Don't Bargain Away Benefits

As part of the deal to end the government shutdown, continue funding the government until Jan. 15 and extend the debt ceiling until Feb. 7, Congress convened a budget conference committee between the House and Senate with a goal of reaching agreement on a budget by Dec. 13. The future of Social Security and Medicare are at stake.
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As part of the deal to end the government shutdown, continue funding the government until Jan. 15 and extend the debt ceiling until Feb. 7, Congress convened a budget conference committee between the House and Senate with a goal of reaching agreement on a budget by Dec. 13.

The future of Social Security and Medicare are at stake in this new round of budget negotiations. Some lawmakers want to trade cuts to Medicare and Social Security benefits to pay for other government spending. Others propose cutting them to reduce the deficit. The American people, on the other hand, across all ages and party lines, strongly oppose cuts to Social Security and Medicare benefits.

Older Americans are overwhelmingly opposed to these types of political deals, having earned their benefits after a lifetime of hard work and their own tax contributions. A large majority of 50-plus voters (84 percent) oppose reducing Social Security benefits in order to reduce the deficit (91 percent Democrat, 80 percent Republican, 78 percent independent). In fact, 73 percent of voters 50-plus strongly oppose these cuts.

Harmful cuts to Medicare and Social Security will not only hurt individuals, they will hurt businesses and our economy as a whole. That's why we need a separate debate about how to strengthen these programs.

People 50-plus agree. For the last two years, AARP has been running a national campaign, called You've Earned a Say, to engage our members and the public in a conversation about the future of Medicare and Social Security. Whether it is cutting programs to reduce the deficit or using them as a piggy bank to pay for other government spending, the message from older Americans to the president and Congress is clear: "Don't bargain away my Medicare and Social Security benefits."

Carol Varner of Buckhannon, W.Va., put it this way: "Americans have worked long and hard to secure their future in their golden years. I do believe Medicare and Social Security should be protected and strengthened. That should be a number one priority." And Cynthia Hysell, of Oak Hill, W.Va., said, "I worry about my children and grandchildren; what's the future going to be for them if we don't strengthen Medicare and Social Security now?"

AARP is calling on the president and Congress to leave Social Security and Medicare out of any budget deal. Washington needs to understand that Social Security and Medicare are not just numbers in a budget. They are vital programs that older people depend on for their health and retirement security. And future generations of retirees will rely on them even more.

AARP will continue to fight against harmful cuts to Medicare and Social Security, such as the chained CPI, which would lower the Social Security cost-of-living increase. This would hurt seniors stretched by the rising costs of utilities, prescription drugs and health care; it would also hurt veterans who have sacrificed so much for this great country.

Moreover, proposals to reduce Medicare benefits or force people to pay more fail to address the real problem of rising health care costs. Americans deserve responsible solutions, like lowering drug costs, improving care coordination and cracking down on waste, fraud and inefficiency.

We urge the president and Congress to find responsible solutions to our nation's financial challenges. That means protecting the hard-earned benefits of today's Social Security and Medicare beneficiaries and strengthening these programs for future generations.

What You Can Do:

Tell Washington to leave cuts to Social Security and Medicare benefits out of any budget deals. Go to earnedasay.org and make your voice heard.

Earlier on Huff/Post50:

8 Ways To Prepare For Retirement
1. Start Saving(01 of08)
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Americans spend an average of 20 years in retirement. If you're not saving, it's time to start. Begin small if you have to, and try to increase the amount you save each month. The sooner you start putting funds aside, the more time your money has to grow. (credit:Alamy)
2. Estimate Your Retirement Needs(02 of08)
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Experts estimate that you will need about 70 percent of your preretirement income -- for lower earners, the figure is 90 percent or more -- to maintain your current standard of living when you stop working. Use this calculator to come up with a ballpark estimate. Research shows that people who try to estimate their needs in advance ultimately save more for retirement. (credit:Alamy)
3. Contribute To Your Workplace Plan(03 of08)
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If your employer offers a retirement savings plan, such as a 401(k) plan, sign up and contribute as much as you can. Your company may kick in a match, and deductions can be automatically taken from your paycheck. Over time, compound interest and tax deferrals can make a big difference in the amount you accumulate. Make sure your plan isn't a lemon by searching the website Brightscope.com. If it falls short, ask the management to do something about it. (credit:Alamy)
4. Learn To Invest(04 of08)
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How you save can be as important as how much you save. Inflation and the type of investments you make play important roles in how much you'll have saved at retirement. Know how your savings or pension plan is invested. Learn about your plan's investment options and ask questions. Put your savings in different types of investments. By diversifying this way, you are more likely to reduce risk and improve return. Your investment mix may change over time depending on a number of factors such as your age, goals, and financial circumstances. Financial security and knowledge go hand in hand. (credit:Alamy)
6. Don't Touch!(05 of08)
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If you withdraw your retirement savings now, you'll lose principal and interest; you might lose tax benefits or have to pay withdrawal penalties. If you change jobs, leave your savings invested in that employer's retirement plan. Or roll them over to an IRA or your new employer's plan. (credit:Alamy)
5. Understand Fees(06 of08)
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The cost of your investments makes a big difference. Index funds are a good option for reducing costs. The Labor Department provides this example: Assume that you are an employee with 35 years until retirement and with a 401(k) account balance of $25,000. If the returns on investment for your account for the next 35 years average 7 percent and the fees and expenses reduce this by 0.5 percent, your account balance will grow to $227,000 at retirement, even with no further contributions. If the fees and expenses are 1.5 percent, however, your account balance will rise to only $163,000. The 1 percent difference in fees and expenses would reduce your account balance at retirement by 28 percent. (credit:Alamy)
7. Open An Individual Retirement Account(07 of08)
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You can put as much as $5,000 a year into an individual retirement account (or IRA). Those 50 or older can contribute even more. You can also start with much less. IRAs also provide tax advantages. When you open an IRA, you have two options: a traditional IRA or a Roth IRA. The tax treatment of your contributions and withdrawals will depend on the option chosen. You can set it up so that an amount is automatically deducted from your checking or savings account and deposited in the IRA. (credit:Alamy)
8. Find Out About Your Social Security Benefits(08 of08)
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Social Security pays benefits that are on average equal to about 40 percent of what you earned before retirement. You should receive a statement each year that gives you an estimate of how much your benefit will be and when you can receive it. For more information, visit the Social Security Administration's website or call (800)772-1213. (credit:Alamy)

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