Current Events in March 2017

The Commerce Department reports sales of single-family houses were at a seasonally adjusted annual rate of 592,000 last month -- 6.1% above January and up 12.8% from February of last year.

At the same time, the government revised its January report to show sales at a rate of 558,000, versus the 555,000 initially reported.

"February's increase in new home sales is consistent with builders' growing confidence in the housing market," said National Association of Home Builders Chairman Granger MacDonald. "Builders are encouraged by heightened consumer activity and by the expectation that regulatory costs will decline in the year ahead."

Pricing and supply

The median sales price of new houses sold in February -- the point at which half the house sold for more and half for less -- was $296,200. That's down $15,100 from a year earlier and a loss of $12,000 from the month before.

The average sales price of  $390,400 is a year-over-year gain of $41,000 and up $35,100 from a month earlier.

The seasonally-adjusted estimate of new houses for sale at the end of February was 266,000, representing a supply of 5.4 months at the current sales rate.

The complete report may be found on the Commerce Department website.

Jobless claims

Also from the government, word that first-time applications for state unemployment benefits were on the rise.

According to the Department of Labor (DOL), initial jobless claims jumped by 15,000 in the week ending March 18 to a seasonally adjusted 258,000. The previous week's claims level was adjusted upward by 2,000.

The less volatile four-week moving average came in at 240,000 – up 1,000 from the previous week's average, which was revised higher by 1,750.

The full report is available on the DOL website.

EuroCan Manufacturing is recalling individually shrink-wrapped, 6-pack, 12-pack and 25-pack bags of Barnsdale Farms, HoundsTooth and Mac's Choice Pig Ears pet products.

The products may be contaminated with Salmonella.

No illnesses of any kind have been reported to date.

The pig ears, lot number 84, were distributed throughout the U.S. and Canada.

What to do

Customers who purchased the recalled products should return them to the place of purchase for a refund.

Consumers with questions may contact the company Monday – Friday from 9:00 am to 5:00 pm (ET) at (888) 290-7606.

WellPet is recalling a limited amount of one canned topper product for dogs.

The product may contain elevated levels of naturally occurring beef thyroid hormone.

The company has received no reports of any health problems to date.

The the following product, a mixer or topper is intended for intermittent or supplemental feeding only, is being recalled:

• Wellness 95% Beef Topper for Dogs – 13.2 oz, Best-By Dates of 02 FEB 19, 29 AUG 19 and 30 AUG 19, located on the bottom of the can.

The recalled product was distributed at pet specialty retailers throughout North America and online.

What to do

Customers who purchased the recalled product may contact the company at 1-877-227-9587 or by email at wecare@wellpet.com. 

Illinois is becoming a battleground for privacy rights as the state legislature considers three bills that would give consumers the right to know what data is being collected about them, protect them from unwanted geolocation tracking, and prohibit unauthorized use of a device's microphone.

Perhaps the most far-reaching measure is the "Right to Know Act," which would give consumers the right to know what information has been collected about them and who has access to it.

"The price of surfing the web shouldn't mean sacrificing your privacy and personal information," State Senator Michael E. Hastings said in a Chicago Tribune report. "Every time someone simply engages on a website from the comfort of their home, commercial websites could possibly be storing and sharing this data."

Illinois law currently requires business to notify customers of security breaches, but websites are not required to tell consumers what data they collect or who has access to it. Hastings' bill has been approved by the Senate Judiciary Committee and will now go before the full Senate for approval. A similar measure is pending in the House.

"This is your personal information," Hastings said. "You should know who is storing your records and who has access to it."

Other measures

Two other privacy measures are being considered in the Illinois House this week -- the "Geolocation Privacy Protection Act" and the "Microphone-Enabled Device Act."

The geolocation measure would protect consumers from unwanted geolocation tracking. Web browsers customarily ask users if they want to allow tracking, but there is currently no law requiring them to do so. 

The microphone act is intended to protect consumers from being spied on through their device's microphone. It would apply to smartphones, laptops, smart appliances, and any other device that has a built-in microphone. The measure excludes state and local governments. 

There have been several recent incidents in which it was alleged that smart TVs were used to spy on consumers. Privacy advocates say there are doubtless other incidents that have not been detected. 

