• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/18

Click to flip

18 Cards in this Set

  • Front
  • Back
Sources of income for older adults (3 legged stool)
Social Security, Pension, Savings/Assets
Definitions * of Income, Wealth, Net Worth =
Income= available cash with purchasing power
Wealth : all economic assets of value regardless of whether produce cash
Net Worth: total assets minus total liabilities (debt, eg.)
Genearal economic status of older adults (poverty rate? median income? net worth?)
-Lowest poverty rate any age groups
-but, lowest median income
-highest net worth (houses)
Retirement income needed to maintain lifestyle? (Is economic status cumulative over life course? Which age group has generally most sources of income)
Economic status cumulative over life course:
-need 65-80% of preretirement income to maintain standard of living
-older adults more sources of income generally
Retirement income pie charts sources:
SS (38%)> Assets(23% > Earnings > Pension 10% > Govt pension > other
Social security original intent:
Defer income during working years, remove older workers from workforce (jobs scarce at time)
Pay as you go system facts:
you and employer pay 6.2% of wages each,
remainder of revenue put in trustfund
Retirement benefit is based on PERCENTAGE of your average earnings
Social security benefit rules:
-employed or married 10 years to be eligible
-max ben = 2185 / month, min = 1079
retirement ages slowly scaling up from early 62/65 full in 2000 to 62/67 full retire 2025
Elderly couple SS rules:
nonwork spouse = gets 50% workers bennie, 100% if widowed
dual-income household = lesser worker can get 100% hers or 50% of spouses
Pensions (employer) info: (how many have, average $)
supplement retirement income
25% covered in 50s now 45% today
Average pension is $5000
Two types of pensions:
Defined benefit vs
defined contribution
Defined benefit pension pros/cons
amt determined by: years of service, salary history, vesting rules (min yrs served)
+Company manages investments
+stable secure payout
-Not portable (only can take a portion)
Defined contribution pension pros/cons
amt determined by: what you contribute!, amt further matched by company usually
+you are responsible, and can take account to other companies/jobs
-Penalties for early withdrawal
-unstable in economy, only have whats in account
Pension Benefit Guaranty Corporation
Federal agency to protect pension when companies can't meet obligation
(currently $11 billion deficit, but at least DEFINED CONTRIBUTION IS MORE POPULAR)
Personal savings for old age types, facts:
-IRA, savings account, stock market, real estate.
-early saving is key
-Most people not saving enough (was only 8% in 1960, only 5% now)
Assets types (esp in Old Age)
(second most important source after SS)
can be House, or cash, savings, stocks, or investment properties
(home = majority of net worth)
3 types of current earnings in old age
= wages, interest on savings, or dividends on stocks/bonds
(not as big a factor since people work less, save less =( )
Inequalities in retirement income (women and minorities)
-lower SS benefits recieved
-lack pension coverage
-widows susceptible to poverty after loss of spouse

(overall also, too many older americans remain poor)