RetirementRevised

The Social Security trustees issued their annual report this week on the program’s financial health. They continue to project depletion of the combined retirement and disability trust funds (OASDI) in 2034, although some underlying factors in the numbers continue to worsen. Think of the trust funds as though they were checking accounts: revenues flow in, and benefit payments flow out.

More than half of Medicare enrollees have chosen Medicare Advantage plans - the all-in-one commercial alternative to the traditional program. The rapid growth of Advantage in recent years has been fueled by extensive marketing emphasizing lower premiums, extra benefits, and claims about protection against high out-of-pocket costs. Advantage plans can indeed save you money upfront. Many include prescription drug coverage and charge no additional plan premium beyond the Part B premium.

Donald Trump has signed more than 250 executive orders during his second term as president, so you could be forgiven if you missed the one that aims to fix the biggest problem with the US retirement savings system: the coverage gap. Only about half of private-sector US workers have access to an employer retirement plan at any given time, mainly because small businesses are less likely to offer the plans.

Zepbound, one of the new class of GLP-1 weight-loss drugs that Medicare will start covering in July. Credit: Eli Lilly & Co. A new Medicare program launching this summer could put GLP-1 weight-loss drugs within reach for millions of seniors for the first time. The catch: it’s a temporary pilot program with an uncertain outlook after 2027.

Americans are more worried about affording retirement than at any time in the past five years - and their level of concern is approaching those last seen during the Great Recession. That’s the finding of the longest-running survey of retirement confidence, conducted annually by the Employee Benefit Research Institute.

The Social Security Administration’s ability to transact business with the public has been deteriorating for more than a decade. But the unprecedented shakeup and downsizing launched last year by the Trump administration has made it much more difficult to do business with the most important government agency serving retirees.

Retirement savers in workplace 401(k) plans have had strong consumer protections on their investments since the mid-1970s. There’s been a long-running battle to extend strong protections to Individual Retirement Accounts (IRAs) that dates back to the Obama era, but the latest effort was blocked by a federal court in Texas earlier this week.

Here’s one debate about retirement saving that never seems to end: should you be using a traditional tax-deferred account or an after-tax Roth? Most people put their retirement savings into traditional 401(k) plans and individual retirement accounts. Most contributions to these accounts are tax deferred. That enhances returns by allowing your investments to compound without a tax burden — and it also reduces your income tax bill in your higher-income working years.

Perhaps the only thing President Donald Trump said during his State of the Union address last week that had any bipartisan appeal was his pledge to create a retirement saving plan for people who don’t now have access to workplace 401(k)s, paired with a $1,000 annual matching contribution from the federal government. Only half of private sector workers have access to a 401(k) plan at any given time, and policymakers have been trying to expand coverage for nearly two decades.

Retiring and claiming Social Security may sound like moves people make at the same time. But in reality, many people on Social Security continue to work after claiming benefits - and that complicate financial plans. Roughly 40% of people who claim Social Security work at some point after claiming, typically for several years, according to the Center for Retirement Research at Boston College.