RetirementRevised

This week on the podcast, we check in with labor economist Teresa Ghilarducci on the unemployment situation for older workers, as reflected in the April jobless report that was released this morning.

Teresa is a professor at the New School for Social Research in New York, where she directs the school’s Schwartz Center for Economic Policy Analysis, and its Retirement Equity Lab (ReLab). She specializes in the labor situation for older workers.

The federal government’s April jobs report market was as grim as expected. The total jobless rate soared to 14.7 percent, which meant that 20.5 million fewer Americans were employed than during March.

The worst numbers were for younger people - 26 percent of workers age 25 to 29 were out of work last month. But I wanted to talk with Teresa about the figures for older workers. The official rate for people over age 55 more than quadrupled to 12 percent, but that understates the real damage. She calculates that the true rate is around 20 percent.

We also talked about how the COVID19 crisis is rewriting the labor force dynamic for older workers. Age discrimination already was a big deal before the crisis, and many employers likely will now treat older workers differently post-crisis, since they are more vulnerable to the virus. Here’s what Teresa told me on this point:

“Since we won't have a vaccine, probably, for about two years, this means that older workers will very sensibly not want to go back to work unless their employers can make it a safe environment. And employers will not will not be able to make it that safe for older workers even if they wanted to. It'll be much more expensive.”

Listen to the podcast by clicking on the player icon at the top of the newsletter. The podcast also can be found on Apple Podcasts, Spotify and Stitcher.

New guide: Social Security in the age of pandemic

Last week, I released the latest in my retirement guide series. This one explains how to deal with the Social Security Administration during the COVID19 crisis.

The downloadable guide looks at how customer service at the Social Security Administration has changed during the coronavirus crisis, and how to get business done there. Social Security closed its network of more than 1,200 field offices to the public in March, 2020. Staff members are seeing people in person at the field offices for a very limited number of transactions. Social Security is handling most routine business via its toll-free line (800-772-1213) and its website. The guide also spells out what Medicare covers that is related to COVID19 - and the changes the program has been making to respond to the emergency.

Click here to download your copy of the Social Security COVID19 guide.

Just a reminder- subscribers, have access to the entire series of guides at any time. Click on the little green button to subscribe, or go here to learn more.

Recommended reading and listening this week

PBS NewsHour interviewed one of the nation’s leading infectious disease specialists on the likely long-range path of the virus . . . I clung to the middle class as I aged - the pandemic pulled me under . . . Covid-19 vulnerabilities were a predictable outgrowth of our market-based health care system . . . The push for profits left nursing homes struggling to provide care . . .The idea that boomers were blase about the coronavirus is nonsense. . Beware buying a Medicare plan from Joe Namath . . .Broker-dealers will have to be careful when calling themselves advisors starting on June 30th . . . Health Savings Accounts add new options during the coronavirus crisis . . . The pandemic has amplified ageism . . . Americans without retirement savings are increasingly moving in with their millennial children . . . What parts of the economy are still humming along in the crisis?

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit retirementrevised.substack.com

This week, I’m releasing the latest in the retirement guide series. This one explains how to deal with the Social Security Administration during the COVID19 crisis.

The guides usually are available only to paid newsletter subscribers, but I’m making this one available free to anyone who signs up for the paid or free versions of the newsletter.

The guide looks at how customer service at the Social Security Administration has changed during the coronavirus crisis, and how to get business done there. Social Security closed its network of more than 1,200 field offices to the public in March, 2020. Staff members are seeing people in person at the field offices for a very limited number of transactions. Social Security is handling most routine business via its toll-free line (800-772-1213) and its website. The guide also spells out what Medicare covers that is related to COVID19 - and the changes the program has been making to respond to the emergency.

Finally, the new guide also looks at how the crisis has added a new dimension to strategies for smart Social Security benefit timing decisions. And that’s the focus of this week’s podcast - click on the player icon above to listen. The podcast also can be found on Apple Podcasts, Spotify and Stitcher.

Other guides in the retirement series cover topics like Medicare enrollment, the cost of healthcare in retirement and how to hire a financial planner. Click here if you’d like to learn more about becoming a subscriber to the free or paid editions of the newsletter.

When you sign up, I’ll email a copy of the new Social Security guide to you as a downloadable PDF.

Pension plans and the downturn

Investing guru Bill Bernstein has compared investors in defined-contribution plans to airline passengers sent to the cockpit to fly the plane. Bernstein would much prefer a retirement system that relies on defined-benefit pensions, with their professional management and automatic participation.

The unfolding coronavirus crisis underscores the value of professional pension pilots -- and the structure of defined-benefit plans, which don't rely on short-term market performance to meet near-term obligations. The same claim cannot be made for the 401(k) or IRA accounts of investors who are retired or close to retirement. Such investors are facing tough questions now about the reliability of their portfolios.

While there's no immediate danger that defined-benefit pension plans will fall short of resources to meet obligations during the pandemic crisis, many are taking their lumps as financial markets tumble. And the knock-on effects of the economic downturn could pose long-term challenges for pension plan sponsors as they try to meet their obligations to participants.

The situations vary among the key pension sectors--corporate, multiemployer, and public. Learn more in my latest Morningstar column.

