Job Ads Signal Young Workers are Preferred

The Age Discrimination and Employment Act states that job ads “may not contain terms and phrases that limit or deter the employment of older individuals.”

Yet some job ads do just that. One ad posted in 2014 sought applicants with “3 to 7 years (no more than 7 years) of relevant legal experience.” More often, employers use subtle language in their ads, asking, for example, that the applicants be “energetic.”

This subtle strategy is highly effective, according to researchers at the University of Liverpool and the University of California at Irvine.

In their field experiment using fake job ads that contained subtly discriminatory language, older workers submitted applications at significantly lower rates than younger workers. Job ads designed to deter older applicants “can have roughly as large an impact on hiring … as direct age discrimination in hiring,” the study concluded.

This research may have less relevance at the moment since unemployment is at historic lows and employers have been desperate for workers. But the economy has slowed in recent months and age discrimination in hiring is a well-established issue in the labor force.

The goal of this new study departs from past research on age discrimination in hiring, which focused on employers that get ample applications from older workers but then discount them as candidates. This new study highlights a different concern – that job ads with subtly discriminatory language discourage them from applying in the first place. …Learn More

Encouraging People with Disabilities to Work

Having a physical or mental disability can make it impossible to work. But for people with disabilities who are able, it’s crucial they get the support they need so they can work and feel productive, self-sufficient, and part of a larger community.

So who are they? A new study identifies a small but promising group who are initially awarded monthly cash assistance from the Supplemental Security Income (SSI) program and eventually qualify for Social Security Disability Insurance (SSDI).

The researchers call them SSI-first beneficiaries because the SSI payments come first and then the workers migrate over to SSDI and sometimes quit their jobs.

If identified early, these individuals could be encouraged to remain in the labor force after their SSDI benefits start or even leave the federal benefit rolls.

The researchers found that people who were receiving SSI and eventually entered SSDI had more success working – and more promise for staying in the labor force – when compared with one other group: SSI awardees who did not enter SSDI.

For example, three out of four SSI-first recipients, who later were awarded SSDI, had worked in the five years after their SSI payments started. This compares with just one in five people receiving SSI who did not enter SSDI later.

In another indication of their employment potential, a third of SSI-first recipients had their SSDI benefits suspended because their earnings were relatively high. It was rare for people receiving only SSI to jeopardize their benefits this way.

To be eligible for both the SSI and SSDI programs, the federal government caps the earnings of workers with disabilities at $1,350 per month. …Learn More

People Can Spot a Scam After Seeing Fakes

The old and the young are most susceptible to scammers using fake identities to extract money from their victims. People in their 50s who went to college are in the sweet spot and are much better at resisting them.

The question is how to prevent the vulnerable from falling prey to imposter scams, which account for a third of the dollars Americans report to the FTC they’ve lost in frauds every year. A new study finds that exposing people to a watered-down version of a scam they might see in the real world teaches them to recognize an actual scam that comes across the transom.

In the imposter scams that are the focus of this study, someone pretends to represent a trusted organization like the Social Security Administration, the Red Cross, or online retailer Amazon. The goal is to coax either money out of the victim or personal information that can be used to make money. Imposters arrive in many forms – phone calls, emails, or texts.

To educate the 1,000-plus people recruited to this study, the researchers assigned them to one of four different online training programs. The only training that worked was designed to effectively inoculate the participants against fraud by exposing them to simulated scams on an email platform.

After reading each email, they were asked to decide whether it was a fraudulent appeal under the guise of a trusted organization or a copy of a legitimate communication from the organization. To figure this out, they could inspect the source of the email or click on links.

One example of a legitimate Social Security email was “Need a replacement card?” One of the frauds that came from socialsecurity.org – the agency’s actual website is ssa.gov – asked the email’s recipient to “review your Social Security statement.” …Learn More

ACA Policyholders May Dodge a Bullet

It looks like some 13 million people who buy their health insurance on the state and federal exchanges may not see large hikes in their premiums next year after all.

The more generous premium subsidies for Affordable Care Act (ACA) policyholders approved in 2021 under the American Rescue Plan for COVID relief are set to expire at the end of this year. There have been months of uncertainty over whether Congress could pass a bill to continue the subsidies.

But The Washington Post reports that the House and Senate are on a path to agreeing to extend them for three more years, along with allowing Medicare to negotiate the prices of some prescription drugs.

Last year, the American Rescue Plan enhanced the ACA’s original subsidies by capping insurance premiums at 8.5 percent of a worker’s income for 2021 and 2022. If the caps are renewed, ACA policyholders would also avoid the “double whammy” of insurance companies’ 2023 premium hikes, which they have started submitting to their state insurance regulators.

The prospect of an agreement comes months after state insurance commissioners warned lawmakers that the uncertainty around whether the subsidies would continue meant that some insurers would raise 2023 premiums by more than they might have. ACA subsidies make health insurance more affordable to more people, which takes some pressure off of premiums by expanding the pool of customers and reducing insurers’ risk.

