News

Latest News / Retirement in Sight - May

Retirement in Sight - May

May 17, 2017

Is Social Security Coming Up Short for Retirees?

The non-partisan Senior Citizens League says yes, charging that the wrong metric is being used to determine cost of living adjustments (COLAs) to retiree benefits. The federal government uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to figure various COLAs. Younger, employed people usually have lower medical expenses than older people; they also spend more money on gasoline and transportation than retirees do. Senior advocates argue that the Consumer Price Index for the Elderly (CPI-E) should be used instead of the CPI-W, especially since medical costs have risen quickly in recent years, while gasoline prices and transportation costs have fallen.  

An SCL analysis estimates that if the CPI-E was the COLA yardstick, Social Security recipients would have had COLAs of 0.6% and 1.5% in 2016 and 2017 rather than 0% and 0.3%. Since 2014, the SCL has surveyed retirees annually; in each survey, about 90% of respondents said that their monthly household budgets grew by at least $39 year-over-year. In SCL’s 2017 survey, 37% of those polled said that their monthly expenses were more than $119 above where they had been a year ago. What expenses had jumped the most from last year? Medical costs and food.1       

Are Self-Driving Cars Really on the Way?

Americans love to drive and associate cars with personal freedom. So, perhaps, this finding will not surprise you: 40% of baby boomers, responding to the J.D. Power U.S. Tech Choice Study, said that they saw no benefit to having self-driving cars and trucks on the nation’s roads. That was an increase from the 2016 study. 

The percentage of seventy-somethings who said that they were wary of self-driving cars also increased by 9% last year. In fact, 11% more millennials distrusted the technology in 2017 compared to 2016. The only demographic that maintained its level of optimism about autonomous vehicles was Generation Y (people roughly 25-40 years old). While auto industry futurists are audaciously claiming that our entire relationship with cars is about to change, that revolution may be far off. In January, the American Automobile Association polled more than 8,500 drivers who had bought or leased new vehicles since 2012. Three-quarters of them said that they would be afraid to ride in a self-driving car.2  

On the BRIGHT SIDE
The 2017 Fidelity Investments Social Security IQ Survey finds that most pre-retirees aged 55-61 plan to wait until age 67 to claim Social Security, which would give them a larger monthly benefit than if they were to claim at age 62.3


CITATIONS.
1 - foxbusiness.com/features/2017/05/07/social-security-not-keeping-up-with-seniors-rising-costs.html [5/7/17]
2 - tinyurl.com/lhl3dkw [4/19/17]
3 - fidelity.com/about-fidelity/individual-investing/2017-social-security-survey [4/28/17]
4 - accuweather.com/en/weather-news/tornadoes-and-travel-how-to-stay-safe-inside-an-airport-or-hotel/70001474 [5/8/17]
Previous PostNext Post

Disclosures

Check the background of this investment professional on FINRA’s BrokerCheck

Located at: 600 E 84th Avenue Merrillville, IN 46410
Phone: (844) 755-6600

Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Individuals affiliated with this broker/dealer firm are either Registered Representatives who offer only brokerage services and receive transaction-based compensation (commissions), Investment Adviser Representatives who offer only investment advisory services and receive fees based on assets, or both Registered Representatives and Investment Adviser Representatives, who can offer both types of services.

These products and services are being offered through Cetera Investment Services LLC or its affiliates, which are separate entities from, and not affiliates of, Centier Bank or Centier Investments. Securities and insurance products offered by Cetera Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by any federal government agency.

Click here to view Cetera Investment Services Privacy Policy, other Important Information and Business Continuity Plan.

This site is published for residents of the United States only. Registered Representatives of Cetera Investment Services LLC may only conduct business with residents of the states and/or jurisdictions in which they are properly registered. Not all of the products and services referenced on this site may be available in every state and through every advisor listed. For additional information please contact the advisor(s) listed on the site, visit the Cetera Investment Services LLC site at www.ceterainvestmentservices.com

Find a banking center near you. Click Here