Ch 10-16

_____ retirees experience the most negative transitions into retirement. -Elderly -Voluntary -Involuntary -Middle-aged

-Involuntary

Identify true statements about the Employee Retirement Income Security Act (ERISA)? (Check all that apply.) -It required companies to establish minimum vesting standards. -It reduced the reliance on the federal pension system -It increased 401(k) salary deferral contribution limits. -It required companies to establish better methods of reporting plan benefits and finances to workers.

-It required companies to establish minimum vesting standards. -It required companies to establish better methods of reporting plan benefits and finances to workers.

Identify the reasons that aged millennials may have less economic security than older people today. (Check all that apply.) -Millennials also have lower rates of labor force participation than Generation X. -Millennials are purchasing homes earlier than previous generations without enough savings. -Unemployment was high when millennials entered the labor market. -The coronavirus in 2020 that left many millennials along with other cohorts unemployed. -Millennials have fewer opportunities and are aging into retirement with more debt.

-Millennials also have lower rates of labor force participation than Generation X. -Unemployment was high when millennials entered the labor market. -The coronavirus in 2020 that left many millennials along with other cohorts unemployed.

Identify the organizations that comprise the gray lobby. (Check all that apply.) -National Association of Retired Federal Employees -National Employee Retirement Committee -National Committee to Preserve Social Security and Medicare -National Geriatric Health Maintenance Organization

-National Association of Retired Federal Employees -National Committee to Preserve Social Security and Medicare

Identify accurate statements about the labor force participation of men. (Check all that apply.) -The great majority of men who are in their 30s and early 40s are in the labor force. -Most men drop out of the labor force when they are in their late 40s. -Overall, there is a gradual decline in work as men age. -Men age 75 and older are working less than in the past. -Most men continue to work into their early 50s.

-The great majority of men who are in their 30s and early 40s are in the labor force. -Overall, there is a gradual decline in work as men age. -Most men continue to work into their early 50s.

Identify the factors that are responsible for the rise in volunteer work among older people in the current time. (Check all that apply.) -They are more financially secure than any previous generation. -They are more highly educated than any previous generation. -They are retiring later in life than their predecessors. -They have less active postretirement lives than their predecessors. -They are in better health than any previous generation.

-They are more financially secure than any previous generation. -They are more highly educated than any previous generation. -They are in better health than any previous generation.

Identify the features of defined benefit (DB) plans. (Check all that apply.) -They protect workers from losing their entire pension when companies merge or go bankrupt. -Most plans include yearly raises. -They provided retired workers with a guaranteed income stream for life -Some plans also included regular cost-of-living increases so income kept pace with inflation. -They pay retirees a set monthly income with the amount based on years of employment and previous salary.

-They provided retired workers with a guaranteed income stream for life -Some plans also included regular cost-of-living increases so income kept pace with inflation. -They pay retirees a set monthly income with the amount based on years of employment and previous salary.

Which of the following factors increase satisfaction with retirement? (Check all that apply.) -being in good health -planning in advance -retiring voluntarily -having an employed spouse -retiring due to coercion -having adequate income

-being in good health -planning in advance -retiring voluntarily -having adequate income

Professionals who receive intrinsic rewards from work often _____. -delay retirement -get fired -quit their jobs -retire early

-delay retirement

People who have worked at routine and unchallenging jobs all their lives are often _____. -eager to retire -unwilling to retire -fired before they quit -intrinsically motivated

-eager to retire

A factor that is likely to encourage later retirement is the _____. -shift to defined benefit plans -erosion of retiree health benefits -decline of 401(k)-type plans -introduction of the earnings test

-erosion of retiree health benefits

True or false: Baby boomers have taken less debt and thus will face less financial insecurity in the future.

False Baby boomers have taken on more debt and thus will face more financial insecurity in the future. The main reason is that many boomers purchased expensive homes with relatively small down payments.

