What You Should Know Now

What Are Atlantans' Stances on Retirement, Healthcare, and the Possibility of Living to 100 years old?

The latest iteration of the Merrill Lynch Affluent Insights Survey (MLAIS), released today, reveals new insights about Atlantans’ perspectives on retirement, healthcare, and the possibility of living to 100 years old.

Atlanta residents continue to redefine retirement – the majority (78%) plan to work part or full time in retirement, and only 21 percent define retirement as “never working again.”

While many Atlanta individuals surveyed feel thankful (35%) or optimistic (25%) about the prospect of living to 100 years old, 77 percent admitted they would approach money management differently if they knew today that they were going to live that long.

According to the survey, Atlantans are concerned about outliving their assets (64%) and affording the lifestyle they want in retirement (56%), and the rising cost of healthcare continues to be their number one concern (77%). However, despite their continued concern, more than two-thirds (69%) have not estimated what their healthcare costs might be during retirement years.

Within the full survey findings below, you’ll see Atlanta residents offer solutions for fixing Social Security, disclose what’s top of mind for them heading into the Presidential election, and reveal what would encourage them to invest more for their retirement.    

Merrill Lynch Affluent Insights Survey™ – Atlanta

Atlanta investors plan to work part or full-time in retirement, and only “retire” when they feel they have saved enough to support their desired retirement lifestyle.

• As it stands today, 78 percent of local respondents see themselves working part or full-time in retirement. Only 21 percent define retirement as “never working again.”
• When asked what they expect most will lead them to retire, only ten percent of Atlanta non-retirees cited “hitting a certain age.” They believe the number one factor that will lead them into retirement is feeling their assets will allow them to live the lifestyle they want (33%) during their remaining years.
• The majority of local investors are concerned about whether their retirement assets will last throughout their entire lifetime (64%), and more than half (56%) are concerned they won’t be able to afford the lifestyle they want during retirement.
• If given the choice, nearly half of local respondents (49%) not yet retired would rather retire later than make trade-offs to their current lifestyle. On the other hand, 43 percent said they would make trade-offs today in order to retire when and how they’d like to. 
• One-third (36%) of all local respondents lack confidence that their current saving and investment strategy will support their desired lifestyle during their retirement years.  When asked about the reasons for their uncertainty, 50 percent said the recession took a toll on their finances, 34 percent cited uncertainty about whether programs such as Social Security and Medicare will be there when they need them, and 29 percent cited a lack of savings. These statistics are far higher than the national average and all other sampled markets (30%, 19%, and 18% nationally, accordingly).
• While it is commonly known that many Baby Boomers are struggling to save for and fund their retirement, Atlanta respondents believe investors under the age of 35 won’t have it any easier when it comes to saving for retirement (80%).

Local respondents are more concerned than ever with the financial implications of healthcare costs in retirement, but few have begun to plan for it.

• Despite the rising cost of healthcare being their top financial concern in every MLAIS survey since 2009, more than two-thirds of local investors (69%) have not estimated what their healthcare costs will be during their retirement years. 
• When asked how they plan to fund their healthcare costs in retirement, local investors said some combination of Medicare (41%), healthcare benefits from their current/former employer (39%), private health insurance, (38%) and long-term care insurance (28%).
• One-third (36%) indicated that they are more concerned about the financial strain and costs associated with a significant, unexpected healthcare situation such as a chronic illness or disability  than their quality of life being comprised from such an event.

Atlanta investors would approach money management differently if they knew today that they were going to live to be 100.

• Many local individuals surveyed feel thankful (35%) or optimistic (25%) about the prospect of living to 100 years old. 
• However, 77% report they would approach money management differently if they knew today they were going to live to be 100. To financially accommodate a longer life, Atlanta investors would:

o   Work at least part-time during retirement (51%)

o   Pay off mortgage and other debt sooner (44%)

o   Work with a financial advisor to re-evaluate investments/savings (41%)

o   Adopt a more conservative investment approach (41%)

o   Purchase long-term care insurance (40%)

o   Contribute more to a 401(k), IRA or other retirement savings vehicle (39%)

o   Invest in a product that guarantees lifetime income, such as an annuity (38%)

Major issues to be debated by candidates among top concerns for local respondents

• Three out of four local investors (74%) are highly concerned about this year’s Presidential election. Among the major issues they find concerning today are also those likely to be heavily debated leading up to the election, including the rising cost of healthcare (77%), our nation’s budget deficit (75%), the lingering unemployment rate (72%), and the potential for rising tax rates (68%).
• Social Security reform is also a top concern in 2012, with 65 percent of those surveyed locally concerned about the program’s future. Additionally, the majority (53%) believe that the age at which Americans are eligible to collect Social Security benefits should be raised in light of longer life expectancies. 
• Following a year of global economic instability, Atlanta investors also cited the following among concerns in 2012:

o   Our nation’s political standing with the world (63%)

o   The possibility of a double dip recession (62%)

o   The European financial crisis (60%)

