Money in the Middle

Sandwich Generation Talking About Money Up, Down and Across Generations

Posts Tagged ‘retirees

Social Security: No COLA Again?

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Within the next few weeks the Social Security Administration will announce the fate of the cost-of-living-allowance for 2010.  The news doesn’t look good — for the second year in a row.

The decision for 2011 is based on the change in inflation between the third quarter of 2008 and the third quarter of 2010

 “[There has been] an increase [in prices] relative to 2009, but it’s still below the 2008 level, so no COLA again,” said Donald Marron, a former director of the Congressional Budget Office told USA Today .

The decision will also impact many pensions that are tied to the Social security COLA decision.

While we surely haven’t seen the price increases to support a COLA increase, it sure doesn’t feel good.  Especially for those who are already retired and counted on those modest bumps for their living expenses.

For those still working, there’s some good news.  The same law also keeps the same cap on wages subject to Social Security for 2011.

Expect to hear more from Social Security by mid-October.

Written by Laura Rossman

October 5, 2010 at 11:47 pm

Retirees returning to work? No thanks

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Why Retirees Would Return to Work

Why Retirees Would Return to Work

After the economic meltdown there was a lot of talk about retirees returning to work.  Not so fast.  Looks like most retirees aren’t so worried that we’re ready to jump back into the workplace. When they first retired, 43% of retirees seriously considered the possibility of someday going back to work, according to research from Longevity Alliance.  But only 16% of those surveyed said they are currently considering abandoning retirement for the workplace.

 What would send them back? No surprise.  It is money, with 42% saying a change in economic circumstances could send them back to work, while another 29% cited healthcare coverage.

 Many people also find that returning to work isn’t an option because of health conditions.  Research from EBRI sites the inconsistency between the numbers of people who think they will work in retirement, compared to those that actually do.

 This  is important because it has a big impact on our financial security as we age.  “Retirees are very cautious right now, but not panicked.  Their reluctance to rejoin the workforce only underscores the need for them to plan very carefully for the rest of their retirement,” said Longevity Alliance CEO Steve Zaleznick. .  

 Or maybe it’s just recognition of how tough the job market is, especially for older workers.

 Either way, if you’re beginning to think about retirement, be careful about how you calculate increasing your income by returning to work.  You might think you want to, but the reality may be that retirement just suits you fine.  Then the challenge is how to adjust your spending to meet your retirement income.  Another reason to give retirment a test drive — try to live on your retirmeent income — before you decide to hang up working.

Written by Laura Rossman

August 7, 2009 at 12:49 pm