_____ are a form of partial retirement that spans the period between full-time work and complete absence of work.

bridge jobs

The first pensions offered by employers to their employees were called _____ plans.

defined benefit

Between 1970 and 2017 the percentage of women with children under age 6 _____.

doubled 31% - 62%

One reason for employers being biased against older workers is that older workers generally _____ than younger workers, and companies are always looking to reduce costs.

earn higher salaries

The core thesis of those who believe there is a(n) BLANK is that entitlement spending is consuming a disproportionate share of the federal budget, crowding out other social needs.

entitlement crisis

True or false: The language of the provisions under the Social Security system has always been gender neutral.

false. Originally, only wives were eligible for a spouse or widow's benefit, but recent reforms in the Social Security system have emphasized gender neutrality, which means reformulating laws in gender-neutral terms.

In the context of the debate on generational equity and the entitlement crisis, according to the distinguished demographer Samuel Preston, in the public sphere, _____.

gains for one group come partly at the expense of another

Some older workers engage in _____, which refers to an arrangement in which workers are hired on a temporary basis to do a specific task.

gig work

The advantage of _____ is that it gives an older person flexibility to work some months and use the rest of the year for leisure pursuits, and it also allows employers to employ experienced workers without making a permanent commitment.

gig work

One of the ways by which older people involve themselves in political party activities is by _____.

helping to recruit local candidates to run for office

An increase in the age of eligibility for Social Security benefits, new forms of pension income, and improvements in health are factors that have contributed to the _____.

increase in work among older men

Recent efforts to dramatically change the nature of Social Security have focused on creating a(n) _____, which would occur through privatization, where workers would be allowed to divert a portion of their share of payroll taxes into private accounts.

ownership society

The _____ framework is designed to appeal to younger workers who like the idea of having the opportunity to build wealth; wealth that they will use for their own retirement or pass on to their children.

ownership society

Identify an example of the simplest type of social stratification. -younger workers being preferred during recruitment -the disabled having more privilege while using public transport -parents having authority over children -the wealthy being vocal in policymaking

parents having authority over children

A central concern for millennials is the explosion in _____, a problem that few baby boomers faced. -housing debt -medical debt -credit cart debt -student debt

student debt

The main purpose of _____ is to raise money to finance government expenditures on, for instance, the environment, public highways, defense, and Social Security.

taxes

People who work bridge jobs are more likely to _____, which is defined as working less than 35 hours a week.

work part-time

Identify accurate statements about people who volunteer. (Check all that apply.) -People who are younger are more likely to volunteer than people who are older. -People who have personal and financial resources are more likely to volunteer their time than people who don't -People who are in good health are more likely to volunteer -People who are less educated are more likely to volunteer their time than people who have higher education levels.

-People who have personal and financial resources are more likely to volunteer their time than people who don't -People who are in good health are more likely to volunteer

Why are unemployment rates low among older workers? -They find new jobs easily. -They stop looking for work. -They cannot be fired under law. -They rarely lose their jobs.

-They stop looking for work.

Identify a barrier to participation in leisure-time activities in later life. -a poor marriage -a lack of education -a lack of social skills -a lack of transportation

-a lack of transportation

The most common form of volunteering among older adults is participation in _____. -political activities -a health provider organization -organizing leisure-time activities -a religious organization

-a religious organization

When Social Security was enacted in 1935, the normal retirement age was set at _____, and in 1962, amendments to the Social Security Act set the early retirement age at _____ to encourage retirement and reduce unemployment.

65; 62

_____ appears in societies with growing economies, which require the specialized expertise that creates a ranking within the occupational system.

Class stratification

True or false: A fact about the Social Security program is that it is going bankrupt.

False

_____ are organizations that represent individuals by lobbying politicians to take certain actions and by suggesting alternative proposals.

Interest groups

_____ can support candidates by informing their members that a certain candidate favors or opposes an issue of importance to them and urging members to vote accordingly.

Interest groups

if an age effect is operating

One might conclude that people are more likely to vote as they grow older.

if a cohort effect is operating

One might conclude that people who are older now have always been inclined to exercise their right to vote.

The _____ was passed in the United States during the Great Depression in response to reports of high unemployment and poverty among older people.

Social Security Act of 1935

_____ also reflects career patterns in politics as people move to more prestigious positions.

The older age of officeholders in high-government positions

Identify an accurate statement about influence of gender on income disparity. -Women are more likely to have a lower average income than men. -Men are less likely than women to receive income from private pension schemes. -Men are less likely than women to receive income from federal pension schemes. -Women are more likely than men to own valuable assets after retirement.

