Thursday, December 12, 2013
From the University of Michigan Retirement Research Center, a paper on "Older Adult Debt and Financial Frailty" by Annamaria Lusardi (George Washington Univ. of Business) and Olivia Mitchell (Wharton, Univ. of Penn.). The authors compare data from three different time periods to analyze older persons' debt, debt management practices and corresponding potential for financial insecurity. Key findings include:
- Older Americans now on the verge of retirement are more likely to have substantial debt than in the past. "Median debt for those age 56-61 has more than quadrupled, from about $6,200 in 1992 to $28,300 in 2008 (in 2012 dollars)."
- Housing purchased with small down payments and subject to large mortgages are key reasons for higher debt for Boomer retirees.
- Income, level of education, marriage status, race, number of children, health, were also factors identified as affecting risk of financial insecurity after retirement.
One sentence that particularly stood out: "Baby Boomers are more likely to have engaged in expensive borrowing practices."
Tuesday, November 26, 2013
Via Yahoo News:
A man from Leeds, England has invented a dog-controlled washing machine. The "Woof to Wash" machine has a bark-activated "on" switch. A special "paw" button allows the pooch to easily open and close the machine's door. The inventor, John Middleton of U.K. laundry company JTM, intends for the "Woof to Wash" machine to make laundry an easier task for people living with disabilities by letting them delegate the trickier parts of the job to support dogs who have been trained to load and empty the machines. "We developed this machine because mainstream products with complex digital controls seldom meet the needs of the disabled user," he said. The Sheffield charity Support Dogs is training the animals to operate the new machines.
"People who are visually impaired, have manual dexterity problems, autism or learning difficulties can find the complexity of modern day washing machines too much," Middleton told Anorak. "I had been working on a single program washing machine to make things easier, and there was a lot of demand for it."
Saturday, November 23, 2013
After P.S. Ramachandran turned 80, he and his wife decided it was time to stop living alone. Rather than take the traditional path of moving in with their son, the Ramachandrans chose an option once rare in India: a retirement community. “We wanted to be independent,” said Ramachandran, now 85, a former government official who moved to the Brindavan Senior Citizen Foundation’s retirement village overlooking the Nilgiri hills near Coimbatore city in southern India. “We have company and everything we need here, and activities to keep us busy as long as we’re physically able.”
Rising wealth from the region’s rapid growth in recent decades is changing the way many Asians grow old, breaking up the traditional family unit as children move to the cities or go abroad in search of better-paid jobs. The change is a new source of business for companies from India’s Tata Housing Development Co., Malaysia Pacific Corp. and Singapore’s ECON Healthcare Group, which are constructing retirement villages for the wealthy that offer cafes, tennis courts and yoga. The developers are following companies from adult-diaper makers to holiday operators that have swooped in on Asia’s silver economy, catering to the region’s growing cohorts of over-60s.
Excluding Japan, the market will be worth about $2 trillion by 2017 -- more than the current Indian economy -- according to Singapore-based market researcher Ageing Asia Pte. Filial Piety “Filial piety is still big in Asia, but it has less of a role now,” said Janice Chia, founder and managing director at Ageing Asia. “My grandparents were satisfied with staying home, watching a bit of TV, walking in the park and looking after the grandkids. But my parents want to travel, keep their minds active and don’t necessarily want to live with their children.”
Thursday, November 21, 2013
Somehow I had missed this particular incarnation of predatory lending. The National Consumer Law Center (NCLC) recently circulated a consumer impact statement on pension-based loan scams. Often advertised as "cash advances," in reality the individual is agreeing to assign future pension payments to the lender, with repayment terms that include an outrageously high interest rate. In 2011, NCLC and attorneys with the National Association of Consumer Advocacy were successful in a class action suit in state court in California, in which they challenged loans requiring "assignments" of military pay or pensions as violating federal law. The court ordered restitution to the class members.
The New York Times ran a 2013 feature on "Loans Borrowed Against Pensions Squeeze Retirees," by Jessica Silver-Greenberg, part of a series on "A Vulnerable Age," that examined financial traps that can face older adults, especially during a tight economy. A sidebar to the article detailed an example of a loan to a disabled military veteran for $10,000, with a $353 monthly payment for 60 months, leading to total costs over the life of the loan of $21,180, representing an interest rate of 36.4%.
