Squared Away Blog

The option to start Social Security benefits at any age from 62 to 70 – with an actuarial adjustment – is a key feature of the program. However, the adjustments – reductions in the monthly benefit for claiming early and increases for waiting – are decades old and do not reflect improvements in longevity or other important developments over time. The option to claim early was introduced just over 60 years ago, when Congress set 62 as the program’s earliest eligibility age. The option to claim between 65 and 70 on an actuarially fair basis stems from the 1983 Social Security amendments, which gradually increased the annual “delayed retirement credit” from 3 percent to 8 percent. Also in 1983, reductions…

A Jewish child rides the Kindertransport out of Nazi-controlled Austria to safety in England, eventually coming to the United States. A Japanese-American mother is confined to an internment camp. A child of Mexican farm workers in California goes to bed hungry. A young African-American organizes sit-ins for Civil Rights. Taken together, the early life stories shared by the individuals in a new PBS feature, “Lives Well Lived,” are a compendium of U.S. history. The trailer that appears above can’t do justice to the full video, which can be viewed free of charge on the PBS website until Sept. 29. Despite their trials, these individuals have embraced life with a zeal and perseverance that are surely part of the secret to…

Nothing causes dread in a retiree quite like the prospect of having to go into a nursing home someday or becoming dependent on someone who comes into the house to help with routine daily needs. But media reports or studies with alarming predictions of infirmity in old age are not very useful to retirees or their family members. A new study provides a more nuanced picture of the various scenarios that can play out. Researchers at the Center for Retirement Research estimated that roughly one in five 65-year-olds will die without using any care, and another one in five will need only minimal care. But one in four will have such severe needs that they will require high intensity support…

 The PBS NewsHour has some terrific reporting on an important topic: the job market for the two-thirds of working-age adults who don’t have a college degree. The problem facing many of them is that, despite their hard work, they will earn much less over their lifetimes than college graduates. In stories for the NewsHour, Paul Solman highlights the opportunities available to workers without degrees at a time that many employers are scrambling to find smart, energetic people to fill good-paying jobs with benefits in light manufacturing and the skilled trades. Women of color are catching on and entering fields like carpentry and plumbing – in fact, they are over-represented in the trades. But Solman talked to employers early this…

Many employees in the private sector, when left to their own devices, either save very little in the company retirement savings plan or don’t even sign up for it. But a growing number of companies have revamped their 401(k)-style plans over the past two decades to strengthen the incentives for employees to save. While progress has been gradual and uneven, the companies are moving in the right direction. In a new study, researchers have compiled a unique nationally representative data set that tracks the changes employers have made to their 401(k)s and 403(b)s. The findings describe three important areas in which they are making progress: About 41 percent of the largest 4,200 U.S. employers in this study automatically enrolled workers…

In the second half of 2020, the number of retired homeowners who fell behind on their mortgage payments doubled to about 1 million per month. By July of this year, it had dropped to 680,000 retirees. The federal Consumer Financial Protection Bureau (CFPB), which issued the report on homeowners over age 65, said about 12 percent of this population is vulnerable to imminent foreclosure and possibly homelessness. Some of the people who are having the hardest time paying their loans either have disabilities or are over 75. But most the retirees in the CFPB report are largely reliant on Social Security, so their income is stable. To understand why they’re having problems paying the mortgage requires reading the tea leaves…

President Biden has said he wants to increase the benefits in a federal program for low-income children and adults with disabilities. But a long-running debate about the program is whether the direct cash assistance helps children when they grow up. The Supplemental Security Income program, or SSI, clearly has immediate benefits. SSI provides nearly $800 in monthly cash payments and Medicaid health insurance to help parents care for their children and teenagers and manage their physical, cognitive, or behavioral disabilities. However, policy experts disagree on the program’s long-term effects. Critics say it creates a negative dynamic if it causes poor parents, consciously or unconsciously, to lower their expectations for a child in order to preserve the payments. If the child…

Several million retirees have spent so much on their prescriptions in recent years that they crossed over into the “catastrophic” phase of their Medicare drug plans. Once catastrophic coverage kicks in, Part D drug plans require retirees to pay only 5 percent of their medication costs out of their own pockets. But there’s a catch: there is no cap on total annual spending, which can quickly rise to thousands of dollars if they need chemotherapy or a brand-name designer drug for a rare medical condition. Juliette Cubanski, deputy director of the Kaiser Family Foundation’s Medicare policy program, said that could change, because proposals to place a cap on total out-of-pocket spending in Part D plans have a bipartisan tailwind behind…

Retirement experts encourage baby boomers to hang on to their jobs as long as possible to boost their monthly Social Security checks and add to their retirement savings. If they can delay retirement to age 70, they have good odds of maintaining their standard of living. That isn’t always possible, however, for the baby boomers confronting disabling physical impairments or health problems. Add to that the generally declining health of the older population over the past 20 years. But a new study has revealed a deep socioeconomic divide. More-educated older workers are actually able to work longer than they did 15 years ago, while less-educated older workers – and Black men in particular – are mostly losing ground. To estimat…

Last year, millions of older Americans went into hiding to protect themselves from the ravages of COVID-19. Did the isolation take a psychological toll? How did they respond to infrequent contact with friends and family? Researchers in a recent webinar tried to understand the unique phenomenon of loneliness in a modern pandemic. What we know from the National Poll on Healthy Aging in the early months of the pandemic is that more than half of older workers and retirees between 50 and 80 said they “felt isolated from others” – twice the levels seen in 2018. In a different survey conducted every two months for most of last year, loneliness was “common and it was incredibly persistent during the first…

In the madcap 1960 movie, “Where the Boys Are,” a college student named Tuggle (played by Paula Prentiss) is forthright about why she’s going to Ft. Lauderdale for spring break: to find a husband. Women have come a long way, and two out of three married women today choose to work, rather than go Tuggle’s presumed route and become a full-time housewife. Yet there’s a 21st century corollary to Tuggle’s experience. College is important in determining who people marry. We tend to marry others who are like us, and education has become central to this. College graduates gravitate to other college graduates. People who complete their formal education at high school graduation tend to marry other high school grads. Further,…

A unique situation faces older workers with a disability: apply for federal disability insurance now or try to hold on and keep working to retirement age. Of course, people who leave the labor force and apply for disability are taking a risk: they might be denied the benefits. But another possible factor in how these situations play out are state anti-discrimination laws to protect people with disabilities, including older workers, from employment discrimination. If these laws can reduce discrimination, could they increase employment and eliminate the need for some older workers to apply for disability? A new study suggests that state anti-discrimination laws have prevented some disability applications – if the laws are broad enough to provide better protection to…