This past week was National Save for Retirement Week. This is something that didn’t get a whole lot of play. However, it is still an important topic. According to the 2009 Retirement Confidence Survey presented by the Employee Benefits Research Institute, 53% of all workers have less than $25,000 in savings and investments, excluding home ownership and defined benefits plans.
This lack of savings is a real issue for the future. It should be noted that Social Security was never meant to replace income — merely supplement it. And it may not even be available to do that for younger workers. …read more

As it stands, Social Security won’t be receiving a cost of living adjustment (COLA) in 2010 due to a lack of inflation. The AARP strongly opposes and points to rising medical costs as reason enough for COLA in 2010.
Jim Wordelman, Idaho’s state director for AARP, says retirees in his state need help.
Said Wordelman: “While prescription drug prices continue to see record increases of 8% and insurance premiums are expected to double in the next few years, the lack of a Social Security COLA will hit many older Idahoans hard. We urge Congress to act on this issue immediately and provide …read more

Since 1975, Social Security has been adjusted each year for the cost of living. However, due to negative inflation this year, it is very unlikely that there will be any adjustment for next year.
For those who automatically get their Medicare prescription premium deducted from their check, that could mean smaller Social Security checks next year since premiums are expected to raise slightly. If all of this comes to fruition, these difficult economic times might become even more difficult for many Americans who depend on Social Security.
Many groups have spoken out against the lack of a forthcoming cost of living adjustment …read more

Gen Y needs to make some financial changes.

To retire, it used to take an appointment with a Social Security rep and a trip to the local Social Security office. Nowadays, the internet has made this process easier. A simple visit to SocialSecurity.gov and you can get the ball rolling online.
The retirement application is available online and takes only about 15 minutes to fill out. Best of all, you can do it from your home and don’t need to visit a rep or even mail anything!
SocialSecurity.gov also offers a variety of tools including a retirement estimator that will give you a personalized estimate so you can get a …read more

Every day people go into small businesses with the hope of making enough money to enjoy life, save for retirement, and gain financial security.  But one big barrier stops them from making enough money to achieve their goals – it’s called “payroll taxes.” otherwise known as Social Security and Medicare.

Joshua Kennon, who writes the Investing for Beginners GuideSite for About.com, says,
The single biggest threat for those who want to move from the lower or middle class to the “capitalist” class, as some academics have called it, is the payroll tax….[which] effectively serves as a barrier that makes it nearly impossible …read more

Watch out for scams aimed at seniors.

The economic situation has left much business in shambles, but the consequences of the recession may strike at those who rely on government programs like Social Security and Medicare. With more and more people leaving the workforce, these programs will eventually become so encumbered that they will collapse.
Congress has recently been mulling over proposals to fix the forthcoming crisis situation for Social Security and Medicare. One of these plans of action is to create a bipartisan commission that will preemptively tackle the problems facing government benefit programs. This commission would then assemble a package of adjustments for Congress to approve, …read more

RetireSafe.org, a grassroots organization that advocates for nearly 400,000 American citizens, recently called on President Barack Obama and the United States Congress to make steps towards improving Social Security.
“With unfunded liabilities of up to $100 trillion and the Social Security Trust Fund scheduled to pay out more than it takes in by 2016,” said Michelle Plasari, the President of RetireSafe. “America’s seniors deserve to know that the Social Security benefits they rely on to make ends meet will still be there for them.”
Among the improvements RetireSafe wants to see are guaranteed benefits, fair cost of living adjustments and the repeal …read more

The government warned on Tuesday that Social Security and Medicare will be insolvent sooner than previously expected. The trustees’ annual report revealed that Social Security will be paying out more money than it receives by 2016 (a year sooner than prior projections). Medicare is already doing the same.
Unless changes are made, the Social Security retirement fund will be depleted by 2037 and the Medicare trust fund will be insolvent in 2017. Additionally, Social Security recipients are not expected to get cost-of-living increases in 2010 or 2011. Cost-of-living increases have happened each year since 1975.
“We should neither be casual nor hysterical …read more