Font Size

Posts Tagged 'retirement crisis'

We are pleased to present below all posts tagged with 'retirement crisis'. If you still can't find what you are looking for, try using the search box.

The Economic Crisis Candidates Continue to Ignore

The Economic Policy Institute’s “The State of American Retirement” combined with the National Institute on Retirement Security’s new report on women and retirement paint a very clear picture of a nation on the brink of an economic crisis that will devastate millions of average American families, if Washington continues to turn a blind eye.

The median family between the ages of 32 and 61 has only $5,000 saved in a retirement account, while the top 1 percent of families has a million dollars or more. For many groups—lower-income, black, Hispanic, non-college-educated, and unmarried—the typical working-age family has no savings at all in these accounts....The State of American Retirement.

“Our retirement system used to reduce inequality, but since the shift to 401(k)s it has only served to magnify it. These accounts are accidents of history that were never designed to replace pensions, and it should come as no surprise that they have not worked for the majority of people.” ...Monique Morrissey, EPI Economist

The numbers are stark:

  • Nearly half of all working-age families have zero retirement savings.
  • Almost nine in 10 families in the top income fifth have savings in retirement accounts, compared to fewer than one in 10 families in the bottom income fifth.
  • Only 41 percent of black families and 26 percent of Hispanic families have retirement account savings, compared with 65 percent of white non-Hispanic families.
  • Only married couples are more likely than not to have retirement account savings.

News that the income inequality hindering American workers now is also carrying over to their retirement is alarming for future generations who are taking an economic hit at every stage of life.  For women, the retirement picture is even worse. 

“A new analysis finds that women are 80% likely than men to be impoverished in retirement. The National Institute on Retirement Security (NIRS) finds that across all age groups, women have substantially less income in retirement than men. For women age 65 and older, the data indicate that their typical income is 25 percent lower than men. As men and women age, men’s income advantage widens to 44 percent by age 80 and older. Consequently, women were 80 percent more likely than men to be impoverished at age 65 and older, while women age 75 to 79 were three times more likely to fall below the poverty level as compared to their male counterparts.”... National Institute on Retirement Security

Just as we’ve seen from climate change deniers, many Republican politicians won’t even acknowledge the retirement crisis exists because improving the nation’s most successful federal retirement programs is anathema to their misguided belief that Wall Street should be handling your savings and for-profit insurance companies managing your health. Instead of supporting proposals to improve the backbone of America’s retirement system, Social Security and Medicare, conservatives continue their campaign to privatize and cut. 

There are legislative proposals which would improve Americans’ retirement picture but they are languishing in the GOP controlled Congress.  You can see many of these proposals on our Legislative tracker.  We also continue to advocate for meaning changes impacting retirement security for women.  Please take a moment and see those details on our Eleanor’s Hope initiative website. 

Popular tags: , , , , ,

Budget Squabbling and Its Potential Impact on Social Security & Medicare

The Office of Management and Budget is monitoring congressional actions and preparing to instruct agencies when they should begin implementing shutdown plans as funding our nation’s programs languishes amid the GOP-led Congress’ squabbling over defunding Planned Parenthood. One week prior to a potential lapse in appropriations, the OMB is expected to hold a meeting with senior agency officials to begin planning for the shutdown.

With the clock ticking, Congress is scrambling to not only avoid a government shutdown and default but also pass an extension for transportation funding and tax breaks. Will the sequester continue or can Congress find a better way to manage our nation’s finances?  This political gamesmanship and inability to get anything done impacts far more than one federal program.  Seniors programs like Social Security and Medicare are also in the cross-hairs.

“America’s seniors have become especially weary of these Congressional dramas as they have learned, the hard way, that Social Security and Medicare have become the favored target for budget cuts or “pay-fors” for a host of Congressional programs that have nothing to do with providing the earned benefits seniors depend on.  From highways to trade and beyond, Congress continues to try and use seniors’ programs as a national ATM. The next few weeks promises more of the same”... Max Richtman, NCPSSM President/CEO

The National Committee to Preserve Social Security and Medicare has prepared a detailed Fall Legislative Update mapping the current legislative minefield for programs which touch the lives of virtually every American family.

We’ve identified the numerous legislative hurdles still ahead, the possible threats to Social Security, Medicare and Medicaid and our positions on each potential pay-for or budget cut.  You can see NCPSSM’s Fall Legislative Update here. 

Popular tags: , , , , , ,

Social Security Privatization – Then and Now

Orginally published in Huffington Post.

by Max Richtman, NCPSSM President/CEO

About this time ten years ago it was becoming clear that President George Bush’s plan to forever change Social Security by turning the program over to Wall Street was on the ropes.  Even though his Social Security privatization road tour still had two more months of scheduled stops, the more the President talked about his plan, the less people liked it.  Gallup reported disapproval of privatizing Social Security rose by 16 points from 48 to 64 percent between the President’s State of the Union address and June. It was an incredibly risky and unpopular idea that rapidly flat-lined thanks to the overwhelming rejection by the public.  Yet here we are a decade later and conservatives campaigning for Congress and the White House are resuscitating the Bush strategy by offering up approaches to Social Security which are stark reminders that the GOP playbook really hasn’t changed that much. 

