HCAD 222 test #3
if we raise the retirement age
-you have a chunk of people that wouldn't be able to receive the benefits. the job opportunities would be worse if we would raise the retirement would be forced to stay in the market longer -if a lot of people are looking for jobs then the salary will be lower
Major challenges of privatization of social security
-young people worse off -women stand to lose the most -AA and LA more vulnerable -retirees not protected against inflation
two different meanings of generation
1. an age specific group, such as elderly or children under age 18 2. historical cohort consisting of a group of people born in the same year or in a certain period (world war 2, those who experienced the great depression)
Historical business model
independent (top) assisted nursing
Almost home questions
-"homelike environment"=What do you think they mean by that? Does everyone share the same vision of what a home is like? I dont think everyone has the same vision because everyone lives in a different homelike environment because some are clean and come are messy and don't have color.
social security and the budget
-23% is social security -23% is MC/MA/CHIP =health care, medicare trust fund -75% everything else *spending more money than taking in -defense 23%, education, interest, foreign, aid, welfare and income security, health, environmental protection and conservation -zero based budget, historical congress budget
percentages of retiremetn
-25% American s have saved enough money to retire. They rely on pension things from their employer. -25% Americans think that they saved enough money to retire -25% would like to retire, some pieces of puzzle in place but will be short to retire -25% retirement is not on their radar screen
Defined contribution plan
-401K, will contribute to a fund, and that money is invested and will grow -when you get older you just take money out of the account -the economy might tank and you will not have your money, like in2008 when the money split in half. -also really nice for the employer because they don't make a commitment key to a 401K, employers will offer free money to you -sometimes they will benefit you and they will match your money that you will put in your 401 K
The aging marketplace
-45+ is the "new customer majority" (45+ has more disposable income) -50+: a. controls 3/4 total net worth and financial assets more than $7 trillion b. responsible for >50% discretionary income -how can the mature consumer market be segmented? = can segment into different categories (young-old,old-old, oldest-old, wealthy and poor)
divorce rate
-65+ divorcees=6% in 1994 -divorce rate among 65+ increasing -divorce usually results in a significant drop in income for women -the proportion of old people who are divorces has been increasing four times as fast as the growth of the older population overall
Who are the baby boomers?
-77 million born in the U.S. between 1964-1964 (baby boom is after WW2) = 10,000/day are turning 65 and that will continue for about 10 years -began 65 in 2011 -Generation -Age-Period-cohort model -social construction
widowhood
-80% of age 65 -75 men are married and living with their spouses -52% of women are married and living with their spouses -24% of age 75+ women are married and living with their spouses -women tend to marry men who are older than them (womens longevity is longer) -women are much more likely than men to be widowed and to live alone in old age -of all seniors living alone, four out of five are women
who/how many rely on SS
-87% of people 65+ receive SS, and 53% of married couples and 74% of unmarried older adults get half or more of their income from SS
Aging interest groups
-AARP (1958) -others... 1. national council on aging 2. gerontological society of america 3. american society on aging 4. national committee to preserve social security and medicare
big minorities in us today
-African america -Hispanic -Asian -native american -heterogeneity and many, other ethnic groups
AARP
-American Association of Retired Persons -benefits to members, such as health and life insurance, prescription drugs, and travel service
Back in the workforce..
-Benefits a. health insurance b. sense of productivity c. occupy time d. social benefits -programs available to assist seniors to reintegrate = employers are receptive to this relaible, and often skilled workforce -organzizations that help older adults get back into workforce= a lot of job opportunites. some may be appealing to older people. grocery stores, many jobs that hire a lot of students fill in the gaps during the day. some people that are in Menards or Home depot have many skills and advice to give back to the customers about the products
Pay-as-you-go financing
-could begin paying benefits quickly -system started in 1935, first benefits paid in 1940 -regressive= disadvantages the poor, harder on the poor -progressive= better deal for the poor better return on their investment -set age of eligibility closer to average life expectancy when started
is financial planning enough?
