William Schneikart Law: April 2012

Tuesday, April 17, 2012

Social Security: The most successful social program in our history.

Can it continue to do what it has done so well?

I was so very interested in an article I recently read by Amanda Berthoff in the Perspectives Magazine that is published by the University of Missouri at Kansas City, that I decided to use much of its content as the basis of my next blog post.

We often hear younger workers voice concerns that they’ll have to bear the burden of paying for the aging population themselves. This is an issue, but prior to the creation of Social Security, a large number of retired workers lived in poverty, especially women because they tend to live longer than men.

Government estimates suggest that when Social Security began in 1935, close to 50 percent of the elderly population lived in poverty. By 1959, the rate had fallen to 35% but remained higher than that of other groups, including children and working-age adults. During the 1960’s and early 1970’s, Social Security benefits increased and poverty rates among the elderly declined rapidly. By 1974, the poverty rate for elderly Americans had fallen below that for children, where it has remained since. In 1993, it fell below the rate of working-age adults and today just 11% of the elderly have incomes below the federal ($10,890 for 1 person family; $14,710 for 2 person family) poverty line .

Studies show that without income from Social Security, the poverty rate for the elderly would be much higher. The Social Security Administration estimates that 47% of individuals age 65 and older would live in poverty without Social Security benefits, four times as many as in poverty today. Social Security’s poverty-reducing record- along with its inclusiveness- has made it one of the most popular social programs in history. “The value of that is something we don’t want to lose sight of,” says Mary Daly, a social security expert. “We don’t want to move away from it completely. At some point younger workers will be older and will want that kind of insurance.”

Another reason younger generations should care about older generations is because someday, they will be in the same boat. “If you don’t die, you’ll get old,” says Gloria Thomas Anderson, M.S.W. ’06, clinical instructor at UMKC’s department of social Work. “If you live long enough, you’ll reach that point in your life, and you don’t know what it’s like until you actually get there.”

Finding a Middle Ground

To better understand what a cross-generational compromise might entail, it helps to consider age expectancy. Americans now work more productively and longer into their lives that ever. “Raising the retirement age- if you were expecting to retire at 65 and now you’re retiring at 67 might not really be that bad,” Daly says. “You have more time after retirement that people did when social security was created.” Social Security used to guarantee 6 to 7 years of post-retirement living because life expectancies were lower. Now it’s more like 15 to 20 years.

Because of longer age expectancy, the value of the benefits for older workers has increased and with it- the burden on younger workers. “We’re supporting employees for longer periods of life when they’re not working,” Daly says. That’s where compromise comes from. Boomers are going to have to see that they can’t have all that. And younger workers are going to have to agree to pay for some of it.

Here are some Interesting statistics regarding the four generations:

As a % of the entire population in 2010-

Generation Y (1980 -2000)- 28%

Generation X (1965- 79- 20%

Baby Boomers (1946 - m1964- 26%

Silent Generation (1925- 1945)- 13%

As a % of the workforce in 2010-

Generation Y- 25% Generation X- 32% Baby Boomers- 39% Silent Generation- 5% (1980-2000) (1965 – 1979) (1946 – 1964) (1925 – 1945)

Note- The average monthly Social Security benefit in 2011 was: $1,181 or a total of $14,172/Yr.

So, now what do we do? Daly says, “Some painful compromises will have to be made by both the younger generations and the older generations.” Possibilities include a younger generation that sees more income going to support an older generation and/or a retiree generation that sees lower benefits than expected.

As a personal injury attorney I see family incomes heavily impacted by the loss of wages as a result of an injury and that will just complicate these social issues going forward.

But I think it’s time people start talking and thinking about potential solutions.

I invite you to let me know what you think and leave a comment below in the comment box.

I take a personal approach, listening carefully to the details of your case so that I can tailor your representation to get the results you seek.

For a Free Consultation call 727-475-6854.

I hope you found this information helpful. About every 2-3 weeks
or so I’ll provide additional meaningful articles regarding
personal injury issues and related legalities.

Until then, Be Careful Out There!

All My Best-

Bill Schneikart

Personal Injury Lawyer

Sunday, April 1, 2012

The Benefits of Litigation Funding

The law provides a potential remedy for plaintiffs who are hurt due to the negligence or recklessness of others. Specifically, state and federal laws allow plaintiffs to sue defendants to recover the damages that they incur as a result of the defendant’s legal negligence. While the effects of the personal injury can never be fully negated, damages are intended to put the plaintiff in the position he was prior to the accident, to the greatest extent possible. So, for example, damages may include compensation for medical bills, lost wages and pain and suffering.

However, many times plaintiffs must engage in costly litigation in order to recover those damages. A plaintiff who has costly medical bills and lost wages may not be in a position to cover the costs of litigation even if the potential damages are important to the plaintiff’s future and the litigation costs are recoverable from the defendant. Accordingly, litigation funding is important to both plaintiffs and to the justice system.

Litigation Funding May Allow for a Fair Conclusion to a Legal Dispute

The financial pressure associated with recovery from a personal injury is often an important factor in determining whether a plaintiff accepts a settlement offer from an insurance company or defendant. Often, insurance companies and defense attorneys are aware of the plaintiff’s mounting bills and obligations and offer settlements that are significantly lower than what a plaintiff is likely to recover at trial. They reason that plaintiffs need the money quickly to pay their lawyers, their doctors and in some cases to keep their health insurance or their homes and that plaintiffs will therefore take the early settlement even if it is for less money than they are entitled to recover.

Litigation funding companies can remove much of the immediate financial pressure for plaintiffs. The money that is obtained from litigation funding companies can be used to fund the litigation itself or to pay any of the plaintiff’s bills. Without the immediate financial pressures, many plaintiffs may be willing to wait for a better settlement offer or be willing to take the case to trial.

Litigation Funding May Provide the Plaintiff with Cash Quickly

Many litigation funding companies quickly provide cash to plaintiffs who are approved for their programs. The funds may be used for any purpose. Often, they are used to pay medical bills, rehabilitation services, household help and everyday expenses while the plaintiff is recovering from injuries. For many plaintiffs, litigation funding companies can provide funds months and even years earlier than the judicial system can award damages. That can significantly help a person’s recovery by reducing the stress associated with the mounting bills and expenses.

Litigation is lengthy, stressful and, costly. Litigation funding companies can help plaintiffs in their quest for justice by removing some of the financial barriers that often prevent them from pursuing their case until a fair settlement is offered or a jury renders its verdict.

I take a personal approach, listening carefully to the details of your case so that I can tailor your representation to get the results you seek.

For a Free Consultation call 727-475-6854.