Privacy advocates are watching the Illinois deliberations and say that if the measure are approved, they're likely to spread to other states, partly compensating for the Federal Communications Commission's plans to scrap Obama-era privacy protections.

Someone soon is going to have to find a creative use for all the empty shopping mall real estate, as one retailer after another retrenches, retreats, or simply goes away.

The struggling discount shoe store chain Payless is the latest added to the critical care list. The company reportedly plans to file for bankruptcy as early as next week, according to a Bloomberg report. 

Bloomberg quotes company sources as saying Payless will initially close 400 to 500 stores as it looks for a way to keep at least some of its doors open during the bankruptcy process.

The growing dominance of online retailing is taking a heavy toll on brick-and-mortar stores, with many companies struggling to meet their first-quarter sales goals as conditions continue to deteriorate. 

Dominoes falling

Retailers have been falling right and left, the latest being Radio Shack, which earlier this month sank into bankruptcy for the second time and began closing its stores.

Earlier today, Sears, one of the most venerable names in retailing warned in an SEC filing that it may not be able to continue as a going concern.

In its filing, Sears noted that many of its competitors operate mostly online or through catalog sales and are not required to collect sales tax, putting brick-and-mortar stores at a disadvantage. Ironically, it is none other than Sears that is generally credited with popularizing the mail-order business, publishing its first catalog in 1888.

Payless would no doubt echo Sears' complaint, with an eye towards online shoe giant Zappos and other online shoe sellers that have taken a large chunk out of its market share.

Payless, founded in 1956 in Topeka, Kansas, operates more than 4,000 stores in 30 countries and has about 22,000 employees.

Home delivery of groceries is one of those things that seemed like a good idea at the time. So far, no one has really scored a home run but now Costco is getting into the game. 

In a recent announcement, a grocery delivery service called Shipt says it is partnering with Costco to deliver groceries to consumers’ homes; the service opened up yesterday to consumers in the Tampa metro area and will expand to 50 additional markets and approximately 30 million people by the end of the year.

Skeptics abound, however. In a recent Bloomberg report, Kurt Jaffe, CEO of TABS Analytics, said flatly that, "Online grocery is failing." 

Jaffe said that only 4.5 percent of shoppers made frequent online grocery purchases in 2016, up just slightly from 4.2 percent four years earlier despite big investments from companies like Amazon.

“There’s just not a lot of demand there. The whole premise is that you’re saving people a trip to the store, but people actually like going to the store to buy groceries,” Jaffe said, according to Bloomberg. Instead, as we reported today, deep discounters like Aldi have been capturing bigger shares of the grocery business. 

But Shipt obviously thinks it has found the solution. 

"We founded Shipt to simplify the grocery shopping experience, and are pleased to give our dedicated members access to unmatched savings as an extension of their Shipt memberships," said Shipt founder and CEO Bill Smith. "As we continue to scale Shipt on a national level, we look forward to offering more options for delivery to our Florida members today, and to Shipt members across the country in the future."

Potential win-win

The partnership could represent a win-win for both Shipt and Costco if all goes well; Shipt would add another company to its network and Costco could open itself to a wider variety of shoppers, since members of the Shipt service would not need a Costco membership to have items delivered to them, according to the Tampa Bay Times.

Consumers can take advantage of unlimited grocery deliveries by signing up for a Shipt membership, which costs $99 per year. However, the service has said that it will not be delivering electronics, apparel, or furniture to consumers’ homes as part of the deal.

As part of an incentive offer, Shipt is allowing consumers in the Tampa Bay area to try out its app for two weeks at no charge and is extending a $15 discount on consumers’ first order. 

For the 26th year in a row, the Labrador Retriever is America’s top dog. In its 2016 ranking of the most popular dog breeds, the American Kennel Club (AKC) once again dubbed the family-friendly lab the nation’s most popular pup.

But a few other breeds may be catching up to the intelligent and eager-to-please lab. The Rottweiler’s number 8 ranking was its highest in almost two decades, French Bulldogs are rising up the ranks, and terriers have also made huge strides in popularity as of late.