-developing interests to pursue in retirement equally important as financial planning= 45-50 hours "extra" free time post-retirement -develop interest and activites before retiring -retirement NOT commonly associated with depression/low-self worth, but IS adjustment period -couples a. plan separtate activites to assure privacy b. develop some common interests (see more and more older adults that get divorced) c. keep your lines of communication open d. challenges when only 1 spouse retires-Cornell study
nursing home populations
-disproportionately white-this reflects fewer minorities in today's senior population due to less cultural diversity years ago as well as shorter life expediencies of some minority groups but also reflects cultural differences
sources of retirement income
-economic circumstances vary sharply, but much wider range -income vs wealth -three-legged stool -older people have not shared qually in the increase in retirement income
aging effects
-effects of the physical process of aging has to do with our life course. baby boomers look physically different than teens
period effects
-effects that impact all members of society at the same time -9/11 for example it was not affected kindergarteners compared to adults. everyone was affected by it, but they were affected by it in different ways -cohort effects=affect one type of group in more of a meaningful way. Vietnam war young men were being drafted
"double jeopardy"/"multiple jeopardy"
-faced by older people who are simultaneously members of two (or more) disadvantaged groups -the poverty rate is higher for older people than for any other adult group --> regardless of age, the poverty rate among minorities is more than twice as high as among whites -consequences of multiple jeopardy are understandable in terms of cumulative disadvanteage
age discrimination in employment act (1967)
-federal legislation has generally been responsive to older workers as well as retired persons -gave protection to older workers -by 1986, a long campaign to eliminate mandatory retirement was finally successful in Prohibiting age discrimination in hiring and retention of emloyees
Wisconsin "Aging Network"
-federal, state, and local web of aging services -administration on aging (federal) -Bureau of Aging and LTC resources (state) --> area agencies on aging (regional) =EC region: country and tribal aging offices, EC County- Department on Aging
silver industries
-financial services -health care -travel and hospitality -retirement housing -others? (questions from consumers themselves to expand in these markets) a. what do older consumers want? b. how are they distinct from other consumer groups? similar? c. if you were an older consumer, how would you want products and services to be marketed to you?
retirement income
-for older women is on average only about 55% of what it is comparable men, and nearly 3/4 of older Americans who fall below the poverty line are women -because older women typically play vial roles of kin keeping through social networks and caregiving, one effect is that they accumulate lower pension benefits than men do
Continuum of care
-good business ideas adapt to the realities of the present, anticipate the future.. and let go of the ways of the past -more assisted living beds than nursing home beds -separated into more needs different facilities
important issues to consider
-health insurance availability -income- 70-80%? a. SS b. Pension c. other retirement savings -Part-time employment -family situation -early retirement impact on pension and social security benefits (when are they going to start collecting SS, and how much money are they going to take out of their pension)
retirement housing
-huge. big market
CNAs
-i think once you add different cultures it is hard because they are coming from a different household, and you might treat someone differently because of their color because we still have racism in America. this also might cause some concerns because they might not think the CNAs are capable of providing for them
2 broad groups in the 65+ population
-ill elderly -well-elderly
unequal shares of wealth, status and power
-in adulthood social class tends to be related to employment, but in old age the impact of social class is largely a matter of accumulated advantage or disadvantage built up over a lifetime
majority 65+ white, but minorities increasing
-in us today, 84% over age 65 belong to the non-Hispanic white majority -as population doubles, decrease by 20% -by middle of 21st centry, expected to constitute only about 64% of elderly populatin -non-hispanic whites are predictd to make up less than 50% of total population (highest immigration rates ever--> trend of diversity, especially among Hmong, Hispanic, and African refugees
health care
-increase need for health care as they get older
age, gender, race, and social class
-interact in complex ways to define individual experiences -full account of aging experience must acknowledge the adaptive strength of many disadvantaged older people
identical earnings can mean very different benefits
-key decisions to figure out better deal for married couple maybe go off
women 55-65
-they have increased in the workforce because women live longer than men so they have to have a good economic security to stay retired. -historically women were not participating in workforce before. women left workforece but to get taht pension, SS, or other to go back to work to get their money up -women stayed home early to stay with their kids and then they went back to school
administrative challenges