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If you haven’t subscribed to the newsletter give it a try if your finances permit in this tough economy. You’ll be supporting independent journalism dedicated to covering what matters for older Americans. Subscriptions cost $5 per month or $60 year, and you can cancel at any time.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit retirementrevised.substack.com

This week, the podcast features Part Two of our discussion about ways to expand Medicare to more Americans.

Last week, we spoke with Marilyn Moon, a top expert on Medicare who co-chaired the recent report on expanding Medicare from the National Academy of Social Insurance. That report looked at three different ways to expand Medicare - lowering the eligibility age, establishing Medicare-for-all, and creating a Medicare buy-in.

This week, we get a minority report from one of the NASI panel’s dissenting members. Peter Arno is an economist at the University of Massachusetts-Amherst. Peter specializes in social insurance and he’s a strong critic of the for-profit health insurance industry. I spoke this week with Peter to get his perspective on why we need a government-run Medicare for All program as we come out of the coronavirus crisis.

Our conversation was based in part on a recent article on this topic that Peter co-authored, which makes this key point:

There is a large elephant in the room in the national discussion of Medicare for All: the transformation of the US health care system’s core mission from the prevention, diagnosis, and treatment of illness—and the promotion of healing—to an approach dominated by large, publicly traded corporate entities dedicated to growing profitability and share price, that is, the business of medicine.

The problem is not that these corporate entities are doing something they shouldn’t. They are simply doing too much of what they were created to do—generate wealth for their owners. Unlike any other wealthy country, we let them do it. The dilemma of the US health care system is due not to a failure of capitalism or corporatism per se, but a failure to implement a public policy that adequately constrains their excesses. 

The problem of employer-based health insurance looms large at a time of mass joblessness, of course. Economist Geoff Sanzenbacher weighs in on this point here, while noting that employer coverate is unequal:

The first reason employer-sponsored health insurance is unequal is because not everyone works. In 2018, about 78 percent of adults age 25 to 64 (the age before Medicare kicks in), were in the labor force. And 2018 was a good economic year. 2020 is not a good economic year. While people who don’t work might be able to get health insurance through a spouse but, as I’ve talked about before, marriage is declining especially for the poor.

Instead, Medicaid sometimes fills the gap for people who are very poor and don’t work. Of course, in some states, this option isn’t available for people without kids. For those who are less poor, the Obamacare Individual Marketplaces might offer an option. Then again, the Trump Administration hasn’t made it a priority to improve those markets. And, the administration hasn’t exactly made enrolling any easier, even for people who have lost their jobs due to the Coronavirus.

OK, but what if we only care about people with jobs? At least these people get insurance. Right? Nope. The figure below shows that health insurance access is much higher for people in high paying jobs. So, the people that can most afford to pay for healthcare even without insurance, are also the most likely to have it. Yikes.

Listen to the podcast interview with Peter Arno by clicking the player icon above; the podcast also can be found on Apple Podcasts, Spotify and Stitcher.

Social Security claiming in the pandemic

Over the past decade, far more workers who are eligible for Social Security have been waiting to file, often substantially increasing their lifetime annual benefits.

But the stunning job losses in the pandemic-induced economic crisis could bring this trend to a crashing halt, as suddenly unemployed older workers without substantial savings scramble to meet living expenses.

In my Retiring column for The New York Times last weekend, I reviewed the pros and cons of different strategies for claiming benefits during the coronavirus pandemic.

Making COVID-19 advance care directive decisions

“I am alarmed that we are not yet thinking ahead.”

So writes Dr. Joanne Lynne in a Health Affairs post, Getting Ahead Of COVID-19 Issues: Dying From Respiratory Failure Out Of The Hospital.

Dr. Lynne, a respected physician on end-of-life care, writes that much more attention needs to be paid to issues such as:

Determining care preferences for people at high risk of dying from COVID-19, so we know whether they want to endure hospitalization and life on a ventilator if they get a bad case;

Getting ready to support peaceful course to death in homes and nursing homes for those who otherwise face suffocation.

There’s much more here if you care to take a deeper dive.

Other articles I’m reading this week

The fight against the coronavirus won’t be over when the U.S. reopens . . . Expert advice on fitness when you’re stuck at home . . . All the places coronavirus lurks (or doesn’t) . . . the Older Americans Act reauthorization was signed into law . . . The late songwriter John Prine always knew loneliness was a public health crisis . . .Medicare Advantage enrollment has grown rapidly over the past decade, and Medicare Advantage plans have taken on a larger role in the Medicare program.

Subscribe now

If you haven’t subscribed to the newsletter, give it a try if your finances permit in this tough economy. You’ll be supporting independent journalism dedicated to covering what matters for older Americans. Subscriptions cost $5 per month or $60 year, and you can cancel at any time.

If not, no worries - I’m committed to providing everything I’ve got on the coronavirus crisis in the free edition for as long as it takes.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit retirementrevised.substack.com

This week on the podcast, we’re going to talk about Medicare, and how it can be expanded.

The news peg for this edition was Joe Biden’s announcement last week that he will support lowering the age of Medicare eligibility to 60. This brought to mind a recent study on ways to expand Medicare eligibility from the National Academy of Social Insurance -- a nonprofit, nonpartisan organization made up of the nation's leading experts on social insurance. For this study, the academy convened a study panel of 27 top experts in  economics, health policy, political science, sociology, medicine and law.

