Markus Andrews

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Whether you’re at a restaurant, coffee shop or are using an app on your iPhone, you’re being asked to tip just about everywhere these days and for just about everything.
It’s one thing to choose not to tip the worker at the cash register of a toy shop or clothing store, places where workers aren’t typically considered tipped workers, but when you’re dining at a restaurant, tipping isn’t really optional.

Tipped workers who are behind those payment tablets are feeling the brunt of tip fatigue. In the second quarter of 2023, tipping at full-service restaurants fell to the lowest level since the start of the Covid-19 pandemic. 

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That’s particularly painful for workers in the 16 states that adhere to the federal minimum wage for tipped workers. 
Here’s how it works: The federal minimum wage is $7.25 per hour. But if you’re a tipped worker, it’s $2.13 per hour, also referred to as the subminimum wage. The difference between the two, $5.12, is called a tip credit. If a worker doesn’t receive $5.12 an hour in tips, the employer is responsible for paying them that difference — that’s the law.
“Most consumers have no idea that every time you tip in a restaurant in most states, it cuts against the worker’s wage rather than being something on top of the wage,” said Saru Jayaraman, president of advocacy group One Fair Wage.
Watch the video above to learn more. More

Life Changes

Younger workers are more optimistic that they’re on track with retirement goals, according to a recent report.
However, their long-term savings may be falling short.
There is often a disconnect between what people think they need for retirement and how much they are setting aside, according to Douglas Boneparth, a certified financial planner and member of CNBC’s Financial Advisor Council.
Some simple rules of thumb can take too broad of an approach, he says.

Halfpoint Images | Moment | Getty Images

Saving for retirement is one thing, meeting your goals in the golden years is another.
That’s where worry creeps in.

Among older workers, just 34% of baby boomers and 26% of Gen Xers feel like they’re on the right track with their retirement savings, according to a recent Bankrate survey.
Younger workers are more likely to say they are where they need to be. In fact, 45% of Gen Z and millennial workers feel somewhat optimistic.  

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And yet, Gen Z workers are the biggest cohort of non-savers, Bankrate also found. 
The average 401(k) balance among boomers is $220,900, according to the latest data from Fidelity Investments, the nation’s largest provider of 401(k) plans.
Gen Xers have saved $153,300, on average, while millennials have $48,300 in a 401(k). For Gen Z, the average balance is $8,100.

There is often a disconnect between what people think they need for retirement and how much they are setting aside, said certified financial planner Douglas Boneparth, president of Bone Fide Wealth in New York. 

“There’s a conundrum with expectations versus reality,” he said.

How much Americans think they need for retirement

Overall, Americans expect they will need $1.25 million to retire comfortably, a separate study from Northwestern Mutual found.
However, what $1 million means to one household versus anther comes down to lifestyle expenses, tolerance for risk and other factors, such as social security payments and homeownership, said Boneparth, who is also a member of the CNBC Advisor Council.
Those who feel on track to reach their retirement goals are most likely to working with a financial advisor and have a diversified mix of assets, including stocks and bonds, according to another report from Country Financial.

They are also significantly more likely to have at least $100,000 in a retirement savings account, the report found.

How to figure out your retirement number

There are a few simple rules of thumb, such as saving 10 times your income by retirement age and the so-called 4% rule for retirement income, which suggests that retirees should be able to safely withdraw 4% of their investments (adjusted for inflation) each year in retirement.
However, these guidelines have their flaws, according to Chelsie Moore, director of wealth management at Country Financial.
To get an accurate picture of where you stand, “it’s important to work with a financial advisor to discuss your unique situation and goals to determine the amount you need to save,” Moore said.
“In a world where there are a lot of retirement calculators, we are often taking too broad of an approach,” Boneparth added. More

Year-end Planning

Medicare annual open enrollment lets you shop around for health and prescription drug coverage for the coming year.
Experts say there’s even more reason this year to check whether your current plans provide the best coverage for you.

