk at work has gone through a full-blown transformation. Emails, DMs, Slack threads, Zoom chats—it's all digital now. And for a lot of us, that shift has been a learning curve,' explains In fact, Gen Z is 4x as likely as Gen X to experience unclear communication daily, and half of Gen Z respondents (48%) say they waste time each week attempting to interpret written messages from their colleagues — time that could otherwise be used for productive, mission-critical work. Gen Z brings a fundamentally different set of workplace expectations. Many of them entered full-time employment during and immediately after the pandemic; from the beginning, they have been chasing emotional cues in a context-starved world. As they look for jobs, approachable language is more than just a nice-to-have; it is an expectation. Gen Zers are motivated by emoji reactions at 2.5x the rate of their Boomer colleagues. Nearly two-thirds (61%) of Gen Zers admitted they are more likely to read messages that drop in an emoji or two.
Yahoo
03-06-2025
- Business
- Yahoo
As boomers are forced to ‘unretire' because they've not saved enough, 6-year-olds in Germany could soon have retirement accounts
Millions of baby boomers are being forced out of retirement, having realized their nest eggs don't quite make ends meet. With people living longer than ever, the issue will only get worse. So Germany is considering preparing Gen Alphas for the decades they'll one day be retired, with an 'early start pension' plan. After having a brief taste of retirement, a sizable chunk of Gen X and baby boomer retirees are dusting off their suits and returning to work instead, having not saved up enough to kick up their feet in the current climate. It's a fate that Gen Alpha in Germany may never have to face. That's because children as young as 6 could start saving for retirement, under new plans. As per a report from CNBC, Germany's coalition government has proposed an 'early start pension'—a retirement program designed for children between 6 and 18 years old. Unlike your regular pension pot, which requires putting aside a portion of your salary for your future self, the country's government would pay out 10 euros ($11) a month to children in education under this new plan. Over 12 years of eligibility, this could accumulate to more than 1,440 euros per child, not counting the potential investment gains from compounding interest over the decade. Then, from the age of 18 onward, they can add personal funds to the accounts and enjoy tax-free profits. However, that cash will become accessible to account holders only when they reach retirement age—which is currently set at 67 in Germany. 'The government plans to strengthen the state pension as well as reforming company pension schemes and private pensions,' a spokesperson confirmed the plans to Fortune. 'As one project, the so-called early start pension aims at offering young people perspectives for fund-based private pensions.' People are working well beyond retirement age globally. They're living longer than expected, caring for both their elderly parents and Gen Zers, and wanting to enjoy the fruits of their labor with lavish vacations instead of pottering around. It's why the number of those who have continued to work past 65 in the U.S. has quadrupled since the 1980s, according to the Pew Research Center. Now, almost 20% of Americans 65 and older are employed. That's around 11 million people and nearly double the share of those who were working 35 years ago. In the U.K., nearly 20% of baby boomers and late Gen Xers are similarly 'unretiring'—or planning to, because their retirement desires don't match up to the nest egg they've built. It's why it's never too soon to start retirement planning. The renowned financial expert Suze Orman previously highlighted that Gen Z and millennials could indeed retire as millionaires if they make the most of compound growth while they're young. She used just $100 to highlight how powerful compound growth is. By investing $100 every month from the ages of 25 to 65 into an account with a 12% yield, Gen Z could retire with around $1,188,342. A millennial who started their investment journey just five years later, at age 30, would accumulate around $649,626 by age 65, she warned. 'With a 12% annual average rate of return—the markets can do that for you—you'd have a million dollars,' she explained. 'If there's anything the younger generation needs to understand, it's that the key ingredient to any financial freedom recipe is compounding.' So you can only imagine what the numbers could look like for someone who started saving at 6, not 26. By the time they reach their golden years, they could be living the retirement dreams their parents had to return to work to chase. Have you set up a pension for your child? Fortune wants to hear from you. Get in touch: This story was originally featured on
Yahoo
03-06-2025
- Business
- Yahoo
As boomers are forced to ‘unretire' because they've not saved enough, 6-year-olds in Germany could soon have retirement accounts
Millions of baby boomers are being forced out of retirement, having realized their nest eggs don't quite make ends meet. With people living longer than ever, the issue will only get worse. So Germany is considering preparing Gen Alphas for the decades they'll one day be retired, with an 'early start pension' plan. After having a brief taste of retirement, a sizable chunk of Gen X and baby boomer retirees are dusting off their suits and returning to work instead, having not saved up enough to kick up their feet in the current climate. It's a fate that Gen Alpha in Germany may never have to face. That's because children as young as 6 could start saving for retirement, under new plans. As per a report from CNBC, Germany's coalition government has proposed an 'early start pension'—a retirement program designed for children between 6 and 18 years old. Unlike your regular pension pot, which requires putting aside a portion of your salary for your future self, the country's government would pay out 10 euros ($11) a month to children in education under this new plan. Over 12 years of eligibility, this could accumulate to more than 1,440 euros per child, not counting the potential investment gains from compounding interest over the decade. Then, from the age of 18 onward, they can add personal funds to the accounts and enjoy tax-free profits. However, that cash will become accessible to account holders only when they reach retirement age—which is currently set at 67 in Germany. 'The government plans to strengthen the state pension as well as reforming company pension schemes and private pensions,' a spokesperson confirmed the plans to Fortune. 'As one project, the so-called early start pension aims at offering young people perspectives for fund-based private pensions.' People are working well beyond retirement age globally. They're living longer than expected, caring for both their elderly parents and Gen Zers, and wanting to enjoy the fruits of their labor with lavish vacations instead of pottering around. It's why the number of those who have continued to work past 65 in the U.S. has quadrupled since the 1980s, according to the Pew Research Center. Now, almost 20% of Americans 65 and older are employed. That's around 11 million people and nearly double the share of those who were working 35 years ago. In the U.K., nearly 20% of baby boomers and late Gen Xers are similarly 'unretiring'—or planning to, because their retirement desires don't match up to the nest egg they've built. It's why it's never too soon to start retirement planning. The renowned financial expert Suze Orman previously highlighted that Gen Z and millennials could indeed retire as millionaires if they make the most of compound growth while they're young. She used just $100 to highlight how powerful compound growth is. By investing $100 every month from the ages of 25 to 65 into an account with a 12% yield, Gen Z could retire with around $1,188,342. A millennial who started their investment journey just five years later, at age 30, would accumulate around $649,626 by age 65, she warned. 'With a 12% annual average rate of return—the markets can do that for you—you'd have a million dollars,' she explained. 'If there's anything the younger generation needs to understand, it's that the key ingredient to any financial freedom recipe is compounding.' So you can only imagine what the numbers could look like for someone who started saving at 6, not 26. By the time they reach their golden years, they could be living the retirement dreams their parents had to return to work to chase. Have you set up a pension for your child? Fortune wants to hear from you. Get in touch: This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
