Proposed Changes to Social Security

Nearly every adult American knows the Social Security Administration will face a financial shortfall when the trust fund runs out of cash in 2034. If nothing is done, both current and future retirees will face benefit cuts of approximately 21 percent.  In order to keep this safety net at full strength, changes have to be made.  The good news is that Social Security is in no danger of going completely bankrupt.  As long as there are people in the workforce, the government will receive payroll taxes which are large enough to cover approximately 80 percent of what they are obligated to pay.  What the government is trying to find, however, is a way to make up for that 20 percent shortfall.

If you are curious about the proposed changes to Social Security which are under consideration by the new, Republican-controlled Congress, there is a list of the proposals below.  According to a series of articles posted on the Fox News website, including one titled "7 Ways the GOP's Proposed Social Security Changes Could Impact Your Pocketbook," a number of ideas are under discussion.  Some of these proposed changes will affect current retirees; others will have a larger effect on people who will reach retirement age in the next decade or two.  Some of the proposals will receive wide support; others will be more controversial.

It is important to remember that the proposals listed below are just that ... proposals.  The final bill may differ from what is being considered, particularly if citizens become upset by any of these proposals and contact their individual U.S. Representatives and Senators to complain.  Whether you support or object to the ideas under consideration, now is the time to let Congress know your opinion.

Proposed Changes to Social Security

1.  First, no new revenues are currently under consideration.  The proposals which have been put forth so far do not include any increase in Social Security withholding; nor do they include an increase in the amount of wages which are subject to Social Security withholding.

2.  Between 2023 and 2030, the full retirement age (which will be 67 in 2022) would gradually increase to age 69.

3.  Beginning in 2023, the way Social Security benefits are calculated would change slightly.  Low-income beneficiaries and people who have worked over 35 years would receive a small increase; those who have above-average incomes would see their benefits decrease slightly.

4.  Beginning in December, 2018, cost-of-living increases would be lower because a different consumer price index would be used.  Instead of the the current CPI-W index, a chained CPI would be used.  The difference is that a chained CPI assumes that inflation causes people to make substitutions when they cannot afford their current expenses.  This means they might move to a less expensive home, buy more affordable cars, or switch from name-brand to generic products.  As a result, according to the chain-weighted CPI, the "real" inflation most people experience is not as large as the actual rate of inflation.  The AARP has long opposed this change, arguing that many seniors already have cut out as much as they can and a chain-weighted CPI could cause even more seniors to eventually end up in poverty.

5.  Some retirees would receive no cost-of-living increases at all after they retire.  Those affected would be single retirees with an adjusted gross income of over $85,000 or joint tax filers with an adjusted gross income over 170,000.

6.  Beginning in January, 2019, there would no longer be an earnings limit on people who begin to collect their Social Security benefits early. Those who continue working while they collect reduced benefits between the age of 62 and their full retirement age could earn as much as they want. 

7.  Between 2045 and 2054, federal income taxes on Social Security benefits would gradually be eliminated.  Currently, up to 85 percent of your benefits are subject to federal income taxes, depending on how much additional income you have.  After this change, only your additional income would be taxable.  However, this proposal would not go into effect for nearly 30 years.

8.  People who delay collecting their Social Security benefits past their full retirement age currently receive an increase in benefits of 8 percent for every year they postpone collecting.  One proposal being considered would allow people to choose a lump sum payment, instead, if they delay receiving their Social Security.

9.  Currently, a non-working spouse can receive a monthly benefit that is up to 50 percent of what the working spouse receives after retirement.  Under the new proposals, there would be a cap on what a non-working spouse could receive, so some spouses would no longer receive half of what the higher wage earner receives.  This cap is more likely to affect high-income couples.

We can expect there will be disagreements on whether or not these are the best ideas for fixing Social Security. However, what is not in dispute is that some changes are necessary and, no matter what Congress does, most people will be impacted in some way by the changes.  If you want to have a voice in what changes are made, be sure to contact your U.S. Representative or Senator.  Ask what changes they support and why they believe those are the best choices.  Then, be sure to let them know if you agree or disagree with each proposal.

Contact your Representative at:  http://www.house.gov/representatives/find/

Contact your Senator at:  https://www.senate.gov/senators/contact/

After the inauguration, contact the new president at:  president@whitehouse.gov

Support the lobbying efforts of AARP by joining them at:  aarp.org

If you are interested in more information on financial planning, where to retire, common medical
issues, changing family relationships and more, use the tabs or pull-down menu to find links to hundreds of additional articles.

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Most Popular Retirement Stories of 2016

As we look back over the past year, it is interesting to review the most popular retirement stories of 2016 which were covered by the Baby Boomer Retirement blog.  There were a wide range of topics that appealed to Baby Boomers this year including an overview of Social Security and Medicare, information about voice therapy, longevity tips, housing choices, painkiller addictions, social media scams, family relationships, Alzheimers research and how to earn extra money.

All of these are topics of importance to those who have already retired, as well as those who are preparing to retire.  Below are links to the most popular retirement articles of the past year, as well as more details about the information they contain.  Just click on the links to go directly to the articles which interest you.

2016 Most Popular Retirement Stories

Social Security and Medicare Information - This is an overview article which contains links to a number of other articles that cover many of the questions people have about maximizing Social Security benefits, getting the maximum benefit from Medicare, and more.

Voice Therapy for Senior Citizens - Many people begin to discover that their voices become faint, sore or hoarse as they age.  Senior citizens may believe there is nothing they can do about these problems; however, there are therapies which can improve the quality of their voices.  Learn more about the types of therapies available.

