Retire2Enjoy  : Unemployment among Older Workers, Unredeemed Savings Bonds, Lower 401(k) Contribution Limits?, The Canada CPP

Unemployment among Older Workers

Unemployment rates among older workers have increased during this recession more than in past recessions. As a result, the unemployment rate for adults over age 65 is at an all-time high. It was 7 percent in July, up from 3.3 percent at the start of the recession in December 2007. That rate still hovers below the national unemployment rate of 9.7 percent in August.

The rise in unemployment for older workers is partly the result of a mobile work force that hasn't stayed with a single employer for long periods of time as in the past, said Richard Johnson, a senior fellow at The Urban Institute in Washington.

Unredeemed Savings Bonds

There are $16.7 billion of matured unredeemed savings bonds out there that people have not redeemed, according to a spokeswoman for the Treasury Department's Bureau of the Public Debt.

Savings bonds are sold by the U.S. Treasury to raise money for the U.S. government and can't be sold to other investors. You can only redeem them. They never expire, but they do reach maturity and stop accruing interest.

There are several ways to redeem savings bonds. Newer electronic bonds can be redeemed through TreasuryDirect.gov. The Treasury's Savings Bonds Direct customer-service department at 1-800-245-2804 can help. The fastest way to redeem Series E, Series EE and Series I paper bonds is to go to your local bank. But first check with a bank to make sure it redeems bonds.

Lowering the 401(k) Contribution Limit

According to the Wall Street Journal, the government may lower the maximum contribution limits on 401(k) retirement accounts. Relatively low inflation is the reason, for the Internal Revenue Service sets the annual 401(k) contribution limit by comparing the third-quarter consumer price index to a year earlier. The consumer price index in July was 2.1% below its year-earlier level. As a result, for workers under age 50, the 401(k) cap might drop to $16,000 from $16,500; people 50 and older could see their contribution limits fall to $21,000 from $22,000.

Canadian Labor Campaign to Double the CPP

The Canadian Labour Congress has launched a campaign to double the benefits of the Canada Pension Plan (CPP)  over the next decade. The CPP already covers 93 per cent of working Canadians with a safe and portable plan, efficiently administered and with an accurate sense of the income they can expect in retirement.

Retirement by the Droves

Police Chiefs in the Boston area are retiring in droves. Recent talk about pension reform is deemed to be the culprit.

 A Guaranteed Return in Texas

The Texas Municipal Retirement System passed a law in May that keeps municipal retirement benefits profitable even in economic downturns. It guarantees a 5 percent return on city employee 401(k) investments each year. During years that investments perform better, benefits will be capped at 5 percent and the extra money banked. During years that returns do worse, such as the 1.3 percent loss the account suffered in 2008, the balance from better years will make up the difference.

Tough Hopes in Canada

More than 60 per cent of working Canadians don't have a workplace pension plan. They rely on the Canada Pension Plan, Old Age Security and whatever else they can scrounge up.

Health Reform Proposals

There are so many health reform proposals floating through the federal government these days. One of them would give about $10 billion over 10 years to employers who provide retirement insurance to retirees age 55 to 64, i.e., those who aren't yet eligible for Medicare.

Obama’s Iniatives

President Obama is pressing for new initiatives based on new behavioral research aimed at encouraging people to save for their retirement. One move would include encouraging automatic enrollment in retirement plans. Another would require the Treasury Department and Internal Revenue Service to publish easy-to-read guides to help people understand retirement plan rules when they change jobs.

No Social Security COLAs

The year 2010 will probably be the first year since 1975 that the government doesn't grant a cost-of-living increase to Social Security recipients.