-they have many challenges if people cannot afford there because then they will have to go through Medicaid or another resource, but the reimbursement rates are lower if you go through a state program
culture change
-think they are providing person-centered care but they aren't like remodeling bathrooms and expanding dinning hours, there is not only one thing to say you gave person-centered care, but its more of a process of changes to grow, thrive, find value, have good quality of lief rather than a person would go to decline and die
social security and divorce
-to qualify for spousal and survivor benefits a marriage must last 10 years -you are entitled to full spousal and survivors benefits based on her ex-husband's earnings -each get to collect the same amount of money if he has 5 wives and he wouldn't lose out on any money
employee retirement income security act (1974)
-today more than 40 million private sector workers in the US participate in 800,000 pension plans -those plans represent retirement security for millions of workers, and for this reason the safety of pension funds is critical
If we lowered the retirement age
-we would end with a shortage of workers -the upside would be having plenty of job opportunities for the younger generations
increasing ethnic diversity
-will present a challenge for decades to come and will demand thoughtful attention to the aging experience for all members of our society
poverty rate higher for older adults
-yardstick for financial status -married men of all races <6% -minorities-poverty twice as often -older black women living alone =60% -oldest old (85+) & women living alone is much higher than average
Expenditures changing for older adults
cial foundation. The great society legislation of the 1960s included such steps as the federalization of old age
productive aging
includes both paid and unpaid activity that produces benefits for society, such as caregiving, volunteerism, and contributing informally to family, friends, neighbors, and the community
financial services
-3/4 people have net assets
Generation
-people born during the different times
**
- the so-called well-derly cause some people to argue that disability and frailty, not chronological age, should be the basis of access to services
Person-directed care
-"culture change": places for living and growing vs declining and dying a. Eden Alternative b. Pioneer Network c. Wellspring -a new model of living and providing care, changing institutions into personal communities -where caregivers pay attention to individual wants and desires and how they can help people find meaning value and joy in life leads to: a. improved health incomes, satisfaction, and quality of life among residents b. improved employee satisfaction, performance and retention, less depression, healing fast after surgery for care recipients themselves c. reduces health care costs (not having to spend time advertising but instead employer of choice can be the pick of the best people, and have the best care and have a waiting list of people. homecare staff will be working the whole day its a win, win, win!
Differente generations
-GI generation/silent generation/ Greatest Generation -baby boomers a. selfish/negative or idealistic/positive (baby boomers were activists, the questions above depends on who you look at and a lot of baby boomers today are caregivers to their loved ones and parents and then when they do this they are able to see what is out there b.4/5 plan to work in retirement (really?) c. health status -How will society, government, boomers respond to changing circumstances?
Generations
-GI generations =100 yr old -silent generation=70 yr old -greatest generation= 90 yr old ** these generations are less demanding as how society is today because today became customed to getting new stuff and new technology
hispanics
-Spanish speaking <5% of seniors but increase -respect for elders, women as caregivers -may be poor/ in need of long-term care, less use of formal -barriers to information and services -health care, transportation, Spanish materials?
Medicare and Medicaid (1965)
-The great society legislation of the 1960s included such steps as the federalization of old age assistance (Medicare and Medicaid) =during the 1970s and 1980s federal commitments were enacted in 1983, and efforts to expand medicare were repealed
Gray Lobby
-collection of national interest groups, along with parallel organizations at the state level
aging network pt. 2
-US administration on aging (coordinate, advocacy) -state agency on aging-disperse federal $ -area agencies on aging-local (city/county) --> responsible for planning and organizing services to older people in that region -some estimate only serve 5-10%
supplemental security income (ssi)
-a cash benefit program for the elderly, poor, blind, and disabled -a means-tested program that is only available if your income and assets fall below a designated range
socioeconomic status (SES)
-a term used by sociologists to describe what is often known as "social class"; total measure of a person's work experience and of an individual's or family's economic and social position in relation to others, based on income, education, and occupation
a "culture of collaboration"
-all stakeholders working together -shared vision of the future -there is a place for innovation in a person-directed approach -the well-being of each person should serve as our common denominator! -make sure everyone is on board
Ageism
-as people grow older, less and less similar -aging remains as an individual affair -old age is described as a role less-role, a status with no clearly defined purpose or rules of behavior
How will society, government, boomers respond to changing circumstances?
