Retirement Study Explores Tax Cuts For Older Workers

As life expectancies grow, so do the number of studies exploring the options for older workers, social security, and retirement. One such study, from the University of Michigan, looks at the idea of eliminating social security payroll taxes for workers over the age of 55 in order to encourage them to continue working rather than opting for retirement. The research found that workers would receive a 10.6 percent increase in their take-home pay and would choose to stay on the job an additional year and a half to take advantage of the extra income. Rewarding older workers would benefit seniors as they financially prepare for retirement but would also be good for the economy as a whole. The study used data from the University of Michigan’s institute for Social Research and the Consumer Expenditure Survey conducted by the U.S. Bureau of Labor Statistics. More here and here.

Social Security Benefits More Than Just Retired Workers

A recently released breakdown of Social Security benefits found that 36 percent of recipients aren’t retired workers but, instead, are children, the disabled, and spouses and survivors of workers. Altogether, nearly one in every six Americans is getting a Social Security benefit, equaling approximately 59.2 million beneficiaries in 2010. But though a large percentage of beneficiaries aren’t retired workers, retirees rely most heavily on the program for income. According to data from 2009, Social Security provided at least half of the income for 66 percent of seniors receiving benefits. Also, the average age of disabled-worker beneficiaries was 52.8 percent in 2010. More here.

Older Americans Hit Hard By Foreclosure Crisis

Economic security is an important part of any retirement plan. And, for most of us, our home is among our most valuable assets. But, according to a new analysis from the AARP’s Public Policy Institute, approximately 600,000 Americans over the age of 50 are in foreclosure and about 625,000 are at least three months behind on their mortgage. The study, which looked at national loan-level data for the years 2007 to 2011, found that more than 1.5 million older Americans lost their homes during the financial crisis. And, though there’s a perception that seniors enjoy more economic security than other age groups, the study found that nearly one in 30 Americans over the age of 75 were facing foreclosure. The results of the study highlight the need for more creative policy solutions to the foreclosure crisis and more focus on the needs of older Americans. More here and here.