• Bayer's CEO overhauled his corporate budget system with 90-day cycles in an effort to reduce bureaucracy.
• Bill Anderson said the inspiration came from a "radical experiment" at Genentech to kill budgets.
• Bayer also reorganizes teams every 90 days and has cut 5,500 positions, many of which were managers.

The annual budget process can be a parade of lengthy meetings and red tape — so one CEO decided to try something different.

Since becoming CEO at Bayer, Bill Anderson has introduced a set of striking changes to the company, including an overhaul of its budget system, which he sees as the driving source of corporate bureaucracy.

"We all know that the belly of the beast of bureaucracy is the budget process, right," Anderson said in an interview with Business Insider. "Everybody knows that. Everyone hates it."

Every 90 days, Anderson reallocates budgets for the next cycle.

The executive said the decision to take the company "90 days at a time" was inspired by a "radical experiment" he helped implement at Genentech in 2016 before becoming CEO of the biotech company in 2017. After what he described as an unsuccessful attempt to de-bureaucratize the budgeting process at Genentech, Anderson said Genentech decided to "kill all budgets."

However, the plan didn't lead to lower spending, he told BI.

While company spending at Genentech went down in the first year, it shot right back up a year later, Anderson said. While the CEO didn't want to bring back the old process, he concluded he had to find something to replace it with.

Genentech declined to comment.

Anderson brought the lesson to German life science company Bayer, where, a month after becoming CEO in June 2023, he replaced annual budget discussions with 90-day cycles. Instead of managers spending five months setting targets and forecasting, Anderson said squads come together every 90 days to discuss whether the company achieved its goals, how it used resources, and what it needs to focus on next.

In a conventional budget process, Anderson said the team would be discussing what they're going to do in the third quarter a year ahead. The problem with that, he said, is "nobody knows" what they'll be doing that far in advance.

"That's a waste of time," Anderson said. "They're negotiating over budgets for Q4 next year. They don't even know what they're going to be doing."

The budget overhaul is part of a larger restructuring which the company refers to as "Dynamic Shared Ownership." In addition to flipping the budget system, the model also reorganizes staff every 90 days into "mini networks" made up of who is best suited to lead that specific project.

"So every 90 days, people can flow between teams, money can flow between teams," Anderson said. "And you're working on the most important things for the next 90 days."

In a press release announcing the new operating model in January 2024, the company said the structure would "reduce hierarchies, eliminate bureaucracy, streamline structures," and speed up the decision-making process.

A company spokesperson told BI that select groups called "frontrunner teams" transitioned to the new model in the summer of 2023. Now, most of the company has moved to the new structure. Along the way, managerial positions have changed, with some transitioning to individual contributors and others being laid off.

Since the beginning of the year, the company has cut about 5,500 roles, most of which were managers, shrinking its overall headcount from around 100,000 down to around 94,500. A spokesperson said layoffs are ongoing.

Anderson said some teams, like those that started the transition a year ago, "are racing ahead and doing great," while other groups are "still stuck in the starting blocks." He added that the company's voluntary attrition rate has gone down since transitioning to the new operating structure.

The company has embarked on a plan to cut costs by about 2 billion euros by 2026. Bayer's stock price is down 46% since the beginning of the year. In its third-quarter earnings, the company reported over $4 billion in net losses and shared expectations for a "muted outlook" and "declining earnings" over the next year.

The company has faced several recent headwinds, including the expected loss of exclusivity on the blood-thinning drug Xarelto. Anderson said the drug was once responsible for a significant amount of Bayer's profits.

The company has also grappled with legal battles over Roundup, a herbicide produced by Monsanto, which Bayer purchased for $63 billion in 2018. The product has been the subject of thousands of lawsuits alleging it causes cancer, and Bayer agreed to pay billions of dollars to resolve some of the litigation while it also appeals some of the court decisions.

"The litigation topic is a big overhang for our company," Anderson said, adding that "there's a lot of great things happening" but investors want the company to deal with the lawsuits, which it is.

When Bayer announced the new operating model, the company said its goal was to become "more agile and significantly improve its operational performance," and Anderson has already reported some positive results.