Joining me is the co-chair of the NASI study, Marilyn Moon. Marilyn is one of the nation’s top experts on Medicare. She’s an economist who has written extensively on health policy and reform issues related to Medicare and other social insurance topics. Along with her academic career, she is a former public trustee of both Medicare and Social Security. She also has worked for the Congressional Budget Office and she was the founding director of AARP’s public policy institute.

I really recommend the report to anyone interested in getting past the headline level of understanding on this issue. It offers a fascinating in-depth look at three approaches to expanding Medicare eligibility: lowering the eligibility age, establishing Medicare-for-all, and creating a Medicare buy-in.

I asked Marilyn to provide an overview of these three approaches to expanding Medicare eligibility. On next week’s podcast, we’ll drill a little further into the arguments for Medicare for All.

Listen to the podcast by clicking the player icon at the top of this page. The podcast also can be found on Apple Podcasts, Spotify and Stitcher.

I also wrote about the report this week for Reuters.

In the virus crisis, financial planners are stepping up their pro bono game

When a crisis strikes and people are in need, it’s only natural to want to help.

Empathy is a common reaction to trauma, and we’re experiencing such a moment now with COVID-19, a mass-level public health crisis paired with an economic emergency. And a growing number of financial advisors are offering pro bono financial guidance to people who need it right now. Learn more in my column this month for WealthManagement.com.

Other recommended reading this week

More isolation - just what older people didn’t need . . . Consumer advocates charge the annuity industry with using the COVID-10 crisis to promote pro-annuities legislation . . . . Why aging immune systems are more vulnerable to the coronavirus.

Subscribe now

If you haven’t subscribed to the newsletter, give it a try if your finances permit in this tough economy. You’ll be supporting independent journalism dedicated to covering what matters for older Americans. Subscriptions cost $5 per month or $60 year, and you can cancel at any time.

If not, no worries - I’m committed to providing everything I’ve got on the coronavirus crisis in the free edition for as long as it takes.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit retirementrevised.substack.com

On this week’s podcast, we consider the impact on older workers of the extraordinary coronavirus-induced shutdown of the U.S. economy. Of course, workers of all ages are impacted by the stunning loss of jobs, but some special problems apply to people over age 50.

My guest this week is labor economist Teresa Ghilarducci. Teresa is a professor at the New School for Social Research in New York, where she directs the school’s Schwartz Center for Economic Policy Analysis, and its Retirement Equity Lab (ReLab). 

She also blogs for Forbes.com, where she recently posted a piece with this provocative headline -Useless Retirement Advice And Bad Government Policy In The Time Of COVID-19.

I talked with Teresa about what the numbers on older workers in this pandemic economy are looking like so far. We also discussed the impact of the economic and market crashes on retirement savings, home equity and health care spending - and the special risks older workers who are still on the job are facing during the pandemic.

Listen to the podcast by clicking the player icon above. The podcast also can be found on Apple Podcasts, Spotify and Stitcher.

Social Security is posting COVID-10 updates

The Social Security Administratino has a COVID-19 alert page that it is updating regularly. You can sign up for updates by email. This week, the SSA posted a couple updates on Medicare enrollment and other adjustments the agency is making during the crisis.

Biden proposes reducing Medicare’s eligibility age to 60

Joe Biden proposed lowering the Medicare eligibility age to 60 this week as he moves to unify the Sanders wing of the Democratic party with more moderate elements. If you have employer coverage and want to keep it, you can do so - or move to Medicare. In other words, the same option we have now for the 65+ population. This is an interesting, positive move on Biden’s part but it doesn’t go far enough, as I explain below. So, I’d say it likely is just an opening bid.

As the COVID-19 health insurance situation evolves, one lesson people are learning rapidly is that we need much more aggressive expansion of health care and insurance in the United States. That has been clear for years, but the crisis is putting a harsh spotlight on the gaps and failings of our current system.

Last month, the National Academy of Social Insurance (NASI) released a study of various ways to extending Medicare eligibility beyond the current 65+ population. The report was created by a Study Panel on Medicare Eligibility made up of 27 experts from a broad range of perspectives, such as economics, health policy, political science, sociology, medicine, and law, as well as people with direct experience working in areas related to public and private health insurance, including actuaries, health plan administrators, health care providers, labor representatives, and government regulators.

The report examines three approaches to changing Medicare eligibility: lowering the eligibility age, establishing Medicare-for-all, and creating a Medicare buy-in. Here’s the upshot:

* Medicare for All is the most comprehensive solution, but the heaviest political lift to achieve in a single sweeping reform.

* The Medicare buy-in concept sounded great rolling off the tongues of moderate presidential candidates like Pete Buttigieg (“Medicare for all who want it” - what’s not to like about that?). But it actually is the most complicated and problematic option.

* Lowering the Medicare age might just be the sweet spot. It can be done incrementally and it’s fairly straightforward. The only real problem is protecting the Part A trust fund, which Biden proposes to do by financing costs from younger enrollees from general revenue, rather than the payroll tax.