Here are the ten most popular dog breeds of 2016, according to the AKC:

• Labrador Retriever
• German Shepard
• Golden Retriever
• Bulldog
• Beagle
• French Bulldog
• Poodle
• Rottweiler
• Yorkshire Terrier
• Boxer

Breeds poised for a takeover

"The Lab is such a versatile dog that it's no wonder it makes a great companion for a variety of lifestyles. Keep your eye on the Rottweiler, though. It's been quietly winning hearts over the past decade,” said AKC Vice President Gina DiNardo.

Another breed to keep your eye on? The French Bulldog. DiNardo noted that the playful breed has risen 32 spots over the past decade and shows no signs of stopping.

Last year, the French Bulldog jumped three spots to number six. This year, the breed held on to its number six ranking and took the number one spot in three cities: Miami, Florida; New York City, New York; and San Francisco, California.

The Russell Terrier rose an impressive 14 spots this year (from 104 to 90), while the Rat Terrier and the Parson Russell Terrier rose five spots and two spots, respectively. 

Of the 189 breeds recognized by the AKC, the least popular were English Foxhounds, Norwegian Lundehunds, and American Foxhounds.

The Food and Drug Administration is advising patients and their doctors that it has found an "association" between certain types of breast implants and a rare form of lymphoma. It said that 12 deaths have been confirmed.

The breast implants in question are textured, rather than smooth. The agency said women should talk to their doctors about the benefits and risks of textured-surface implants before agreeing to surgery.

Implants are filled with either saline or silicone gel. They come in different sizes and shapes and have either smooth or textured surfaces (also known as shells). 

The rare form of lymphoma -- known as BIA-ALCL -- appears to develop more frequently in women with textured implants than in women with smooth-surfaced implants, the agency said. 

Women who already have implants do not need to change their routine medical care, the FDA said, and should continue to monitor their implants through mammography screening performed by a technologist specifically trained in working with implants.

Women with silicone gel-filled implants should get periodic magnetic resonance imaging (MRI) to detect ruptures.

First noted in 2011

The association between the implants and anaplastic large cell lymphoma (ALCL), a rare type of non-Hodgkin's lymphoma, was first noted in 2011, but there were so few cases that no conclusions could be drawn.

"Since 2011, we have strengthened our understanding of this condition and concur with the World Health Organization designation of breast implant-associated anaplastic large cell lymphoma (BIA-ALCL) as a rare T-cell lymphoma that can develop following breast implants," the FDA said in an advisory.

Australian health authorities earlier reported 46 cases of BIA-ALCL including three deaths. None of the cases involved smooth implants. 

The FDA said that as of Feb. 1, 2017, it has received 359 reports of BIA-ALCL involving breast implants, including nine deaths. Of those, 231 included information on the implant surface and 203 were textured while 28 were smooth.

"All of the information to date suggests that women with breast implants have a very low but increased risk of developing ALCL compared to women who do not have breast implants," the FDA said. "Most cases of breast implant-associated ALCL are treated by removal of the implant and the capsule surrounding the implant and some cases have been treated by chemotherapy and radiation."

Millennials may increasingly be settling down in the suburbs, but a new report finds several major U.S. cities have also caught the attention of those between the ages of 25 and 34.

According to research from Realtor.com, the top cities for Millennials are Salt Lake City, Miami, Orlando, Seattle, Houston, Los Angeles, Buffalo, Albany, San Francisco, and San Jose.

To come up with its ranking, the online real estate website analyzed the 60 largest markets in the U.S. and compared the share of Millennial page views in each area to the national average.

What's pumping Millennials into these metro areas? Job prospects and affordability, says Realtor.com.

Job growth and affordability

Low unemployment rates and affordable home prices have first-time home buyers flocking to Salt Lake City, Buffalo, and Albany, the study found.

In Buffalo, the main draw for the demographic was affordability. At 23%, Buffalo was found to have the most affordable home prices relative to salary. Albany came in second for affordability, where people only use 27% of their income on a home.

Salt Lake City had the lowest unemployment rate at 2.9%, well below the national unemployment rate of 4.7%. Other cities with low unemployment rates included San Francisco, where the tech-fueled job market is drawing Millennials into the area, and San Jose, where job opportunities in Silicon Valley await.

