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ERISA Pension Lawyer

What Is the Better Strategy For Achieving Retirement Security? Working Longer? Or Saving More?

The National Bureau of Economic Research recently published a working paper that purports to answer this question. [See "The Power of Working Longer," by Gila Bronshtein, Jason Scott, John B. Shoven, and Sita N. Slavov]. With exhausting technical analysis, the authors demonstrate that working longer is a much more powerful strategy for achieving retirement security than saving more.

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Does It Make Sense to Delay Collecting Social Security Retirement Benefits in Order to Receive a Higher Monthly Benefit?

Callers sometimes ask me this question, and I tell them the answer depends on a number of factors unique to them. But, here are a few things to consider.

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Latest Social Security Trust Fund Report Is Not Good News for Retirees

Each year, Social Security's trustees report on the current and projected financial status of the Social Security trust fund. Their 2018 annual report is worrisome. In a nutshell, the trustees conclude that the Social Security trust fund faces insolvency and resultant benefit cuts by 2034 if changes are not soon made to the program.

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One More Thing to Worry About in Retirement: the Solvency of Medicare's Hospital Insurance Trust Fund [Medicare Part A]

On June 5, 2018, Medicare's Board of Trustees issued its annual report on the state of its two trust funds: the Hospital Insurance Trust Fund (Hospital Fund) and the Supplementary Medical Insurance Trust Fund (Supplementary Fund). The Hospital Fund, known as Medicare Part A, helps pay for hospital stays, home health services following a hospital stay, care in a skilled nursing facility, and hospice care the aged and disabled. The Hospital Fund is financed by taxes on workers' earnings. Thus, the solvency of the Hospital Fund is largely dependent on workers' earnings.

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Can Immigration Help Shore-Up Our Social Security Retirement System?

A paper by the Bipartisan Policy Center (BPC) provides intriguing insights into the role of immigration on our Social Security retirement system. [See "America's Demographic Challenge: Understanding the Role of Immigration," Aug. 2017, by Kenneth Megan and Theresa Cardinal Brown].

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Retirement Likely to Be More Financially Challenging for Women Than Men

It's all about the money, honey. In April [2018], the Census Bureau released data comparing men's and women's 2016 median earnings in over 300 occupations. In nearly all occupations, women earned less than men. Overall, women's median 2016 earnings equaled $40,675, while men's median earnings equaled $50,741-nearly 25% more!

Social Security Cost of Living Adjustments May Not Reflect Actual Cost Increases to Seniors

When our nation's Social Security program was enacted in 1935, there was no automatic adjustment in Social Security retirement benefits to account for inflation. Rather, Congress would periodically adjust benefits to reflect inflationary increases in the costs of goods and services. In 1972, however, Congress enacted an amendment to the Social Security Act that requires benefits to be increased based on the increase in the Consumer Price Index (CPI) the previous year.

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Funding Gap Continues to Grow in Most State Pension Plans; What Are the Causes and Solutions?

A recent issue brief prepared by the Pew Charitable Trusts (Pew) reports that most state pension plans are significantly underfunded and that, for many, the funding gap is growing. [See "The State Pension Funding Gap: 2016. Investment shortfalls, insufficient contributions reduced funded levels for public worker retirement plans (Pew, April 12, 2018)]. Pew, founded in 1948, is an independent non-profit organization that strives to inform the public and improve public policy by providing useful data and analysis to illuminate issues and trends that shape our world.

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Women Face More Obstacles Than Men In Achieving Retirement Security

Women face more obstacles than men in achieving a financially secure retirement. That's the conclusion of a recent report based on an online survey of 6,372 workers conducted by the Harris Poll between August and October 2017 for TransAmerican Retirement Studies. [See "Here and Now: How Women Can Take Control of Their Retirement" by TransAmerica Retirement Studies]. For starters, women earn only 80.5% of the salary of men. They are also more likely to work part-time and to take time off for parenting and caregiving, all of which hinders their ability to save and reduces their future Social Security benefits.

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Retirement Expectations Versus Retirement Realities. There's a large and troubling gap between the two

There exists a large and troubling gap between retirement expectations and retirement realities, according to the results of a recent online survey conducted by the Harris Poll on behalf of Prudential Insurance. [See "Planning Your Retirement? Expect the Unexpected" by Salene Hitchcock-Gear, Pres. Prudential Advisors]

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