Andreswd | E+ | Getty Images

Medicare beneficiaries have until Dec. 7 to change their Medicare health and prescription drug coverage for the coming year through annual open enrollment.
This year, there’s even more reason to pay attention, as financial assistance for prescription drug coverage is set to expand starting Jan. 1, according to Meena Seshamani, director of the Center for Medicare at the Centers for Medicare and Medicaid Services.

“It is important for people to check and see if they could be eligible for financial assistance to help pay for premiums, to pay for co-pays,” Seshamani said.

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Here’s a look at more coverage on what to do finance-wise as the end of the year approaches:

Starting in 2024, people who face high prescription drug costs will not have to pay anything out of pocket once they hit the catastrophic phase of their benefits, she noted, thanks to new prescription drug legislation.
Notably, Medicare beneficiaries who take insulin currently do not have to pay more than $35 per month for covered prescriptions. They can also access recommended vaccines at no out-of-pocket cost, Seshamani noted.
There are other reasons Medicare beneficiaries should pay attention to the annual enrollment period this year.

“Medicare open enrollment is so important because options change every year, and people’s health needs and their financial situation changes every year,” Seshamani said.

For beneficiaries, this is an opportunity to save.
“You’re never locked in for longer than 12 months,” said Darren Hotton, associate director for community health and benefits at the National Council on Aging, an advocacy group for older Americans.
Here are answers to some top questions to help you navigate Medicare annual open enrollment this year.

What is Medicare annual open enrollment?

Medicare open enrollment is when beneficiaries can shop around for health plans and prescription drug coverage that better meet their needs.
Notably, health and drug plans make changes every year, so experts say it’s wise to revisit your selections to see which plans match your needs when it comes to cost and coverage, as well as the providers and pharmacies that are in network.
Beneficiaries may be able to switch from original Medicare, which is managed by the federal government, to a Medicare Advantage plan that is privately managed, or vice versa. Alternatively, they may switch Medicare Advantage plans, Hotton noted.
Original Medicare includes Medicare Parts A and B. Medicare Part A covers care provided by hospitals, skilled nursing facilities and hospice, as well as some home health care. Medicare Part B covers doctors’ services, outpatient care, medical supplies and preventive services.

You just can’t ever come into Medicare anymore and say, ‘I’m done. I pick something and I’m done,’ because that’s always the wrong thing to do.

Darren Hotton
associate director for community health and benefits at the National Council on Aging

Beneficiaries on original Medicare may choose to add prescription drug coverage by signing up for a Medicare Part D plan, or additional coverage for out-of-pocket costs through Medicare Supplement Insurance, or Medigap.
Alternatively, beneficiaries may choose a private Medicare Advantage Plan, which provides Medicare Parts A and B, and may also include vision, dental, hearing and prescription drug coverage.
“You just can’t ever come into Medicare anymore and say, ‘I’m done. I pick something and I’m done,’ because that’s always the wrong thing to do,” Hotton said.
“You need to decide which option is best for you,” he said.
Start by asking yourself whether you want Medicare with Medicare supplement coverage like your parents had, or whether you want coverage like what an employer might provide, Hotton said.

What should I consider when assessing options?

Much of the decision comes down to coverage and costs. For example, often people will change plans to save on premiums, according to Hotton.
The decision also depends on what you personally need when it comes to your care — the doctors or care networks you prefer, the prescriptions you want covered and the pharmacy where you typically have those filled.
“Even if you’re happy with the plan that you’re in, there could be a better option for you,” Seshamani said.
There may be new choices for you this year, she noted, particularly as the new drug law goes into effect. Moreover, you may be eligible for financial assistance.
“It is very important for everyone to evaluate their options every year, because options change, your health can change and your financial situation can change,” Seshamani said.

Where should I go for advice?

Catherine Falls Commercial | Moment | Getty Images

For the best advice, experts recommend consulting trusted sources.
Beneficiaries may consult directly with the agency through Medicare.gov and 1-800-MEDICARE, Seshamani said.
There’s also local unbiased help available through the State Health Insurance Assistance Program, or SHIP, via ShipHelp.org.
By making an appointment with your local SHIP office, you can have a counselor help identify the best plans for you for the coming year, said Hotton, a former SHIP director for Utah. This may be done in person, over the phone or virtually. The entire process may take just 30 to 40 minutes, he said.

