Wednesday, November 9, 2016
The Wall Street Journal ran an article last month about a study that focused on people's decision-making regarding whether to retire. Before Retiring, Take This Simple Test reports on study by "Philipp Schreiber and Martin Weber at the University of Mannheim in Germany, [where] a simple two-question quiz [was developed] that can help predict whether you’ll regret the timing of your own retirement." Two questions-that's pretty easy, right. Here we go, it won't take you long to answer them:
Question 1: You just learned that you are due a tax refund. If you’d like, you can get the $1,000 refund right away. Alternatively, you can get a $1,100 refund in 10 months. Which do you prefer?
Question 2: You just learned that you are due a tax refund. If you’d like, you can get a $1,000 refund in 18 months. Alternatively, you can get a $1,100 refund in 28 months? Which do you prefer?
How did you answer them? According to the article, "[t]he point of the exercise is to measure the consistency of a person’s time preferences. Someone with consistent time preferences should answer both questions the same way—choosing the early option both times, or the delayed option both times. Such consistency is a requirement for making financial plans that you stick with." There are folks who don't answer consistently, and that's a red flag, the article explains. Those folks "exhibit a tendency known as present bias, or hyperbolic discounting. They strongly prefer rewards that arrive right away." As for timing of retirement, the article notes that study shows that those who provided inconsistent answers ultimately regret the timing (too early) of their retirement.
The article suggests some positive applications of the study results. For those of us who participate in savings via payroll deductions, such programs could be improved "if they were personalized according to the results of the two-question quiz. Consider a person who exhibits a strong bias for receiving rewards in the present. Given the likelihood that she’ll be tempted by an early retirement, she might want to be defaulted to a higher savings rate during her working years. This will help her avoid future regret over the timing of her retirement decision, since she will have sufficient savings." The article goes further, suggesting changes to enrollment in Social Security to minimize buyer's remorse for early retirement (evidently a lot of folks start drawing Social Security at age 62, which we all know results in a permanent reduction in benefits).
The study referenced in the WSJ article is reported in The Influence of Time Preferences on Retirement Timing. The abstract explains
This study analyzes the empirical relation between the decision when to retire and individuals time preferences. Theoretical models predict that hyperbolic discounting leads to dynamic inconsistent retirement timing. Conducting an online survey with more than 3,000 participants, we confirm this prediction. The analysis shows, that time inconsistent participants decrease their planned retirement age with increasing age. The temptation of early retirement seems to become stronger the closer retirement comes. We show that the negative effect of age is between 1.5 and 3 times stronger for participants who can be classified as hyperbolic discounters. In addition, we find that time inconsistent participants actually retire earlier. On average, the most time inconsistent participants retire about 2.2 years earlier. The time inconsistent behavior has severe consequences: Time inconsistent participants are ex post more likely to regret their retirement timing decision. Also, the unplanned early retirement leads to a constant decrease of retirement benefits of about 13%.
The full paper can be downloaded from the SSRN link here.
Tuesday, November 8, 2016
The Wall Street Journal recently published an article by Maddy Dychtwald, co-founder of Age Wave, on using virtual reality (VR) to help folks save. How Virtual Reality Can Boost Retirement Savings reports on a project and explains how it unfolded
Professor Hal Hershfield of UCLA’s Anderson School of Management partnered with Daniel Goldstein of Microsoft Research, Jeremy Bailenson, director of Stanford’s Virtual Human Interaction Lab, and several other Stanford researchers to see if connecting people with their future selves could affect their willingness to save for that future self. They took photos of college-age research subjects and digitally altered half of them to create virtual avatars at age 65—complete with jowls, bags under the eyes, and gray hair.
Why don't people do a better job of saving for retirement? According to the article, experts think it's psychological to some extent. "When you’re in your 20s and 30s, you can’t even imagine your life at 65 or 95. If you can’t imagine it, chances are you’re not planning for it."
Back tot he project. Digitally aging the participants wasn't the end of the project. Next the participants were provided with "goggles and sensors and were dropped into virtual reality, where they faced a mirror reflecting either their current self or their future self. As part of the experiment, they were each given $1,000 to spend. They could either buy a gift for someone special, invest in retirement, plan a fun event, or put money into a checking account."