In Bayer's third-quarter earnings report, Anderson said Bayer's Pharma division outside Milan cut release time by almost 50%, resulting in less waste, improved cash flow, and lower inventory. Anderson said in the report that when he first asked about success stories, he would get the same two or three examples.

"Now, I'm hearing stories like these basically on a daily basis," Anderson told investors. "I'm confident that will translate into results for our investors, and a bright future for us and our customers."

• Seven superhero movies came out in 2024.
• "Deadpool & Wolverine" was the only superhero film to get a Rotten Tomatoes critic score above 50% this year.
• Sony released three new movies in their Spider-Man universe, including the universally panned "Madame Web."

"Deadpool & Wolverine" may have made a whopping $1.3 billion at the box office but, overall, 2024 has been a bad year for superhero movies.

Disney's Marvel Studios and Warner Bros' DC Studios released a film each in 2024 in response to superhero fatigue criticism over the last couple of years and as they prepared to enter a new phase in their respective franchises.

This left space for Sony and other studios to enter the market. But critics panned most of this year's superhero movies, with only Marvel's "Deadpool & Wolverine" receiving a Rotten Tomatoes score above 50%.

Here are all seven superhero movies ranked from lowest to highest, according to their Rotten Tomatoes critic scores.

"Madame Web"

Rotten Tomatoes score: 11%

Sony has made several blunders in its attempt to build its own Marvel Spider-Man universe (without any Spider-Man appearances), but "Madame Web" is possibly the biggest misfire.

Critics said the film was a mess. Dakota Johnson and Sydney Sweeney, the two biggest stars in the film, distanced themselves from it after it received bad reviews and did not do well at the box office.

Fans mocked it, too, and generally didn't turn up to see the film in theaters. It is the lowest grossing film in the Spider-Man franchise, making $100 million.

"Kraven the Hunter"

Rotten Tomatoes score: 15%

Sony's Spider-Man universe ended on a low this year with "Kraven the Hunter" debuting with the lowest domestic opening weekend for a Sony Spider-Man movie ever.

It earned $11,000 in North America, which is roughly $4,000 less than "Madame Web" and roughly $70,000 less than "Venom," the first spin-off Spider-Man movie that Sony released.

Critics were not as hard on "Kraven the Hunter" as they were on "Madame Web," but still thought the film had a dull story and poor special effects. While some critics thought the film was so bad that it was entertaining, others thought it was a waste of time.

"The Crow"

Rotten Tomatoes score: 22%

1994's "The Crow" is widely regarded as a cult classic. However, its reputation was marred after Brandon Lee, the lead actor, was shot and mortally wounded by a prop gun that wasn't supposed to contain bullets, eight days before shooting wrapped.

Lionsgate's attempt to revive the superhero franchise failed critically and commercially. This time, Bill Skarsgård starred as Eric Draven, a recovering drug addict who gains supernatural abilities after being resurrected from the dead and seeks revenge on the people who killed him and his lover.

Some critics defended "The Crow" reboot, saying it wasn't unwatchable, but most reviews were more negative, saying the film was incoherent and not better than the original film.

2024's "The Crow" made $23 million in ticket sales on a reported $50 million budget. The 1994 version made $50 million.

"Joker: Folie a Deux"

Rotten Tomatoes score: 32%

There were big hopes for "Joker: Folie a Deux." Its predecessor made over a billion dollars, and Oscar and Grammy winner Lady Gaga took on the part of the hugely popular villain, Harley Quinn.

It was also a musical, following Joaquin Phoenix's Arthur Fleck as he stands trial for the multiple murders her committed in the first film, and begins a relationship with Lee Quinzel (Gaga).

But somehow, "Joker: Folie a Deux" disappointed both fans and critics and only made $206 million in ticket sales. Variety reported that Warner Bros. spent $200 million on the film and roughly $100 to market it, meaning the film likely did not turn a profit.

"Hellboy: The Crooked Man"

Rotten Tomatoes score: 37%

If you missed the latest "Hellboy" movie, you're not alone. Millennium Media, the production company that owns the rights to the Hellboy character, did not heavily promote "Hellboy: The Crooked Man," releasing the first teaser three months before it premiered in the US.

