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☆ Will Social Security be there for me when I retire? Here's how the agency's chief actuary answers that common question
▼ + stars: | 2023-10-30 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

Today, Social Security has two trust funds that have a total of $2.8 trillion in reserves and function like savings accounts for the program, according to Goss. When more money is needed to pay benefits beyond what is coming in through payroll taxes, the trusts funds are available. Retirement benefits taken at age 70 are 76% higher, adjusted for inflation, than retirement benefits taken at 62, Kotlikoff's research found. "The decision to wait is really buying longevity insurance from Social Security," Kotlikoff recently told CNBC.com. With that information, the Social Security Administration provides estimates of how much in benefits you may receive if you become disabled, retire or die, thus leaving benefits to eligible survivors.

Persons: Thomas Barwick, Goss, Laurence Kotlikoff, Kotlikoff, CNBC.com Organizations: Social Security, actuaries, Republicans, Democrats, Laurence Kotlikoff Boston University, Boston University

☆ Claiming Social Security retirement benefits is a high-stakes decision. Don't let these 5 myths get in your way
▼ + stars: | 2023-08-19 | by ( Lorie Konish | ) www.cnbc.com time to read: +6 min

Moyo Studio | E+ | Getty ImagesSocial Security benefits provide retirement income for millions of Americans. Myth 1: Claiming early is bestNegative headlines may scare people into claiming as early as possible to get the most benefits. Eligibility for Social Security retirement benefits starts at age 62. Myth 4: Social Security benefits are not taxedThanasis | Moment | Getty ImagesThe misperception that Social Security benefits aren't taxed is "perhaps the biggest myth of all," said Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League. That includes the sum of your adjusted gross income, nontaxable interest and half of your Social Security benefits.

Persons: that's, Joe Elsasser, Elsasser, Laurence Kotlikoff, Bruce Tannahill, there's, Kotlikoff, Tannahill, Mary Johnson, Anna Frank Organizations: Social Security, Social, Security, Boston University, Senior Citizens League . Social Security

☆ 3 people who tip for almost everything explain why they do so even if the service is bad — and how much extra they usually leave
▼ + stars: | 2023-08-01 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +7 min

While many customers don't tip, those who do are helping businesses keep their prices stable. Some people are happy to tip almost every time they are prompted, and they're helping businesses pay their employees more without cutting into profits or raising prices. Farley told Insider that he usually leaves at least a small tip whenever businesses prompt him, even if it's for something that didn't require much "actual service" — like buying a drink at the counter. A similar story is playing out at businesses across the country, Laurence Kotlikoff, an economics professor at Boston University, previously told Insider. Personal experience working in the service industry causes some customers to tip almost every chance they getCamille Rogers, a 25-year-old Manhattan-based publicist, told Insider that she usually tips whenever it's an option.

Persons: Ryan Farley, Farley, They're, Dan Moreno's, Moreno, Laurence Kotlikoff, Camille Rogers, Rogers, KaLyn McCullough, McCullough Organizations: Service, Boston University, Rogers Locations: Wall, Silicon, Austin , Texas, Dan Moreno's Miami, Manhattan, Hartford , Connecticut

☆ Businesses are scrambling for tips right now because they don't want to raise wages in case of a recession
▼ + stars: | 2023-07-26 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +4 min

Firms don't want to raise wages because they're worried about a recession, so you pay workers instead. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. And now, businesses are trying to avoid making the larger wages those tips have augmented their responsibility, as the economy cools. Jonathan Morduch — a professor of public policy and economics at New York University — told the Wall Street Journal that as businesses prepare for a potential recession, "they don't want to lock into higher wages." "Businesses are happy to let workers earn more from tips, especially when there's no pressure to raise the tipped minimum," Morduch told the Wall Street Journal.

Persons: you've, they're, It's, Scheherezade Rehman, Jonathan Morduch —, New York University —, Andy Kiersz, Jacob Zinkula, Laurence Kotlikoff, what's, Morduch Organizations: Service, George Washington University, Wall Street, New York University, Boston University Locations: Wall, Silicon

☆ Opinion | Can Social Security Be Fixed Forever?
▼ + stars: | 2023-07-03 | by ( Peter Coy | ) www.nytimes.com time to read: +2 min

In 1983, the main Social Security trust fund came within months of being exhausted. Max Richtman, the president and chief executive of the National Committee to Preserve Social Security and Medicare, told me he thinks it’s too long. He wrote in a recent Substack post that even 75 years isn’t long enough to look ahead. That’s three times the size of the gap in today’s dollars when projecting ahead 75 years. Making Social Security safe for only 75 years effectively assumes that all beneficiaries will “conveniently expire” at the end of the 75th year and so won’t need checks, he said.

