Retirement Reform Blog

Fresh from the Employee Benefit Research Institute, a new survey found that many people plan on postponing retirement and working longer than they originally anticipated.  The reasons?  A bear market, economic worries, and less confidence in how much they have saved for retirement.

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An interesting article appeared in the Wall Street Journal entitled, "What Do I Do Now?"  The article lists five Do's and 5 Don'ts to help readers keep their heads during the recession.  Similarly, the NCPA released a study two weeks earlier called "Ten Ways To Wreck Your Retirement" giving the same sort of recommendations.

"Don't stop saving" seems to be the name of the game when it comes to staying on top of the downward slope.  Of course, this goes along with other practices as well, such as reigning in excess spending, living within your means, taking advantage of employer's matching funds and staying in the market if you're already in so that you don't incur more losses by selling off your stocks.  Whether or not the bottom is near, the advice echoing from all corners of the financial sector is the same: Protect your retirement– don't stop saving!

See NCPA Senior Policy Analyst discuss, "Ten Ways to Wreck Your Retirement."

It is bad enough that the federal cigarette tax will more than double under the Obama Administration, disproportionately affecting the poor.  But now low-income seniors may pay more for their health insurance.  The Centers for Medicare and Medicaid Services is reducing payments to insurers for Medicare Advantage plans.  Medicare Advantage is a private plan in which the government reimburses insurers rather than physicians.  It allows seniors to buy into plans that provide more benefits than traditional Medicare at a lesser cost.  These plans are particularly appealing to low-income seniors.  However, reducing payments to insurers will force insurers to recoup the payments elsewhere, most likely by increasing seniors' premiums.  (Read more here in the Wall Street Journal)

An estimated 9 million seniors are covered on Medicare Advantage.  In 2004, America's Health Insurance Plans (AHIP) estimated that almost half of Medicare Advantage enrollees had incomes of less than $20,000 a year.  Lower costs was the primary reason that enrollees chose Medicare Advantage.  If the new administration truly wants to provide health insurance for all, it could start by not chipping away at a program that already provides coverage to 9 million.