"Hellboy: The Crooked Man" takes Hellboy (Jack Kesy) back to his horror roots as he tries to take down a group of witches and their sinister demon leader, the Crooked Man.

Critics were divided on this film. Some said it was dull and had a messy script, while others praised it for actually being scary.

"Venom: The Last Dance"

Rotten Tomatoes score: 41%

"Venom: The Last Dance," the final film in the "Venom" trilogy, follows Eddie Brock and his alien symbiote Venom, who fleeing the world's military and a group of aliens working for Knull, Venom's creator

The "Venom" films are the only commercially successful movies from Sony's Spider-Man spin-off universe. Critics panned the series, and "Venom: The Last Dance" has the lowest-grossing of the three films.

But audiences still loved the film, which had the eighth-highest ticket sales of the year with a total of $475 million.

"Deadpool & Wolverine"

Rotten Tomatoes score: 78%

Since 2009, Ryan Reynolds and Hugh Jackman have been engaged in a playful rivalry over who plays Canada's greatest Marvel superhero. Now they bring this feud to the big screen with "Deadpool & Wolverine."

In the multiversal movie, Deadpool (Reynolds) and Wolverine (Jackman) work together to save Deadpool's universe, find redemption for Wolverine, and lead a team of misfits to take down Professor X's powerful sister, Cassandra Nova (Emma Corrin).

The final film was not only a finale to the R-rated hit "Deadpool" movie trilogy, but it was also a heartfelt goodbye to Fox's Marvel franchise, which ended when Disney bought Fox.

"Deadpool & Wolverine" also dispelled the myth that audiences were bored with superhero movies. It received mostly positive reviews from critics and became the highest-grossing movie in the trilogy.

• The Too Good To Go app aims to help consumers save money and reduce food waste.
• I tried it for a week to see how much I could save.
• I found it was most useful for fresh produce, but the pastries weren't always great.

Everything is expensive right now. It's rare that I ever leave the grocery store having spent less than I wanted to.

I've heard of apps like Too Good To Go, which sell surplus food at a discount, but never gone much further than signing up.

To test it out, I spent a week in early December only buying food from the app. I wanted to see if it was a viable way of saving money, sticking to a budget, and learning to be a bit more flexible with my cooking.

I also want to be more mindful about the groceries I buy and, unfortunately, sometimes waste.

Too Good To Go's CEO, Mette Lykke, told me in a recent interview that the app now operates in 19 countries across North America, Europe, and Australia, and covers 170,000 stores.

Lykke said the company hopes to inspire people "to make that the first step in a journey toward having a more responsible relationship with food."

"If we look at the state of the planet and the climate crisis, then it's pretty clear that something needs to change," Lykke said.

It was fun trying out new places in my city, London. While the pastries I received were hit-and-miss, the fresh produce from local stores was a real highlight.

Monday

Monday was largely spent figuring out the platform. I found that its map feature was the best way to find local cafés and stores.

I saw that an expensive café on my local high street offered pastries, so I opted for that — £3.90 ($4.95) for a blueberry muffin, chocolate chip cookie, and slice of banana bread.

After the sugar rush I was still hungry, so I chose a bag of sandwiches and pastries from my local Costa Coffee for £3.50 ($4.44).

I got a slightly stale pan au raisin and two sandwiches — one seasonal turkey feast, and a BLT which my boyfriend took for lunch the next day.

In total, I spent £7.40 ($9.39) on items worth at least £22.90 ($29.08), so the week was off to a good start.

Tuesday

On Tuesday, I switched things up by trying out fresh produce from a couple of local stores. They offered "surprise bags" of groceries for £4 ($5.08) each.

While I was slightly overwhelmed with what to do with it all, it was an absolute hit with my boyfriend, who is always thrilled to be met with a culinary challenge.

One of the bags had Padron peppers, garlic, tomatoes, mushrooms, radishes, and beets. I also received three packets of pita bread, a sourdough baguette, a fruit bar, some buttermilk, and fresh herbs.