But in order to get the biggest gain in health care coverage, the age would need to move much lower than 60. Here’s what NASI found:

Notice how many more people join Medicare if you drop the age to 50? Doing this gets millions of people who now must turn to employer coverage or the Obamacare exchanges for insurance. The latter can be problematic for people with serious health needs - premiums can be very high if you don’t qualify for the tax subsidies, and deductibles often are high, too.

So - dropping the age to 60 is a decent start. Perhaps an incremental approach would work here - 60 in year one, 50 in year two, 30 in year three - and then it’s everyone in the pool.

Here’s more detail on the NASI lower-the-age plan. And the full report is here.

Here’s Biden’s statement.

Subscribe to the newsletter

If you haven’t subscribed to the newsletter, give it a try if your finances permit in this tough economy. You’ll be supporting independent journalism dedicated to covering what matters for older Americans. Subscriptions cost $5 per month or $60 year, and you can cancel at any time.

If not, no worries - I’m committed to providing everything I’ve got on the coronavirus crisis in the free edition for as long as it takes.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit retirementrevised.substack.com

The podcast this week is a follow-up to my recent story for The New York Times on Medicare and COVID-19. The topic is important, since older Americans are at a high risk for serious illness from the coronavirus, and most who are over age 65 are covered by Medicare.

My guests are two of the top experts in the country on Medicare - Tricia Neuman and Juliette Cubanski of the Kaiser Family Foundation. Kaiser is one of the nation’s premiere sources of research and information on all aspects of health care and health policy. It’s a non-profit organization, and non-partisan, and it’s been a key go-to source for me for years. Tricia is a senior vice president of the foundation and executive director of its Program on Medicare Policy. Juliette Cubanski is the program’s deputy director.

Medicare already covers its enrollees for much of what they might need if they contract the virus and become seriously ill — and it has expanded some services and loosened some rules in response to the crisis.

I asked Tricia and Juliette about Medicare coverage of COVID-19 testing and care, as well as what’s going on with skilled nursing care, network restrictions and expanded telehealth options. We also went over a wish list of things Congress should consider adding to Medicare, or reforming, to help meet this crisis.

Listen to the podcast by clicking the player icon at the top of this page. The podcast also can be found on Apple Podcasts, Spotify and Stitcher.

Social Security field office closings

Social Security local offices are now closed to the public. Some field office staff are still reporting for work, and others are working virtually. The offices are offering in-person assistance for a short list of crucial services. These include reinstatement of benefits in dire circumstances; assistance to people with severe disabilities, blindness or terminal illnesses; and people in dire need of eligibility decisions for Supplemental Security Income or Medicaid eligibility related to work status. Those seeking these services must call in advance.

Another situation that may require you to interact with a local field office is if you are filing for Medicare benefits for the first time and are past the initial filing age of 65. In that situation, call your local office to get the application started, because there will be a couple forms that need to be filed. I describe that in more detail here.

If you need to visit a local Social Security office for in-person services, call the office to request an appointment. You can find the closest office using an office locator tool on the Social Security website, where the agency is also providing updates and information on services

Answering your questions: RMDs for 2020

I’ve been answering listener questions about the COVID-19 crisis here on the podcast. And this week, I received several questions about the new suspension of required minimum distributions for retirement accounts under the CARES Act, passed by Congress last week. No one needs to take an RMD for 2020, and there are a couple little twists and turns for people who may have already taken them. Joining me on the podcast to answer these question is IRS expert Ed Slott; if you are looking for guidance on this issue, just skip ahead to the 44 minute mark. Ed has a useful article on RMDs at the AARP website.

Send in your questions on retirement and COVID-19

Like everyone else, I’ve been struggling to adjust to the new realities that are dawning in our country and our world. And like a lot of people, I’m trying to figure out how to be useful to others. Fortunately, I practice a craft dedicated to providing quality, fact-checked information - and that can be invaluable in a crisis. I’m pivoting much of my work toward coverage of COVID19 and how it impacts older Americans, and I want to be sure to answer the questions that are on your mind.

One way I’m going to be doing that is through a question hotline. You can give me a call and leave a message with your question. I’ll try to answer your question in a future edition of my podcast and newsletter, or in an article for one of the other news outlets that I write for.

I’m not an expert on health care, so I won’t be answering questions on that. But I am well positioned to answer questions about this crisis as it relates to topics like Social Security, Medicare and other insurance questions, and personal finance issues related to retirement. I also write about topics like careers in later life and volunteering.

If you want to submit a question, call me on this number and leave a message: (847) 238-2015. Please include your name and a phone number where you can be reached if I have follow-up questions for you. If you prefer to remain anonymous, leaving your first name only is fine.

You also can use this link to submit a question through my website. Click on “Contact” near the upper right corner of the page.

About those $1,200 government checks for Social Security beneficiaries

A fracas erupted this week when the IRS indicated that Social Security beneficiaries who don’t file tax returns would need to do so in order to receive their $1,200 stimulus checks. That’s many millions of Social Security recipients, and the IRS stated earlier in the week that these folks would “need to file a simple tax return" to receive their checks.

