Latest news with #olderAmericans
Wall Street Journal
19 hours ago
- Business
- Wall Street Journal
Want to Pass On All Those Frequent-Flier Miles to Heirs? It's Tricky
It may have taken a lifetime to accrue your nest egg of reward points with an airline or credit card, but there is no guarantee your heirs will be able to spend them. With more ways to earn miles and credit-card points than ever, many older Americans have a bigger gold mine of rewards than they realize. Airlines and other travel-reward programs, though, make it tough to leave them behind. In most cases, airlines will close the accounts of travelers once they die, taking back points that can be worth thousands of dollars.
Forbes
3 days ago
- Business
- Forbes
Nothing Beautiful About 21% Cuts To Social Security
the real risk is doing nothing is not only an inspirational reminder to not procrastinate it is a ... More political strategy for those who want to cut Social Security. In first 200 days into President Trump's second administration, Social Security is under both overt and covert attack. Though there are no dramatic cuts to Social Security being proposed, don't be fooled – doing nothing is doing something bad. Here's what people are asking, and what they need to know. Social Security is the foundation of retirement income for a majority of older Americans. Nearly 90% of people over 65 receive benefits, and for 40% of them, it accounts for more than half of their income. For about 1 in 7, it provides over 90% of what they live on. Social Security has never missed a payment in its 90-year history. Yet many retirees today are living on the edge. The median benefit—about $1,976 per month—is simply not enough to cover basic expenses in many parts of the country. Older women are especially vulnerable. Because they tend to earn less, live longer, and have fewer retirement savings, Social Security is often their only source of income. Without it, elder poverty in the United States—already the highest among G7 countries—would be much worse. The primary challenge is not demographic. Yes, more people are retiring than ever before—over 60 million Americans now receive Social Security retirement benefits, up from about 32 million in 1983—but we knew this would happen. Back in 1983, Congress believed it had adequately funded the program to prepare for the aging Baby Boomer population. What lawmakers did not anticipate was that wage growth would be concentrated at the top, above the Social Security payroll tax cap. As a result, most earnings growth escaped Social Security taxation. Meanwhile, more wages stagnated and a growing share went to cover health insurance—income that is also exempt from Social Security taxes. Wage stagnation, periods of unemployment, and the rise of under-the-table and gig work, where neither employers nor workers contribute to Social Security, have all reduced revenue flowing into the system. That's why the program is now paying out more than it collects. Since 2010, annual costs have exceeded tax income. The system has survived by drawing down the Trust Fund—but that fund is running out. By 2033, unless Congress acts, Social Security will only be able to pay 79% of promised benefits. This isn't a forecast anymore—it's a countdown. A 21% across-the-board cut would hit everyone – about $16,500 cut in annual benefits for a typical dual-income couple – regardless of income. Future retirees—especially Gen X and Millennials—face a far more precarious future because they have fewer defined benefit pensions, and are more likely to rely on volatile market-based savings like 401(k)s. But a 401(k) is better than nothing and 50% of U.S. workers at any one point in time have nothing – their employers don't have retirement plans. And while stocks and housing markets have grown, these gains have primarily benefited the wealthy. The median retirement savings for the bottom 50% of Americans is zero. Meanwhile out-of-pocket healthcare and long-term care costs are projected to exceed $120,000 for the average person turning 65 today. Most retirees are not prepared to bear that burden, especially with eroding Social Security benefits and Medicaid cuts. Older people need Medicaid and so do their family members – who would have paid if it weren't for Medicaid. Surprisingly, middle and upper income people will rely on Medicaid more and more for long-term care. Now, over 30% of 70-year-old singles in the bottom third of the income distribution receive Medicaid as does over 10% of singles in the top third if they survive into their 90s. And, middle - income folks who spend at least two years in a nursing home are nine times more likely to be on Medicaid than those who are not. According to PolicyLink and the Urban Institute, the median present value of lifetime Social Security benefits for Gen Z is $410,000 ($439,900 for white non-Hispanic, $359,800 for Hispanic, and $332,700 for Blacks). Research from The New School shows that among near-retirees, Social Security wealth is $188,300 for the bottom 50%, (vital because they have no retirement savings or home equity. For the middle 40%, Social Security wealth is $300,500, worth more than the $200,000 in their retirement accounts and $128,000 in home equity. There's no mystery here. The solution is revenue. One of the most effective and popular reforms would be to lift or eliminate the cap on earnings subject to the payroll tax. Right now, people stop paying into Social Security once they earn above $168,600. In effect, a millionaire pays a smaller share of their income into Social Security than a middle-class teacher or nurse. Raising revenue solutions are included in the proposed Social Security 2100 Act including: To help people save for retirement we need to creating an automatic, public supplemental retirement account to ease pressure on families hoping to live on Social Security alone. The Retirement Savings for Americans Act debated by Congress now would do that. Because inaction is the strategy. The current administration and its allies in Congress are choosing to 'do nothing'—a deeply political choice that ensures Social Security will hit the wall by 2033. That is not passive. That is deliberate negligence. A benefit cut of 21% isn't hypothetical—it's already written into law if Congress fails to act. Moreover, Trump's 'no tax on tips' proposal in the"One Big Beautiful Bill" sounds generous to workers but it would significantly reduce Social Security's revenue by about $30 billion and accelerate its insolvency to as soon as 2032, according to the Committee for a Responsible Federal Budget. And there's more: 1) layoffs of 7,000 SSA workers, closure of offices, 'fraud crackdowns' that deny people access to benefits, and 2) the elimination of evaluation and independent research – on Feb. 21, 2025 D.O.G.E cut the Research and Disability Research