The multivitamin patches were a curveball, which I have to admit I didn't try.

In the other bag, I got a melon, some Greek yogurt, lettuce, butter, rainbow chard, and sausages.

The sausages went in the freezer, but almost everything else was used to make a pasta sauce, roasted peppers, sauteed mushrooms, buttermilk pancakes, and basil oil. The beets got pickled.

The only thing we ended up having to waste was the watercress, which was already looking past its best.

In total, I spent £8 ($10.16) on items worth at least £24 ($30.48).

Wednesday

Tuesday's groceries went further than expected, so I bought another pastry bag to satisfy my snackiness during the day.

I'm not convinced the sourdough loaf and pastel de nata (which I squashed) I got for £4.09 ($5.19) truly had a full sale value of £12 ($15.24), but they were both pretty good.

The server recommended putting the loaf in the freezer and toasting the slices, which was a great tip that lasted me the rest of the week.

Thursday

I knew I was out for dinner with friends on Thursday so I picked up some Starbucks pastries on the way. This was the biggest letdown of the experiment.

Throughout the week, I realized that several cafés don't offer anything until quite late in the day, by which time the food has been sitting out for hours. This makes sense from their perspective, but it does mean that some of the food isn't at its best.

But for £2.50 ($3.18), a muffin, cookie, cinnamon bun, and cheese stick is certainly better than nothing.

In total, I spent £2.50 ($3.18) on items worth at least £7.50 ($9.52).

Friday

I'd been eyeing up a nearby Bangladeshi restaurant all week, so knowing I had a night in alone on Friday, I went for the £4.09 ($5.19) curry bag they were offering.

I got a few bhajis, some chicken and rice, two veggie curries, more rice, some okra, and what I thought was probably cabbage.

It was all good and spicy, though the bhajis were slightly stale.

In total, I spent £4.09 ($5.19) on items worth at least £12 ($15.24).

The results

For the whole week, I spent £26.08 ($33.11) on £78.40 ($99.54) worth of food.

Not every bag felt like amazing value. But some, especially the grocery bags, were genuinely impressive.

The experience taught me a lot about how to be flexible. I'm now committed to focusing less on "use by" dates on food and sticking to the safety assessment Lykke taught me — "look, smell, taste, don't waste" — before throwing things out.

My advice for anyone downloading Too Good To Go is to use it with foresight. The app is great for saving money for those on a strict budget who are OK with some compromises.

Too Good To Go is available in huge stores in the UK (such as Asda) and the US (including Whole Foods), so there are plenty of places to try.

Lykke told me the nice thing about Too Good To Go is you don't have to give anything up, and she's right. From a quick scan of my area, there is bubble tea, ice cream, Turkish food, burgers, doughnuts, and more. You don't get to choose exactly what you want, but as long as you don't mind a bit of a surprise, it's worth a try,

"You actually get good food, it's a good deal, and you do something good," Lykke said. "It's win-win for businesses, for consumers, and for the planet."

• Nissan and Honda have announced they are beginning merger talks.
• A third Japanese automaker, Mitsubishi, will also participate in the discussions.
• The companies hope a merger could help them take on Tesla and Chinese EV makers, Nikkei previously reported.

Nissan and Honda, two of Japan's largest car companies, have announced that they are beginning merger talks.

The two automakers have agreed to proceed with discussions to build a "strategic partnership focused on intelligence and electrification," according to a statement issued on Monday.

Nissan and Honda are looking to reach a conclusion in talks by the end of January 2025.

A memorandum of understanding (MOU) has also been signed with a third company, Mitsubishi, signaling its involvement in the merger talks.

It would be the largest domestic merger in Japanese automotive history, and if finalized, it would create the world's third-largest automaker by sales.

The companies hope that a merger could help them better compete against Tesla and Chinese EV makers.

Profits were down in the latest earnings reports for all three of Japan's top auto companies — Toyota, Nissan, and Honda — with slumping sales in China a constant theme.

"At this time of change in the automobile industry, which is said to occur once every 100 years, we hope that Mitsubishi Motors' participation in the business integration discussions of Nissan and Honda will lead to further social change," said Toshihiro Mibe, Honda's Director and Representative Executive Officer.