-baby boomers are not primary customers, yet but they are going to be pretty soon -society is trying to rethink about how to change the circumstances to meet the needs of the new generation
largest reduction over past 30 years with poverty among the old
-biggest gains income for were in 60's and 70's
pioneer network's values and principles (an association that advocated culture change or personal care)
-know each person -each person care and does make a difference -relationship is the fundamental building block of a transformed culture -respond to spirit, as well as mind and body -risk taking is a normal part of life -put person before task -all elders are entitled to self-determination wherever they live -community is the antidote to institutionalization -do unto others as you would have them do unto you -- yes, the Golden Rule -promote the growth and development of all -shape and use the potential of the environment in all its aspects:physical, organizational, psycho/social/ spiritual -practice self-examination, searching for new creativity and opportunities for doing better -recognize that culture change and transformation are not destinations but a journey, always a work in process
African Americans
-largest senior minority group -9% of 65+ -14% by 2025 -crossover phenomenon -9 out of 10 receive SS, 25% also receive SSI
changing financial outlook
-life-cycle model of savings -inflation impact -on average, improvements over past two decades, but still significant poverty
in summary- retirement realities
-living longer, healthier lives, and future of SS?= individuals will need to supplement retirement income -retirement will continue to exist, but may "look" different= society must answer some questions- policy changed may require people to work longer to afford retirement -early "life planning" has multiple benefits= with proper planning and action on the part of the individual, retirement can be a rewardign role
cumulative disadvantage
-lower SES over the life course tends to produce cumulative disadvantage, which is perpetuated in old age
Feminization of poverty
-lower retirement incomes-55% of men -75% below poverty line are women -caregiving -widowhood
social construction
-meaningful manmade facts about human existence. everything is society agree at things in the world -what makes us stop at red lights or drive on the right side of the road -everything that people agree to, and the way we look at aging and how we view older people. how our culture constructed these concepts
payments from old age, survivors, and disabilities insurance (OASDI) program
-most social security benefit go to retirees, but survivors and the disabled makeup substantial shares as well. reform centers on the retirement portion of social security. -survivors 21% 85 billion -disability 15% 71 billion -retirement 64% 314 billion
positive effects of poverty and women
-mutual self-help groups for widows and organized advocacy -feminists have paid more attention to the physical and mental health concerns older women and to the problems of divorced older women-more research, more media attention, more proposed legislation (though women are still largely under-represented in our legislature)
downward mobility
-not unusual among elderly people who have outlived their economic resources -income tends to decline after the point of retirement (oldest-old likely to be poorest old); lower social class
the older americans act
-nutrition programs -senior citizens centers -ombudsman program -caregiver support -information and referral services
four elements influence class position
-occupation -income -property -education ** less tangible factors can also be linked (educational attainment and family support networks)
near-poor
-often under-considered group -many elderly fall into this category -those with income 1.5*poverty line then 1/4 older people experience economic hardships
degree of redistribution and targeting of benefits to the most needy can be acceptable as long as it remains within certain bounds
-once we begin targeting too explicitly or giving preference to one group over another, then the principles of "need vs "universal ism" to come into conflict -our ability to equitably accommodate an influx of immigrants, most of who are Asian or Hispanic
Changing trends
-only the oldest and sickest will enter nursing homes -consumer's expectations will be higher -medical research will allow for greater disease prevention and delay onset of chronic illness -consumers will want their individual needs/ wants met -tax policy may incentivize LTC insurance -biotechnology discoveries -consumers will be better educated and will have greater access to information -demand for preventive and predictive healthcare will increase -access to quality care will be far from universal
Native Americans
-origins in more than 500 tribes -especially reservations, suffer from major economic disadvantages -tribal leaders and cultural conservators -accumulated disadvantages- harsher environment
Asian american
-origins: Chinese (24%), Japanese (24%), Filipino (8%), and Korean (5%) -obligation to honor parents in old age -in conflict with american trends
worldwide, women comprise the majority
-the typical rate for men to die early and for women to survive with chronic diseases -physical signs bring more severe consequences for women than for men -among women in minority groups, there is a pattern of cumulative disadvantage which results in less economic security in retirement -there are 84 men per 100 women between ages 65 and 69, but only 39 per 100 among those over age 85
Retirement views
-overwhelming majority retierd by 65-generally for individuals -negatives: 1. society-practice of retirement comes with large hidden costs -funding required for pensions and retirement systems -loss of accumulated skills and talents, have a lot of knowledge of the company and know the company well because have been there for awhile 2. individual- work life less predictable, planning essential -86% of eligible workers participate in retirement contribution plan -defined benefit vs defined contribution plans -current trends: a. corporate downsizing b. recession c. volatility of labor market -positives: 1. society -job opportuniiies for younger Americans 2. individul-expanded leisure and opportunities for self-fulfillment in later life -personal development and volunteer service -BUT- retirement as time of leisure only possible with resources
trust fund- where is this $? Impacts?