Longevity Tips from Time Magazine - Do you want to live a healthy life as long as possible?  Here are the most current tips that will increase your chances of maximizing the number of years you have left.

Reata Glen and Other CCRCs in Orange County, California - Continuing Care Retirement Communities are becoming increasingly popular with aging senior citizens, especially those who do not have long-term care insurance.  Learn more about them, including specific information about the ones in Orange County, California.

Risks of Social Media Phishing - Social media such as Facebook are popular ways of staying in touch with our family and friends.  However, some of the games and other apps can be used to obtain your personal information.  In addition, when you use Twitter or Facebook to contact the customer service offices of companies, you could be contacting a fake site. Learn more about dangerous social media phishing and how to protect yourself.

Best Senior Housing Choices for Aging Boomers - What are some of the housing choices people have as they age?  This article explains the various options and how they might fit your lifestyle.

Senior Living Communities for Baby Boomers - Information about the types of senior living communities which could appeal to aging Baby Boomers.

Dangerous Prescription Painkillers Addictions: Opiods - Opiod painkiller addiction has become an increasingly serious problem for senior citizens.  Many people who never dreamed they could become addicts, discover that they have slipped into this overwhelming situation after surgery or other painful treatments. 

How to Overcome Resistance to Assisted Living - Do you have an aging spouse or parent who needs to move into an assisted living or memory care facility?  Do they oppose the move?  This article may help you reduce their resistance and help them become more accepting of the idea.

New Alzheimers Disease Research - Alzheimers and other forms of dementia are some of the most feared consequences of aging.  Learn more about the research which is being done and how these dreaded diseases could become less common in the future.

Earn Extra Money from the Sharing Economy - Would you like to use your home, your car, your garage or your talents in order to earn a little extra money?  Learn how easy it can be to join the "sharing economy" and supplement your retirement income.

Family Relationships - How to Stop Arguments - Do you feel stressed when you spend time with your family over the holidays or on other special occasions?  This article will give you tips on how to reduce the tension and, in many cases, stop family arguments in their tracks.  

If you are interested in reading more retirement information, use the tabs or pull-down menus at the top of this page to find links to hundreds of additional articles about where to retire, financial planning, Social Security, Medicare, common medical problems and more.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  Author

Family Relationships - How to Stop Arguments

One of the most painful situations for many retirees and younger adults is when they have a feud with a family member or close friend.  Whether this person is a spouse, sibling, parent, adult child, friend or neighbor, the continual stress of squabbling with a loved one can cause depression and place a cloud over all your interactions.  Sometimes it may seem as if you need a megaphone in order to make them hear you ... but the louder you get, the less they seem to hear.

This is a particularly important issue when we consider the fact that having frequent social interactions with others is one way we can reduce our risk of developing Alzheimer's Disease or other forms of dementia.  People who engage in frequent socializing are more likely to retain their memory as they age.  However, who wants to socialize if they feel it will only lead to arguments and friction?

As a result, when a friend emailed me a list of statements we can use to stop an argument, I thought it would be beneficial to pass these suggestions on to others.  While these statements may not be 100 percent effective at always preventing a disagreement, any reduction in conflict is worth the effort.  With that thought in mind, below is a list you may want to print out and keep handy ... especially when you are about to enter into a situation which could be difficult and stressful for you, including family holiday parties and trips to see difficult relatives.

Concepts to Help You Deal with Difficult People

Before we say anything when someone has upset us, it is important to have the right attitude.  As a result, below you will find a few concepts to keep in mind when you are going to be around someone with whom you disagree ... whether it is over religion, politics, money, family or controversial social issues such as gay marriage or abortion.  Remembering these points could prevent you from engaging in an emotional, painful disagreement with them.

Ask yourself: How important is it?
Choose to live and let live
Don't force it
Look for progress, not perfection
Remember that this too shall pass
Accept that another person's opinion of you is beyond your control and none of your business


What to Say When You Do Not Agree With Someone

(Making the statements below do not mean you agree with the other person; you are just willing to let them talk and not engage them in an upsetting discussion.)

No kidding!
Really?
You might be right.
Yes.
No.
That's interesting.
Hmmm.
Wow!
Boy, I had no idea!
I never thought of it that way.
No fooling.
Thank you for telling me.
Oh.

If Someone You Care About Makes a Decision You Think is Risky

Tell them:  I love you, I believe in you, and I know you will do the right thing for you.
You can also say:  I love you and it will be interesting to see how this turns out.

How to Handle Someone Who Keeps Trying to Convince You of Something

Remember: "No" is a complete answer (don't keep explaining your decisions)
Say what you mean, mean what you say, but don't say it mean.

How to Buy Time When You Do Not Want to Commit to Something

It's possible; let me get back to you.
I'll see if I can juggle some things.
I can't do it, but can I give you a rain check?
I'm not sure; can I get back to you?

How to Bring a Difficult Discussion to an End

This is so painful for me, can we talk about something else now?
This is all I can handle right now; can we talk more another time?
My brain is on overload; I need to think about this.  Can I call you (or talk more) another time?

More Thoughts on How to Stop Arguments

We all need to accept that we are rarely able change another person's mind and we cannot stop another adult from doing whatever they decide to do, no matter how wrong we think it is.  Sometimes, the best way to influence someone else is to maintain the best possible relationship with them.  With this thought in mind, it is better to focus less on arguing with them and more on keeping our conversations friendly, caring, positive and agreeable.

If you are interested in reading more on how to improve family relationships, where to retire, financial planning for retirement, common medical issues and more, use the tabs or pull-down menu at the top of the page to find links to hundreds of additional articles.

You are reading from the blog:  http://www.baby-boomer-retirement.com

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