Rising Millennial populations

“High job growth in markets such as Orlando, Seattle, and Miami, and the power of affordability in places like Albany and Buffalo are making these markets magnets for millennials,” said Javier Vivas, manager of economic research for realtor.com.  

“But what really stands out is that all these markets already have large numbers of millennials, which translates into strong populations of millennial home buyers," Vivas said.

The top markets in the report already have a significant Millennial population, Realtor.com noted. The average share of Millennials in the U.S. is 13%, but the top cities for Millennials were found to have an average share of 14%.

At nearly 16% of its total population, Salt Lake City had the highest share of Millennials. The population of Millennials was similarly high in Seattle (15.2%), Los Angeles (15%), and San Francisco (15%), despite the difficult-to-afford nature of the latter two locations. 

There are a number of things that parents can do to prepare their child for entering school, but a new study conducted by Georgetown University and the University of Virginia shows that one of the most important steps may start at the dinner table.

The researchers state that having consistent access to quality food allows children to be better emotionally and cognitively prepared when they enter kindergarten. Unfortunately, they point out that food insecurity – defined by not having access to these resources – can adversely affect children’s development over the long term.

"In our study, food insecurity in infancy and toddlerhood predicted lower cognitive and social-emotional skills in kindergarten, skills that can predict later success in academics and life," said researcher Anna Johnson.

Stunted development

The study focused on 3,700 low-income households that were food insecure and analyzed the subsequent development of those families’ children. Researchers conducted interviews with parents and assessed children’s development at 9 months and at ages 2, 4, and 5 by looking at reading and math skills, instances of hyperactivity, conduct problems, and approaches to learning.

The researchers noted that the timing and number of food insecure periods had a big impact on children. Johnson explains that families that go through these periods consistently have higher risks of childhood development problems.

"Having more episodes of food insecurity in early childhood -- that is, having three episodes of food insecurity versus one or two -- was linked with poorer outcomes in kindergarten across all areas of development," explains Johnson.

Assistance for at-risk families

Johnson and her colleagues have stated that the study did not prove the existence of a causal link between food insecurity and poorer childhood development; however, they do believe that the findings are worrisome and a cause for concern.

Co-author Anna Markowitz has called on all levels of government to investigate the issue and provide relief to families who are in need. "Increasing the generosity of food assistance programs and ensuring that they reach children whose families are food insecure or at risk for food insecurity in the earliest years -- when children are 2 or younger -- could boost the early school success of these vulnerable children," she said.

The full study has been published in Child Development.

The Food and Drug Administration (FDA) has given a green light to a new drug, Xadago (safinamide), as a supplemental treatment of Parkinson's disease.

The agency says the drug may be prescribed for patients who are now taking the drug levodopa/carbidopa and experiencing "off" episodes.

An "off" episode is a case where a patient's medication is not working well, meaning the patient is more likely to suffer Parkinson's symptoms, such as tremor and difficulty walking.

Parkinson's is a progressive disorder affecting the nervous system, which means it reduces a patient's ability to control movement. According to the Mayo Clinic, it develops gradually, often starting with a barely noticeable tremor. It can also cause stiffness and slowed movement.

Early stages of the disease may affect facial expressions and result in slurred speech. Because it's a progressive disease, symptoms will worsen over time.

'Relentless disease without a cure'

"Parkinson's is a relentless disease without a cure," said Dr. Eric Bastings, deputy director of the Division of Neurology Products in the FDA's Center for Drug Evaluation and Research. "We are committed to helping make additional treatments for Parkinson's disease available to patients."

The FDA says Xadago was shown to be effective in treating Parkinson's in a clinical trial of 645 patients who were also taking levodopa but were having periodic worsening symptoms. The FDA found that the patients taking Xadago experienced more "on time," when their symptoms were not present or were less severe.

The FDA cites data from the National Institutes of Health showing about one million Americans have been diagnosed with Parkinson's. There are an estimated 50,000 new diagnoses each year.

Patients being treated for Parkinson's disease and who suffer from periodic worsening symptoms should discuss Xadago with their physician.

Sears Holdings, the company that operates Sears and Kmart stores, is voicing doubts about its long-term ability to stay in business.

In a filing with the Securities and Exchange Commission (SEC), the company said there is "substantial doubt" about its viability unless it can raise additional capital.