Atlanta investors resolve to improve their financial future in 2012, but are hoping the economic, market and political environment will lend a hand too

• When asked what would encourage them to start saving or investing more for their retirement, local respondents cited:

o   A less volatile stock market (48%)

o   Improvement in the job market (47%)

o   A change in U.S. political leadership (42%)

o   More international economic stability (38%)

o   Greater incentives from their employer, such as implementing/increasing a 401(k) match (38%)

o   Better incentives from the government, such as raising 401(k) contribution limits or offering greater tax incentives for long-term saving and investing (36%)

• Many are balancing competing goals in the current economic environment, trying to pay down debt, while saving for retirement. Thirty-seven percent of Atlanta investors believe that their current level of debt impedes them from saving as much as they’d like to for retirement, more than in any other market sampled.

Atlanta respondents cite financial advisors as the person they trust most to provide advice on retirement investments and their overall financial future – more so than their spouse/partner, family members or business colleagues

• When asked what retirement-focused topics they would like to discuss more with their financial advisor, they cited:

o   Managing cash flow and liquidity in retirement (37%)

o   How they hope to live their life during retirement years (37%)

o   The impact of rising healthcare costs on their retirement income (34%)

o   How to financially plan for the possibility of living to be 100 years old (30%)

o   Balancing/managing competing near- and long-term financial demands (27%)

o   Making better lifestyle choices today to benefit their long-term financial picture (27%)

o   Choosing the right Medicare coverage and other healthcare decisions (24%)

• Local investors said the best piece of advice they received from their financial advisor in 2011 was to “stay the course” with their long-term investment strategy (43%).
• When asked about qualities their financial advisor possesses that keeps them loyal to the relationship, local respondents said their advisor:

o   Understands and respects their preferred methods of communication, e.g. face-to-face, email, phone, social media (65%)

o   Understands their current financial situation (64%)

o   Provides relevant research and market insights to help them feel informed and in control (63%)

o   Holds industry certification or designations (61%)

o   Understands their goals, dreams, and personal values (58%)

 

About Merrill Lynch Affluent Insights Survey™

Merrill Lynch Affluent Insights Survey™ is a report examining the values, financial priorities and concerns of affluent Americans. The survey was conducted by Ketchum Global Research & Analytics and Braun Research over the phone between December 14 and December 29, 2011 on behalf of Merrill Lynch Global Wealth Management. The nationally representative sample consisted of 1,001 affluent Americans (ages 18+) with investable assets in excess of $250,000. At least 300 affluent Americans were oversampled in each of the 5 target markets including Atlanta (303); Chicago (308); Dallas (308); Detroit (308) and San Francisco (300). The margin of error is +/- 3.1 percent for the national sample and +/- 5.7 percent for the oversample markets, with both reported at a 95 percent confidence level.

So Good You Can Taste It .... October Issue Cover Preview

 
 

Atlanta Mayor Kasim Reed Welcomes First Lady Michelle Obama to Atlanta

Mayor Kasim Reed welcomed First Lady Michelle Obama to Atlanta this afternoon to mark the first anniversary of Let’s Move!, a national initiative dedicated to combating the epidemic of childhood obesity. 

Mrs. Obama visited Burgess Peterson Academy, a local Atlanta public school, where she was greeted by Mayor Reed and the principal, Robin Robbins.  During her visit, Mrs. Obama highlighted how the school is working with children to promote healthy eating and bringing the principles of  her national Let’s Move! campaign to life through gardening and healthy eating programs.

Following the visit to Burgess Peterson Academy, Mayor Reed joined Mrs. Obama at North Point Community Church, one of the largest churches in America, where she delivered a major speech focused on the campaign’s efforts to meet the needs of parents.  During the speech, which was hosted by North Point Community Church and Ray of Hope Christian Church, Mrs. Obama also shared personal reflections about how this issue has affected her as a parent, the momentum Let’s Move! has gained in the last year, and what more needs to be done in order to reduce childhood obesity in a generation.

Members of the two congregations, local Atlanta faith and community leaders and supporters of the Let’s Move! campaign were in the audience as Mrs. Obama highlighted accomplishments that will help provide parents with the resources they need to not only survive but to thrive in reaching young people at key points in their lives. 

“I support and applaud First Lady Michelle Obama for working hard to improve the health of our nation’s children through the Let’s Move! initiative,” said Mayor Kasim Reed.  “On the anniversary of Let’s Move!, I pledge to continue supporting the First Lady by working to fight and prevent childhood obesity among young people in Atlanta, and to encourage and promote positive decision-making related to weight loss and a healthy lifestyle.” 