Persons: Alan Greenspan, Max Richtman, it’s, ”, “, he’d, Laurence Kotlikoff, I’ve, there’s, Steve Laffey, Kotlikoff, aren’t, ” Laffey Organizations: Social Security, National Committee, Preserve Social Security, Boston University Locations: Cranston, R.I

☆ As Republican contenders start to line up for the White House in 2024, Social Security may be key issue
▼ + stars: | 2023-06-07 | by ( Lorie Konish | ) www.cnbc.com time to read: +7 min

Proposal for 'modern version' of Social SecurityThe Social Security plan Laffey would implement throws out the traditional approaches of tax increases or benefit cuts. Currently, workers and employers each pay 6.2% on up to $160,200 in wages toward Social Security. "It's a modern version of Social Security," Kotlikoff said. The idea of rethinking the way Social Security funds are invested has come up before. Andrew Biggs, who worked in the White House on Social Security reform at the time and who is now a senior fellow at the American Enterprise Institute, remembers the proposal did not come close to succeeding, even as Social Security still had surpluses and Republicans controlled both houses of Congress.

Persons: Alex Durante, Durante, Laurence Kotlikoff, Kotlikoff, Laffey, Morgan Keegan, Steve Laffey, Ed Jones, Cranston, George W, Bush, Andrew Biggs, Biggs, Biden Organizations: iStock, Social Security, Social Security's, Lawmakers, Washington, Tax, Foundation, Social, Boston University, U.S, Senate, Republican, Afp, Getty, Wall, today's Social Security, American Enterprise Institute, Democratic, Lake Research Partners, Trump, Alafaya Locations: Cranston , Rhode Island, Rhode Island, Colorado, America, Cranston, Orlando , Florida

☆ Who does inflation hit hardest? Experts weigh in on how higher prices impact households
▼ + stars: | 2023-06-01 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

Fizkes | Istock | Getty ImagesStubborn inflation has driven households near the breaking point, but the pain of high prices has not been shared equally. The lowest-paid workers spend more of their income on necessities such as food, rent and gas, categories that also experienced higher-than-average inflation spikes. Because higher-income households spend relatively more on services, which notched smaller price increases compared with goods, they came out ahead. Middle-income households see slower wage growthBy other measures, Americans in the middle class are getting especially squeezed. watch nowEconomists' definitions of middle class vary.

Persons: Laurence Kotlikoff, Tomas Philipson, Brian Albrecht, Albrecht, Philipson, Aron Levine, Boston University's Organizations: Istock, Getty, Boston University ., White House Council, Economic, University of Pennsylvania's Wharton, Finance, International Center for Law, Economics, Congressional, Office, Pew Research Center, Bank of America Institute, Bank of, Boston, Consumer Financial, Bureau

☆ Why are you suddenly being asked to tip more? It could be because workers are getting more expensive.
▼ + stars: | 2023-05-21 | by ( Jacob Zinkula | Andy Kiersz | ) www.businessinsider.com time to read: +5 min

More and more businesses are asking customers to tip. It's driven in part by the spread of digital payment technologies that include prompts to tip workers. Workers are getting more expensive, and tips help cover the costBusinesses relying on tips to help pay their workers is far from a new phenomenon — particularly in the restaurant industry. One potential reason service businesses are warming up to tipping is that they're under particular pressure to keep labor costs in check. In recent years, many service businesses have struggled to attract workers and been forced to raise pay considerably as a result.

☆ Should college graduates be financially independent? Parents and young adults disagree
▼ + stars: | 2023-05-19 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

watch nowYoung adults face financial challengesIn part, millennials and Gen Z face financial challenges that their parents did not as young adults: On top of carrying larger student loan balances, their wages are lower than their parents' earnings when they were in their 20s and 30s. Soaring food and housing costs pose additional hurdles for young adults just starting out. Now, 68% of parents with children over age 18 are making a financial sacrifice to help support them, according to Bankrate's report. For parents, however, supporting grown children can be a substantial drain at a time when their own financial security is in jeopardy. Kids have to realize that the quid pro quo here is that they're going to be expected to take care of their parents.