This is getting intriguing. Want to bet what happened? According to the article, "[t]hose research ... greeted by their aged avatar put more than twice as much money toward retirement as those who saw their contemporaneous selves." The researchers, to double check the results, also showed "some research participants ... the aged avatars of other test subjects to see if that impacted their choices. It didn’t. Only those who saw themselves at retirement age were likely to invest in their future."
The WSJ article explains that VR tools are under development "to offer experiential solutions to our nation’s lack of retirement planning... [and] provide a visceral experience that might even immerse [the user] in several different future scenarios, so [the user] can experience, for instance, what it’s like to live with limited funds at 65, 75 or 80."
The article about the study, Increasing Saving Behavior Through Age-Progressed Renderings of the Future Self, is available here.
This is the abstract from the research study article:
Many people fail to save what they need to for retirement (Munnell, Webb, and Golub-Sass 2009). Research on excessive discounting of the future suggests that removing the lure of immediate rewards by pre-committing to decisions, or elaborating the value of future rewards can both make decisions more future-oriented. In this article, we explore a third and complementary route, one that deals not with present and future rewards, but with present and future selves. In line with thinkers who have suggested that people may fail, through a lack of belief or imagination, to identify with their future selves (Parfit 1971; Schelling 1984), we propose that allowing people to interact with age-progressed renderings of themselves will cause them to allocate more resources toward the future. In four studies, participants interacted with realistic computer renderings of their future selves using immersive virtual reality hardware and interactive decision aids. In all cases, those who interacted with virtual future selves exhibited an increased tendency to accept later monetary rewards over immediate ones.
Wow, just wow. Now, can we get these for our students?
Sunday, November 6, 2016
Our local newspaper, the Tampa Bay Times, recently ran a story about elders who work at low-paying jobs. Although they may wish to retire, they find themselves unable to afford retirement. For some low-income workers, retirement is only a dream explains that for low-wage workers can't afford to retire. "Studies have found that about one-third of low-wage workers ... say they'll never be able to afford retirement. The problem is particularly acute among minority women... mA 2016 study by the Associated Press-NORC Center for Public Affairs Research found that a quarter of workers 50 or older say they won't retire. Among low-wage workers, earning less than $50,000 a year, it was 33 percent."
Consider the following statistics:
A 2016 report by the nonpartisan research nonprofit National Institute on Retirement Security shows that many black, Hispanic and Asian women have to work past retirement age to be able to afford basic expenses. Women were 80 percent more likely than men to be impoverished.
The research showed that for men ages 70 to 74, about 19 percent of their income comes from wages. For women, it's about 15 percent.
Some low-wage workers will be able to collect Social Security, which will be of some help, but as the story notes, some without legal status won't be able to draw Social Security. One of the individuals featured in the story is 70 years old and works 6 days a week as the caregiver a 100 year-old person.
So what happens if the low-wage worker falls ill and is unable to continue to work? Might family step in to help? Are there options?
Monday, October 31, 2016
Recently, San Diego residents learned the sad news that a much appreciated former coach of the Chargers football team, Marty Schottenheimer, age 73, has Alzheimer's Disease. The article I read called it "early onset Alzheimer's." Apparently the original diagnosis was made in 2011, when retired Coach Schottennheimer was approximately age 68. Our wishes to "Coach Marty" and his family.
It is, perhaps, also appropriate to point out that "early onset dementia" is different than than "early diagnosis of dementia." Medical experts typically refer to early onset dementia (sometimes EOAD for Alzheimer's type dementia) only for individuals age 65 or younger, often in a person's 50s, or even earlier.
As an example from the sports world, legendary University of Tennessee women's basketball coach, Pat Summitt, publicly revealed her diagnosis of "dementia, Alzheimer's type," in 2011, at age 59. She continued as the head coach for another academic year, before electing to retire (with, in her words, a "small r").
In the last chapter of her third book, Sum It Up, Pat wrote movingly about her final year of coaching and the impact of her diagnosis, also admitting that she had probably been functioning "well" with Alzheimer's for about three years before she, with the help of her son, sought a diagnosis. She explains how the fact of her diagnosis also led them to explore treatments and management techniques they might otherwise have ignored.