Centers at 6 Universities – on Social Security could lead to self-dealing, politicization and inefficiency. These efforts erode the public's trust and the agency's ability to serve its mission. A letter requesting RDRCs to be reinstated from respected academics and groups advocating for the aged was sent to Republican and Democratic lawmakers – Susan Collins, Patty Murray, Tom Cole and Rose DeLauro in March. If nothing changes, benefits will be cut by 21% in less than a decade. For a median retiree, that's a loss of about $414 a month. That's not just a policy failure. It's a betrayal of a promise. Americans paid into Social Security with every paycheck they earned. To renege now is not fiscal prudence—it's political cowardice. As I've said before: enemies of Social Security don't need to pass a bill to kill it. They just need to run out the clock. Every day of inaction is an act of aggression against the system that protects our elders from poverty and indignity. It's time to stop pretending that nothing is happening to Social Security. Social Security card sinking underwater in stormy seas as concept for issues around funding of USA ... More pensions to seniors
Bloomberg
27-05-2025
- Business
- Bloomberg
The Silver Tsunami Is Keeping the US Economy on Track
There are plenty of reasons to be concerned about the direction of the US economy right now. The hiring rate is sluggish. The housing market is dormant, with younger Americans shut out. Borrowing costs are high and moving higher as Congress pieces together a deficit-expanding fiscal package. Yet the economic data continues to paint a picture of resilience. That's thanks to older Americans, who are helping to keep the economy from falling into recession. They are less affected by labor market uncertainty, less likely to be struggling in the housing market (the average age of homebuyers is a record 56), and they will be recipients of the growth in federal spending. This group is providing fuel to the economy at a weak point in the economic cycle, something we didn't see as much in the mid-2000s or mid-2010s.
Daily Mail
16-05-2025
- Business
- Daily Mail
Seniors at risk of having Social Security checks cut
By and AP Published: | Updated: Hundreds of thousands of older Americans are at risk of having their Social Security checks cut as a result of decades-old student loan debts. Last month, the Trump administration announced that it would start clawing back student loan debts in default through involuntary collections beginning on May 5. It marked an end to a period of leniency that began during the Covid-19 pandemic and was supported by the Biden Administration. The Education Department said it would garnish wages, tax refunds, Social Security retirement and disability benefits to pay back loans. Student loan debt among older people has grown at a staggering rate, in part due to rising tuitions that have forced more people to borrow greater sums, AP News reported. People 60 and older hold an estimated $125 billion in student loans, according to the National Consumer Law Center, a six-fold increase from 20 years ago. That has led Social Security beneficiaries who have had their payments garnished to balloon by 3,000 percent - from approximately 6,200 beneficiaries to 192,300 - between 2001 and 2019, according to the Consumer Financial Protection Bureau. 73-year-old Christine Farro previously had her vital Social Security benefits garnished, and she expects it to restart. Despite living on a tight budget, Farro has not been able to pay off her student loans. She was a single mother when she got a bachelor's degree in developmental psychology and when she discovered she couldn't earn enough to pay off her loans, she went back to school and got a master's degree. Her salary never caught up. Things only got worse. Around 2008, when she consolidated her loans, she was paying $1,000 a month, but years of missed payments and piled-on interest meant she was barely putting a dent in a bill that had ballooned to $250,000. When she sought help to resolve her debt, she says the loan company had just one suggestion. 'They said, "Move to a cheaper state,"' says Farro, who rents a 400-square-foot casita from a friend. 'I realized I was living in a different reality than they were.' This year, an estimated 452,000 people aged 62 and older had student loans in default and are likely to experience the Department of Education's renewed forced collections, according to a January report from CFPB. Linda Hilton (pictured), a 76-year-old retired office worker from Apache Junction, Arizona, went through garnishment before Covid and says she will survive it again. But flights to see her children, occasional meals at a restaurant and other pleasures of retired life may disappear. 'It's going to mean restrictions,' says Hilton. 'There won't be any travel. There won't be any frills." Debbie McIntyre, a 62-year-old adult education teacher in Georgetown, Kentucky, is likely to also see forced collections. Her husband has been out of work on disability for two decades and they've used credit cards to get by on his meager benefits and her paycheck. Their rent will be hiked $300 when their lease renews. McIntyre doesn't know what to do if her paycheck is garnished. 'I don't know what more I can do,' says McIntyre, who is too afraid to check what her loan balance is. 'I'll never get out of this hole.' Braxton Brewington of the Debt Collective debtors union says it's striking how many older people dial into the organization's calls and attend its protests. Many of them, he says, should have had their debts cancelled but fell victim to a system 'riddled with flaws and illegalities and flukes.' Many whose educations have left them in late-life debt have, in fact, paid back the principal on their loans, sometimes several times over, but still owe more due to interest and fees. For those who are subject to garnishment, Brewington says, the results can be devastating. 'We hear from people who skip meals. We know people who dilute their medication or cut their pills in half. 'People take drastic measures like pulling all their savings out or dissolving their 401ks. We know folks that have been driven into homelessness.' Collections on defaulted loans may have restarted no matter who was president, though the Biden administration had sought to limit the amount of income that could be garnished. Federal law protects just $750 of Social Security benefits from garnishment, an amount that would put a debtor far below the poverty line. Some debtors have already received notice about collections, but many more are living in fear, AP reported. President Donald Trump has signed an executive order calling for the Department of Education's dismantling and, for those seeking answers about their loans, mass layoffs have complicated getting calls answered.
