MATURE MARKET HEADLINES updated 2/02/2000
Securing Insecurity of Social Security Reform
When it comes to using the Social Security System to save money for your retirement, you might as well stuff your work-day contributions into your mattress. The return that workers receive on their Social Security payroll contributions are less than pathetic. So why not invest those bucks in the stock market for a better return during your retirement years? Good question. Here's the answer, which is yet another question, "What if the stock market takes a nose dive?" Say "goodbye" to your secure retirement. There lies the main obstacle to Social Security reform.
So how can we secure the insecurities of Social Security reform? The key to putting those reform jitters to rest is structuring the system properly, says The Heritage Foundation's (HF) top Social Security analyst. "There’s no question that the accounts can be structured to maximize growth while minimizing risk," says HF analyst David John. "Those who consider market fluctuations an excuse for not creating the accounts are only proving that they're not serious about reform."
In a detailed paper that answers the question "What if the market goes down?" John shows how to structure and regulate retirement accounts to allow workers to tap the market without being exposed to unnecessary risks. At least initially, workers should be limited to three simple investment options offering stock index funds, as well as corporate and government bonds. With fewer options, argues John, risk is minimal and novice investors learn how to manage their money. "Since any of the three basic options would earn substantially more than the current Social Security system does, any choice would improve their retirement incomes."
The long-term success of such accounts depends largely on how they are regulated by the managers. John spells out four standards for account managers:
- sufficient capital invested in the firm to ensure stability
- a demonstrated level of expertise
- a policy of disclosing all fees and costs
- a practice of providing regular statements to investors
Depending on the type of account, it should be supervised by an already existing regulatory agency, says John, such as the Securities and Exchange Commission or the Office of the Comptroller of the Currency. Putting the Social Security Administration (SSA) in charge of regulating retirement accounts would be a mistake, John says. For one thing, SSA lacks experience in investing. Moreover, allowing the SSA to oversee the accounts could create a conflict of interest, since SSA would be in direct competition with SSA itself.
Interesting scenario for a new Social Security structure. Only time will tell if the scenario is enough to calm the money worries of today's workforce.
See related articles in the AgeVenture archives.
Social Security: If You Rebuild It, They Will Succumb
Individual Social Security Accounts Feasible
Social Security Takes Stock of Wall Street
U.S. Trails Many Nations in Social Security Reform
AgeVenture News Service, www.demko.com
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Live Healthy Now, Die Later ... Much Later
"If you don't long to live, then you won't live too long", that's the credo of AgeVenture News Service. But longing, or wanting, to live long is just wishful thinking. If you want to reach a ripe old age, and have those later years be healthy years, you must take action. That action includes attending to both the findings of medical science and using the good sense that God gave you. Living better and longer is a matter of lifestyle. "75% of the factors that contribute to successful aging are determined by lifestyle habits." But don't take my word for it. Read on, and see what a new study by the Center for Disease Control says about living longer and better.
A look at several indicators of the health of older Americans, including illness and death, health risk behaviors,
use of preventive services, medical expenditures, and injuries and violence, indicates that older Americans could do more to improve their health and quality of life as they age, according to a report by the Centers for Disease Control and Prevention (CDC).
For example, while the percentages of older people in all 50 states and the District of Columbia who reported eating five or more fruits and vegetables a day increased during 1994 and 1996 (26.4% of 55- to 64-year-olds, 30.4% of those aged 65-74 years, and 33.6% of those 75 and older), more than 60% of seniors still aren't meeting that goal. And although the percentage of older Americans who smoke declined with age during 1995-1997, the decrease is attributed not only to some people stopping smoking but to the deaths of older people who smoke.
"Disease and disability need not be inevitable consequences of aging," said CDC Director Jeffrey P. Koplan, MD, MPH. "Simple changes in lifestyle—more physical activity, a balanced diet rich in fruits and vegetables and whole grains, and using preventive services like mammograms, colorectal cancer screening, and vaccinations can contribute to more years of health and better quality of life."
Unfortunately, the CDC study findings showed that many seniors are not physically active and are not using services that would prevent or detect early the chronic diseases that people are likely to develop as they grow older. Here's a snapshot of the study's findings.
- one-third of the 55- to 74-year-olds were physically inactive
- 46% of those older than age 74 reported no physical activity
- influenza vaccinations by persons age 65-plus ranged 54%-74%
- pneumococcal vaccinations by persons age 65-plus ranged 32%-59%
- breast cancer screening decreased with age despite the increased risk
- less than a third of people 55-plus received a screening test for colorectal cancer
As a result of the elders' neglect of these health-sustaining behaviors, their lives may be shortened or they may be living their last years with poor quality of life. The findings are being released at a time when Americans are living longer and the proportion of older adults in the population is increasing rapidly as the Baby Boomers age. CDC and its partners hope that state and other health planners will use these data to plan interventions for seniors to help them remain independent and maintain quality of life as they age.
"A nationwide effort is needed to both promote healthy behaviors among the elderly and to make them aware of the value and availability of preventive health services", says James S. Marks, MD, MPH, director of CDC's National Center for Chronic Disease Prevention and Health Promotion.
Start putting this new knowledge into action. Make some positive changes in your lifestyle. Like I said, "Live healthy now, die later ... much, much later."
See related articles in the AgeVenture archives.