As larger numbers of adults are living longer, I think we are hearing more frequently directly from persons in high positions about diagnoses of Alzheimer's or other neurocognitive impairments. This is important, because when healthy-living sports heroes are affected, we are more likely to pay attention and seek answers for everyone. Whenever I see such news, even as I'm sad, I admire the courage of the speakers and am grateful for their candor. Seeing famous people continue to function, make realistic plans, and enjoy life is important for the "not-so-famous" too. Their public candor highlights the critical need for discovery of preventions and cures for everyone.
I suspect that when a member of the press -- or the nonmedical public -- refers to "early onset Alzheimer's," it is a reflection of hope, hope that any diagnosis at 70, 75, or even 80 must be unusual, rare, and therefore not a threat to "me" before some magically "older" age that is still far off, in the future.
SSA announced recently that there would be a COLA for 2017, but it is a teensy COLA, actually, a .03% increase. Big gap between Social Security cost-of-living adjustment and retiree inflation offers a critical look at the 2017 COLA compared to inflation and how the government calculates the COLA using the consumer price index. An article in USA Today about the 2017 COLA noted that this COLA won't allow beneficiaries to get ahead, even slightly. Instead, they will likely lose ground, because of the Medicare Part B premium costs
The nation’s 65 million Social Security beneficiaries will receive a paltry 0.3% cost-of-living adjustment to their monthly checks in 2017, the government announced Tuesday. In dollars and cents, it means the average retired beneficiary’s check will rise about $5 to $1,360 per month in 2017.
The even more bitter pill: Many current Medicare beneficiaries won’t be able to spend any of that extra money. Instead, they’ll likely have to send their COLA straight back to Uncle Sam to cover higher Medicare Part B premiums.
Almost a third of Medicare's 56 million beneficiaries could see their premiums jump 22% next year, according to the Medicare Trustees Report, putting the cost at an estimated $149 per month. Those unlucky 30% of beneficiaries include people enrolling in Part B for the first time in 2017, people who are on Medicare but who aren't currently taking Social Security benefits and current enrollees who pay an income-related higher premium.
Friday, October 21, 2016
LeadingAge, the trade association that represents nonprofit providers of senior services, begins its annual meeting at the end of October. This year's theme is "Be the Difference," a call for changing the conversation about aging. I won't be able to attend this year and I'm sorry that is true, as I am always impressed with the line-up of topics and the window the conference provides for academics into industry perspectives on common concerns. For example, this year's line up of workshops and topics includes:
- General sessions featuring Pulitzer Prize winning journalist Charles Duhigg on the "The Science of Productivity," 2013 MacArthur Fellow and psychologist Angela Duckworth on the the importance of grit and perservance for successful leadership, and famed neurosurgeon and speaker Sanjay Gupta on "Medicine and the Media."
- Hundreds of sessions, organized by "interest groups":
October 21, 2016 in Advance Directives/End-of-Life, Consumer Information, Current Affairs, Dementia/Alzheimer’s, Discrimination, Elder Abuse/Guardianship/Conservatorship, Ethical Issues, Federal Statutes/Regulations, Health Care/Long Term Care, Housing, International, Legal Practice/Practice Management, Medicaid, Medicare, Programs/CLEs, Property Management, Retirement, Science, Social Security, State Cases, State Statutes/Regulations, Veterans | Permalink | Comments (2)
Tuesday, October 18, 2016
We've blogged on several occasions about aging in place. So a recent article in the New York Times caught my eye. The Future of Retirement Communities: Walkable and Urban starts out noting our dependence on cars to get where we want to go, but perhaps that is about to change. "Few people in America walk to work. Most of us drive to the supermarket. But more older people these days are looking for a community where they can enjoy a full life without a car." Focusing on one couple's search for the perfect community, the couple explained, "'[w]e realized ‘aging in place’ means a lot more than just a comfortable house ... [s]o we began thinking more about ‘aging in community.’ That means an urban neighborhood where you can walk or take transit to just about everything you need.'”
This concept, walkable living, isn't a new one, but is one that has somewhat fallen to the wayside with our dependence on cars and cities designed for vehicles rather than people. "Developments for independent retirees typically come in two flavors: isolated, gated subdivisions or large homes on golf courses, often in the same bland package of multiple cul-de-sacs. Both require driving everywhere, which is a problem for those who either don’t want to drive or can’t."