What are red flags to watch out for?

A lot of advertisements pop up during open enrollment season. Unfortunately, that may also include misleading marketing practices, Seshamani said.
It helps to double-check whether your personal providers and prescriptions may be covered under a certain plan, and how they compare with other offerings, via Medicare.gov or your local SHIP office through ShipHelp.org.

What mistakes should I avoid?

When shopping for Medicare coverage, it helps to make sure you are getting the best advice.
Double-check what any advertisements or sales brochures tell you with your own research through Medicare or SHIP.
Also be wary of who you take advice from, Hotton said.

“What you don’t want to do is just jump into a Medicare Advantage plan because your friend says they like it,” Hotton said.
It also helps to double-check whether the coverage you want may be available for less elsewhere, he said.
“You’re paying the premium, you want to make sure you get really good coverage,” Hotton said.

How soon should I act?

Medicare’s enrollment period began Oct. 15. While open enrollment will last until Dec. 7, it helps to act sooner rather than later.
“People should not wait,” Seshamani said.
“If you miss the Dec. 7 deadline, then you have to wait until next open enrollment and you may miss a chance to save money or get better health care for you,” she said. More

Your Money

Although women have made gains in representation at the senior level, advancements are slower at the manager and director levels.
Rather than hitting a glass ceiling, “the ‘broken rung’ is the biggest barrier,” says Rachel Thomas, Lean In’s CEO and co-founder.

Women in corporate America have come a long way in the last decade.
While the overall gender pay gap has not changed much, it has narrowed among top executives. For the first time ever, women CEOs make up more than 10% among Fortune 500 companies.

But CEOs are often recruited from among top leadership and seeing even more women in the C-suite is key to having more women ascend to the highest levels.

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That’s where progress often falls short, according to the annual Women in the Workplace study from Lean In and McKinsey.
“The ‘broken rung’ is the biggest barrier to women’s advancement,” said Rachel Thomas, Lean In’s CEO and co-founder. “Companies are effectively leaving women behind from the very beginning of their careers, and women can never catch up.”

Inequity ‘compounds vastly’ over a career

Although women have made gains in representation at the senior level, advancements are slower at the manager and director levels, the report found.
In fact, the biggest hurdle to advancement begins at the critical first step up to manager, according to Thomas: Only 87 women — and 73 women of color — are promoted for every 100 men.

Largely due to systemic bias, women are prevented from getting the same opportunities to advance, Lean In’s report found.

The glass ceiling is a myth. [Inequity] starts from day one and continues at every juncture.

Stefanie O’Connell Rodriguez
host of the “Money Confidential” podcast

Men end up holding 60% of manager-level positions, while women hold just 40%, and as a result, there are fewer women to promote to director and so on, the report concluded.
“The glass ceiling is a myth,” said Stefanie O’Connell Rodriguez, host of the “Money Confidential” podcast.
There is an inequity that “starts from day one and continues at every juncture — and that compounds vastly over the course of the career,” she added.

Ways to battle gender barriers

Finding people within an organization that will lobby on your behalf is key, according to Laurie Chamberlin, head of LHH Recruitment Solutions, North America, a division of the Adecco Group.
“Women tend to look for mentors and men tend to look for sponsors who will help them negotiate,” she said.  
Mentors play an important role in providing advice and support at work, but they may not influence the person making decisions. That makes a difference, according to Gallup.
A mentor shares knowledge and provides guidance, while a sponsor provides access to opportunities at work and advocates for career advancement.

From a policy standpoint, pay transparency legislation is also important, Rodriguez added.
Overall, salary bands, or the pay ranges organizations establish for specific roles, have already helped level the playing field, according to recent research from job site Ladders.
The idea is that pay transparency will bring about pay equity, or essentially equal pay for work of equal or comparable value, regardless of worker gender, race or other demographic category.
“There’s a long way to go, but it’s still really promising,” Rodriguez said.Don’t miss these CNBC PRO stories: More