That was at odds with the intent of Congress; the CARES Act gave the U.S. Treasury permission to use Social Security records and payment set-ups to make payments automatically. When I was reporting on this last week, the speculation was that the $1,200 would simply be added to monthly electronic benefit payments.

After protests erupted, the government backtracked. The automatic payments will take place after all. Learn more about it here.

But the Trump administration is still taking the position that recipients of Supplemental Security Income and veterans pensions file a tax return, unless they are also Social Security beneficiaries:

This requirement that a tax return be filed has been used before, and the result was that many miss out on the payment inadvertently. When stimulus checks were distributed in 2008, it seems that about 3.5 million Social Security beneficiaries and veterans never received the checks.

Scams continue - be careful out there

Fraud watchdogs warn that Social Security and Medicare scammers are taking advantage of the crisis to ramp up identity theft and other fraud schemes. I can’t even begin to fathom the depth of this depravity, but I can pass along warnings to you.

Here’s an article from the Associated Press on what’s going on with Medicare fraud. And journalist Mary Beth Franklin notes the latest:

COVID-19 and retirement roundup: What else I’m reading

The question we should have been asking all along about risk . . . States are beginning to move COVID-19 patients to nursing facilities from hospitals . . . Some older workers who can’t work from home face COVID-19 risks . . . how financial plans must adapt to market crashes. So much for the OK Boomer meme: thousands of retired healthcare workers join the fight against COVID-19 .

Subscribe to the newsletter

If you haven’t subscribed to the free edition, give it a try if your finances permit in this tough economy. You’ll be supporting independent journalism dedicated to covering what matters for older Americans. Subscriptions cost $5 per month or $60 year, and you can cancel at any time.

If not, no worries - I’m committed to providing everything I’ve got on the coronavirus crisis in the free edition for as long as this lasts.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit retirementrevised.substack.com

This week on the podcast, I’m answering your questions about how the coronavirus crisis impacts retirement. I recently opened up a voicemail box that listeners (and newsletter subscribers) can use to ask questions - and I’m going to keep doing that as the crisis goes on.

On this week’s program, I tackle these questions submitted by listeners:

* My husband lost his job recently - should he roll over his 401(k) to an IRA?

* What will the impact of the crisis on the Social Security and Medicare trust funds?

* Does dollar cost averaging work work with active mutual funds?

* Can I delay an IRA contribution until July, now that the IRS has pushed back the deadline for filing tax returns to that date?

* Should I plan to delay my retirement a couple years, if I can make that work?

I’ll be recruiting top experts to answer your questions, and I’ll answer a few on my own, too. This week, we get expert input from:

* Sheryl Garrett, founder of the Garrett Planning Network;

* Jeff Ptak, the head of global manager research at Morningstar;

* Ed Slott, the well-known expert on IRAs

* Paul Van Der Water, senior fellow at the Center on Budget and Policy Priorities

Do you have a question for me?

The number to call is 847.238.2015. Leave your name and a phone number where you can be reached in case I need to get further clarification on your question. If you want to leave only a first name, that’s fine. I may use your question on a future edition of the podcast. You can also email your question here.

How Medicare is updating coverage during the crisis

If you’re on Medicare, the program already covers much of what you may need if you contract the coronavirus and become seriously ill. But Medicare also has expanded some services and loosened some rules in response to the crisis. In a story for The New York Times this week, I take a look at at what enrollees can expect from Medicare, some problems to look out for and some additional changes that advocates think still need to be made.

If you recently lost your job . . .

One point I explore in the Times story is how to sign up for Medicare if you’ve been working past age 65 and recently lost your job. The paperwork is a bit complicated right now because of the closure of Social Security field offices.

If you are younger than age 65 and now out of work, check out this Times Upshot column, which walks through the options. These may include COBRA, special Obamacare exchange enrollment opportunities and Medicaid.

Scammers take no holiday during the crisis

Fraud watchdogs warn that Social Security and Medicare scammers are taking advantage of the crisis to ramp up identity theft and other fraud schemes. I can’t even begin to fathom the depth of this depravity, but I can pass along warnings to you.

Here’s an article from the Associated Press on what’s going on with Medicare fraud. Give your Medicare number only to participating Medicare pharmacists, doctors or people you trust to work with Medicare on your behalf. The agency will not call you to ask for your Medicare number or to check on it.

Medicare’s website offers tips for protecting yourself against fraud; the Federal Trade Commission’s website has a page of tips on Covid-19 and scams. And the national network of federally funded Senior Medicare Patrols also can help.

On Social Security, the closing of field offices has opened up some opportunities for fraud, too. More on that here.

What’s in the stimulus bill related to retirement?

The Senate’s $2 trillion stimulus bill (the CARES Act) is expected to pass the House on Friday, and then be signed into law quickly by President Trump. It contains several provisions related to retirement saving:

* Enrollees in Social Security retirement and disability benefits will receive the same one-time $1,200 stimulus payments that are being sent to most adults, subject to the same income limitations ($75,000 in adjusted gross income for single filers and $150,000 for joint filers).

* The current limit on loans from 401(k) accounts and other tax-deferred retirement plans will double to $100,000 for participants diagnosed with the coronavirus or who are affected by related economic losses. Participants with existing loans can delay any repayments due in 2020 for one year.