With new urbanism, an emphasis on walkable communities is gaining traction. Of course, walkability leads to more activity, which we know has benefits to those walking. There are challenges to building communities for aging. The article mentions the hurdles. "Age-friendly communities within cities may require extensive infrastructure improvements, including wider sidewalks, bike lanes, more public transportation options and longer pedestrian signal walk times. Local officials may not want to rezone or invest in the improvements or even permit them." Then factor in costs, because some currently walkable cities are also costly for residents. There are tradeoffs, however, so don't rule those out.
Have you students read this article, and have them judge your community for "aging in community."
Friday, October 14, 2016
The New York Times ran an article on October 7, 2016 exploring the "gray gender gap." The Gray Gender Gap: Older Women Are Likelier to Go It Alone is based on a recent report Older Americans 2016: Key Indicators of Well-Being (available here as a pdf). The author focuses on marital status, and notes by age, men are more likely than women to be married. "About three-quarters of men ages 65 to 74 are married, compared with 58 percent of women in that age group. More surprisingly, the proportion of men who are married at 75 to 84 doesn’t decline; among women, it drops to 42 percent...Even among men over 85, nearly 60 percent are married. By that point, only 17 percent of women are." The article looks at the reasons for this disparity and discusses the economic impact of "going it alone." According to a study referenced in the article, "[a]bout 8 percent of married older adults are poor or “near poor.” Among unmarried men, the percentage rises to about 20 percent. For unmarried women, it’s 27 percent." Economics are not the only benefit that may come from marriage. There may be health benefits, too. The article notes as well that there are caregiving facing those who are going it alone. Some people actually flourish being alone, but it is interesting to think about this gray gender gap!
Monday, September 26, 2016
The Wall Street Journal ran an article about retirement planning for women. The article, Retirement planning for women, offers some specific tips for women in their planning. Are there a lot of challenges? Perhaps the biggest one? Getting started. "If you’re a woman, the bad news is that you face some specific challenges that men don’t. The good news? Women tend to invest and save in a way that bodes well for their retirement success." Here is a look at their tips: start saving, invest savings, consider carefully before drawing Social Security, and complete an estate plan which includes "[a] financial power of attorney ... [a] health-care power of attorney, for health-care decisions, [a] living will for your end-of-life wishes, [and a] will naming a guardian for minor children." The article also offers a quick quiz on tips for women in retirement planning. Check it out.
Wednesday, September 7, 2016
As Baby Boomer partners retire, law firms face increasing costs and client issues was published in the ABA Journal. The article focuses on the upcoming retirement of law partners from the Baby Boomer and Silent Generations cohorts. "Nearly half of the partners in the nation’s top 200 law firms are Baby Boomers or members of the older Silent Generation. And that means there will be a wave of upcoming retirements that will be the most ever experienced by BigLaw...Sixteen percent of partners will retire in the next five years and 38 percent will retire in the next decade, the American Lawyer (sub. req.) reports...."
The impact of these potential retirements will ripple across law firms, including leadership, client relations, and revenues. The firms will also face other costs-the actual costs of paying for retirements from pensions, revenues, return of capital, etc. The article also notes that some firms are taking specific steps to weather this retirement wave by "trying to reduce retirement costs by raising the retirement age; capping the annual payout from annual earnings; or changing the payout formula, and switching to defined contribution plans in which the lawyers carry the risk of a declining market."
My colleague, Becky Morgan, posted recently about the trend of senior-aged consumers as customers of Uber and other ride-hailing companies. Smart marketing for the alternatives to traditional taxi-cabs includes finding ways for seniors to use and pay for services without smart phones.
Additional research demonstrates that seniors may also play an increasing role in the work force for ride-hailing companies. They are drivers, not just passengers (both literally and metaphorically). The latest research from the JP Morgan Chase Institute introduced me to a new label -- the "gig economy," and ride-hailing services are just one part of that economy:
Our research shows that a rising number of seniors are supplementing their income -- in non-trivial amounts -- by participating in the "gig economy", or Online Platform Economy. . . Among all adults, participation in the Online Platform Economy has been growing very quickly. To measure this growth, we assembled a dataset of over 260,000 anonymized Chase customers who earned income from at least of of 30 distinct platforms between October 2012 and September 2015 -- the largest sample of platform earners to date. During this period, the cumulative participation rate grew from 0.1% of adults to 4.2%. a 47-fold growth.