-payroll taxes that go into a large account (trust fund) - not a big bank where money is saved for the future -continue to grow and any surplus will go to buy U.S. treasury notes= real deficit is not reduced at all
social security revenues deposited in a "trust fund"
-payroll taxes(only way funded SS until 2011), general revenues (credited from income taxes on benefits), interest on trust fund( interest to the trust fund's bonds is paid by issuing new bonds) -by 2020 will need to start calling in the Trust Fund IOUs, projected to run out by 2033, benefit reduction to about 80% if nothing is done -solution is cutting SS benefits to a 20% pay cut like instead of 1000 to 800
A new view of retirement-Productive aging
-people over age 65 are productive in many ways a. three quarters of older people are engaged in upaid work b. value of their contribution= nearly 12 million full-time workers, including 7 million workers in caregiving -plasticity= the potential for retraining -role of society? Business? Individuals? -some programs will give discounts like not having to pay taxes with volunteer programs
Defined Benefit Account plan
-people put money in there every month and when they retire then they get money back when they retire every month -this became an expensive beneift because people started living longer, and they had to grow assets and investments to have benefits to residents
ill elderly
-poor and subject to chronic illness
life cycle model of savings
-predicts that as baby boomers reach later life, they will begin to put more money into savings when retirement looms on the horizon. older people who life on fixed incomes are affected more severly by inflaton than other groups
age discrimination act 1967
-prevent employers to not hire or fire people because of their age and protects peole who are 40 and older. It is a hard law to enfore, and someone that beleives they haev been discriminated against them and it is hard to prove that you were not hired or fired because of your age -employers are able to fire anyone they want to so this is a hard law to prove. if you are staying an economic as possible it would be smart to fire the older people because they are probably making a lot more than the younger people
mandatory retirement
-professional safety with mandatory retirement no longer legal expect things like pilots and other professional safety
consider differences in economic well-being
-redistribution? -targeting of benefits? -immigration?