* People affected by the virus or related economic circumstances will be able to take withdrawals from workplace plans and IRAs up to $100,000 this year without the usual 10% penalty due for people under age 59-1/2. Income taxes are still due on the withdrawn amounts, but the law allows you to spread out this liability over three years. You also have the option to redeposit the withdrawn sums during that period.

* The law suspends the need to take required minimum distributions (RMDs) from tax-deferred accounts for retirees, or others who have inherited an IRA.

* Medicare Part D plans must list restrictions on extended supplies of prescription medications during the crisis

For more details, see my column for Reuters this week. Also see this Morningstar video interview with IRA expert Ed Slott.

And, the stock market

Oh, right - the stock market is a mess too. John Rekenthaler of Morningstar has had two excellent coluns of late: When will stocks recover, and It’s hard to make money as a bear.

Free financial planning help on offer

The New York Times has created an online hub for financial help during the crisis that will be updated regularly. Already, the hub contains articles on how unemployment insurance works; who and what the new paid leave law covers; how to pause federal student loans; income tax filing deadline extensions and more.

One section I found especially interesting includes links to financial planners who are offering free advice to people experiencing financial stress.This includes dozens of members of the XY Planning Network; the Financial Planning Association has its own list of volunteer certified financial planners as well.

A bit of relief during lock-down: Virtual concerts, plays, and other culture you can enjoy from home

Nothing can replace live concerts, plays, museum visits or other cultural events, but plenty of cultural experiences are available online. CNN pulled together a great list of concerts, museum tours and other virtual experiences you can explore from home.

Coronavirus roundup: Other things I’m reading this week

What to do if you or a loved one might have the coronavirus . . . How to think about the risk if you’re over age 60 . . . .Eleven states and Washington D.C. opened up special enrollment to allow uninsured sign up for Obamacare . . . Why hospitals don’t have capacity to deal with overflow demand in a pandemic . . . One New Yorker’s coronavirus test: 5 days, a dozen calls, hours of confusion . . . A war footing: surfing the curve of COVID19 . . . Healthy living tricked boomers into thinking we’re invincible: The generation that’s redefining old age is now being redefined by a virus . . .The tech headaches of working from home and how to deal with them . . . Coronavirus is destroying older Americans’ retirement dreams.

Subscribe to the newsletter

If you haven’t subscribed to the free edition, give it a try if your finances permit in this tough economy. You’ll be supporting independent journalism dedicated to covering what matters for older Americans. Subscriptions cost $5 per month or $60 year, and you can cancel at any time.

If not, no worries - I’m committed to providing everything I’ve got on the coronavirus crisis in the free edition for as long as this lasts.

Stay safe and stay well - I’ll see you next week.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit retirementrevised.substack.com

Good morning -

Like everyone else, I’ve been struggling to adjust to the new realities that are dawning in our country and our world. And like a lot of people, I’m trying to figure out how to be useful to others. Fortunately, I practice a craft dedicated to providing quality, fact-checked information - and that can be invaluable in a crisis. I’m pivoting much of my work toward coverage of COVID19 and how it impacts older Americans, and I want to be sure to answer the questions that are on your mind.

One way I’m going to be doing that is through a question hotline. Starting today, you can give me a call and leave a message with your question. I’ll try to answer your question in a future edition of my podcast and newsletter, or in an article for one of the other news outlets that I write for.

I’m not an expert on health care, so I won’t be answering questions on that. But I am well positioned to answer questions about this crisis as it relates to topics like Social Security, Medicare and other insurance questions, and personal finance issues related to retirement. I also write about topics like careers in later life and volunteering.

If you want to submit a question, call me on this number and leave a message: (847) 238-2015. That’s (847) 238-2015. Please include your name and a phone number where you can be reached if I have follow-up questions for you. If you prefer to remain anonymous, leaving your first name only is fine.

You also can use this link to submit a question through my website.

If you haven’t subscribed to the weekly newsletter yet, please do so - I think you’ll find it a valuable resource for staying informed. I offer both paid and free subscriptions, and I’m distributing all COVID19 information in both editions. Click the little green button below, or go here to learn more.

Thanks, and I’ll see you next week.

Mark

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit retirementrevised.substack.com

This week on the podcast, we’re going to talk about stock market volatility and risk with two financial planning experts who deal with both on a regular basis as they work with clients. As of this writing (Wednesday), the S&P 500 is down nine percent - and that’s just today. The S&P is down about 25 percent from its peak in February and there’s no reason to think the market won’t fall further before it stabilizes.

In some respects, this episode is about fear. Plenty of retirement investors are experiencing it - fear about the market’s volatility, and the risks that poses to their retirement. And even more important is our fear about the future health of the economy, which is headed toward a steep recession induced by the health crisis.

My guests are two experienced financial planners. Allan Roth is the founder of Wealth Logic. Allan has been working in the investment world for decades in both corporate and personal finance. Also joining me is Jay Abolofia, founder of Lyon Financial Planning. Another interesting thing - Jay has an Ph.D. in applied economics. So, he brings a perspective to this that goes beyond just the markets.

Listen to my conversation with Allan and Jay by clicking the player icon at the top of this newsletter page. The podcast also can be found on Apple Podcasts, Spotify and Stitcher.