Women are more likely to have a lower average income than men.

Reformulation of laws in gender-neutral terms is known as

gender neutrality

Which of the following has proved to be the most successful program of the American welfare? -food stamp -social security -income tax credit -head start

social security

Identify the decisions made by the baby boomers as a generation that have have mitigated to some degree the adverse effects faced by the previous generation. (Check all that apply.) -They have married later than their parents. -They have had more children than their parents. -They have waited longer to have children than their parents. -They have married earlier than their parents.

-They have married later than their parents. -They have waited longer to have children than their parents.

Which of the following is a consequence of adopting means testing? -It will encourage work in later life as well as saving for retirement -It would produce a system that eliminates fraud -It would eliminate benefits entirely for retirees with high incomes. -It will make the job market more competitive for workers of all ages.

It would eliminate benefits entirely for retirees with high incomes.

Identify an accurate statement about the Social Security benefits received by working women. -Many working women receive the same benefits as married, unemployed women. -Many working women receive the same benefits as single, working men. -Many working women receive the same benefits as married men. -Many working women receive no more in benefits than married, unemployed women.

Many working women receive no more in benefits than married, unemployed women.

The most important constraints on participation in leisure-time activities and organizations are _____.

a lack of economic resources and poor health

The basic sociological approach to stratification views inequality as _____.

a product of social processes, not innate differences between individuals

During the post-World War II period, _____ contributed to the increased economic well-being of the aged today.

improvements in Social Security benefits

What was the consequence of the improved economic status of the aged in the United States?

increase in rates of poverty among children

Under the Retirement Equity Act of 1984 (REA), BLANK became part of a divorce decree wherein the pension is considered part of the property settlement.

pension splitting

_____ gives employers the benefit of keeping an experienced worker and gives older people a chance to make a continued contribution at a more relaxed pace

phased retirement

_____ is any arrangement that allows older workers to reduce their responsibilities and ease gradually into full retirement.

phased retirement

Those who support BLANK of Social Security believe that accounts invested in the private sector are likely to exceed the value of future Social Security benefits.

privatization

In general, _____ tends to increase with age. -good health -intelligence -mobility -religiosity

religiosity

The privatization of Social Security as a solution to the potential depletion of the Social Security trust fund involves _____.

shifting some of the responsibility for old-age security to individual Americans

The dimensions of _____ include economic variables such as income and wealth, prestige variables that refer to a subjective ranking, and power, such as political participation and the distribution of justice.

social class

Progressive income taxes that tax the rich more heavily than the poor redistribute income across _____, while payroll taxes that take income from workers to pay for benefits for retirees redistribute income across _____.

social classes; generations

Increasing the age of eligibility for Social Security could _____. -have a disproportionate impact on racial and ethnic minorities -solve the problem of declining wages if the unemployment and welfare rolls increase -cause wages to decline as they did when the baby boom cohort hit the job market -improve the racial and ethnic inequality among older Americans -make the job market more competitive for workers of all ages

-have a disproportionate impact on racial and ethnic minorities -cause wages to decline as they did when the baby boom cohort hit the job market -make the job market more competitive for workers of all ages

According to a study by Schulz and Binstock (2008), each year since 1970, those turning 65 have had _____. -higher fertility, greater resistance to genetic mutations, and higher divorce rates -higher unemployment rates, more unstable families, and higher incidences of chronic disease -higher postretirement declines in income, more job insecurity, and -higher job turnover -higher levels of education, more stable job histories, and higher preretirement incomes

-higher levels of education, more stable job histories, and higher preretirement incomes

Identify the factors that create uncertainties when planning for retirement savings. (Check all that apply.) -not knowing how long one will live and how much money is needed for retirement -unexpected periods of unemployment -uncertainty about tax breaks and returns -uncertainty about one's future health status -unpredictable rate of inflation -uncertainty about how much income one will receive post retirement

-not knowing how long one will live and how much money is needed for retirement -unexpected periods of unemployment -uncertainty about one's future health status -unpredictable rate of inflation

