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161 Cards in this Set

  • Front
  • Back
A news letter published by the AARP that shows the interests of older people such as; medicare,social security, rental car bargains,investment options,vacation options and exercise equipment
the Bulletin
the newletter published by the AARP, sent out to 25 million older people, that said if you don't fly first class your heirs will
the Bulletin
retirees have worse private pensions than ever before T or F
0lder peoples finances have improved dramactically over the last 30 years T or F
what has given older people a financial safety net and has decreased poverty in old age
Social Security
today most older people do not have have enough money to cover expenses T or F
critics that think older people are doing too well call the new generation
"greedy Geezers"
who has the highest poverty rates in the country
according to Shultz without this older people would be living in or near poverty
public pension plans
critics say in chapter 9 than money for public pension plans and social security could be used on
poor children
shultz say that it would take what to reach a comfortable old age and replace 60 to 70% of their pre-retirement income
save about 20% of their earnings every year
these help people replace the lost income when they retire
private pension plans
the current system does not provide adaquate income for all T or F
very old wemon have some of the lowest incomes in the countryT or F
chapter nine looks at
the structure of the us retirement system and how it works, the flaws in the system and ideas for reform, the future of retirement income in the US
what led to discontent amoung unemployed and retired workers
injuries, unemployment and old age beacuse it put a sudden end to a workers career
what causes great upheaval in society wherever this occurs
the change from agricultural to industrial society
governments realized that some groups of people like the old needed
help to survive
governments often started pension plans and unemployment insurance to
win loyalty the the existing government
Otto von Bismark
chancellor of Germany, put the first national pension plan into place in 1889
Bismark used his social reform measures to
combat socialism and the discontent of the working class
by the early 1900's Denmark, New Zealand, and Britain all had old-age security programs T or F
The U.S. was one of the first industrialized nations to create a national old-age insurance plan T or F
Koff and Park gave one reason for the U.S. delay in creating a national old-age insurance plan.
Industrialization came late in the U.S., a large part of U.S workers still lived an agricultural lifestyle
in the early 20th century 1/3 of men had retired, many left work due to health problems, by 1920 the number of older people out of work had grown and local poor laws were not enough, the U.S. governments first reply to this was?
social insurance programs
social insurance programs offered
subsistance income to the neediest people
what created a national economic crisis int he 1930's
The Great Depression
less than 10% of older people who died during the great depression did not leave any estate at the time of their death T or F
during the great deprssion how many welfare programs for older people existed and what did they provide?
28 + charities and religous groups, offered mostly food and shelter but little cash
during the great depression no state had an old-age insurance program and non had any plans for one T or F
the Deprassion convinced people that
many could fall into poverty due to circumstances beyond their control
what was the great politcal lie of the American welfare debates
that poverty was generally a result of laziness or pesonal unworthiness
at the start of 1933 how many people in the U.S, had no jobs
12 to 14 million
in 1933 how many people signed up for state relief
19 million
in 1937 how many people aged 65 and older had no income
nearly one half, 47.5%
during the depression what movementssprang up across the country
socialist and populist
when did the government pass the social security act
August 14,1935
what does the social security act do?
created a social insurance program that protected workers in business and industry from unemployment and poverty in retirement
what did the social security act do in regard to the older working population
moved all the older workers out and created jobs for the young
what opened a new chapter in the history of old age by establishing the first nationwide institutional structure to assist older americans
Social Security
senator Moynihan said that social security
put an end to what was the great terror of life
what was the great terror of life according to Senator Moynihan
growing old and having no income and getting ill
workers paid into the social security program based on their what? and employers did what?
earnings, matched their payments
the social security program only covered what amount of workers
the government began paying pensions to workers after
did social security cover self-employed, casual laborers, domestic workers, and railroad workers, (with their own plan), in the old days?