Wednesday, November 13, 2013
University of Michigan's Retirement Research Center has released a new paper on "Technological Progress and the Earnings of Older Workers." From the the abstract:
"Economists' standard model assumes that improvements in total factor productivity (TFP) raise the marginal product of labor for all workers evenly. This paper uses an earnings dynamics regression model to study whether, in practice, older workers benefit less from TFP growth than younger workers. . . . We find that although the earnings of younger workers track TFP growth 1-for-1, the earnings of older workes do not: we find for example, that a 60-year-old male's earnings grow only 85-90% as fast as TFP. Nevertheless, our analysis implies that in an economy with an aging labor force, gains from experience tend to outweigh older workers' inability to benefit fully from TFP improvement."
Sunday, October 20, 2013
Last week, I was part of our law school's team for the annual AALS Recruitment Conference, where prospective academics have a first wave of interviews with law schools, with everyone trapped in the same highrise hotel in Washington D.C. Yikes.
For a thoughtful analysis of how to succeed as an aspiring law professor, see a recent Stanford guide on "How to Get A Law Teaching Job." For an amusing take on the interview experience, from the applicant's perspective, watch this video on "Stuff Appointments Committees Say."
Every academic should be required to participate in such interviews on a regular basis if for no reason other than it is an important reminder of just how much talent is out there, and by comparison, how important it is to stay on top of our games just to keep up. Each of the candidates was bright, engaged, had umpteen top-notch publications, and concrete plans for the future.
By the way, in preparing for the conference, I was interested to see resumes from a significant number of applicants who listed "elder law" as a specific teaching interest.
As often happens after talking to the next generations of law professors, the older members of the current generation start talking about retirement. And, in turn, during the last few years such conversations usually involve retirement "numbers." As in, how much money do you need in order to retire safely?
Of course, the law professor's traditional answer works well here. "It depends." A very concise, interesting, and still lawyerly take on the "numbers" game comes via the Huffington Post. See "Retirement Planning with Just 3 Numbers"
Friday, September 27, 2013
Despite modest gains in the economy in 2012, national poverty rates remain virtually unchanged from last year. However, a new study highlights one group that has unexpectedly fallen deeper into poverty: elderly women. Among women 65 and older, the ‘extreme poverty’ rate rose 18% in 2012. Extreme poverty is defined as an annual income of $5,500 or less for older individuals living by themselves. “The cause has to be something that hits elderly individuals particularly hard,” said Kate Gallagher Robbins, a senior policy analyst at the National Women’s Law Center, who conducted the study. ”We also know that poverty for elderly men and women was statistically unchanged so we are talking about a group of individuals who went from being poor to extremely poor.”
The extreme poverty rate for elderly women ticked up to 3.1% in 2012 from 2.6% in 2011. An additional 135,000 elderly women became categorized as extremely poor, bringing the total number of elderly women in extreme poverty to 733,000. Sixty-two percent of elderly women in this group are white, non-Hispanic, 16% are Hispanic, 17% are black, 4% are Asian and 2% are Native American.
The National Women’s Law Center is currently exploring potential reasons for the sudden increase.
“One factor might be cuts in recent years to Social Security Administration funding which may be making applications for [Supplemental Security Income] more difficult,” Robbins wrote in an email to MSNBC.com. “Without Social Security, almost 15.3 million more elderly individuals would have been poor in 2012, yet many policy makers are debating switching the cost-of-living adjustment to the chained CPI which will reduce the value of benefits for current beneficiaries. Clearly these data show that making such cuts would be unconscionable.”
Another cause for the rise in the extreme poverty rate for this group may have to do with unemployment insurance benefits. Since older workers are more likely to be unemployed for longer periods of time, the likelihood that their unemployment insurance benefits expired, or even cut, between 2011 and 2012 is high.
Wednesday, September 25, 2013
Tuesday, September 24, 2013
For a number of years, I have taken on the interesting task of researching resident rights and financing or governance issues for "Continuing Care Retirement Communities" or CCRCs, an important part of the network of senior living options in the U.S. One of the many strengths of CCRCs is the way residents and administrators pull together to respond to a crisis or handle a challenge.
Frasier Meadow Retirement Community, a CCRC in Boulder, was hit hard by the recent devastating flooding in Colorado. The Assisted Living area was severely damaged, requiring relocation of AL residents. The good news is that the relocations were accomplished safely, and the hard work of clean-up and reorganization has begun. Regular updates on the Frasier website and social media connections have helped to keep families and friends up-to-date.
Hat Tip to Walt Boyer, board member at the National Continuing Care Resident's Association or NaCCRA, for information on Frasier's early recovery efforts.