Although most participants in the platform economy are younger workers, seniors are not standing on the sidelines. In the 12 months ending September 2015, about 0.9 percent of seniors were providers in the
in the platform economy, compared to 3.1 percent of the general population. With over 47 million seniors in America, this translates to over 400,000 seniors participating in the platform economy.
For those seniors who do participate, their earnings are often substantial. In our research, we distinguish between labor and capital platforms. Labor platforms, such as Uber or TaskRabbit, connect customers with freelance or contingent workers who perform discrete projects or assignments. Capital platforms, such as eBay or Airbnb, connect customers with individuals who rent assets or sell goods peer-to-peer.
For more on participation of seniors in the Gig Economy, and for other interesting data points about seniors as both workers and spenders, read Past 65 and Still Working: Big Data Insights on Senior Citizens' Financial Lives, from JP Morgan Chase Institute.
Monday, August 29, 2016
We often report on crimes against older adults on this blog, but last week an 80-year-old former University of Arizona professor pleaded guilty to theft of more than $80,000 from his employer. How did he accomplish that?
The animal sciences professor was in charge of the land-grant university's "Meat Store" in Tucson and was charged with diverting thousands of dollars in proceeds from sales of meat into his own bank accounts. John Marchello worked for U of A for more than 50 years, and retired just days before his indictment in 2015. Indeed, I attended U of A many moons ago, and as a former 4-Her who took a few Ag Sciences courses along the way, I probably even took a "meats lab" course from him.
Talk about alternative "long-term care" planning. Sadly, Marchello is scheduled to be sentenced in November and faces a potential sentence between one and three years for the Class 4 felony.
There is also a civil suit pending, alleging more than $200,000 in theft. For more, see Longtime UA Professor Pleads Guilty.
Sunday, August 21, 2016
Did you know there is such a thing? The New York Times recently ran an article, More Older People Are Finding Work, but What Kind?, that features a new brief from the Center for Retirement Research. The Times article explains
As men and women 55 and older looking for employment probably suspect, at a certain point the kinds of jobs available to them narrow significantly. New research by Matthew Rutledge, an economist at the Center for Retirement Research at Boston College, found that they are increasingly being funneled into what he describes as “old-person” jobs.
And not surprisingly, older workers with the least education have the narrowest set of opportunities, though Mr. Rutledge found this effect was small.
It turns out that “old-person” jobs are a mix of high-skilled service work (like managers, sales supervisors and accountants) and low-skilled service work (like truck drivers, janitors and nursing aides). Absent from the top of the list are jobs calling for a fair amount of physical labor. Jobs in farming, manufacturing and repair represent less than a quarter of all new hires in this age bracket.
The brief from CRR, How Job Options Narrow for Older Workers by Socioeconomic Status offers these findings
Job-changers over age 50 increasingly end up in “old-person” jobs, with a high share of older hires relative to prime-age hires.
These basic findings hold by gender and by education.
However, the overall outlook has improved since the late 1990s for all groups, particularly for older women with more education.
Also, older job-changers hired into “old-person” jobs are paid no less than other jobs.
The full brief, available here as a pdf, examines "suitable" employment, with the introduction explaining
The ability of older job-changers to find "suitable" employment affects both their current income and their ability to work long enough to secure an adequate retirement income. One measure of suitable employment is the range of occupations available to them. This brief, based on a recent study, assesses the extent to which occupational options narrow for workers as they age from their early-fifties to their mid-sixties and whether the pattern varies by gender or socioeconomic status, as measured by education level.
Back to the Times article, which lists most and least common "old person" jobs (hint-lawyers are in the "least common" category). The Times story also discusses several other studies regarding elders in the work force. This would be a great article to include in an unit on economic security or in a discussion regarding ageism.
Friday, August 19, 2016
We have all heard stories about SSA determining that a beneficiary is dead, when the beneficiary isn’t. Proving you are very much alive has to be a fun experience (just joking in case anyone from SSA is reading this blog). Usually the stories about someone being “SSA-dead” is limited to a person. The Washington Post recently ran a story about a group of beneficiaries being declared dead by SSA. Dead or alive? Social Security misclassified some explains “Social Security officials have discovered 90 cases in their records where the living were listed as deceased. That’s 90 “as of today,” Mark Hinkle, an SSA spokesman, said late Thursday. “We are not yet sure how many were in error.” The 90 are from a group of 19,000 cases.” Note that means more of the 19,000 may be “SSA-dead”.