Separately, check out my Reuters column this week on the same topic, and this one for The New York Times last week on market risk. The story poses this question: what if you just want to get out of the market entirely? Is that advisable? (Spoiler alert: my answer is “no.”)

Coronavirus forces Social Security to close its offices

The coronavirus crisis forced the Social Security Administration to close its network of more than 1,200 field offices to the public this week. The offices help thousands of people every day with applications for retirement, disability and Medicare benefits.

Field offices will be closed to the public in most situations until further notice because of the coronavirus public health crisis, administration officials said. Offices that hear disability insurance appeals also are closed.

Most employees will be working remotely; service will continue to be available via the agency’s toll-free line, (800) 772-1213, and its website. Payments to more than 69 million Social Security beneficiaries are not affected.

Keeping the offices open was a threat to the public’s health and that of the agency’s work force. Visitors often experience long waits in rooms filled with dozens of people — most often, seniors and disabled people, who are among those most at risk from the virus. Cleaning of the offices is minimal.

Field offices will only offer in-person assistance for a very short list of crucial services. These include reinstatement of benefits in dire circumstances; assistance to people with severe disabilities, blindness or terminal illnesses; and people in dire need of eligibility decisions for Supplemental Security Income or Medicaid eligibility related to work status. Those seeking these services must call in advance.

For all other services, you’ll need to use the toll-free number or the website.

In The New York Times earlier this week, I detailed the ins and outs of how business can be conducted going forward with Social Security. A topic of special concern now is scams - it’s sad to say, but fraudsters working identity theft schemes are likly to try to take advantage of the heightened phone traffic that will be going on between Social Security and claimants. So, pay careful attention to the info in that Times story on that subject, and also consult this separate piece about Social Security fraud.

Why Coronavirus is nothing like the flu

No serious public health expert thinks that comparisons of COVID19 with garden variety flu are valid. Here’s Charles Ornstein of Propublica:

As Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, and others have said, COVID-19 is deadlier than the flu. It’s deadlier for young adults. It’s deadlier for older adults. In China, early data shows that it was 10 times deadlier. This chart from Business Insider compares U.S. flu deaths to deaths in China from COVID-19.

The flu kills less than 1% of infected people who are over age 65. By comparison, in China, COVID-19 killed 8% of those infected who were 70-79 and almost 15% of those infected who were age 80 or older.

A primer on annuities

The annuities market is plagued by an assortment of opaque names for its products. Look under the hood of the industry and you will find that some annuities are fairly easy to understand while others are not. Lately, the most complex ones seem to sell best. 

How to navigate the annuities landscape? Let’s get out the maps.

Roundup of important coronavirus developments

The risk of contracting the coronavirus and becoming ill with COVID-19 is highest for older Americans. One thing I do every week as a journalist covering retirement aging is to sift through hundreds of articles and research reports, and right now virus news is everything. Each week in the newsletter, I’ll be curating and passing along the best information I can find for readers. My aim here is not quantity, but quality. We’re all being inundated with information right now, so I’m doing my best to send along only the stories I think are must-know and that come from information sources I know are rock solid.

This week’s news:

NPR: Nursing homes brace for coronavirus threats . . .How well does a particular nursing home stack up on fighting infections? . . . . The Trump administration has been working to relax regulations governing America’s nursing homes, including rules meant to curb deadly infections among elderly residents . . . The federal government has lifted restrictions on telemedicine to make it easier for physicians to interact with patients during the crisis . . . Married couples have different styles of coping with crisis . . . In the age of Covid-19, we’re all getting a taste of social isolation many older adults experience daily . . . As coronavirus surges, programs struggle to reach vulnerable seniors living at home.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit retirementrevised.substack.com

This week on the program, we’re going to attempt to untangle the annuities market. They come in an almost unbelievably complicated array of flavors and types, and their contracts can be very difficult to understand.

But before we get to that, I wanted to share a few thoughts with you about the coronavirus.

The pandemic puts everyone at risk, but older people are the most vulnerable. As a journalist covering aging, I’m mindful of that, of course. And, I’m starting to carefully reorient my coverage to do the best I can to provide useful information to readers of my stories, and people who listen to the podcast. I’m looking at this as a health story of course, but also a financial security story due to the massive impact of the crisis on the markets and most likely, the economy. The virus is starting to reshape conditions here in the U.S. and around the world that we’re barely starting to understand. 

One thing I know I can do is pass along useful, authoritative information. As a journalist, I sift through hundreds of news articles, research reports, podcasts and video interviews every week. I plan to pass along the most credible, authoritative information I can find every week in the newsletter - both the subscriber and free editions. This week, scroll down a bit and you’ll find a post with links to advice for older adults from the CDC, and an interview with Dr. Anthony Fauci of NIH on the podcast of the Journal of the American Medical Association — also, an article about how the virus is impacting nursing homes.

You can also look for an article from my in this Sunday’s New York Times business section about how retirement investors can cope with their worst instincts during the current market meltdown. I’ll have a link to that story in next week’s newsletter. 

So, back to annuities. Most people think of them as a way to provide guaranteed lifetime income in retirement - and you certainly can achieve that goal. But others really are more like investment products with optional income conversion features.