Saturday, September 14, 2013
Via the Wall St. Journal:
A white paper put out by the Center for Retirement Research at Boston College noted that 83% of married couples can benefit from “unusual claiming strategies” commonly known as “file and suspend” and “restricted application.” Both claiming strategies take advantage of the simple fact that for every year that social security benefits are delayed beyond full retirement age, payments increase 8% until age 70. In this time of low interest rates, delaying social security is one of the best financial bargains available to workers. Both strategies ease the pain of waiting by claiming spousal benefits. Once having reached full retirement age (currently 66), a spouse is eligible to to receive benefits based on the earning of a partner. One member of a married couple claims a spousal benefit first and then claims a higher full retirement benefit based on his or her own earnings at a later time up to age 70. Spousal benefits are 50% of the partner's benefit, so some cash is flowing while waiting out as much of the time as possible to age 70. There is no penalty for receiving the spousal benefit during this interim period. For a married person to get spousal benefits, the primary beneficiary must first claim their benefits.
Under file and suspend , the primary beneficiary claims his or her benefit and then suspends receipt. The spouse then claims a spousal benefit. In this case both members of the couple wait to receive the higher deferred benefits, but the couple is receiving the spousal benefit during the interim period. If both defer their benefits, the total benefits the couple can receive can be quite high. If they both wait until 70 to claim their own benefits, their benefits will be 32% higher than the benefits they would have received if they had both claimed at full retirement age.
The second related strategy is filing a restricted application . While this strategy seems to be less well-known than file and suspend, we have found that this is more often the best strategy for a married couple. With a restricted application, the primary beneficiary still needs to claim before the spouse can receive a spousal benefit, but the primary beneficiary doesn't suspend. He or she simply takes a benefit when the claim is made....
Read more in the WSJ.
Friday, August 23, 2013
New from U.S. Census Bureau: Annual Survey of Public Pensions: State- and Locally-Administered Defined Benefit Data Summary Report: 2011
This publication presents data on public pension systems based on information collected from the 2011 Annual Survey of Public Pensions: State- and Locally-Administered Defined Benefit Data. The data collected from these systems are for defined benefit plans only and do not include data for defined contribution plans or other postemployment benefit plans. Data in this report refer to fiscal years that ended between July 1, 2010, and June 30, 2011 (FY2011).
This survey covers the following retirement system activities: revenues by state (earnings on investments, employee contributions, government contributions); expenditures by state (benefits, withdrawals, other payments); cash and investment holdings by state (governmental securities, corporate stocks and bonds, foreign and international securities, etc.); and membership information by state (number of retirement systems, total members, beneficiaries receiving periodic payments).
Friday, August 16, 2013
Recently I was having lunch with a group of friends. One friend, younger than me, commented that she didn't like to tell people she was "retired," because it made her feel too old. We laughed and asked, "Would it be better to tell people you are 'unemployed'?" We all agreed that probably sounded worse.
But, is "retired" really such a dirty word? For some, perhaps yes. For example, AARP used to be an acronym for the "American Association of Retired Persons" but in 1999 the organization changed its official name to AARP, and membership is open to anyone 50 or over, regardless of working status.
Fortunately for researchers, "retired" and "retirement" are still viable terms that generate a lot of important issues. One of my favorite researchers is Gordon L. Clark at Oxford, who writes and speaks clearly and thoughtfully on a number of financial issues, including retirement. His co-authored Oxford Handbook of Pensions and Retirement Income sits on my quick access shelf.
Another resource for statistics and commentary on retirement-related issues is the University of Michigan's Retirement Research Center. Check their website for the latest publications, including data on the impact of proposed changes in Social Security rules on individuals' work and retirement decisions.
Wednesday, June 8, 2011
Dick "the Rock Star" Kaplan has recently published an article on the Supreme Court's recent (really recent-5/16/22) decision in Cigna v. Amara. Check it out on SSRN:
BNA DAILY REPORT FOR EXECUTIVES, pp. B1-B2, June 1, 2011
Illinois Program in Law, Behavior and Social Science Paper No. LBSS11-24
This brief article discusses the recent Supreme Court decision in CIGNA v. Amara. That case held that ERISA authorizes a court to reform a pension plan that an employer had changed so that employees receive the benefits they had been promised. The article considers the key implications of this decision for employees and employers, focusing on relevant communications of the employer and the applicable standard of proof.