Identify the specific policies adopted by European countries to reduce high unemployment among workers in the 1980s. (Check all that apply.) -policies that lowered the age of eligibility for public pension programs -policies that expanded disability programs to include younger workers -expansion of the eligibility criteria for disability insurance -providing more jobs for older workers

-policies that lowered the age of eligibility for public pension programs -expansion of the eligibility criteria for disability insurance

When older workers lose their jobs, they _____. -take longer than other workers to find a new job -are still able to stay financially stable due to pension benefits -often do not stay unemployed for long -are more likely than other workers to find a job with higher pay

-take longer than other workers to find a new job -take longer to recover

One problem with raising the age of eligibility for Social Security is that _____. -it would create more job opportunities for younger people and less for old people -it would make the job market less competitive -there would be a reduction in income for people in their early 60s. -it could lead to a decrease in unemployment and welfare rolls

-there would be a reduction in income for people in their early 60s.

Identify an accurate statement about the accumulation of wealth by blacks in the United States. -Differences in home ownership partially account for the racial disparity in wealth between African Americans and whites. -There has been a significant decrease in the number of homes owned by African Americans due to increase in racial discrimination against them. -The life course perspective of cumulative disadvantage is unable to prove that African Americans accumulate a greater amount of wealth than whites. -A majority of African Americans own their own homes in America compared with less than half of non-Hispanic whites.

Differences in home ownership partially account for the racial disparity in wealth between African Americans and whites.

Which of the following acts was passed by Congress in 1974 to curb some of the problems associated with defined benefit pension plans?

Employee Retirement Income Security Act

A drawback of the _____ is that services funded by it provide few chronic and long-term-care services to Indian elderly.

Indian Health Service (IHS)

The legal foundation of the _____ is defined in federal treaty obligations, stipulating that health care be provided to American Indians at no cost as reparation for tribal lands stolen from them.

Indian Health Service (IHS)

National Association of Retired Federal Employees

It is concerned primarily with issues of interest to retired federal employees.

National Committee to Preserve Social Security and Medicare

It played a key role in killing the Medicare Catastrophic Coverage Act of 1988.

Which of the following is true of the participation of older people in social movements? Multiple choice question. A greater number of older people than other age groups participate in social movements. Older people from the baby boomer generation are the most likely of all age groups to be adherents to a social movement. Older people are less likely than the middle-aged, but more likely than young adults, to participate in social movements. Older people are least likely of all age groups to be adherents to a social movement

Older people are least likely of all age groups to be adherents to a social movement.

Identify a correct statement about the generational equity debate. Unlike the entitlement crisis, the generational equity theme is directed almost entirely at federal spending. It suggests that the elderly have received more than their fair share of public resources. It suggests that younger people are financially better off than the elderly as a group. It indicates that spending on Social Security and Medicare is consuming a disproportionate share of the federal budget.

Spending on Social Security and Medicare consumes a disproportionate share of the federal budget.

Which of the following is an unpredictable factor that makes it difficult for people to plan for retirement savings? -The adoption of defined benefit plans by most companies -The rising deflation rates -The age of retirement -The adoption of mandatory retirement policies

The age of retirement

What is the argument for raising the normal retirement age as a solution to the problems faced by Social Security? -The health gap between whites and minorities has been eliminated since the passing of the Social Security Act. -Research has proven that older workers are more efficient than younger workers. -The average life expectancy has increased since the passing of the Social Security Act. -Research has proven that older workers have productivity and quality of work identical to that of younger workers.

The average life expectancy has increased since the passing of the Social Security Act.

In the context of engagement in social movements, which of the following is true of older people in the United States? -They are the most likely of all age groups to be drawn to a social movement. -They are as likely as other age groups to participate in protests. -They are least likely of all age groups to be involved in a social movement. -They often express their political beliefs by participating in demonstrations.

They are least likely of all age groups to be involved in a social movement.

Which of the following are true of the old people in the United States? (Check all that apply.) They are less likely to get involved in local community politics. They are more likely than younger people to follow primary contests from beginning to end. They are more likely to watch party conventions on television. They are more likely to get involved in socio-political movements.