social security act (1935)
-remains the cornerstone of U.S. policy of aging -after WW2, Social Security coverage slowly but steadily expanded -revisions of Social Security in 1977 and 1983 helped put the program on a more secure financial foundation -providing income support to individuals outside the labor market
travel and hospitality
-retired people may travel South for winter. People that can afford to travel to Florida can probably go out to dinner
Downsides of pay-as-you-go
-sensitive to the ratio of workers to retirees -demography is turning these ratios against social security -people are having smaller families, meaning fewer new workers paying into social security -seniors are living longer, and collecting for more years -and the baby boom generation is about to retire... *increasing life expectancies mean more retirees to support.. *low birth rates mean fewer workers to support them *when the ratio of workers to retirees fall, each worker must bear a greater financial burden
causes of feminization of poverty
-sex discrimination, patterns of economic dependency and widowhood
when today's elderly were born, most before 1935, the US government gave no special attention at all to issues of old age
-since the 1970's the federal budget has "gone gray" and today over 30% of the total federal budget is spent on aged -until the 20th century, the aged population was small, and governments role was very limited -the great society legislation of the 1960's included steps that federalized old-age assistance, and passed landmarks laws like medicare and medicaid -seniors of today born before modern government programs -when we look at income programs, housing subsidies and health and long-term care, it is clear that government action has had a decisive effect on the well-being of today's generation of elderly
Public Policy on Aging
-social security act -medicare and medicaid -employee retirement income security act -age discrimination in employment act -older Americans act -medicare prescription drug improvement and modernization act (2003)
History of retirement
-social security act of 1935 (Post great depression) -idea was to have a huge old group with no resources and set up stimulate the economy and move people out of workforce to have opportuniites for young people, and there was a little bit of a safety net. It was a thank you gift to move people out of workforce -majority 65+ retired 1. 1965:57% of 55+ in workforce 2. 2009: 38% of 55+ in workforce -added a lot of people to the 85+ older so it gets higher and higher (1965+2009) -age discrimination act 1697 -mandatory reitrement no longer legal 1986 -early retirement increased in popularity in 1990s but has stailized/ declining-why? -women 55+65 in the workforce have actually increased -why?
What is social security?
-social security act passed in 1935 -first benefits paid in 1940 *a contributory social insurance program: everyone pays in and everyone receives benefits. Not a welfare program. Not an investment program. everyone had a minimal safety net when they get old. only takes some wages. payroll taxes -financed by 12.4% tax on wages up to 118,500(2015)= half paid by worker, half by employer -provides retirement, survivors and disability benefits to eligible workers and their families -the largest government program in the world; takes up almost one-quarter of the total federal budget.
social Security and the modern family
-social security's benefit structure is stuck in the past -dual entitlement rule: a spouse is entitled to her own benefits or benefits equal to one-half of the higher earning spouse-but not both -63 percent of working women receive no additional benefits for the taxes they pay -the dual entitlement rule is one of the most regressive aspects of social security
ethnic disparities and social security
-some shorter life expectancies -dependents -lower incomes disability -marriage * it is hard to determine if it is fair bc some people are very wealthy still collect social security
"Life Planning" & Financial Planning
-sometimes retirement is unexpected -social security=major source of retirement income 66% of recipients, ONLY source for 16% (they are not a lot of money sometimes only $750) -among 30-50, >1/2 plan to retire at 60 or younger & only 6% plan to work past 65 -30-49 accumulated only 1/3 of what needed -only 21% in 401K types contribute max employer match & 25% plan to use funds for other than retirement -retirement could last much longer than parents'
ageism
-stereotyping and discrimination based on age (sick and frail or worse: impoverished, impotent, senile, and unhappy) -we need to understand how all generalizations, including understanding conveyed by gerontology, should be balanced by acknowledgment of individual differences
But won't the trust fund help pay benefits?
-technically the government bonds in social security's trust fund will help pay full benefits until 2033. 3 yrs ago this projection was 2037 and 9+ years ago this projection was 2041 -but the social security trust fund is merely a debt the government owes to itself -and the only way to turn those IOUs into cash is to raise taxes, cut spending, or borrow
well elderly
-tend to be well-off both physically and financially
old age does not equal poverty and economic vulnerability
-the aged in most societies have formed a large segment of the poor -the richest people have also been more likely to be older
older people have not shared equally in the increase in retirement income
-the disadvantaged-poorly educated, minorities, and women -haven't had jobs that allow them to collect maximum social security benefits or private pensions, or accumulate wealth
how do we define "least advantaged" among older adults
-the entire older population -people above a certain age -elders in minority ethnic groups -older women -rural or inner-city elderly -the physically or mental frail -older people who are vulnerable to abuse or neglect
Older Americans act (1965)
-the federal gov. also provides for direct provision of social services. the 1978 congregate housing act brought housing and social services for the aged together. the enactment of comprehensive social service programs was made possible by the older american act (OAA) in 1965. -funding for OAA programs has been inadequate, just as it been inadequate for comprehensive social services under Title X of the Social security act. -still the OAA has provided a strong stimulus for planning and advocacy on behalf of the aged
on average, not too bad, could be worse
-the financial pressure for today's older people, at least on average, may look pretty good. They enjoy historically high social security and pension income and have a comparatively high net worth
the aging network
-the older Americans act, first passed in 1965 and amended in 1973, created a national aging network of services for older people, such as nutrition programs, senior citizens centers, and information and referral services -a key element of the aging network is local area agencies on aging, generally based in city or county government and responsible for planning and organizing services to older people in that region -each state also has a state agency on aging that plans and disperses federal funds under the OAA. -at the federal level, the US administration on aging coordinated OAA programs and provides a focal point for advocacy
improvements over past two decades, but still significant poverty
-the stereotype that most people are affluent is mistaken -there is enormous variation among subgroups of the aging with respect to economic circumstance -a large group of older people have been brought above the technical poverty line are still poor
is retirement obsolete?