Japan's stock market had closed for trading on Monday when the announcement was made. However, Honda's New York-listed stock was up 13% in premarket trade Monday on the back of the news.

After news of the merger was reported last week, Nissan's stock had surged by nearly 24%.

• More than 3,300 older Americans have shared their financial and other regrets with Business Insider.
• Some older adults said tight budgets and a lack of savings were contributing to loneliness.
• This is part of an ongoing series about older Americans' regrets.

Taffi Ozenne has a few simple and inexpensive joys in her life.

When she feels lonely, she counts them: a hot-fudge sundae at McDonald's ($3.79), a walk with her dogs (free), and the first puff of her cigarette ($9.63 for a pack) on a sunny afternoon in northern California. The 68-year-old repeats the list over and over.

"In those moments where I'm wishing I had a friend that I could do something with, I just gravitate toward my dogs and say, oh, I got two friends right here — let's go for a walk," she said.

Since mid-September, more than 3,300 older Americans like Ozenne have shared their retirement regrets with Business Insider through a reader survey or direct emails to reporters. Loneliness is a common theme.

Some said they regretted not saving more, as a lack of money makes it difficult to maintain a social life. Many said they struggled to ask friends and family for help, further isolating them from loved ones. For an older generation already facing a loneliness crisis, money woes are making it worse. This story is part of an ongoing series.

With no retirement savings, Ozenne is trying to get by on her $1,739 monthly Social Security payments and the money she cobbles together through part-time jobs at a law firm and a bowling alley. She said her schedule feels nonstop but she needs the work so that her total monthly income is slightly above $3,000, enough to cover her bills.

Ozenne said that her budget didn't allow her to travel or go out with friends and that she felt increasingly isolated. She said she regretted not saving enough to support herself in her 60s or 70s and worries she'll have no one to care for her as she ages.

"It's mentally exhausting," she said, adding, "I don't want to be a burden to anyone."

We want to hear from you. Are you an older American with any life regrets you'd be comfortable sharing with a reporter? Please fill out this quick form.

Limited retirement savings take a social toll

In a survey of US adults commissioned by Cigna and conducted by Morning Consult in late 2021, 63% of respondents who earned less than $50,000 a year and 41% of respondents over 66 said they felt consistently lonely.

Having limited income can erode social connections for older adults. Social Security checks aren't enough to cover many retirees' bills, and some don't have enough of a nest egg to afford a night out, holiday gifts, or gas to visit family members. Meanwhile, the costs of meals, flights, and concert tickets have crept up.

"My 'golden years' are not golden at all: I live alone and have no friends," one respondent in BI's survey wrote. Another wrote, "I feel hopeless, I'm lonely, and my health is rapidly getting worse."

Joseph Coughlin, the founder and director of the AgeLab at the Massachusetts Institute of Technology, said that high costs of social activities, housing, and transportation could lead to social challenges for retirees.

"If you do not have the financial resources, you're pretty much constrained where you live," he said. "You may not be able to afford a place that gives you the opportunity for those chance collisions with friends and, frankly, new people."

Susan Harper lives on less than $1,000 in monthly Social Security, plus SNAP benefits, but she has no nest egg or investments. The 66-year-old recently moved from Oregon to Washington, DC, to live with her sister. They're sharing household bills until Harper can secure low-income housing in the area. (Harper is on a waitlist.) Harper said that while she appreciated her sister, she missed her community. She said she often declined invitations from new friends to go to bars or restaurants because of the cost.

Harper said that while she needed to move to receive financial support from her sister, living in a new city had made her lonely.

"It's just a very difficult time, and it's very isolating," she said. "Especially as I get older."

Older adults regret not having a support system as they age

In the University of Michigan's National Poll on Healthy Aging conducted in March, older adults who weren't working, who lived alone, or who had lower household incomes were more likely to report feeling lonely. About 29% of adults 50 to 80 reported feeling isolated from others some of the time or often within the past year.

