All Posts in "Personal Finance/Consumers"

The Social Security Administration has announced it will pay retroactive benefits and increase monthly benefit payments to people whose benefits have been affected by the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).

The provisions reduced or eliminated Social Security benefits for more than 3 million people who receive a pension based on work that wasn’t covered by Social Security (a”non-covered pension”) because they didn’t pay Social Security taxes. The Social Security Fairness Act ends WEP and GPO.

“Social Security’s aggressive schedule to start issuing retroactive payments in February and increase monthly benefit payments beginning in April supports President Trump’s priority to implement the Social Security Fairness Act as quickly as possible,” said Lee Dudek, Acting Commissioner of Social Security. “The agency’s original estimate of taking a year or more now will only apply to complex cases that cannot be processed by automation. The American people deserve to get their due benefits as quickly as possible.”

People who will benefit from the new law include some teachers, firefighters, and police officers in many states; federal employees covered by the Civil Service Retirement System; and people whose work had been covered by a foreign social security system.

Many beneficiaries will be due a retroactive payment because the WEP and GPO offset no longer apply as of January 2024. Most people will receive their one-time retroactive payment by the end of March, which will be deposited into their bank account on record with Social Security.

Many of these people will also receive higher monthly benefits, which will first be reflected in the benefit payment they receive in April. Depending on factors such as the type of Social Security benefit received and the amount of the person’s pension, the change in payment amount will vary from person to person.

Anyone whose monthly benefit is adjusted, or who will get a retroactive payment, will receive a mailed notice from Social Security explaining the benefit change or retroactive payment. Most people will receive their retroactive payment two to three weeks before they receive their notice in the mail, because the President understands how important it is to pay people what they are due right away. Social Security is expediting payments using automation and will continue to handle many complex cases that must be done manually, on an individual case-by-case basis. Those complex cases will take additional time to update the beneficiary record and pay the correct benefits.

Social Security urges beneficiaries to wait until April to ask about the status of their retroactive payment, since these payments will process incrementally into March. Since the new monthly payment amount will begin with the April payment, beneficiaries should wait until after receiving their April payment, before contacting Social Security with questions about their monthly benefit amount.

Visit the agency’s Social Security Fairness Act webpage to learn more and stay up to date on its progress. Visitors can subscribe to be alerted when the webpage is updated.

The Senior Scene by — May 28, 2025 in Personal Finance/Consumers
Toll scams target Good to Go drivers

State officials are advising holders of Good To Go bridge and highway toll accounts to be aware of scammers who are impersonating toll agencies nationwide and trying to trick people into making payments and sharing personal banking information.

Officials of Good To Go, Washington’s toll accounts program administered by the state Department of Transportation (DOT), said they’re aware of fraudulent text messages claiming to be from Good To Go and linking to a “convincing” but fake website mirroring the official one for payments. Good To Go never sends texts asking for payment, a spokeswoman said.

The scammers sometimes will use due dates for payments in an attempt to make people act quickly. DOT officials said people who suspect they’ve received a scam text shouldn’t click on any of the accompanying links. Instead, they should log into their Good to Go account, where any actual information about a toll bill can be viewed. Officials noted Good to Go never asks customers to pay on websites other than its own.

Additional information is available at wsdot.wa.gov

Drivers with a Good to Go Pass save $2 on each toll charge. Tolls are automatically deducted from drivers’ accounts.

The Senior Scene by — May 13, 2025 in Personal Finance/Consumers

The latest research conducted by the Investors Observer research team has revealed that American women accumulate at least $1 million less than men over a typical 40-year career, assuming the same average retirement contributions are invested in an S&P 500 Index fund. 

Key findings:

  • Over a typical 40-year career, the average male worker in the US accumulates $2.73 million in portfolio wealth, assuming average retirement contributions are invested in an S&P 500 Index fund.
  • By comparison, an average female worker investing her savings under the same conditions accumulates $1.75 million in portfolio wealth, resulting in a $1 million gap.
  • This compounding effect means that even small annual differences in contributions lead to vastly different wealth outcomes by retirement.
  • While the wage gap between men and women has narrowed, by 2023 women earned 83% of what men earned on average.
  • The wage gap and resulting investment gap persist despite women’s increasing presence in higher-paying industries.

This research offers a fresh perspective on the wage gap debate, showing that its impact goes far beyond a single paycheck – it shapes lifelong financial security. Even small annual differences in income translate into significantly lower investment growth.

The researchers analyzed 40 years of earnings and retirement contributions data (1983–2023) for full-time workers in the U.S.

Source: Investors Observer, a news site covering financial investing and related subjects.

The Senior Scene by — April 30, 2025 in Personal Finance/Consumers
Inflation has consumers focusing on priorities

There’s a lot of wallet-watching these days.

As Americans continue to navigate inflation, 76 percent report cutting back on spending, up from 67 percent in 2024, according to the second annual Wells Fargo Money Study.

The majority of Americans also say they are making tough financial choices to navigate their lives, including delaying plans with hefty price tags such as travel, homeownership, education, marriage and retirement.

“There is a clear social narrative surrounding the question: ‘Do I, and will I, have enough?’ The fact that these questions are being asked is positive because we know the earlier people focus on their money behaviors, the more time they have to course-correct to achieve their goals,” said Michael Liersch, head of advice and planning at Wells Fargo.

An overwhelming 90 percent of those surveyed responded that they feel “sticker shock” in one or more areas of common spending, including eating out, attending a concert, buying a bottle of water, or downloading a video game. And they say actual costs are between 55 percent and 200 percent higher than what they expect.

“Spending is one of the most important factors to staying on track,” said Liersch. “I would encourage people to align their spending with what matters most to them.”

Nearly all Americans (94 percent) acknowledge they want to do just that: Align money choices with their values. And 86% want to be more intentional and thoughtful about spending.

According to Liersch, people “aren’t just winging it. They’re being extraordinarily introspective as they navigate their financial priorities.”

Trying not to be judged over money

Money can be an emotional topic, inciting envy, anxiety, and secretiveness. While 87 percent of the survey participants say it makes no difference to them how much money another person has, 56 percent keep how much they have secret, and 32 percent of them say it’s because they’re trying to avoid people judging them.

Americans also spend time thinking about how much money other people have – and wishing they could have more themselves. Forty-seven percent responded they often feel envious of how much money other people have, 37 percent admit to obsessing about getting rich, 34 percent admire social-media millionaires, and 23 percent admit to sometimes overspending just to keep up with people around them.

People “appear comfortable with other people being authentic about their financial situation, which is encouraging,” Liersch said. “So now it’s time to overcome self-judgment and reset the frame of reference from others to one’s own personal benchmark.”

Eighty-six percent of respondents say they have a clear picture of what they want their money to do for them. And the vast majority are optimistic about how to do it—87 percent say now is a good time to save, and 65 percent say now is a good time to invest. Yet 61 percent say they need a mental reset and are being held back by such factors as difficulty changing habits, lack of financial knowledge, and other financial responsibilities.

To overcome these challenges, consumers are seeking more financial advice year over year. Last year, 24 percent said they were seeking more advice from others; this year it’s 36 percent. Looking across generations, the desire for more advice is higher among teens (54 percent), gen Z adults (61 percent), and millennials (46 percent).

At a time when many are feeling cash-strapped, learning new ways to think about and manage money can help you take control of your financial future, Liersch noted.

The full Wells Fargo report is at sites.wf.com/wfmoneystudy-2025

Source: StatePoint Media

The Senior Scene by — April 24, 2025 in Personal Finance/Consumers