Two groups that historically have paid more for health insurance are benefitting the most from a premium cap set at 8.5 percent of income: middle-income workers, who tend to pay a larger percentage of their income for an ACA policy, and older workers, who pay higher premiums because insurers view them as risky.

Before the caps were put in place, workers earning four or more times the federal poverty level did not get any subsidies and paid full price for ACA coverage. Without the assistance, for example, a 40-year-old earning about $51,500 would be paying 20 percent more – or $438 per month instead of the $365 she currently pays, according to the Kaiser Foundation.

Premiums would’ve been 62 percent higher in New York and more than double in Wyoming. …Learn More

Most Boomers Don’t Rely Solely on SSA.gov

In 2000, Social Security launched a website allowing retirees to sign up for their benefits online without having to call or visit the agency. By 2013, about half of new retirees were using this feature to file their claims. However, progress stalled after that, despite continued growth in the number of baby boomers who were retiring.

A new survey of 2,600 people between ages 57 and 70 finds that even the people who sign up for their benefits online often wind up contacting Social Security for assistance. In the end, only 37 percent of all retirees claim completely online and never visit a field office or call the agency’s 800 number at some point during that process, suggests research by Jean-Pierre Aubry, a researcher at the Center for Retirement Research.

The boomers who are the most likely to complete the entire application online are college-educated people who are comfortable banking or filing their taxes, according to Aubry’s study. At the same time, older people of color are more hesitant to sign up for their benefits without calling or visiting their local Social Security office.

Given Social Security’s staff shortage and budget constraints, both the agency and retirees would benefit from fewer calls and visits. Fortunately, the share of retirees who apply for benefits exclusively online is likely to increase in the future. It is second nature for young adults – regardless of their race or whether they went to college – who grew up with cell phones in their hands to manage their finances online or buy things. When they start retiring, they will be more at ease than their parents with signing up for benefits without speaking with someone at the agency.

But there are things Social Security could do to increase online activity now. The agency already provides a personalized online statement that details eligibility and benefit levels for workers of all ages who create a my Social Security account. Based on the survey of older workers, Social Security could make it easier to get answers to basic inquiries such as whether an application, once submitted, is being processed. …Learn More

Retirement’s a Struggle? Get a Boommate!

Soaring apartment rents and widowed or divorced baby boomers with spare bedrooms and inadequate retirement income – these two trends have conspired to drive up the number of boomers seeking roommates.

New listings being posted by homeowners between January and June on Silvernest, a website where boomers can search for potential roommates, doubled to 2,331 compared with the first six months of 2021, said Riley Gibson, president of Silvernest. Women account for two-thirds of the listings.

The end of the crisis phase of the pandemic and the availability of protective vaccines may have something to do with the recent surge in people being willing to share housing. And with rents up 14 percent in a year, renters – whether boomers or young adults – are looking for affordable options. “We often see [young] people are looking for an exchange for less rent – help around the house,” Riley said.

Millions of retirees still live alone and aren’t willing to let a roommate invade their space. Yet Jennifer Molinsky at Harvard’s Joint Center for Housing Studies estimates that more than 1 million older Americans currently live with non-family members.

Finding a “boommate” has multiple benefits. In this PBS video, what motivated Becky Miller, a retired receptionist, to find a roommate was the need to defray the cost of maintaining her home. But by renting to a fellow boomer, Debra Mears, Miller found more than just financial relief.

By sharing her home, she also found companionship. …Learn More

Research to Look at Work, Retiring by Race

The racial disparities embedded in our work, retirement, and government systems will be front and center at the annual meeting of a national research consortium.

One of the presentations at the online meeting on Aug. 4 and 5 will explore the impact of wealth and income inequality on Black and Latinx workers at a time these populations are rapidly aging. The researchers are concerned with how their decisions about when to retire will impact their economic security.

Growing inequality “point[s] to greater risks of financial insecurity” for future Black and Latinx retirees, the researchers said.

Another paper will address a related topic: the differences, by race and ethnicity, in workers’ levels of knowledge about how Social Security benefits work. Understanding the ins and outs of the federal retirement benefit – and specifically the advantages of delaying retirement to get a larger monthly check – are critical to improving living standards in old age.

Other research will explore an area that hasn’t been well studied: government programs used by non-parental caregivers such as Black grandparents or members of Latinx three-generation households to support the children in their care. The researchers will examine minority and low-income workers’ and retirees’ use of SNAP food stamps, child care subsidies, Temporary Assistance for Needy Families, and various benefit programs overseen by Social Security.

COVID is another topic on the agenda. One study compares the financial impact of the pandemic on early retirement for different income groups with the patterns in the aftermath of the Great Recession more than a decade ago. Another study examines how mortality rates might change in the wake of the pandemic.

Research on many other topics will also be featured, including health insurance, mothers, and longevity. The agenda and information about registration are posted online. Registration is free. …Learn More