Coughlin said social isolation could exacerbate the risk of cognitive and physical decline for older adults, which may increase the likelihood that they need assisted care later in life. Genworth Financial, an insurance company, found that the median monthly cost of an assisted living facility in the US was $5,350 in 2023 — a price many older Americans told BI they couldn't afford.

John Keefe, 84, lives alone in Arkansas on his $2,700 monthly Social Security check and limited retirement savings. Keefe lost his son in 2011 and his wife in 2023. He said they were his main support system.

Keefe said he didn't travel much outside his hometown, and he worries about how he'll take care of himself when he can no longer drive to appointments or the grocery store. He said he wished that he and his wife had built a stronger financial cushion.

"I've outlived everybody," he said, adding that it was especially challenging to make connections as a widowed retiree.

Though there's no one-size-fits-all fix for loneliness, Coughlin offered a few suggestions. He said prospective retirees should think about "longevity planning." In addition to building a nest egg, he said, arranging the social aspects of retirement earlier in life — such as living near friends and family and developing hobbies — could reduce the risk of loneliness later and help people budget.

"Yes, it's about how much money you've saved — but it's also about all those other little things that make you smile and contribute to quality of life," he said. "That has to be planned as much as your 401(k) or whether you had your annual checkup."

Government and local assistance can also be a source of relief for older Americans struggling with finances and loneliness. The National Council on Aging estimates that 9 million older adults who are eligible for SNAP benefits don't receive them, and many forgo aid like Medicare Savings Programs designed to help pay for healthcare and other expenses. Many local senior centers offer free or low-cost social activities, transportation, and benefits counseling.

Ozenne is taking her life day by day. Because she works several jobs, her income is likely too high to qualify her for many forms of government assistance. So she sits at her kitchen table working on her monthly budget, and she stops by McDonald's for a hot-fudge sundae if she needs a pick-me-up. Her days still feel lonely, but she tries to "put on a brave face," she said. It helps to know she isn't the only one in this position.

"There are a lot of people — we're laying in bed awake at night wondering if we're going to make it through this month and if we're going to have enough money to pay bills," she said. "And if not, we wonder: What can give? What can I do without?"

Noah Sheidlower contributed reporting.

Are you experiencing loneliness because of your finances? Are you open to sharing your story with a reporter? If so, reach out to [email protected].

• Unexpected medical crises have derailed retirement plans for many older Americans.
• Many regret not preparing financially for sudden medical expenses, while some wish they worked less.
• This is part of an ongoing series about older Americans' regrets.

Vera Steward, 64, earned over $60,000 a year at the peak of her career. But since having a stroke at 48, she hasn't returned to work and is just scraping by.

She's one of many older Americans who shared with Business Insider in recent months how an unexpected medical crisis derailed their retirement plans and what they wish they'd done differently. As of publication, over 3,300 readers between the ages of 48 and 96 have responded to an informal online survey or emailed reporters about their biggest life regrets. This is part of an ongoing series.

While many medical diagnoses are unpredictable, dozens of respondents, including Steward, said they wish they'd been better prepared financially. Their regrets include not being more cautious with spending or savvier with investments when they were healthier, not prioritizing routine medical appointments, not factoring medical expenses into retirement planning, and not having robust insurance.

Eleven said in interviews that a medical diagnosis at the peak of their careers led them to retire early, and as a result, they rely on federal government checks to get by.

We want to hear from you. Are you an older American with any life regrets that you would be comfortable sharing with a reporter? Please fill out this quick form.

Steward is one of them, despite having a master's degree and working since she was a teenager. After her stroke almost 20 years ago, she began receiving slightly over $1,000 in monthly Social Security Disability Insurance; she now receives $1,688 in Social Security after cost-of-living adjustments. Nearly half of her benefits go toward rent, and she only receives $23 monthly in SNAP benefits to help buy food. Some months, she decides between getting a haircut or buying groceries, and she's relied on her daughter for financial assistance.

"I've always been middle class, and now I guess I'm no class," said Steward, who lives in Columbus, Georgia. "I'm in this house almost 24/7. The only time I leave is to go to the doctor. I have nowhere to go."