The retailer has struggled, along with many other brick-and-mortar retailers, as more consumer purchases have shifted to online channels like Amazon. At the same time, overall retail sales have flattened in recent years due to demographic trends.

'Materially adversely affected'

In a 10-K filing with the SEC, Sears Holdings candidly warned that unless it found a way to compete effectively in the increasingly competitive retail sector, its business could be "materially adversely affected." In the document, it summed up the problem.

"The retail industry is highly competitive with few barriers to entry," the company said in the 10-K filing. "We compete with a wide variety of retailers, including other department stores, discounters, home improvement stores, appliances and consumer electronics retailers, auto service providers, specialty retailers, wholesale clubs, online and catalog retailers and many other competitors operating on a national, regional or local level."

The company notes that some of its competitors are actively engaged in new store expansion while online and catalog businesses, which handle similar lines of merchandise, are often not required to collect sales tax.

"We also experience significant competition from promotional activities of our competitors, and some competitors may be able to devote greater resources to sourcing, promoting and selling their products. In this competitive marketplace, success is based on factors such as price, advertising, product assortment, quality, service, reputation and convenience," the company said.

Problems are not new

Earlier this year Sears Holdings announced plans to transform its retail operations and possibly sell some of its assets, such as its Kenmore appliance and Die Hard battery brands, to raise much-needed cash.

As we reported in late December, Sears targeted about 30 Sears and Kmart stores for closing and announced it had secured a $500,000 line of credit to help it transform to meet the new retail realities.

Sears, meanwhile, has not been alone in its predicament. Just last month J.C. Penney announced it is closing around 130 of its stores in a bid to remain competitive.

It, like many other older, established retailers, announced it would shift more focus to selling online, a space currently dominated by Amazon.

In most years, used car sales and prices go up in February. Usually there are plenty of buyers and the competition allows used car dealers to hold closer to the asking price.

Last month wasn't like that. If you were used car shopping in February, chances are you drove away with a good deal. And chances are you can still find some of those deals if you look hard enough.

Market intelligence analysts at J.D. Power's Valuation Services division report used car prices dipped last month for three main reasons. The first is competition from new car dealers.

New car deals were more attractive

Manufacturers have significantly increased incentive spending to pull buyers into showrooms. Many consumers who might have purchased a late model used car last month were instead persuaded to buy a new car because, in the end, there was little difference in the monthly payment.

At the same time, there were more used cars flooding the market. Thousands of late model cars came off leases last month, with the volume of vehicles going to auction rising 6%. More cars plus fewer buyers equals lower prices every time.

The last reason is one you might not consider. The Internal Revenue Service has been slower this year in getting out tax refunds. When that happens, J.D. Power analysts say it keeps millions of potential buyers on the sidelines, since they count on that refund for a down payment.

Lender worries

Falling used car prices are good for consumers, but not for lenders. Ally Financial warned Tuesday that lower used car prices may impact earnings. Bloomberg News reports falling used car prices can require lenders to make greater provisions against future losses, since their loan collateral is losing value.

The National Automobile Dealers Association’s Used Car Guide index dropped 3.8% last month, continuing a string of monthly declines going back to last summer. Chris Halmy, Ally’s chief financial officer, tells Bloomberg he expects used car prices will continue to fall.

For consumers, this creates an obvious buying opportunity and may make a late model used car a more attractive option than a new one, no matter how many incentives a dealer tacks on.

Vulto Creamery of Walton, N.Y., is recalling all lots of Ouleout, Miranda, Heinennellie, and Willowemoc soft wash-rind raw milk cheeses.

Testing results from the Food & Drug Administration (FDA) found Ouleout lot # 617 positive for Listeria monocytogenes, and New York Department of Agriculture and Markets found possible contamination of Ouleout lot #623.

In the first expansion earlier this month, the company disclosed that testing results have identified Ouleout product contamination, similar to the strain isolated from a cluster outbreak of Listeriosis responsible for six illnesses and two confirmed deaths.

The soft raw milk cheeses were distributed nationwide, with most being sold at retail locations in the Northeastern and Mid-Atlantic States, California, Chicago, Portland and Washington, D.C.

What to do

Customers who purchased the recalled products should not consume them, but return them to the purchase location for a refund.