-the time in which the primary means of financial support becomes pension income and not salary -the 20th century was "age of retirement"= early retirement peaked in 1990s -decline in labor force participation--> loss of productivity by older people -with longer lives, more time in: 1. education 2. work 3. retirement -early retirement was late 50s and early 60s when the early retirement peaked in 1990s because they left the workforce. they freaked out because our stock market crashed and then they were mad that they retired early
how are your retirements benefits calculated?
1. SSA keeps track of wage history and converts your past earnings into a single-number Average indexed monthly earnings (AIME) 2. SSA uses a formula to convert your AIME into monthly benefit 3. the monthly benefit amount is adjusted by where you being receiving before or after normal retirement age 4. after you begin drawing benefits, they are adjusted by a cost of living allowance -normal retirement age=67 1000$ -retire early age =62 700 down 30% -retire later age= 70 1300 up 30%
four issues underlie generational equity
1. questions about the allocation of resources between older adults and children 2. concerns about large government deficits 3. controversies over rationing health care resources 4. questions about the fairness of how social security is financed
How can SS be solvent? (5 suggestions that floating about)
1. reduce social security benefits-->20% across board 2. increase payroll tax on high earners(threshold and/or rate) 3. raise the age of entitlement further=69+ 4. increased "means testing" -only available to low incomes -"affluence test"-benefits eliminated above some threshold 5. privatization = 2 biggest possible problems -borrow money to finance privatization --> set up as a pay as you go system because if you take it out then you have to replace it -large national influence over the stock market--> gov has not invested money in market, what could happen to stock market if gov. was involved
three-legged stool
1. social security 2. private pensions 3. individual savings and other assets -9 out of 10 older adults rely on social security for some portion of their income, 20% get all their income from it
Trends in Public Policy and Aging
1. social security and medicare have grown rapidly =available on the basis of age alone, without means testing 2. federal programs for older adults continue to enjoy broad political support, even if growing numbers of young adults have doubts about whether they will collect similar benefits when they retire 3. programs for older adults have developed incrementally, making it harder to see how much they have grown over the years 4. growth of benefit programs for the aged reflects growth in size of the aging population itself 5. changes being advocated include measures to make social security fairer to women and to allocate social security funds to private investment *general shape of federal aging programs is unlikely to change dramatically
Income
=amount of money you have Earnings from work or investment
wealth
=length of time to maintain your lifestyle without working a family's or individual's net worth (that is, total assets minus total debts)
Has improved over time, but..
Nevertheless, the overall economic position of older Americans has improved substantially in the past two decades. Despite the good news, the stereotype that most older people are affluent is mistaken. When we look behind average figures, we see three things: -Enormous variation among subgroups of the aging with respect to economic circumstances -A large group of older people who have been brought above the poverty line but are still near-poor. -The insidious feature of old age poverty is that it lasts longer and is more likely to be permanent than poverty among younger people
repositioned business model
nursing (top) memory support independent community based services
survivor Benefits
paid out to the dependents of the deceased worker; eligible if unmarried child under 18, unmarried disabled child (under 22 when disabled), surviving spouse 60 or older or with children younger than 16, disabled widow/er ages 50 to 59, dependent parent