Squared Away Blog

Long-time Boston Globe econ/finance reporter Kim Blanton blogs about financial behavior, psychology, education, US $$ culture -- for young and old. Sponsored by the Center for Retirement Research at Boston College. http://squaredawayblog.bc.edu/ Twitter: @SquaredAwayBC

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Two Simple 401(k) Lessons for New College Grads – Center for Retirement Research

Start early, invest boldly: two simple 401(k) habits that can help set new grads up for a lifetime of financial security.

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Can Technology Make Home Care Services More Affordable? – Center for Retirement Research

Neal K. Shah, the founder of CareYaya, a company that links students in the healthcare field with seniors needing assistance, has some strong opinions about elder care in the United States. The word Yaya means ‘grandmother’ in Greek and ‘caregiver’ in Swahili and Thai. As an acronym, it also means ‘You Are Your Advocate.’

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How Will AI Affect Financial Planning for Retirement? – Center for Retirement Research

Those who work with advisors may find those relationships becoming richer and more proactive. Those who prefer a DIY approach may find better tools than ever to help them navigate the road ahead. Either way, AI can help people arrive at retirement with more financial security and confidence.

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Why You Might Want to Hire Home Health Aides Through an Agency – Despite the Cost – Center for Retirement Research

Agency care offers safeguards such as a selective screening process and rigorous safety standards.

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Can We Help People Improve Their Life Expectancy Estimates? – Center for Retirement Research

The brief’s key findings are:

Understanding how long we might live can affect our retirement decisions, but many people underestimate their odds of living to older ages.

This study tested whether providing simple information could help improve people’s estimates of reaching older ages.

The intervention was quite effective for about a quarter of participants, specifically those who rely on experts to inform their thinking.

But the intervention was ineffective for the many participants who rely on their parents’ experience, so more research is needed on how to help them.

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Did COVID Alter Employment Trends for Older Workers? – Center for Retirement Research

The brief’s key findings are:

When COVID hit, it sharply reduced employment rates for older workers, raising concerns that many might be forced into early retirement.

However, accounting for population aging, employment for workers ages 55+ has fully rebounded to match pre-COVID trends.

This return to normal, though, masks some surprising differences by demographic groups – those initially hit hardest by COVID have more than recovered.

Specifically, Black and Hispanic individuals are working more than before COVID, while White workers and college graduates are working a bit less.

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Boomers Need Alternative Forms of Housing (as Does Everyone Else) – Center for Retirement Research

Creative solutions to senior housing could combat loneliness, provide greater support, and better align with the needs of an aging population.

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Medicare Finances: A Perspective on the 2025 Trustees Report – Center for Retirement Research

The brief’s key findings are:

Headlines that focus on the exhaustion of Medicare’s Hospital Insurance trust fund miss the big picture.

The real problem is that Medicare, overall, costs a lot.  And, if constraints on its payments to hospitals and doctors are eased, it will cost even more.

One reason is that Medicare operates within the very expensive U.S. healthcare system, which costs twice as much as those in other countries.

Another reason is Medicare Advantage plans, which now cover more than half of beneficiaries, cost 20 percent more per recipient than traditional Medicare.

Medicare can’t fix the nation’s healthcare system, but reducing overpayments to Advantage plans should be high on its agenda.

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Our summer newsletter features research on pension participation, rising Social Security claiming ages, and a new model for senior housing.

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Social Security’s Financial Outlook: The 2025 Update in Perspective – Center for Retirement Research

The brief’s key findings are:

The 2025 Trustees Report shows a modest increase in Social Security’s 75-year deficit, while the depletion date for the retirement trust fund remains at 2033.

The prospect of a 23-percent benefit cut only 8 years away should focus our attention on restoring balance to the program.

It’s important to note that these current estimates are based on the Trustees’ intermediate assumptions, which are not a sure thing.

Indeed, the deficit could well end up higher if the fertility rate remains low, millions of immigrants are deported, and people live longer than expected.

Even in this case, though, many revenue and benefit options are available to close the gap.  All that is needed is the political will.

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Is Unemployment Worse for Black Workers? – Center for Retirement Research

The brief’s key findings are:

Layoffs hurt all workers, but does the pain vary by race?

The analysis uses administrative data to see how the long-run earnings of displaced workers fared during three different recessions.

In the long run, Black and White displaced workers both have earnings roughly 30-40 percent lower than their same-race counterparts who were not laid off.

Though the impact of layoffs is similar, Black workers start with lower earnings, see slower earnings growth, and are more likely to lose a job in the first place.

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Will You Need or Provide Long-Term Care? – Center for Retirement Research

Factors such as marital status, education, race, and health can offer insight on how to plan for future care needs and costs.

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Do IRAs Actually Help More People Save for Retirement? – Center for Retirement Research

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A State Policymaker Discusses Lessons Learned from COVID – Center for Retirement Research

Marylou Sudders, a former health and human services director, recounts the challenges she faced in office.

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Tax Credit Reduces Disabilities Among Older Workers – Center for Retirement Research

Social safety net programs — particularly the Earned Income Tax Credit — support workers and decrease their reliance on disability benefits.

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Workers Drop Health Insurance, Stabilizing Employer Costs – Center for Retirement Research

Employer health plan costs have plateaued as more low-income workers have opted out of coverage, reducing the pressure on wages.

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Losing SSI at 18 Might Impact Access to Medical Care – Center for Retirement Research

A 1990s reform that toughened eligibility threatens not only the cash benefits but the Medicaid insurance that comes with it.