There is some humor in all of this (the 90 of you declared SSA-dead, my sympathies (no pun intended folks--sympathies for the hassle) and really I’m not making light of your situation). “Ironically, the erroneous cases are from pilot projects in Virginia, North Dakota and South Dakota, designed “to enhance the quality of our death records,” Hinkle said. … Clearly, there is more work to be done on that point.”
Clearly this is no laughing matter if you are one of those declared dead-there are significant financial implications, including a loss of benefits. Plus other federal agencies get death info from SSA, so the impact is more widespread than just SSA. SSA is on it, and as for those other folks who may be SSA-dead and not know it, “SSA plans to send letters to the 19,000 people potentially affected with information on how to find out if the agency thinks they are dead and how to correct the record if that’s the case.”
I’m just saying, if you live in VA., ND or SD and get a letter from SSA in your mailbox, you may want to sit down before you open it…
Sunday, August 7, 2016
Investment News published a story about retirement security across the globe, and reports that the U.S. ranks #14. U.S. comes in 14th in global ranking of retirement security reports on Natixis Global Asset Management's annual ranking. The article explains that Norway, Switzerland and Iceland came in 1, 2 and 3 respectively, while the U.S. finished at 14 out of 43. According to the article, we did better in some categories, even breaking the top 10, for example, "No. 7, in the health care part of the index." But bummer, we were "No. 30 for life expectancy." But even more of a bummer, "[o]ne area in which the U.S. had an abysmal ranking was in its high level of income inequality, which helped drive it down to No. 37 of the 43 countries. The U.S. and Singapore share the dubious distinction of being the only countries in the top five for income per capita and in the bottom 10 for their large gaps in income equality." According to the article "Norway joins a number of top 10 countries in having a compulsory workplace savings program. It requires employers to fund private retirement accounts with 2% of a worker's earnings annually. That pales next to Australia, No. 6, where employers must kick in at least 9.5%. "
The full Natixis report is available here.
Friday, July 29, 2016
My good friend (and former New York Administrative Law Judge) Karen Miller recently had successful hip replacement surgery and I was happily amused when I realized she wasn't home two hours before she was already corresponding with me about the latest hot topics in "aging." Karen is a great example of an "active mind!"
Her latest communications focused on a topic I'd also been discussing recently with Stephen Maag, Esq., Director of Residential Communities for LeadingAge. Steve had mentioned that one of the challenges facing senior living across the board was attracting an appropriately trained and stable work force.
Karen pointed out to me that her CCRC (or, to use the latest label, Life Plan Community) in Florida was looking into partnering with a local high school and community college to provide financial support to students as well as site-based training in senior living. For example, Certified Nursing Assistants or CNAs may often think of hospitals or "nursing homes" as primary employers, but Karen pointed out that active senior living communities may offer far more attractive opportunities for employment, while still needing workers, such as CNAs, with specialized skills .
Karen pointed me to an article about a similar collaborative program in Maryland already under operation:
Thanks to a partnership with Ingleside at King Farm, a not-for-profit continuing care retirement community (CCRC) in Rockville, Maryland, students get first-hand experience in senior living and caregiving while residents enjoy participating in their education. And the partnership proves mutually beneficial, providing the CCRC access to a well-trained labor supply.
“Having a program like this exposes the younger generation to the health care field,” Adaeze Ikeotuonye, Ingleside at King Farm’s health care administrator, tells SHN. “Not many people in high school are necessarily thinking of working in the senior living industry, but bringing them in at such a young age and letting them see what the career possibilities are—that mixes up the dynamics.”
For more about creative partnerships to deal with caregiver shortages, read Senior Housing News' "CCRC Helps Forge High School-to-Senior Living Career Path."
Thanks to Karen for this link and best wishes for continued rapid recovery.