They are more likely than younger people to follow primary contests from beginning to end. They are more likely to watch party conventions on television.

Identify an accurate statement about age of officeholders. Typically, the higher the office, the older is the age of the officeholder. State constitutions do not have any age requirements for politicians. The U.S. Constitution does not have any age requirements for politicians. Typically, people prefer voting for officeholders who are older than 65.

Typically, the higher the office, the older is the age of the officeholder.

Unlike in the past, few employers now are willing to pay the health insurance premiums for their retired employees, which makes older employees continue working until _____.

age 65, when they become eligible for Medicare

Identify the effects that can be operating when assessing differences in voting patterns. (Check all that apply.) Multiple select question. an age effect an economic effect a period effect a fiscal effect a cohort effect

an age effect a period effect a cohort effect

Which of the following is a consequence of women's caregiving responsibilities? -an increase in the number of divorce rates -an enduring wage gap with the men -an increase in the likelihood of getting married to men with low earnings -a decrease in widowhood

an enduring wage gap with the men

Some employers are biased against older workers because older workers are thought to _____ than younger workers.

be less productive

One major concern related to adopting means testing is that _____. -it would discourage saving -it would cause the poorest elderly to suffer -it would discourage people with lower incomes from saving -it would discourage benefit reduction

it would discourage saving

Under the Retirement Equity Act of 1984 (REA), pensions for married employees now must be _____, which means that the worker must take a reduced pension for life and the spouse must get a 50 percent survivor's pension unless both husband and wife agree, in writing, to waive the survivor's pension.

joint and survivor benefits

In the context of labor force participation, educated women are _____.

less likely to take time out of the labor force and more likely to work beyond the traditional retirement age

In the United States, the higher risk of poverty of single, older women is explained by the _____.

low level of Supplemental Security Income (SSI) benefits for women

The disparity between the Social Security benefits granted to men over women has led critics to _____.

question the value of the spouse benefit

Disability Insurance is a part of the Social Security system that provides a way for disabled workers to _____.

retire early and still have a secure income source retire before they normally would and still have a source of income

Unlike interest groups, _____ resort to noninstitutional methods such as demonstrations or sit-ins to pursue their collective objectives.

social movements

According to the theory of cumulative disadvantage, _____ of African Americans means less opportunity for them to become vested in private pension systems and to accumulate pension savings.

sporadic employment

The problem with Supplemental Security Income (SSI) is that _____. -the average monthly benefit provided by it is very low -the scheme only covers ancillary expenses such as clothing, transportation, and utilities -it does not cover typical operations required by the blind or disabled elderly -it does not provide living expenses to its beneficiaries

the average monthly benefit provided by it is very low

As the costs of public programs grew during the 1980s, European countries became concerned about _____.

the early exit culture that had been encouraged among older workers.

According to _____, inequality is not a static outcome but rather is a cumulative process that unfolds over the life course.

the theory of cumulative disadvantage theory of cumulative inequality

The central premise of _____ is that although people may move up or down the social ladder, generally those who begin life with greater resources have more opportunities to acquire additional resources, and those who begin life with little fall further and further behind.

the theory of cumulative disadvantage theory of cumulative inequality

In the context of impedance of the accumulation of wealth by blacks due to racial discrimination, _____.

the value of homes owned by blacks is lower than that owned by non-Hispanic whites

A 2018 survey found that 66 percent of retirees thought about how _____ would affect the amount of Social Security benefits they received.

their age at retirement

According to the theory of cumulative disadvantage, racial discrimination has resulted in lower earnings for African Americans during their working years, which means that _____.

they have lower Social Security benefits in retirement

A barrier that prevents many Mexican Americans from participating in Social Security is that _____. -majority of the Hispanic population are old and unable to earn enough to contribute to it -they never became legal residents of the United States -the program has a specific clause against coverage of Hispanics -there is poor awareness among the Hispanics about the scheme

they never became legal residents of the United States

Many older Hispanics are ineligible for Medicare because _____. -they worked in occupations not covered by Social Security -they choose not to enroll themselves in federal programs -they are discriminated against by the American Constitution -they can afford private care

they worked in occupations not covered by Social Security