Forbes
16-05-2025
- Health
- Forbes
How Does Medicare Treat Chronic Back Pain?
Chronic back pain is the bane of tens of millions of older Americans. You've heard about these problems: My back hurts so bad I can't straighten up. My back pain is relentless. I can't do anything. I don't know what to do to get relief from this back pain. Maybe you've even experienced back pain. Too many times, back pain is chronic, which meaning Medicare defines as lasting 12 weeks or longer. Almost 50% of those aged 65 and over suffer from back pain. That's probably because so many medical conditions can cause the issue. The more common ones include: Some of the first recommendations for dealing with chronic back pain are walking, swimming, exercise routines, back braces; all safe, cheap, and sometimes effective options. When those measures don't provide adequate relief, it's time to move into prescribed treatments. That's where Medicare enters the picture. Medicare coverage begins with prescription medications; that brings in Part D drug plans. There are many different categories of drugs that treat back pain and the choice depends on the situation. Here are five of the more common groups. Not every drug plan will cover every medication and a plan may require prior authorization. If a new drug is under consideration, check the Medicare Plan Finder or with the drug plan to determine whether it's covered, the cost and any restrictions. Part B will pay for medically necessary services that meet accepted standards of medical practice to diagnose and treat a medical condition (illness or injury). That means the treatment must be supported by a diagnosis, is appropriate for that diagnosis, and is recognized as a medical treatment. How Medicare deals with back pain can vary a bit based on the coverage you have. Here are four frequently prescribed procedures for treatment of low back pain. 1. Physical therapy: Therapeutic exercises, performed by a physical therapist and incorporated into a home program, help manage pain, and improve flexibility and mobility. PT can also help with any adaptative equipment, such as a cane or walker. Medicare no longer has a cap or limit on how much it pays for PT in one year. 2. Chiropractic services: Treatments aim to adjust misalignments in the spine that can cause back pain and limited range of motion. Medicare covers chiropractic services for one reason only: manual manipulation of the spine to treat subluxation: when one or more spinal vertebrae are out of alignment as documented by an X-ray. However, the X-ray will have to be done somewhere else since Medicare does not pay for X-rays or tests that are ordered, performed or interpreted by the chiropractor. There is no limit on the number of visits as long as the treatments are leading to improvement of function. Once the spine has been realigned, Medicare coverage ceases. Medicare Advantage plans may cover chiropractic care for other reasons, such as joint pain, headaches, or stress relief. 3. Acupuncture: This is a treatment in which practitioners stimulate specific points on the body, most often by inserting thin needles through the skin. Five years ago, Medicare started covering all types of acupuncture, including dry needling as an alternative to opioid medications for low back pain. Here's three things to know. Medicare Advantage plans may cover acupuncture for other conditions. 4. Epidural injections: This non-surgical treatment is commonly used to manage radicular pain or pain that radiates along the path of a spinal nerve. Approximately 9% to 25% of people describe having low back pain with pain traveling down to below the knee. The treatment involves injection of solution containing corticosteroids and/or anesthetic into the epidural space (inside the vertebral canal but outside the spinal cord). The corticosteroids can significantly reduce inflammation around an irritated nerve that is causing back and leg pain. Medicare has very specific criteria but here are some important (but not all-inclusive) points about coverage criteria for epidural injections. (Find the complete Local Coverage Determination here.) A patient once told me he believed Ralph Nader (Boomers remember him) would have rejected the design of the back. We can do so many things to keep our backs healthy and happy but because chronic pain increases with age, we may not always succeed. That's when we may need to seek medical help so it's good to know Medicare's role.
