Personal Finance

Older voters prioritized personal economic issues on Election Day: AARP

Published

5 months ago

November 15, 2024

Business Finance News

Voters line up to cast their ballots at a voting location in Bethlehem, Pennsylvania, on Nov. 5, 2024.

Samuel Corum | Afp | Getty Images

When asked, “Are you better off today than you were four years ago?” the answer for many older voters ages 50 and over was “no,” according to a new post-election poll released by the AARP.

Almost half — 47% — of voters ages 50 and over said they are “worse off now,” the research found, while more than half — 55% — of swing voters in that age cohort said the same.

In competitive Congressional districts, President-elect Donald Trump won the 50 and over vote by two percentage points — the same margin by which he carried the country, AARP found.

Among voters 50 to 64, Trump won by seven points. With voters ages 65 and over, Vice President Kamala Harris won by two points.

The AARP commissioned Fabrizio Ward and Impact Research, a bipartisan team of Republican and Democrat firms providing public opinion research and consulting, to conduct the survey. Interviews were conducted with 2,348 “likely voters” in targeted congressional districts following Election Day between Nov. 6 and 10.

Older voters, who make up an outsized share of the vote and tend to lean Republican, made a difference in a lot of key congressional races, according to Bob Ward, a Republican pollster and partner at Fabrizio Ward.

“Overall, 50-plus voters really are what delivered Republicans their majority,” Ward said.

Older swing voters focused on pocketbook issues

When asked “How worried are you about your personal financial situation?” in a June AARP survey, 62% of voters ages 50 and over checked the worry box, while 63% of voters overall did the same.

Voters continued to place an emphasis on their money concerns on Election Day, the latest AARP poll found.

“All these surveys that we conducted for AARP spoke to a lack of economic security for people,” said Jeff Liszt, partner at Impact Research.

“The shock of inflation had left them without a feeling of security,” he said.

For voters ages 50 and over, food ranked as the top cost concern, with 39%, the poll found. That was followed by health care and prescription drugs, with 20%; housing, 14%; gasoline, 10%; and electricity, 6%.

More than half — 55% — of voters ages 50 and up said they prioritized personal economic issues, including inflation, the economy and jobs, and Social Security when determining their vote.

New AARP CEO: 'Our goal is to hold elected officials accountable' to Americans 50 and over

Older swing voters were more likely to turn out at the polls due to those pocketbook issues than any other priorities, the poll found.

Republicans won older voters on most personal economic issues, though voters ages 50 and up still favored Democrats on Social Security by two points.

Democrats have traditionally had a stronger lead on Social Security, Ward said, while the poll results show it is now “completely up for grabs.”

“Looking at the midterms, whether I’m Republican or Democrat … this is going to be an issue I want to win on,” Ward said.

Voters 50 and over broadly support Medicare negotiating prescription drug prices, as well as policies to help the older population age at home. Non-financial issues such as immigration and border security and threats to democracy were also among top concerns for some older voters.

Social Security reform may be bigger focus

While both presidential candidates promised to protect Social Security on the campaign trail, they did not provide plans to restore the program’s solvency.

The trust fund Social Security relies on to pay benefits is projected to run dry in 2033, at which point 79% of those benefits will be payable.

“What’s absolutely clear is that there’s an action-forcing event that we’re getting closer to, and that at some point Congress is going to have to act,” said Nancy Altman, president of Social Security Works, an advocacy group focused on expanding the program.

While Trump has touted plans to eliminate taxes on Social Security benefits, research has found that would worsen the program’s insolvency. The House voted this week to eliminate rules that reduce Social Security benefits for certain people who have pension income, which would also add to the program’s costs.

For most Americans, Social Security is the primary source of retirement income, according to the AARP. About 42% of people ages 65 and over rely on the program for at least 50% of their incomes; about 20% rely on it for at least 90% of their incomes.

Like Social Security, Medicare also faces a looming trust fund depletion for the Part A program that covers hospital insurance.

“We want to ensure that we’re protecting Medicare, Social Security and that it’s done in a fiscally responsible way,” AARP CEO Dr. Myechia Minter-Jordan told CNBC in a recent interview.