Wednesday, October 20, 2010
Richard L. Kaplan
University of Illinois College of Law
Journal of Retirement Planning, p. 9, July-August, 2010
Among the many features of the 2010 health care legislation is a new entitlement program to fund long-term care called Community Living Assistance Services and Supports, or CLASS. Beginning possibly as early as January 2011, employees of participating employers will be automatically enrolled in CLASS’s payroll-reduction plan and will become eligible for benefits after five years of continuous enrollment. These benefits will be calibrated by an enrollee’s degree of impairment and may be applied to the full range of long-term care services, from paying relatives for family-provided care and modifying a personal residence to funding adult day care, assisted living facilities, and nursing homes. These benefits are provided as long as the recipient qualifies for them, without any limit as to duration or total dollars expended. This article examines the CLASS program and compares its various features to currently available long-term care insurance policies, focusing on benefit eligibility, enrollment procedures, scope of benefits, ease of acquisition, program solvency, premium stability, and other programmatic features as well.
Accepted Paper Series
Friday, October 8, 2010
Older adult volunteers can provide an 800% return on investment to nonprofits, says a new report released today by NCOA. The report, The Boomer Solution: Skilled Talent to Meet Nonprofit Needs, is the result of a three-year collaborative study of more than 60 nonprofits nationwide.
The Boomer Solution outlines how nonprofits can best capitalize on the growing influx of boomer talent into the volunteer workforce to advance their missions in the community.
“With the number of older volunteers on the rise, there has never been a better time for nonprofits to leverage the power of older adults to help meet important social needs in our communities,” says Thomas Endres, vice president of Civic Engagement at NCOA. “This timely report provides new ideas and insights, brings best practices to the table, and demonstrates the value of this nonprofit capacity-building model.”
As part of the study, funded by The Atlantic Philanthropies, nonprofits developed and tested various models of integrating skilled older adult volunteers with nonprofit staff. Volunteers were placed in leadership roles and positions within nonprofit organizations that matched their area of expertise.
Using U.S. Bureau of Labor Statistics and marketplace wage data, NCOA developed a return on investment measurement tool to compare the expense of recruiting, training, and maintaining skilled volunteers to the value of volunteers’ service.
Wednesday, June 16, 2010
France's retirement age will be raised from 60 to 62 over the next eight years as part of sweeping pension reforms, the government has announced. French labour minister Eric Woerth told reporters that working longer was "inevitable", and necessary to balance the public finances. The move is designed to reduce France's pension costs and bring public borrowing down. The move is likely to be met with stiff resistance from labour unions, however. Demonstrations against raising the retirement age were seen even before the measure was formally announced, with more strikes and protests expected in the coming months. But Mr Woerth said it was time for France to follow the lead of other European countries in addressing it deficit. "All our European partners have done this by working longer. We cannot avoid joining this movement," he said.
Source and more: BBC
Wednesday, March 17, 2010
Call for Papers – Future of Elder Law Practice
William Mitchell Law Review, Vol. 37, Issue I (Fall 2010)
The William Mitchell Law Review is proud to dedicate its first issue of the 2010-11 academic year to Elder Law in its upcoming Volume 37 (Fall 2010). We are currently seeking papers that examine the future of elder law practice. Submissions may either take the form of shorter commentaries or longer law review articles. The deadline for submissions has been set for July 1, 2010.
The William Mitchell Law Review is highly regarded both regionally and nationally. Our Law Review recently ranked twenty-second in citations by judges and ranked fifty-seventh in citations by other law journals, culminating in an overall ranking of seventieth. Over the years, the William Mitchell Law Review has featured the works of various scholars and practitioners such as Congressman Tim Penny, and former Vice President Walter Mondale. The William Mitchell Law Review has also published nationally known legal experts ranging from Philip Bruner, to Supreme Court Justices Sandra Day O’Connor, Byron White, and Harry Blackmun. Now, we would like to invite you to join us to publish in our upcoming volume.
Please direct inquiries to Executive Editor Sanjee Weliwitigoda at firstname.lastname@example.org. Please send submissions to email@example.com or mail them to our Editorial Office. Please note that the Law Review prefers electronic submissions.
March 17, 2010 in Current Affairs, Discrimination, Elder Abuse/Guardianship/Conservatorship, Estates and Trusts, Ethical Issues, Health Care/Long Term Care, Housing, Medicaid, Medicare, Property Management, Retirement, Social Security | Permalink | TrackBack (0)
Friday, February 19, 2010
The Administration on Aging (AoA) will award grants for up to six Regional Pension Counseling & Information Projects and one Pension Counseling Technical Resource & Assistance Center.