What Else Has NOT Changed

Americans of all ages, political parties and income levels, continue to oppose cutting Social Security benefits through privatization or other means.  They understand the retirement crisis is real. A recent Gallup poll reports more non-retirees believe Social Security will be a major source of income in their retirement now than at any point in the last 15 years. The National Academy of Social Insurance’s survey, "Americans Make Hard Choices on Social Security" shows that Americans' support for Social Security is unparalleled and they are willing to pay more in taxes to stabilize the system's finances and improve benefits. Seven out of 10 participants prefer a package that would eliminate Social Security's long-term financing gap without cutting benefits.

Even though Americans clearly understand the value of Social Security and are willing to pay more to strengthen it, Republicans in Congress and GOP candidates for President continue to push for Social Security cuts and/or privatization plans. Governor Chris Christie may have hoped savaging the program would give him the attention and conservative credentials needed to revive his flagging poll numbers before announcing his Presidential campaign against a roster of other candidates who already offered their own plans to cut Social Security benefits.  The GOP Presidential primary has become a race to see who can deny more benefits for seniors, people with disabilities, survivors and their families faster.  While cutting benefits in Social Security, Medicare and Medicaid isn’t really new among conservatives, what has changed in the decade since the Democrats led the charge against Social Security privatization is how some Democrats are now talking about these vital programs in the language of the conservatives.

Why Opposing Privatization Isn’t Enough

During the last decade I’ve observed a growing willingness by some Democrats to buy into the conservative mythology that targeting average Americans for benefit cuts makes them more “honest” and “courageous” than other politicians.  This Republican talking point is built on the false premise that supporting successful federal programs which keep millions of Americans economically and medically secure is “pandering to seniors” while supporting billionaire tax breaks and corporate giveaways costing the federal treasury billions of dollars is “fiscal responsibility.”

Ten years ago Democrats were united in their opposition to Social Security privatization.  That’s still largely true today; however, given the lessons of the past decade, opposing privatization simply isn’t enough to convince constituents that their benefits are fully protected.  The broader questions voters should ask incumbents and candidates alike include: Do they support benefit cuts in any other form such as the Chained CPI, raising the retirement age, and means testing? Do they support the failed Bowles-Simpson plan which would have done all of these things? Do they support the reallocation of trust fund monies to avoid a 20 percent cut to Social Security disability benefits? The answers to these questions can reveal the truth about a candidate’s vision for the future of Social Security and the generations of Americans who have earned their benefits. “I oppose privatization” was enough ten years ago but it doesn’t tell us whether an incumbent has been a Social Security defender or benefit cuts collaborator in the many battles since then. 

While it’s safe for Democrats to declare their opposition to privatization, the bolder step they need to make in this politically charged benefit-cuts environment is to demand that any Social Security conversation must address benefit adequacy as well as long-term solvency.  It’s clear that the majority in Congress has little interest in protecting this program even though our nation faces a retirement crisis leaving the average working household with virtually no retirement savings. The truth is Congress should Boost Social Security benefits not cut them.  That’s a position that demonstrates true political leadership.  Not because it’s unrealistic or opportunistic, as the billion dollar anti-Social Security lobby would like you to believe, but because it pushes back against a decade long quest to cut Social Security benefits as the next best thing to privatization. “Death by a thousand cuts” is a political goal the American people simply can not afford nor should they have to. We have Democratic and Independent leaders in Congress who understand this and they support legislation to improve Social Security benefits. The National Committee has endorsed numerous pieces of legislation that would enhance Social Security, boost benefits, lift the payroll tax cap and adopt the more accurate consumer price index for the elderly (CPI-E).  Proposals like the Social Security 2100 Act not only improve benefits but also extend Social Security’s long-term solvency. 

I believe the old truism that those who cannot remember the past are condemned to repeat it. When Democrats were unified in representing the American people’s views on Social Security they were on the correct side of the issue from both a policy and political perspective.  Defeating the privatization of Social Security saved millions of Americans from an even worse economic fate than they already suffered through during the great recession. Current and future Democratic lawmakers now have an opportunity to do the right thing again by joining the growing Boost Social Security movement and supporting legislation which would improve benefits while also strengthening the program’s long-term outlook.

Popular tags: , , , , ,

Why We Need to BOOST Social Security -- New CBS Poll Shows Retirement Still Elusive for Many

We’ve wasted years of political discourse led by a billion dollar Wall Street campaign to convince America we can’t afford a strong Social Security system.  While those like Alan Simpson, Pete Peterson and Paul Ryan, believe middle class families should foot the bill for trillions in tax breaks for huge corporations and the wealthiest among us, step outside Washington and Wall Street and it’s clear the average American disagrees. 