Personal Finance

Social Security updates anti-fraud measures for benefit claims

Published

18 hours ago

April 9, 2025

Business Finance News

A sign for the U.S. Social Security Administration is seen outside its headquarters in Woodlawn, Md., on Thursday, March 20, 2025.

Tom Williams | Cq-roll Call, Inc. | Getty Images

New anti-fraud protections are slated to go into effect on Monday at the Social Security Administration.

Ahead of the new policy, an agency spokesperson confirmed on Wednesday that all claim types can still be completed over the telephone, including retirement, survivor and spousal or children’s benefits. Previously, the SSA said those applicants would need to visit an agency office in person for identity proofing.

Individuals making other benefit claims — including for Social Security disability insurance, Medicare and Supplemental Security Income — can also complete their claims entirely over the telephone, which is in line with the agency’s previous guidance, according to the spokesperson.

The Social Security Administration’s update did not mention changes to direct deposit information, which it had previously said would now require in-office visits.

The agency’s new anti-fraud efforts come as new leadership under the Trump administration’s so-called Department of Government Efficiency is broadly seeking to curb waste, fraud and abuse across federal government agencies.

The SSA is implementing the new anti-fraud procedures, including stricter identity verification, as the agency faces website outages and long wait times on its 800 number, potentially forcing more people to visit offices for assistance.

Social Security experts and advocates have raised concerns that the new policies may make accessing benefits more difficult for vulnerable populations, particularly seniors and people with disabilities.

However, the Social Security Administration’s update is a positive development, said Bill Sweeney, senior vice president of government affairs at AARP. He did add that it would be more ideal if the policy and timeline were reconsidered for better outcomes.

“This seems like a pretty good and encouraging signal that they’re listening to folks, that they’re that they’re open to pivoting and reconsidering how to roll these things out and looking at new ideas for how to implement it,” Sweeney said.

Some beneficiaries will still need to visit offices

As the Social Security Administration starts to perform anti-fraud checks over the phone, some claims will be flagged for fraud risks, according to the agency.

Those claimants who are flagged will be required to visit a Social Security Administration office in person for their claim to be processed.

The agency estimates that about 70,000 claimants may be flagged out of 4.5 million telephone claims per year.

Benefit applicants who are not flagged will be able to complete their claims completely over the telephone.

“Telephone remains a viable option to the public,” the Social Security Administration posted on X on Tuesday.

Prior to the Social Security Administration’s update that expands the claim types that can be completed over the phone, the agency had reportedly estimated about 75,000 to 85,000 more people per week may visit its offices in-person.

What you need to know about Social Security

Online applications may be difficult for many seniors and individuals with disabilities, who may lack access to the necessary resources or know how to navigate the processes, according to the Center on Budget and Policy Priorities, a nonpartisan research and policy institute.

More than 10% of seniors in 35 states would need to travel more than 45 miles to get to the closest Social Security office, according to a new analysis from the Center on Budget and Policy Priorities.

About 6 million seniors don’t drive, while almost 8 million older Americans have a medical condition or disability that makes it difficult for them to travel, according to the research from Center on Budget and Policy Priorities.

Many beneficiaries already face obstacles getting through to the Social Security’s phone lines to make an in-person appointment and then need to drive to a field office, said Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities. Generally, individuals need to call for an appointment, though the agency does urge beneficiaries to first try seeking help online.

‘Fear and concern among many older Americans’

Both experts and advocates take issue with the tight timeline under which the policy changes are being implemented.

“If you’re asking seniors and other SSA customers to do something different, you need to provide enough time for them to understand what it is they need to do,” Romig said.

The AARP sent a letter on Monday to Social Security Administration acting commissioner Lee Dudek urging the agency to “halt changes to phone services,” which will “only exacerbate the ongoing customer service crisis,” wrote Nancy LeaMond, chief advocacy and engagement officer.

Instead, the new policy changes should be done more deliberately, with public input, a clear communication strategy and reasonable timeline, the AARP explained in the letter.

The changes set to go into effect on Monday come as Social Security’s website has recently repeatedly crashed, phone service hold times have increased and in some cases disconnected callers, while field offices also have long in-person waits, LeaMond said in the letter.

“This chaotic environment is fueling fear and concern among many older Americans,” LeaMond wrote.