Consumers with questions may contact the company at 607-222-3995 Monday – Friday 9:00 am – 4:00 pm ET) or by email at vultocreamery@gmail.com.

A new U.S. Transportation Department rule taking effect today prohibits passengers from carrying electronic devices aboard commercial aircraft flying directly to the U.S. from certain Middle Eastern countries.

A number of news outlets reporting the ban have quoted “senior U.S. officials” providing details of the new rule.

The devices – including smartphones, laptops, and tablets – may be packed in checked baggage.

The ban is said to be limited to flights departing 10 airports from the Middle East and North Africa and is based on security concerns. Officials told The Washington Post that intelligence continues to pick up on terrorist interest in targeting commercial aviation. The concern is that electronic devices can be modified to contain explosives.

According to Reuters, the affected cities include Cairo; Istanbul; Kuwait City; Doha, Qatar; Casablanca, Morocco; Amman, Jordan; Riyadh and Jeddah, Saudi Arabia; and Dubai and Abu Dhabi in United Arab Emirates.

Reuters quotes Department of Homeland Security spokeswoman Gillian Christensen as saying the U.S "did not target specific nations. We relied upon evaluated intelligence to determine which airports were affected."

The affected airports are served by nine airlines that have non-stop flights to the U.S. The carriers include Royal Jordanian Airlines, Egypt Air, Turkish Airlines, Saudi Arabian Airlines, Kuwait Airways, Royal Air Maroc, Qatar Airways, Emirates, and Etihad Airways.

Ads for drugs that claim to treat testosterone deficiency -- so-called "low T" -- sell a lot of drugs but may not do much for consumers' health, a UC Davis physician says in an editorial published in the March 21 issue of the Journal of the American Medical Association.

Davis says an increase in advertising for hormone-replacement drugs has led to lots of unnecessary treatment. 

"Between 2000 and 2011, testosterone use increased at least 3-fold in the United States," Kravitz wrote. "Many men who were treated with these products did not undergo appropriate testing for testosterone deficiency or meet diagnostic criteria for hypogonadism."

Kravitz said the ad blitz, which began around 2000, preceded professional guidelines for physicians and product-safety research.

The ads work

If nothing else, Kravitz said the response proved the effectiveness of advertising. "Patients respond to [direct-to-consumer-advertising] and physicians respond to patients," he said.

He cited research which found that a single television advertisement for testosterone replacement therapy produced 14 new tests, 5 new initiations, and 2 initiations without testing per 1 million men exposed.

When medical research began to link testosterone replacement therapy with cardiovascular disease, the number of ads for these products declined starting in 2014, likely due to U.S. Food and Drug Administration requirements for informing consumers in drug advertising about potential risks, according to Kravitz.

"But with revenue from topical testosterone products topping $2.2 billion the year before, the market for androgen replacement therapy was still substantial," he wrote.

Kravitz notes that many medical experts would like to see restrictions on direct-to-consumer ads, but he concedes that a complete ban is unlikely given free speech protections. He recommends continued research on the topic, since direct-to-consumer advertising, "while a potentially powerful tool in motivating patient behavior and perhaps even physician prescribing, does not necessarily serve to improve the health of patients or the public."

Low T

Low testosterone levels -- hypogonadism -- increases with age and can cause symptoms such as low libido, reduced strength, fatigue, and depression. It is diagnosed with a blood test together with clinical symptoms and signs.

It is treated with products that increase levels of male-reproductive hormones known as androgens, most often testosterone, through injections, gels, transdermal patches, or subcutaneous pellets.

Many consumers are uncomfortable when it comes to the subject of death, and planning for what will happen when a loved one is at that phase of life is a daunting prospect. However, having end-of-life arrangements in order can go a long way towards mitigating costs and allowing things to run smoothly.

Unfortunately, it seems that many people are continuing to put off advance care planning. A new study conducted by a Yale researcher finds that too few elderly adults have a plan for end-of-life medical decisions. Further, the findings suggest that those who have picked a loved one to make decisions for them have not clearly communicated what they want.

"You can't assume advanced care planning achieves the goal of making sure the surrogate understands what the patient wants," said Fried. "Planning needs to include a facilitated discussion between the patient and the surrogate to make sure they are hearing each other and talking about things that are important to the patient," said Dr. Terri Fried.

