New reports have been released in the past couple of days analyzing the various problems facing Social Security, beneficiaries and overall retirement. A number of institutions have compiled data that covers an array of issues, from Social Security statements continuing to be mailed out to female seniors experiencing financial disarray in their winter years.
Singles hurting Social Security
Yardeni Research released a report Monday that consisted of data looking at how singles are becoming the majority and this could very well hurt government coffers, particularly for state-sponsored retirement programs.
The study discovered that for the first time in United States history, most adult Americans are single, which also means fewer marriages, fewer children and fewer taxpayers. Economists argue that without any type of reform then a singles majority could pose a risk to near-future retiree benefits.
At the present time, more than 124 million Americans 16 years of age or older are single, or just 50.2 percent – the classification entails never married, divorced and widowed. This figure is up from 37.4 percent in 1976.
Economist Edward Yardeni, president of Yardeni Research, says that that if singles continue to grow then there will not be enough in the population to balance the retirees to workers ratio, which spells trouble for an already fledgling Social Security program. In other words, as the youngest Baby Boomers turn 67 in 2031 they will start to cash in, but there won’t be enough younger workers to pay taxes in order to reload the system.
In addition, the Congressional Budget Office (CBO) has reported that Social Security will be bankrupt in 2031 unless taxes are raised and/or benefits are reduced. Medicare spending will also experience a tremendous burden as its primary hospital fund is projected to be out of money by 2030.
Social Security statements
The Social Security Administration (SSA) announced that it will continue to mail out paper copies of benefit statements to working Americans every five years. This was confirmed despite the fact that the (SSA) is saving approximately $70 million each year since it stopped sending them out annually.
Carolyn Colvin, acting commissioner of the SSA, urged everyone to sign up for an online account to view their Social Security benefits. However, even if you have not, the SSA will continue mail out paper copies to everyone at the age of 25, 30, 35, 40, 45, 50, 55, and 60 about three months after their birthdays – when someone reaches 60 then they get one every year.
“We have listened to our customers, advocates, and Congress; and renewing the mailing of the statement reinforces our commitment to provide the public with an easy, efficient way to obtain an estimate of their future Social Security benefits,” Colvin said in a statement.
Critics, on the other hand, say the online accounts do not provide Americans with sufficient information regarding their benefits. Furthermore, only a small number of Americans – six percent of 10 million workers – have signed up for online accounts.
Poll finds female seniors suffering
A new Harris Poll entitled “2014 Social Security Study” found that more than four in five women choose to take out Social Security early, but a large number of female seniors are reporting facing financial difficulties during these times.
More than one-quarter (29 percent) of respondents said life is worse during retirement than prior to, while 28 percent noted that life is worse – most of those who say life is worse cite a paucity of income and higher than projected cost of living expenses.
“There are many reasons women take Social Security early,” said Shawn Britt, director of advanced consulting for Nationwide Retirement Institute, in a statement. “Some mistakenly believe taking it earlier will result in more money over the long run, while others may have been forced into retirement early and need the money.”
Women who took out Social Security early receive an average of $1,025 per month, while those who wait until at least the full retirement age get an average of $1,270 every month.