☆ Generation Hustle: Gen Z Is Reshaping Work With More Jobs, Side Hustles
▼ + stars: | 2023-05-09 | by ( Eve Upton-Clark | ) www.businessinsider.com time to read: +13 min

In the midst of an uncertain economy and precarious job market, Gen Z is turning up the hustle. According to a 2022 survey commissioned by Microsoft, 48% of Gen Z respondents were juggling multiple side hustles at once. Broken promisesWhile young people often work multiple jobs through college and early in their career, Gen Zers are extending the work hustle into their formal careers. But after watching that dream die for millennials, Gen Z isn't buying into what they view as a broken social contract. "So Gen Z has seen there's other ways to make money, even as a kid, through platforms like YouTube."

☆ As retirement age change sparks protests in France, here's what could happen in the U.S.
▼ + stars: | 2023-05-07 | by ( Lorie Konish | ) www.cnbc.com time to read: +5 min

Damien Meyer | Afp | Getty ImagesAn increase in pension retirement age to 64 from 62 in France has sparked ongoing protests. The U.S. could be poised for a similar change with the Social Security retirement age. Today, that higher retirement age is still getting phased in. People born in 1960 and later now must wait until 67 to receive their full "retirement age" benefits. For example, if you are eligible for a $1,000 monthly benefit at full retirement age, you would get just $700 per month if you started at age 62.

☆ Capitalizing on market crashes is key to retiring on time. Many millennials are still looking for their first chance.
▼ + stars: | 2023-03-09 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +8 min

Stock market declines can create bargain-buying opportunities for investors looking to generate long-term wealth. Many millennials are looking for their first chance to participate, having lacked adequate savings during prior market downturns. That's because a falling stock market creates discounts and a chance to buy high-upside assets on the dip. The 28-year-old is among the TikTok financial influencers telling their young audiences not to miss out on the next stock market slump. Some have argued that overvalued markets, slowing population growth, and rising interest rates could weigh down US stock market returns for at least the next decade.

☆ TikTok's finance influencers are selling the idea that you can become a 'recession millionaire' if the market tanks
▼ + stars: | 2023-03-08 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +8 min

It also reinforces the idea that the stock market isn't the same the thing as the economy. During the Great Recession, many millennial investors were too young — or didn't have sufficient income — to capitalize on the market downturn. If a recession is on the horizon, Nelson says it would likely provide millennial investors a better buying opportunity. Seo says too many investors hold off on investing until they think the stock market has "bottomed-out." With inflation eroding Americans' savings, many people may simply not have the extra money to throw into the stock market.

☆ Americans don't seem interested in saving money right now, despite a looming recession
▼ + stars: | 2022-12-07 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +4 min

With a recession looming, some Americans may wish they had built more of a financial cushion. The personal savings rate — the share of Americans' income saved in a given month — fell to 2.3% in October, the Bureau of Economic Analysis reported last Thursday. But sky-high prices aren't the only reason Americans' savings are dwindling. Experts expect the US to enter a recession next year, which is expected to coincide with falling job openings and a rising unemployment rate. Inflation isn't expected to go away quickly either, leaving Americans with wage bumps that may continue to lag inflation.

☆ Gen Z wants equality, diversity, and flexibility at work, but it may cause them to sacrifice financial security
▼ + stars: | 2022-12-06 | by ( Alexandra York | Jacob Zinkula | ) www.businessinsider.com time to read: +5 min

Some Gen Zers are focusing on a company's mission and job security during their job searches. As a recession looms, Gen Zers might want to consider their financial futures when applying for their next role. Additionally, over half of Gen Z could enter retirement without sufficient savings due to savings challenges and rising costs, Boston University economist Laurence Kotlikoff previously told Insider. In fact, the typical annual salary for Gen Z employees was $32,500 in 2021, according to research from the personal finance site GoBankingRates. To be sure, plenty of Gen Zers understand the financial pressures to come and are prioritizing salary in their job search.

