Social Security’s ‘Chained COLA’ not ready for prime time

Social Security’s cost of living adjustments (COLA) are designed to protect against the erosion of retiree purchasing power when prices go up, as measured by the Consumer Price Index (CPI). “Now Social Security self-styled ‘reformers’ seek to lower COLA every year based on their claim that COLA overstates inflation,” says Merton C. Bernstein, LLB, a nationally recognized expert on Social Security. The proposed substitute for the current CPI formula, ‘Chained COLA,’ is based on the assumption that benefit recipients substitute lower-priced goods as prices go up. “This the assumption is unrealistic for those millions who only have access to convenience stores that typically offer fewer choice and higher prices,” says Bernstein, the Walter D. Coles Professor Emeritus at Washington University in St. Louis School of Law. “And, further, it is not reasonable to assume that most consumers can outwit the wiles of merchandising experts.”

Survey looks at experience of mid-life and older adults returning to graduate education

Americans are remaining in the workforce longer and many are changing or advancing their careers well past age 40. “With this trend towards working longer, educational institutions have been trying to figure out their role in keeping up with the needs of our aging society,” says Nancy Morrow-Howell, PhD, the Ralph and Muriel Pumphrey Professor of Social Work at the Brown School at Washington University in St. Louis. The Brown School decided to study the experiences of their students who came to get their MSW after the age of 40. The survey focuses on pathways to graduate school, their experience in the classroom as well as field, and their post-MSW careers. Morrow-Howell says that these results can be applied to other graduate programs, particularly in fields that may face labor shortages in the future, such as education, health and social services.

Social Security attacks by Gov. Perry and Sen. Rubio ignore facts

Texas Gov. Rick Perry’s “Ponzi scheme” charge and Florida Sen. Mark Rubio’s assertion that Social Security is unsustainable recycle baseless attacks that go back as far as the 1930s, says Merton C. Bernstein, LLB, a nationally recognized expert on Social Security. “These are attempts to muster political support by appealing to long-held prejudices to satisfy those who never accepted Social Security,” Bernstein says. “To use them as guides to public policy would undermine our country’s most successful family protection program.”

Graying world population sparks need for policies and programs that support productive aging

Worldwide, people aged 60 and above will comprise 13.6 percent of the population by 2020, and 22.1 percent of the population by 2050. China is the most rapidly aging country with older adults making up 13 percent of their population. “All countries will need to develop policies and programs that support productive engagement during later life,” says Nancy Morrow-Howell, PhD, the Ralph and Muriel Pumphrey Professor of Social Work at Washington University in St. Louis. “There is evidence that productive engagement in later life benefits both older adults and society at large. Expanding opportunities for productive engagement may increase the health and well-being of the older population. At the same time, older adults can be a valuable resource for growth in volunteering, civic service, caregiving, employment, and social entrepreneurship.”

AARP needs to clarify position on Social Security

AARP’s ambiguous statements about Social Security benefit cuts have led to a public roasting of the organization for caving into public pressure, says Merton C. Bernstein, LLB, a nationally recognized expert on Social Security and the Walter D. Coles Professor Emeritus at Washington University in St. Louis School of Law. “Whatever stance AARP has taken, it does not provide ‘cover’ for the Obama Administration to agree to cut benefits now, soon or in the future. If AARP does not vigorously and clearly repudiate what some see as willingness to accept benefit cuts, AARP will be the loser.”

New index measures financial stability

What does it take for a family in the U.S. to have long-term economic security and not just “get by”? This question inspired the creation of the Basic Economic Security Tables Index (BEST), a joint effort of Wider Opportunities for Women (WOW) and the Center for Social Development (CSD) at the Brown School at Washington University in St. Louis. The BEST is different from other ‘living wage’ indexes in that it aims to capture what is needed for household stability and development rather than focusing on subsistence. Findings suggest that families’ largest economic security challenges are rent and utilities, transportation, and childcare. The report calls the high cost of quality childcare “the greatest threat to many families’ security.” Childcare is so expensive that income needs for a one-parent family with two preschoolers are equivalent to those of a one-parent family with five teenagers.

Social Security more essential than ever, WUSTL expert says

The meltdown of private pension plans, 401(k)s and Individual Retirement Accounts during the recession demonstrates that Social Security is more essential than ever, says Merton C. Bernstein, LLB, the Walter D. Coles Professor Emeritus at Washington University in St. Louis School of Law. Bernstein discussed the crucial role of Social Security in a report for the university’s Weidenbaum Center on the Economy, Government, and Public Policy.

Nearly half of all elderly Americans will experience poverty

Nearly half of all Americans between the ages of 60 and 90 will encounter at least one year of poverty or near poverty, says a recent study by Mark R. Rank, PhD, professor at the Brown School at Washington University in St. Louis. The findings are published in the current issue of Families in Society: The Journal of Contemporary Social Services.

Raising retirement age would be costly mistake

Standard and Poor’s recently released study on “Global Aging 2010: An Irreversible Truth” calls for the raising of the retirement age and says that age-related public spending is “unsustainable without policy change.” But Merton Bernstein, LLB, the Walter D. Coles Professor Emeritus at Washington University in St. Louis, says raising the retirement age could be a costly mistake.

Social Security expert says proposed benefit cuts will not help reduce the deficit

Recent calls to cut Social Security benefits are grounded in misinformation and misunderstanding, says Merton C. Bernstein, LLB, the Walter D. Coles Professor Emeritus at Washington University in St. Louis School of Law. “Cutting the program will lead to undiminished deficits, more poverty, less purchasing power, less business income and more unemployment,” he says.
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