“Too many young people in the City of Atlanta are suffering from diseases such as early onset diabetes, high blood pressure, cancer, heart disease, high cholesterol and other ailments because of unhealthy eating and living. As a community, we must make better decisions for our children about their health.”

Mayor Reed, following the leadership of Mrs. Obama, has worked to fight and prevent childhood obesity among youth in Atlanta.  Over the summer, Mayor Reed partnered with The Atlanta Braves, Ticketmaster, Aramark and the Professional Baseball Athletic Trainers Society (PBATS) to promote healthy living and positive decision-making among metro Atlanta youth at the “Pitch for Fitness” challenge at Turner Field.

 

[FULL VIDEO] Pres. Obama's 2011 State of the Union Address

Former Surgeon General David Satcher: Healthcare Reform Will Iron Out Disparities

 

By Dr. David Satcher

The fractious debate over health care has obscured the promise this bold legislation has to reduce health disparities in the United States. In 2000, this country set a goal of eliminating disparities in health among different racial, ethnic and socioeconomic groups. Health care reform is needed in this country for everyone, regardless of race, but I believe it is also critical to our achieving the overarching goal of eliminating disparities in health.

A 2005 study I was involved with found that if disparities had been eliminated in the last century there would have been 83,500 fewer deaths among African-Americans in 2000 alone. This means that in the last decade of the 20th century, there would have been almost 900,000 fewer deaths among African-Americans. And 2.5 million more African-Americans, including 620,000 children, would have had health insurance if we had universal coverage.

As long as there are disparities among different ethnic and racial groups, we as a nation are not living up to our commitment to life, liberty and the pursuit of happiness for all Americans. Likewise, persons with mental disorders, regardless of race, suffer disproportionately due to discrimination in access to treatment.

So what are health disparities? They are real and measurable; they cause needless suffering; and they can be fatal, causing premature and unnecessary deaths.

Disparities show up in life expectancy rates (whites live on average five years longer than African-Americans); infant mortality rates (13.3 deaths per thousand for African-Americans and 5.7 for whites); prevalence of obesity (African-Americans have a 51 percent higher prevalence of obesity than whites); incidence of diabetes (American Indians more than twice as likely as whites) and other chronic diseases; the number of deaths from cardiovascular disease (African-Americans are 29 percent more likely to die from cardiovascular disease than whites); and cancer (prostate death rate is twice as high among African-Americans as whites and African-American women have higher mortality rates from breast cancer than any other groups).

So what will happen to health disparities under a reformed health system? Most of the uninsured will be eliminated and the underinsured will be buttressed. There will be opportunities for people to secure access to quality health care services and prevent needless pain and suffering. There will be opportunities to encourage healthy lifestyles and prevention measures that will secure a healthy future for our children — habituating them to nutritious foods and regular exercise. And there will be opportunities to eliminate the stigma attached to mental illness and improve early treatment.

Without these reforms, people will continue to delay getting needed preventative care such as screenings that can detect early prostate, colon and breast cancers and prevent early death. America will continue to have some 47 million people who are left out of the system, who are without a medical home and of necessity will use emergency rooms, thus adding to the ever-increasing yearly cost of health care. While we spend almost $2.5 trillion per year on health care, we spend less than 3 percent of our health budget on population-based prevention.

This country needs a health system that balances health promotion, disease prevention, early detection and universal access to care, including mental health care. A balanced health system that focuses more attention on prevention is both more cost-effective and more humane. Hopefully, this legislation begins to move us in that direction. (Source: AJC)

 

Dr. David Satcher, the director of the Satcher Health Leadership Institute at Morehouse School of Medicine, was the 16th U.S. surgeon general.

 

Top 10 Immediate Benefits You Can Expect from New Healthcare Reform

By Rep. John B. Larson, Chairman of the Democratic Caucus in the U.S. House of Representatives

As soon as health care passes, the American people will see immediate benefits. The legislation will:

 

• Prohibit pre-existing condition exclusions for children in all new plans;
• Provide immediate access to insurance for uninsured Americans who are uninsured because of a pre-existing condition through a temporary high-risk pool;
• Prohibit dropping people from coverage when they get sick in all individual plans;
• Lower seniors prescription drug prices by beginning to close the donut hole;
• Offer tax credits to small businesses to purchase coverage;
• Eliminate lifetime limits and restrictive annual limits on benefits in all plans;
• Require plans to cover an enrollee's dependent children until age 26;
• Require new plans to cover preventive services and immunizations without cost-sharing;
• Ensure consumers have access to an effective internal and external appeals process to appeal new insurance plan decisions;
• Require premium rebates to enrollees from insurers with high administrative expenditures and require public disclosure of the percent of premiums applied to overhead costs.

By enacting these provisions right away, and others over time, we will be able to lower costs for everyone and give all Americans and small businesses more control over their health care choices.

Crossposted on the House Democrat's blog

UPDATE: Obama Addresses the Nation