in 2004, what percent of workers did social security cover
social sercurity provides programs not only for the labor force but for
widows and orphans, disabled, and very poor
Old-Age, Survivors, and Disability Insurance is also known as
Social Security
what consista of a combination of public and private income sources
the retirement income system
government programs make up what on the three-tiered retirement income system pyramid
the broad base
what percent of people aged 65 and over recieve social securtiy, and social security provides the only income for
what, on average, makes up the largest part of older peoples income
social security
according to the social security administration, S.S. makes up what percent of older peoples "total" income
employment pension are also known as
private pensions
private pension plans make up the next largest part of older peoples income next to
social security
pensions make up about what percent of older peoples "total Income"
the retirement income pyramid consists of what from most to least
government programs, employment pensions and income from work, and assets, savings, and investments
gerontologist refer to the mix of public pensions, private pensions, and work and assets as
The Three-Legged Stool
OASDI pension is better known as
social security
in 2003 what percent of workers earnings were used as a social security tax
12.4%, 6.2% workers/employers
the government intended for social security to create a large reserve fund T or F
social security benefits that get payed out today from payments made by current workers is called the
pay as you go plan
In 2004 the majority of social security payments that went out were given to
retirees and their dependents
the largest income maintenance program in the U.S.
Level One: Social security
the federal government increased payroll tax rates in 1977 and 1983 to
provide a three year benefit surplus by the year 2015
the government raised the payroll tax in 1977 and 1983 for the
Baby Boomers from 2010 on
increasing the payroll tax for social security lead to
surpluses of more than 1 trillion from 2000 on
can $1.5 trillion cover the programs future benefit obligations?
Social security will go bankrupt in the short run T or F
how many years will it be before social security faces a massive and growing shortfall
75 or more
if current payroll taxes remain the same the social security fund will be exausted by
who get full social security benefits
people born before 1938 and have paid into the system
the social security program indexes a person earnings and giving greater weight to
poorer people
pooreer people get higher social security benefits T or F
a homemaker can get what percent of her husband social security benfits
50% for a total of 150%
medicare A is
hospital insurance
medicare B is
medical insurance
a person entitled to social security benefits also gets
medicare A & B
a married woman who has worked only inthe home gets the same medicare as her husband T or F
why has the government raised the age of retirement?
to cope with the increasing population of older people drawing benefits
the age for the payments of full benfits will what in the future
what accounts for the sharp decrease in poverty rates since the 1950's
social security
social security adjusted benefits to reflect the what to protect retirees from inflation
consumer price index
social scientists use two definitions of poverty, they are?
relative deprivation and absolute deprivation
refers to peoples feelings of poverty in relation to people like themselves
relative deprivation
refers to the minimal income needed to survive
absolute deprivation
the U.S. government bases poverty levels on
absolute deprivation
the supplemental security income was designed for
people who fall below the poverty line
in 2002 what percent of the population fell below the poverty line
SSI gets paid out of
general revenues
the largest cash assistance program in the U.S. for peopl in need
the proportion of SSI recipients has declined T or F
a person can recieve up to what amount from any source while rcieving SSI
was it men or women who got the most SSI benefits
what supplements social security and helps middle-income and upper-income earners maintain their lifestyles
private pension plans
how many retirees aged 55 and older get a pension plan
one half
what act passed in 1974 helps to regulate pension plans and protect workers
the employee retirement income security act
whos focus was it to expand the supervision and regulation of private plans
what means that workers will get all or part of their earned benefit from a company when they leave
who ensures that vesting takes place
full vesting now takes place after how many years for most covered workers
what is the joint and survivor option
provides a pension for a spouse after a worker dies
vesting guarantees a good pension for workers who switch jobs T or F
what allows a person to transfer money value of their vested pension to another plan
many portable pension plans exist T or F
university professors have pension plans and take advantage of what to allow them to move from one school to another
portabilty through pooled pension payments from professors across the country
what has led some employers to cancel their pension plans
the high cost of running and reporting them
a plan that offers a set amount to workers when they retire based of their salary and years of service, less risk for the worker
defined benfit plans
plan that says how much workers have to pay into the plan but do not guarantee a specific return, the return is based on the investment made with the contributed money, this means more risk for the worker!!!
defined contribution plans
defined contribution options appeal to what kind of businesses
small businesses
what pension plans drop in value over the years
defined contribution plans
do employment sponsored plans in the private sector "automatically" adjust for the cost of living rates?
