Retirement Gap Between Rich and Poor Getting Worse

Insider’s Report: Retirement Gap Between Rich and Poor Getting Worse A recent report by the Government Accountability Office shows that low-income American men will lose 11-14% of their lifetime Social Security benefits, while high-income men will see a 16-18% benefit boost. And for women, the financial obstacles they face during their entire lives — including the fact that they earn less than men and spend more time out of the workforce caring for children and loved ones — explains why women are 80% more likely than men to be impoverished at age 65 and older. Incredibly, America’s wealthiest people are not only living longer and collecting more Social Security benefits, they’re also contributing less to the program than at any other time in recent history. Currently, only about 83% of earnings are subject to the Social Security payroll tax. This means the wealthy, who’ve benefited from disproportionate wage growth, have been exempt from paying into Social Security on those gains above the current $118,500 cap. Yet, despite this gap, some lawmakers and candidates are actually calling for raising the retirement age to 70, which would mean even smaller benefits for everyone, but lower-income groups would be hurt the most. Those who support raising the retirement age claim people are living longer, and can continue working for more years. But not everyone is healthy enough to continue working in their later years, and jobs may not exist even for those who can continue to work. These problems are particularly daunting for low-income workers, who often work physically demanding jobs and are most vulnerable to layoffs. Thus, raising the retirement age would impose costs on those who can afford them the least. It wouldamount to a benefit cut, pure and simple. Read more about why the National Committee rejects raising the retirement age here.

Please consider joining with a membership donation now to help us keep the pressure on Congress. Your continued support is essential to the National Committee’s mission of protecting your earned benefits. Little Black Book of Retirement Become a member of the National Committee todayand you’ll receive a FREEcopy of our Little Black Book of Retirement, in which we’ve collected thetop 10 retirement insightsfrom our more than 34 years of advocacy. While Social Security and Medicare are highly effective and efficient programs for millions of Americans, they can be difficult to navigate. So it’s important for those approaching retirement to be equipped with the necessary knowledge and tools to receive the most from their benefits. From wage-related benefits to medical coverage, it’s our passion to ensure the benefits you’ve earned your entire life are provided to you, and to all retirees, present and future. Become a member today!   Take Our Poll! After decades of stagnant wages, shrinking savings and disappearing pensions, millions of Americans now rely solely on Social Security for a secure and dignified retirement. Yet, many politicians continue to call for policies, including raising the retirement age for Social Security, which would reduce the earned benefits of millions of future beneficiaries. The National Committee wants to hear from you on this critical issue, so please tell us: Do you believe future generations of Americans will rely more or less on Social Security benefits for a secure retirement? Take our poll now!   Ask Us We’ve changed the name, but not our great advice on Social Security! Now, a team of experts in the field of Social Security policy is available to answer your questions about benefits. For nearly 35 years, the National Committee has been helping thousands of our members and supporters with a broad range of concerns on Social Security. Whether you’re currently retired or approaching retirement, the National Committee’s “Ask Us”section can help answer your questions about Social Security. You can either search our archives for valuable advice on a broad range of concerns atwww.ncpssm.org/AskUs or email your question toaskus@ncpssm.org. This week’s question is: Our Social Security checks are deposited the 3rd of the month. Are they for the month of deposit, or the next month? Click here to read the answer. Recent Headlines Social Security’s future uncertain (June 5, 2016, New Hampshire Union Leader, Kimberly Houghton) Obama Joins the Boost Social Security Movement (www.ncpssm.org, Entitled to Know) Ryan Says Trump Will Promote House Agenda — You Know What That Means for Medicare! (www.ncpssm.org, Entitled to Know) Column: Congress continues its stealth assault on Social Security’s customer service (June 10, 2016, Los Angeles Times, Michael Hiltzik) Obama vetoes attempt to undo retirement savings rule (June 8, 2016, USA TODAY, Gregory Korte)

Retirement Income Gap Between Rich And Poor | Bankrate.com

http://www.bankrate.com/…/retirement/retirement-income-gap–between-rich-and-p…

Bankrate

What’s behind the vast retirement income gap between rich and poor? … As the primary vehicle for most people to save for retirement, the 401(k) may actually widen the retirement income gap between rich and poor. “The tax incentive structure for retirement savings rewards higher …

The State of American Retirement: How 401(k)s have failed most …

http://www.epi.org/publication/retirement-in-america/

Economic Policy Institute

Mar 3, 2016 – Since many workers transition to retirement between Social Security’s …. Retirementreadiness gaps have widened between workers with and …

Here’s How Wide the Retirement Gap Is Between Men and Women …

http://www.bloomberg.com/…/here-s-how-wide-the-retirement–gap-is-betw…

Bloomberg L.P.

Sep 15, 2015 – Men are short of a standard goal by $270000. Women? Half a million dollars, according to a new report.

How Do You Bridge the Gap Between Early Retirement and Age 59 1/2?

http://www.hullfinancialplanning.com/how-do-you-bridge-the-gap–between-early-retireme…

There are a few answers to help us bridge the gap until we can access those … If you retire betweenages 55 and 59/12, then if you have a 401k or 403b plan, …

Gap between rich and poor extends to views on retirement age: poll

theconversation.com/gap–between-rich-and-poor-extends-to-views-…

The Conversation

Feb 22, 2016 – Just 24% of those living in the poorest quarter of households support an increase in the Age Pension age.

What growing life expectancy gaps mean for the promise of Social …

http://www.brookings.edu/…/life-expectancy-gaps-promise-social-secu…

Brookings Institution

That gap, when taken together with the rise in average retirement ages since the early 1990s, means the gap between lifetime benefits received by poor and …

[PDF]later retirement, inequality in old age, and the growing gap in longevity …

http://www.brookings.edu/…gaps…/BosworthBurtlessZhang_retiremen…

Brookings Institution

by B Bosworth – ‎Cited by 3

retirement ages and increased life expectancy on the distribution of income among the ….. For men in particular, the gap between the educational attainment.

How Women Can Close the Retirement Savings Gap – The Simple …

http://www.thesimpledollar.com/how-women–can-close-the-retirement–g…

The Simple Dollar

Jun 8, 2016 – woman walking tightrope – women’s retirement gap … aligns your interests and can lead to greater communication between advisor and client, …

The Retirement Security Gap Between America’s Rich and Poor …

http://www.ncpssm.org/…/The-Retire…

National Committee to Preserve Social Security and…

Apr 4, 2016 – Growing disparities in life expectancy between America’s rich and poor is eroding the progressive nature of Social Security. A new Government …

Gap Between Retirement Confidence and Preparedness Continues to …

https://www.soundmindinvesting.com/…/gap–between–retirement-confidence-and-pre…

Mar 23, 2016 – There are two other retirement-related gaps that today’s workers should be mindful of: the gap between when they plan to retire and when …