Personal Finance

How to check eligibility to claim the $1,400 IRS stimulus check

Published

18 hours ago

April 9, 2025

Business Finance News

The federal tax deadline is less than one week away — and there’s still time to collect a pandemic-era IRS stimulus check. It’s your final chance to do so.

If you’re unsure if you received the money, there’s a simple way to check via your IRS account online, tax experts say.

The 2021 stimulus payments were worth up to $1,400 per individual, or $2,800 per married couple. A family of four could receive up to $5,600 with two eligible dependents.

Filers who never received the funds could claim the recovery rebate credit on their 2021 federal return. The last chance for that credit is the 2024 tax deadline on April 15, according to the IRS.

You’re eligible for the full recovery rebate credit with up to $75,000 in adjusted gross income as a single filer or $150,000 for married couples filing jointly for 2021.

The phaseout begins with earnings above that and eligibility falls to zero once adjusted gross income reaches $80,000 for single filers or $160,000 for married couples filing together.

The ‘best place to look’ for stimulus checks

The IRS in December unveiled plans to send “special payments” to 1 million taxpayers who didn’t claim the 2021 recovery rebate credit on tax returns for that year.

Most payments should have arrived via direct deposit or mailed paper check by late January 2025, according to the agency.

You can create a login for your IRS online account to check the status of your economic impact payments, including the 2021 stimulus check.

“That’s the best place to look,” said Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida.

After logging into your account, you can find stimulus check information in the “tax records” section under the “records and status” toolbar.

You can also check the “tax records” section to see if you filed a return for 2021. While some taxpayers don’t earn enough to have a filing requirement, you must submit your 2021 return to claim the recovery rebate credit for your stimulus payment, Lucas explained.

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File your 2021 return if ‘there’s any doubt’

In some cases, online accounts show the IRS issued stimulus checks, but filers say they never received the money, said Syracuse University law professor Robert Nassau, director of the school’s low-income tax clinic.

“If there’s any doubt” about your payment, it’s better to file your 2021 return and claim the recovery rebate credit before April 15, he said. Otherwise, you could miss the deadline and lose your chance to collect the money, Nassau added.

Personal Finance

Here’s how to leverage tax-loss harvesting amid tariff volatility

Published

2 days ago

April 8, 2025

Business Finance News

Sean Anthony Eddy | E+ | Getty Images

Amid stock market volatility, many investors are seeking portfolio protection. But they could be missing a prime tax planning opportunity, experts say.

The strategy, known as tax-loss harvesting, is selling losing assets from a brokerage account to offset other investing gains to lower taxes. Losses are typically used to offset gains, such as those from investment sales or capital gains distributions from mutual funds or exchange-traded funds.

Once losses exceed profits, you can subtract up to $3,000 from regular income. After that, you can carry excess losses into future tax years indefinitely.

“It’s looking for a silver lining on a pouring, rainy, cloudy day,” said certified financial planner Sean Lovison, founder of Philadelphia-area Purpose Built Financial Services.

Investors should weigh tax-loss harvesting opportunities anytime there’s stock market volatility, experts say.

“That should be throughout the year,” said Lovison, who is also a certified public accountant.

Tax-loss harvesting could be attractive with the S&P 500 Index still down more than 15% from an all-time high in February as of midday Tuesday. The index briefly entered bear market territory — more than 20% off its record — during Monday’s session amid tariff uncertainty.

Here are some key things to know about tax-loss harvesting, financial advisors say.

You need a ‘very granular’ strategy

While tax-loss harvesting sounds simple, the current market pullback requires a “very granular” approach, according to CFP Judy Brown at SC&H Group in the Washington, D.C., and Baltimore area.

After many years of market growth, investment losses could include more recent purchases, said Brown, who is also a certified public accountant. She has been busy identifying specific “tax lots,” which are transaction records showing an asset’s purchase date and price.

You need systems to “quickly find those lots” to sell for the tax-loss harvesting benefit, Brown said.

Seeking safety amid market volatility: Strategies to keep your money safe

Know the ‘wash sale’ rule

One of the perks of tax-loss harvesting is that you can sell assets for a loss and reinvest a similar investment to maintain exposure, Lovison said.

But you need to know about the “wash sale rule,” which blocks the tax break for buying a “substantially identical” asset within 30 days before or after the sale, according to the IRS.