do workers with pension plans get taxed for the money they put in to an IRA if they have one?
what accounts allow pepole without a pension plan to save a "defined" amount of money each year tax free
Individual Retirement Accounts IRA
what does a large part of deffered taxes on IRAs go to?
support the retirement savings of people with high incomes
longer life for workers may mean what for pension plans
a decrease in value due to inflation
what is the third largest source of income for older people
personal assets and other income
many people, especially those with high incomes, tend to what when reporting assets
they tend to underreport their income and liquid assets
three major sources of asset income
savings and checking accounts, financial investments (stocks and bonds), bank deposit boxes, art, and rare collections
how many older people report earnings as part of their total income
much of older peoples net worth, nearly half, reflects
home ownership
the group that has the highest net worth in the country is aged
55 to 64
paying into social security programs longer, the cost of living increase, and other increases through legislation led to
improvement in older peoples income from 1960 to present
what leads to pockets of poverty within the older population?
lower incomes, different work histories, and different backrounds
women show higher rates of poverty at every age T or F
the economic conditions of older people differ by
age,gender,marital status, and race
the older the person the graeter the chance of what when it comes to income?
low income
what do they mean by hidden poor individuals
people that live in institutions or with family
who had nontraditional work arrangements, part time or temporary help
only 15% of women got spousal benfits T or F
who got larger social security pensions men or women
who got more retired worker benefits men or women
being a homemaker, relying on spouses income, and a husband not having a pension plan leads to
poverty for some women in old age
women have more knowledge about the social welfare system and most know what benefits they qualify for T or F
four conditions that will lead to lower retirement incomes for women in the future
shorter work careers = less social security, working jobs that rarely provide pension plans, lower pension benefits for retired women, and discrimination leads to lower pension benefits through hiring, placement, and promotions
the key to reducing poverty in old age, according to Beth Hess, is
to eliminate income disabilities at earlier life stages
what needs to happen in pension reform
end racial discrimination and segregation of women in low paying jobs
why is social security a key to ensuring a strong pension paln in the future
because so many people rely on it
the current social security system assumes that people fall under two types they are?
the social security system reflects a pattern of what relating to marrige
marital life and family obligations which is no longer typical in the U.S.
what needs to be done in social security reform
S.S. need to create a set of policies that reflect the reality of marrige today and womens current work patterns and careers
the current system gives lots of credit to homemakers T or F
what does the drop out allowance idea refer to
what is the more costly approach to homemakers pension plans
homemaker credits
what says that people would get credit for estimated income for homemaker work
homemaker credits
japan, the united kingdom, and germany all have homemaker pension plans T or F
is 2/3 of the pre-death income enough for a widow to maintain their standard of living?
no ,they need close to 80%
how should S.S. reform income limits?
raise the earnings limit, or allow no limit for people who have low pensions due to little work in the past
what is the biggest obstacle to S.S. reform for women
the inability to devise a cost effective reform plan
what need to happen in SSI reform?
pay benefits above the poverty line, make the state supplements more uniform, and enroll more than one-half of the people eligible
an increase in what would open SSI to more low income people
the allowance for assets
what needs to happen in private pension reform
make more pension plans availible, vesting period change, portability and indexing, and private plan insurance
what needs to happen in vesting reform
legislate a shorter vesting period than 5-10 years
what needs to happen in portability and indexing reform
offer more poratbility options and index pensions to inflation
what is the problem with private plan insurance when it comes to pension plans
some retirement funds are in the hands of insurance companies who take extreme risks when investing the money
under ERISA the what ensures that people will get their money from private defined pension plans
pension benefit guarantee corporation PBGC
what three things will put strain on the social security system
the size of the baby boom generation, low birth rate and smaller numbers of wokrers, and people living longer
the OASDI board of trustees proposed four things that need to happen to chang S.S.
increase payroll taxes, reduce benefits, transfer of $3.7 trillion from the genral fund, or combine these actions beyong 2078
the Concord coalition proposes what to change S.S.
a fully funded system rather than pay as you go
what type of S.S. plan has support from the second bush administration
a fully funded system