Annuity sales have been rising. Some of that is driven by the country’s demographics - as baby boomers reach retirement age, buyers are attracted by protection from the volatility of stocks. That last point seems especially salient considering the way the stock market has been nose-diving over the last couple weeks.

I don’t think annuities are right for everyone. Not even close to everyone. But they make sense in some situations, so this week I invited one of the most knowledgeable observers of the annuity marke that I know to join me on the podcast - Kerry Pechter. 

Kerry is editor and publisher of the Retirement Income Journal, which covers the industry. He also is author of Annuities for Dummies. Like most books in the well-known Dummies series, Kerry’s book provides easy-to-grasp explanations of the various annuity types and how they work. So, if you are thinking about an annuity, get Kerry’s book.

But first, give a listen to my interview with Kerry Pechter.

Roundup of news and information on COVID-19

The risk of contracting the coronavirus and becoming ill with COVID-19 is highest for older Americans. I’ll be curating and passing along the best information I can find each week to readers of the newsletter during this crisis.

Here’s a short video overview from the Centers for Disease Control on what older adults need to know.

And here’s an interview on the spread of the virus with Dr. Anthony Fauci, head of the National Institute of Allergy and Infectious Diseases, conducted by Dr. Howard Bauchner, editor of the Journal of the American Medical Association.

Nursing homes: With the deaths of 18 residents in a nursing home in Washington state, industry leaders recommended strict limits this week on visits at facilities across the country, according to the The New York Times:

Thousands of nursing homes and assisted-living centers across the United States are becoming islands of isolation as health care administrators take unprecedented steps to lock them down, hoping to protect some of the nation’s most vulnerable residents from the threat posed by the coronavirus.

On Tuesday, industry leaders recommended curtailing all but essential visits at homes across the country, calling the challenge posed by the novel coronavirus “one of the most significant, if not the most significant” issues the industry has ever faced. Five long-term care facilities in Washington State have been hit, but officials worry the virus could already have spread to far more facilities with still-undetected cases.

“The mortality rate is shocking,” said Mark Parkinson, president and chief executive of the American Health Care Association. He said the death rate might well exceed the 15 percent that had been reported in China for people aged 80 and older.

What should you do if you or a family member are living in a nursing home or assisted living facility, or may need to go to a skilled nursing facility after a hospital stay? Howard Gleckman, an expert on long-term care, offers these thoughts in a post for Forbes.com:

There is a lot to think about, but experts have two main pieces of advice:

* Don’t panic. The risk of contracting COVID-19 remains very low.

* Make sure the facilities are practicing good infection control—something they should be doing all the time, regardless of the immediate news.

No doubt, residents of care facilities are at high risk for severe illness or even death if they contract COVID-19, the disease caused by the novel coronavirus. And the multiple deaths at a Kirkland, WA nursing home only raised those concerns.

To learn if a specific facility is doing it right, you can ask a few basic questions. The Centers for Disease Control has a simple factsheet for consumers called the “Top 10 Infection Prevention Questions to Ask a Nursing Home’s Leaders.”

New guide: How to time your retirement

If you’re a paid subscriber to the newsletter, you know I’ve been publishing a series of guides on key retirement topics.

The latest is a guide on timing retirement decisions. This can be a really important inflection point for your financial success in retirement, so it’s worth thinking about carefully.

The last years of work usually are peak earning years. And working even a few years more years - or less - will impact your retirement math significantly. Your timing affects the number of years that you’ll rely on savings to meet living expenses. It impacts the number of years that you can contribute to retirement saving accounts. And perhaps most important, working longer helps sets the stage for a delayed Social Security claim. That’s because it provides the income you need to meet living expenses while you wait to file.

But setting a retirement target date and sticking to it can be very difficult . . . even risky.

About one-third of workers tell pollsters they plan to work well past traditional retirement age, or not retire at all. But the data also tell us that about one-third of workers retire earlier than expected - and that the farther out you push your target date, the less likely you are to work to that date.

The most common causes for unexpected early retirement are health problems and job loss. But the study uncovered clear reasons for unplanned early retirement only in about one-quarter of cases.

Other reasons are more difficult to measure. The pull of leisure activities and time with family are factors, along with possible age discrimination. But the quality of work also matters.

The guides are downloadable, quick reads, each paired with a podcast interview on the subject at hand. My aim is to create a series of just-in-time retirement education modules - read the guide, listen to the podcast and you’re good to go. The series already includes guides on claiming Social Security, transitioning to Medicare and how to hire a financial planner.

Becoming a subscriber is easy - to sign up, click the little green button at the bottom of the newsletter page, or visit my website to learn more. The subscription price is just $5 month, and you can cancel easily at any time if you’re not happy. Once you subscribe, you’ll have access to the entire retirement guide series, including this new one on retirement timing. Plus, you’ll get links to all the articles I publish for Reuters, The New York Times, Morningstar and Wealthmanagement.com. I also publish links to the most interesting new research in the field, and links to work by other journalists that I find compelling.

Finally, you’ll be supporting independent, unbiased journalism.

Thanks for listening - and I hope to see you over on the subscriber side soon.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit retirementrevised.substack.com