Lifestyle Study Says Elders Improve With Age
Diet & Lifestyle May Lower Blood Pressure
Healthy Habits Delay Disability by 8 Years
AgeVenture News Service, www.demko.com
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Social Security Changes Take Effect in 2000
The normal retirement age for Social Security is set to increase for 150 million working Americans beginning in January 2000. Although 62 remains the earliest age at which individuals can retire and collect reduced benefits, the age for collecting full Social Security benefits will gradually increase from age 65 to 67 over a 22-year period. For those born in 1938 (age 62 in 2000) the new retirement age is 65 and 2 months. The increase in the retirement age was included in the Social Security Amendments of 1983.
"Deciding when to retire is probably one of the toughest and most important decisions American workers have to make," Social Security Commissioner Kenneth S. Apfel said. "Because it is so important, it is crucial for workers to have all the facts regarding the impact of their retirement decision on their current and future Social Security benefit."
The increase in the full retirement age begins with individuals born in 1938 whose normal retirement age will be 65 and 2 months. The age increases in two-month increments for workers born between 1939 and 1943 until the retirement age reaches 66 and remains there for all workers born through 1954. For those born after 1954, the retirement age begins to increase again in two-month increments until it reaches age 67 for those born in 1960 or later.
An additional provision of the 1983 law will give workers who continue working, and delay collecting Social Security benefits until after their normal retirement age, higher benefits. The amount of the increase, known as the "delayed retirement credit," is determined by a set percentage and increases the longer retirement is delayed.
Currently, workers born in 1938 who delay retirement receive a 6.5% credit for each year they do not collect benefits. The yearly credit will increase to 8% for those born in 1943 or later. For individuals who work a partial year, the yearly percentage is broken into monthly increments. The increase stops at age 70, regardless of when a worker starts collecting benefits.
"Social Security benefits are the foundation of most Americans’ retirement," Commissioner Kenneth S. Apfel said. "And it’s important that everyone know how the retirement choices they make can have an impact on their benefits."
SSA’s website, www.ssa.gov, provides more information on the increase in the retirement age, including an interactive feature that allows browsers to look up their own retirement age.
See related articles in the AgeVenture archives.
Social Security: If You Rebuild It, They Will Succumb
Social Security Makes Every Race a Winner
New Retirement Age Won't Fix Social Security
AgeVenture News Service, www.demko.com
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TriAD Program Helps Alzheimer Caregivers
Caregivers for patients with Alzheimer's disease have a new option for information and assistance. They can sign up for a comprehensive disease management program named TriAD™: Three for the management of Alzheimer's disease. TriAD is a support program that provides information and resources to help the patient, caregiver, and health care professional in managing the day-to-day realities of living with Alzheimer's disease.
Caregivers who sign up for this free program will receive a booklet, "AD: One Day at a Time...One Question at a Time," which explains the program and answers the most frequently asked questions about Alzheimer's disease. They also receive a series of six newsletters, "Adaptations for Living™," which offer practical suggestions, information about Alzheimer's disease science, connections to resources, and answers to questions from caregivers. The TriAD program also includes an educational videotape describing the stories of patients and caregivers and offering information from Alzheimer's disease experts about the causes, diagnosis, and treatment of the disease.
Through the TriAD program, caregivers receive checklists to use when consulting the patient's clinician. These checklists are designed to help caregivers recognize and understand the patient and to communicate clearly about issues such as driving, moving out of the house, safety in the house, caregiver stress levels, and patient medication compliance.
Caregivers and clinicians can use the TriAD toll-free Helpline—1-888-874-2343—that connects them to an individual or an organization that can help them with their specific needs. TriAD was founded as "The Clinician, Patient, and Caregiver Alliance," and is supported by Pfizer Inc and Eisai Inc., in collaboration with the Alzheimer's Association and the National Council on the Aging.
See related articles in the AgeVenture archives.
Postmenopausal Alzheimer’s Prevention Study
HKUST: East Meets West to Fight Alzheimer's
Alzheimer's Research Is Everybody's Business
AgeVenture News Service, www.demko.com
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Senate Pushes Major Medical Errors Reform
A bipartisan coalition of Senators announced has that they will introduce legislation that would make critical
changes in the nation's major federal health care programs to dramatically reduce the risk of medical errors. The Senators said their proposal is a direct response to the groundbreaking report recently issued by the Institute of Medicine, which found that between 44,000 and 98,000 Americans die each year from preventable errors.
Senators made clear that they will call for broad reforms in the administration of Medicare, Medicaid, the Federal Employees Health Benefits Program, the Veterans Administration health care system, and the Department of Defense's TriCare program. Those federal programs account for almost half of the health care expenditures in the United States and cover approximately 90 million beneficiaries.
"The Institute of Medicine report pushed an alarm button, and we are responding to it as quickly as we can," Lieberman said. "The IOM revealed a deafening silence, where few errors get reported, and few patients are aware of the risks they run in seeking care. It's time we removed the blindfolds and put some sensible reporting requirements in place, so we can learn from our mistakes instead of hiding from them."
"Our health care system stresses prevention of illness. It should also stress prevention of errors," Grassley said. "We expect people to eat well, exercise and do all the right things to stay healthy. In return, they deserve careful medical treatment when they get sick. I'm especially interested in reducing medical errors for older Americans, who are more likely than younger individuals to need medical attention. This legislation will increase accountability in the medical community and help improve patient safety."
See related articles in the AgeVenture archives.
Medical Errors Cause 180,000 Deaths
Doctors Cure Fear of Hospitalization
Hospitalized Elders Dying to be Treated
AgeVenture News Service, www.demko.com
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