Our nation’s middle class continues to struggle and for older workers, the prospect of retirement remains elusive.  A new CBS poll describes the economic realities facing most Americans.

 “Seven of 10 Americans who haven't retired yet find it hard to save for retirement while also paying the bills and meeting their basic living expenses, a new CBS News poll shows. Not surprisingly, those earning less are having more difficulty setting money aside. More than 80 percent of people making less than $50,000 a year say it is hard to keep up with bills and save for retirement at the same time, and half say it is very hard.

"There is a segment of the population who cannot afford food and rent and to save for retirement, and they rationally choose rent and food over retirement savings," said Anthony Webb, senior research economist with Boston College's Center for Retirement Research.”

According to the 2014 Retirement Confidence Survey by the Employee Benefit Research Institute, a sizable percentage of workers report they have virtually no savings and investments. More than a third (36 percent) of retired civilian workers say they have less than $1,000 (up from 28 percent in 2013). A quarter of workers and 17 percent of retirees indicate that their current level of debt is higher than it was five years ago.  The CBS poll received similar responses:

“But the country's troubling shortfall in retirement savings isn't confined to lower-income earners. More than 60 percent of those earning between $50,000 and $100,000 a year say it is hard to save for retirement, according to the telephone poll of more than 1,000 adults around the U.S.”

Social Security remains the only stable source of income for many families who are still rebuilding after our nation’s recent brush with economic collapse.  This is exactly why it’s time to shift the debate to where it should have been all along...boosting benefits. 

Building upon the growing public support for expanding Social Security, the National Committee to Preserve Social Security and Medicare (NCPSSM) has launched the Boost Social Security Now education campaign to inform and mobilize our membership, grassroots networks and on-line communities to convince Congress that now is the time to boost benefits, not cut them.  

Please take a moment and join our growing movement.  Call Congress, Write a Letter and Sign our Petition telling Washington Now’s the time to Boost Social Security!

Popular tags: , , , ,

Real Retirement Security Solutions or More of the Same?

It’s easy to become cynical if watching Washington work (or not work, as is often the case) is your job.  So forgive us for not popping a cork in celebration of the Bipartisan Policy Center’s new Personal Savings Initiative.  Don’t get us wrong, it’s the right idea for the right time.  We’ve been saying for a long time that our nation is facing a retirement crisis far greater than the fiscal Armageddon promised by conservatives if we refused to take their advice to slash middle-class benefits. As NCPSSM President/CEO, Max Richtman, has written before:

“Three decades of stagnant middle-class incomes, disappearing pensions, limited ability to start and maintain personal savings, and the failure of the 401K experiment lay the foundation for a retirement crisis that could further threaten millions of older Americans and their families.

According to the New School for Social Research, 75 percent of Americans nearing retirement have less than $30,000 in their retirement accounts. Almost half of middle-class workers will be poor or near poor in retirement and living on a $5-per-day food budget. The National Institute for Retirement Security reports four out of five working families have retirement savings less than one times their annual income and 45 percent do not have any retirement assets at all.

While Washington has been obsessed with the federal budget deficit, there's been virtually no Congressional conversation about the $6.8 trillion retirement savings deficit. What will happen to the millions of American families who are ill-prepared for retirement? There's almost no conversation about how to prevent this retirement crisis from impoverishing our families or about how younger generations will handle parents and grandparents who cannot support themselves. In spite of this current and growing retirement crisis, Social Security and Medicare, programs vital to a basic secure retirement, continue to be the favored targets for some in Congress who are determined to use benefit cuts to reduce the federal deficit.”

While the Pete Peterson funded Bipartisan Policy Center’s stated goal is to address personal savings, Social Security benefits received an inordinate amount of attention in today’s kickoff event.  Not so surprising when you consider that this group is chaired by former Democratic Senator and fiscal hawk Kent Conrad and Wall Streeter/former Bush appointee, Jim Lockhart.  The group is dominated by conservatives and center right former politicians and staffers, Republican political appointees, industry reps and think-tankers.  As was the case with the failed Bowles-Simpson Fiscal Commission, there are a few members who break that mold and will no doubt find themselves swimming against the tide once the discussion turns to Social Security.  Which the Chairmen made very clear today, it will, since “everything is on the table.”

Sound familiar?  It should since that’s Washington-speak for get ready for middle-class benefit cuts -- but this time they’ll be wrapped in a package to increase personal savings and strengthen retirement security?  It’s no wonder we’re cynical. 

Popular tags: , ,

Pages: Prev12NextReturn Top



   

Questions?

Have a Social Security or Medicare question?




 

Archives
Media Contacts

Pamela Causey
Communications Director
causeyp@ncpssm.org
(202) 216-8378
(202) 236-2123 cell

Walter Gottlieb
Assistant Communications Director 
gottliebw@ncpssm.org
(202) 216-8414

Entitled to Know

            

 

Copyright © 2018 by NCPSSM
Login  |