The Federal government’s share for each of the six Pension Counseling & Information Projects will be approximately $200,000 per year for a project period of up to three years. The counseling projects provide individuals who reside, have worked in, or have some other pension or employer connection to the regional service area with a range of services, including drafting administrative pension claims and appeals, and providing representation and support through administrative proceedings; identifying and pursuing pension benefits from clients’ prior employers; responding to basic questions about rights and remedies under all public and private pension systems throughout the service region; operating a region-wide outreach program to ensure public and provider awareness of the Program’s broad focus of assisting individuals with pension and retirement savings problems, regardless of age or income; and targeting certain outreach efforts to those in greatest need.
Eligible applicants include domestic public or private and non-profit entities including state, local and Indian tribal governments, faith-based organizations, community-based organizations, and institutions of higher education, with a proven record of advising and representing individuals who have been denied employer or union-sponsored retirement income benefits, and which have the capacity to deliver services on a regional basis.
The Administration on Aging (AoA) will also fund through a cooperative agreement one Technical Resource and Assistance Center (Center). The Federal government’s share will be approximately $425,253 per year for a project period of up to three years. The Center will be structured to support the Pension Counseling and Information Program’s grantees and others and to encourage coordination among the projects, State and Areas Agencies on Aging, legal services providers, and other potential providers of pension assistance by providing substantive legal training, technical assistance, programmatic coordination, and nationwide outreach, information and referral. The award is a cooperative agreement because AoA will be involved substantially in the project. Eligible applicants include domestic public or private and non-profit entities including state, local and Indian tribal governments, faith-based organizations, community-based organizations, and institutions of higher education, with a proven record of advising and representing individuals who have been denied employer or union-sponsored pension and retirement savings plan benefits, the capacity to provide services under the Program on a national basis, and a well-established, positive reputation in their respective professional communities.
Tuesday, February 9, 2010
Wider Opportunities for Women Elder Economic Security Initiative
Wider Opportunities for Women (WOW) is pleased to announce the release of our Request for Proposals for the Elder Economic Security Initiative tm (Initiative). The Initiative's core components include: coalition building, research, advocacy, education, and outreach. Underpinning these national, state and community efforts is the Elder Economic Security Standard tm Index (Elder Index), a comprehensive geographically-based measure of income adequacy, developed by the Gerontology Institute at the University of Massachusetts-Boston (GI UMASS) and WOW. WOW seeks lead state organizations (LSOs) with whom to launch and implement the Initiative. In collaboration with WOW, these LSOs will:
*Build a diverse statewide coalition;
*Provide input into the tabulation of the state Elder Index;
*Develop a statewide policy agenda to promote elder economic security; and
*Coordinate the launch and implementation of their state's Initiative.
To date, WOW has partnerships with non-profit organizations and state
agencies in twelve states, including California, Connecticut, Illinois,
Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York,
Pennsylvania, Wisconsin and West Virginia. Applications will not be
accepted from these states. If you are interested in becoming involved
with the Initiative in these states, please contact WOW.
Applications will be due Friday, March 5, 2010. For additional information, contact Stacy Sanders, Associate Director, at firstname.lastname@example.org.Deadline: March 5, 2010 http://www.epa.gov/aging/grants/grantofo.htm#2010_0305_grantofo_1
Wednesday, May 20, 2009
Summary: Corporation (PBGC) insures the retirement future of nearly 44 million people in over 29,000 private-sector defined benefit pension plans. In July 2003, GAO designated PBGC’s single-employer pension insurance program—its largest insurance program—as “high risk,” including it on GAO’s list of major programs that need urgent Congressional attention and agency action. The program remains on the list today with a financial deficit of just over $11 billion, as of September 2008. The committee asked GAO to discuss our recent work on PBGC. Specifically, this testimony addresses two issues: (1) PBGC’s financial vulnerabilities, and (2) the governance, oversight, and management challenges PBGC faces.
To address these objectives, we are relying on our prior work assessing PBGC’s long-term financial challenges, and several reports that we have published over the last two years on PBGC governance and management. GAO has made a number of recommendations and identified matters for Congressional consideration in these reports, and PBGC is implementing some of these ecommendations. No new recommendations are being made as part of this testimony.
Full report: http://www.gao.gov/new.items/d09702t.pdf