Communication is key

Fried interviewed 350 veterans aged 55 years and older and their surrogate decision makers to see how in-depth their advance care plans were laid out. She asked surrogate participants what their loved one would want under different circumstances.

In one case, she asked participants if their loved one would prefer to receive treatment, even if it left them severely impaired physically, cognitively, or in severe pain. She found that advance care planning was lacking in 40% of cases on these kinds of points. The findings showed that many patients had not communicated their wishes on these matters; around the same percentage of participants had not completed a living will or established health care proxy.

Additionally, Fried found that patients and surrogates often disagreed with whether they had communicated thoroughly on end-of-life decisions. Only approximately 20% of these surrogates were able to predict their patients’ wishes for life-sustaining treatments, though the numbers were only slightly better for pairs that had agreed that they properly communicated on end-of-life decisions.

New methods for end-of-life planning

Fried and her colleagues believe it is essential that surrogates and patients plan for end-of-life decisions, and they are currently in the process of making a system that can help consumers adequately cover end-of-life planning.

Different communications methods, such as the use of a clinician facilitator or an internet tool, have been suggested, but Fried is currently examining how effective materials that are specific to the patient could be for planning, adding that “the jury is still out on the best way to help people.”

The full study has been published in the Journal of the American Geriatrics Society.

How much do you need to retire? Thirty-seven percent of Americans say they think they'll need $1 million or more. To say that this is at odds with reality is an understatement, since only 20 percent of workers have saved $250,000 or more; 24 percent have saved $1,000 or less.

The rather sobering figures come from the 27th annual Retirement Confidence Survey conducted by the Employee Benefit Research Institute (EBRI).

Not only are most of us woefully short of our goal, many of us don't even have a goal. The survey found that only 41 percent of American workers have even bothered to work up an estimate of what they'll need to survive retirement.

“I continue to be struck by the relatively small share of workers who do formal retirement planning. Use of a financial advisor increases with age and income, but just 23 percent of workers say that they have spoken with a professional advisor about retirement planning and only 1 in 10 report they have prepared a formal plan for retirement,” said Lisa Greenwald, assistant vice president of Greenwald & Associates, and co-author of the report. 

“Some of these critical retirement planning steps don’t cost workers anything, like estimating Social Security or thinking through what your expenses may be in retirement,” Greenwald notes.

Great unknowns

The lack of planning is perhaps understandable, though, given the big unknowns one faces in trying to arrive at an estimate. The most obvious shortcoming is that we don't know how long we'll live. Some people turn 65 and promptly drop dead, while others live into their 90s. Either way, this has a big impact on your savings.

The other great unknown, of course, is healthcare. No one knows from one day to the next when the nation's healthcare policy is going to be a year or a decade from now. For that matter, many people don't know what it is today, including elected officials who are in charge of it.

Despite this uncertainty, six out of 10 workers say they are very or somewhat confident about having enough money for a comfortable retirement, down from 64 percent last year. 

Three in 10 workers say that preparing for retirement is stressful and 30 percent also say that fretting about retirement while at work is making them less productive. More than half of these stressed-out workers believe they would be more productive at work if they didn’t spend time worrying. 

Retirees more confident

Interestingly, people who have already retired are more confident than those who are still toiling away. The survey found that 79 percent of retirees are very or somewhat confident about having enough money to live comfortably throughout their retirement. 

This is a finding that has cropped up in other studies. It is usually ascribed to the fact that, once they retire, workers find their cost of living is reduced more than they had expected. After all, retiring usually eliminates or reduces commuting, lunching out, clothing and dry cleaning, and other daily expenses that may seem small but add up quickly.

What would help workers become better prepared? Among all workers, about half say that retirement planning (53 percent), financial planning (49 percent), or healthcare planning (47 percent) programs would be helpful in increasing their productivity at work while making it more likely they would get their affairs in order.

Also, 73 percent of workers who are not now saving for retirement say they would be at least somewhat likely to save if contributions were matched by their employer. Approximately two-thirds of non-saving workers say they would be likely to save for retirement if automatic paycheck deductions, at either 3 percent or 6 percent of salary, were used by their employer.