☆ Gen Zers are taking on more debt, roommates, and jobs as their economy gets worse and worse
▼ + stars: | 2022-12-04 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +7 min

Gen Zers are taking on credit-card debt — and missing their payments — at a rising rate. Amounts of credit-card debt and delinquency rates are on the rise, especially among 18- to 29-year-olds. But if a recession comes, Gen Zers could be among the hardest hit due to mounting debt, few savings, and vulnerability to layoffs. US credit-card debt overall rose $38 billion between July and September of this year, per the New York Fed. For older Gen Zers, the delinquency rate rose to over 6%, though still below the roughly 9% pre-pandemic rate.

☆ The cost of retirement is rising, and many Americans will have to work longer than they planned. Here are the 10 industries with the highest share of older workers.
▼ + stars: | 2022-11-08 | by ( Jacob Zinkula | Madison Hoff | ) www.businessinsider.com time to read: +3 min

As the cost of retirement rises, many Americans will work later in life than previously planned. Funeral homes and fishing are among the 10 industries with the highest share of older workers. A survey for Nationwide Retirement Institute conducted by Edelman Data & Intelligence also suggests some older workers may have to consider delaying their retirement plans. The rising cost of retirement could mean at least 60% of boomers will enter retirement age without sufficient savings, Boston University economist Laurence Kotlikoff previously told Insider. As Americans continue living longer and struggle to accumulate retirement savings, the 65-and-older share of the workforce is likely to rise further.

☆ Over half of Gen Z and millennials could face a retirement crisis as inflation rises and homeownership falls, says a Boston University economist
▼ + stars: | 2022-10-11 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +5 min

Over half of Gen Z and millennials could enter retirement with insufficient savings, says a Boston University economist. As of 2017, roughly half of all retirement age Americans had no personal retirement savings, per a January Census Bureau report. While the expectation that young Americans will live longer than the generations before them is a positive development, this also raises the total cost of retirement. "The retirement age will rise and it's been rising," he said, pointing to BLS projections of older workers' labor force participation. To prepare for retirement, Kotlikoff says Gen Zers should be saving 15% of what they earn after taxes, although he adds that that "may well be on the low side."

☆ Millennials and Gen Z counting on a 401(k) to get them through retirement are in for a rude awakening, TIAA head says
▼ + stars: | 2022-10-11 | by ( Jason Lalljee | ) www.businessinsider.com time to read: +5 min

Half of millennials and Gen Z expect employer-based savings plans to be enough for retirement, a TIAA study shows. Millennials and Gen Z could be in for a dire future unless they save differently. Duckett said that she wanted policymakers and employers to increase access to retirement savings plans, as well as educating workers about income options such as annuities. She also encouraged Gen Z and millennials to seek out savings vehicles like IRAs, which aren't dependent on an employer. It's a testament to how much employers have sapped their retirement packages over the past few decades that Gen Z and millennials could be in trouble.

☆ Wealthy millennials aren't relying on the stock market. Here's how their investment portfolios break down.
▼ + stars: | 2022-10-11 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +6 min

Only 32% of older investors said the same. The wealthy millennials surveyed said they allocate 25% of their portfolios to stocks, compared to 55% for older investors. Cryptocurrency is popular among these millennials as well, accounting for 15% of their portfolios compared to only 2% for older investors. Wealthy millennials see cryptocurrency as the best investmentLooking forward, the wealthy millennial investors ranked cryptocurrency or digital assets, real estate, private equity, and direct investment into companies offer the "greatest opportunities for growth." Older investors favored US stocks, followed by real estate and equities in the emerging and international markets.

☆ One-time presidential pardon will not do much to alleviate student debt crisis, economists say. These changes may be a better solution
▼ + stars: | 2022-09-19 | by ( Lorie Konish | ) www.cnbc.com time to read: +1 min

Student loan debtors are poised to get some breathing room after President Joe Biden unveiled a plan last month to forgive up to $20,000 in federal student loans per borrower. But some experts say the one-time presidential pardon will not do much to alleviate the student debt crisis affecting millions of borrowers around the country. Student loans provided by the government similarly place an undue burden on younger Americans, he said. More from Personal Finance:How student loan forgiveness will be applied to your debtsKey events on the path to student loan forgivenessHow to calculate your bill for student loan forgiveness"My message would be, 'Don't borrow for college to begin with — period,'" Kotlikoff said. That's as more than 40 million people hold $1.7 trillion in student loan debt.

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