Tuesday, July 26, 2016
The Washington Post published an interesting article reporting on the recent Alzheimer's Association International Conference in Toronto. According to the article,
Two studies looked at how complex work and social engagement counteract the effects of unhealthy diet and cerebrovascular disease on cognition. One found that while a “Western” diet (characterized by red and processed meats, white bread, potatoes, pre-packaged foods, and sweets) is associated with cognitive decline, people who ate such food could offset the negative effects and experienced less cognitive decline if they also had a mentally stimulating lifestyle.
Occupations that afforded the highest levels of protections included lawyer, teacher, social worker, engineer and doctor; the fewest protections were seen among people who held jobs such as laborer, cashier, grocery shelf stocker, and machine operator.
“You can never totally forget about the importance of a good diet, but in terms of your risk of dementia, you are better able to accommodate some of the brain damage that is associated with consuming this kind of (unhealthy) diet,” said Matthew Parrott, a post-doctoral fellow at the Rotman Research Institute in Toronto, who presented the study.
In another study, researchers found that people with increased white matter hyperintensities (WMHs) – white spots that appear on brain scans and are commonly associated with Alzheimer’s and cognitive decline – were able to better tolerate WMH-related damage if they worked primarily with other people rather than with things or data.
For more of the intriguing findings, read "Complex Jobs and Social Ties Appear to Help Ward Off Alzheimer's, New Research Shows."
Sunday, July 24, 2016
Stetson Law Elder Law LL.M. alum and president of NELF, Amos Goodall, sent me the link to his most recent article. Retirement account planning can greatly benefit descendants.
The article opens
Many folks have large retirement accounts. According to the Investment Company Institute 2016 Yearbook, in 2015, members of 60 percent of U.S. households had invested $24 trillion in retirement market assets, including individual retirement accounts, 401(k)s, 403(b)s, simple IRAs and others. This article discusses IRAs, and someone with any others should consult legal and financial advisers. In fact, every general rule stated in this article is subject to exceptions, and there may also be specific situations where these rules should be purposefully ignored. This article should be considered as simply a guide for asking questions of your adviser, rather than a road map for do-it-yourself action.
Congratulations Amos and thanks for bringing the article to our attention!
Wednesday, July 6, 2016
Not everyone retires. Some don't retire because they love the work they do. Others can't afford to retire. Still others change professions, but keep working. What will you do?
The Pew Research Center released a new FactTank report on June 20, 2016 about elders and work, More older Americans are working, and working more, than they used to. Using data from the Bureau of Labor Statistics, the Pew report explains
More older Americans – those ages 65 and older – are working than at any time since the turn of the century, and today’s older workers are spending more time on the job than did their peers in previous years ... In May, 18.8% of Americans ages 65 and older, or nearly 9 million people, reported being employed full- or part-time, continuing a steady increase that dates to at least 2000 (which is as far back as we took our analysis). In May of that year, just 12.8% of 65-and-older Americans, or about 4 million people, said they were working.
The report shows that the increase in elders working is steady across the age ranges (65-69, 70-74, and 75+) but with a slightly greater percentage of elder men over women. And when I say working, I mean they are working. "Not only are more older Americans working, more of them are working full-time. In May 2000, 46.1% of workers ages 65 and older were working fewer than 35 hours a week (the BLS’ cutoff for full-time status). The part-time share has fallen steadily, so that by last month only 36.1% of 65-and-older workers were part-time."
The jobs elders hold fall across a spectrum of mainly white-collar type jobs, "older workers are more likely to be in management, legal and community/social service occupations than the overall workforce, and less likely to be in computer and mathematical, food preparation, and construction-related occupations."
In New Jersey, ORANJ is an organization for residents of "continuing care retirement communities" (or CCRCs, also sometimes known as "Life Plan Communities," following a LeadingAge marketing study and plan announced in November 2015). Founded in May 1991, members recently celebrated their 25th anniversary. In a summer 2016 newsletter, called, appropriately ORANJ Tree, residents from three communities reported on major changes in ownership of their facilities, and how such changes can affect community moral and future prospects. The CCRCs discussed were:
- 2016: Cadbury at Cherry Hill (reporting a new ownership is part of a conversion from nonprofit status to for-profit)
- 2016: Franciscan Oaks
- 2013: Fountains at Cedar Parke
In my observation, these New Jersey transactions, especially a conversion from nonprofit to for-profit, are part of a larger, national picture of communities struggling for identity in a competitive senior living market.