Not prioritizing health in younger years and asking for what you need

Anita Clemons Swanagan, 59, wishes she'd spoken up for herself more during her working years to be paid what she's worth. While employed at prisons and hospitals, she was on her feet all day often working 12-hour shifts — in addition to second jobs as a gig worker — so she could raise her three daughters.

Swanagan injured her back and developed arthritis. She had a stroke at 45 and worked again for a decade until she had a second stroke in 2021, which affected her walking, speech, and cognitive functioning.

In addition to wishing she'd asked for better pay and more health accommodations, she said she could have done more to grow her wealth, such as saving more and giving less to others. She also wished she'd prioritized her health and took more time off while sick, but she said there's little use looking back on what might have been. She lives in her SUV in rural Illinois on $1,500 a month in Social Security before Medicare deductions.

"People think they have enough money, but all they have to go through is one major illness that could wipe out everything," Swanagan said.

Swanagan is one of dozens BI spoke with who are battling health conditions, unable to work, and relying on government assistance to keep them afloat. Because of their medical conditions, most rely on two federal programs colloquially called "disability": Social Security Disability Insurance and Supplemental Security Income. Many said it isn't enough to pay their bills.

SSDI benefits are based on your work history. In 2024, the average monthly payment was $1,537, with a maximum payment of $3,822 a month. SSI, which is allocated to people with disabilities and limited incomes, will be capped at $967 a month for an eligible individual in 2025.

Retirees' reliance on these programs has risen while the benefits have barely kept up with the cost of living. The average inflation-adjusted Social Security payment for disability insurance in December 1999 was $1,413 a month; at the end of 2023, it was $1,537, SSA data showed. While 3.2% of workers covered by Social Security in 1999 were disabled workers who received Social Security insurance, this rose to 4% in 2023.

And it's becoming more difficult to qualify for these benefits, said Steve Perrigo, the vice president of sales and marketing at the law firm Allsup. SSDI processing times have doubled over the past few years while approval rates have fallen to historic lows.

In fiscal year 2023, 61% of disability claims were rejected initially, while 85% were denied in reconsideration, according to Social Security Administration data and information provided by Allsup. About 45% of people are approved in hearings, which come after denials of an additional application and reconsideration.

Perrigo said he encourages clients to try to find work before, during, and after receiving benefits if they're able to.

"We see individuals who have to go through foreclosure and tap into their 401(k) and bankruptcies," Perrigo said of the long wait times to receive benefits.

For some, including Paula Mastro, returning to work isn't an option.

Mastro, who's 65 and lives on just under $1,100 a month in Social Security benefits, worked part-time in restaurants and catering jobs while raising her daughter and spent years as a full-time caretaker for her parents. She told BI she regretted working odd jobs that didn't provide a pension and not contributing to a 401(k). She also said it was a mistake to not properly document some of her income on tax forms, which hurt her Social Security allotment.

In 1991, Mastro received about $200,000 in a divorce settlement, most of which she spent on a home and car. She said often lived paycheck to paycheck and didn't prioritize investments.

Mastro developed back problems in the late 1990s after a car accident and was diagnosed with fibromyalgia over a decade ago. Earlier this year, she developed an inflammatory skin disease that prevented her from returning to work.

She said that last year, her public assistance covered only a fraction of her medical expenses, putting her thousands of dollars in debt. She lives in a low-income condo she inherited from her sister and barely has anything in savings.

"You expect in your golden years to be traveling, going on vacation, bringing your grandchildren to the theater," Mastro said. "I didn't do any of that because I couldn't. I should have saved up for retirement."

'Floating through life' with no concrete plan

Jan Lovell, 73, said she should have learned more about finances during and after her marriage. Lovell, who lives in Warren, Michigan, was diagnosed with multiple sclerosis in 2005. As the disease progresses, it further complicates her financial planning.

Lovell spent 25 years as a church secretary, earning a modest salary. She only contributed about 5% to her 401(k) and let her husband handle most of her finances. An unexpected divorce in 2004 put Lovell into "float through life" mode, during which time she didn't have a financial plan and did what she could to pay her bills. Over her career, she accumulated seven retirement funds she never combined, totaling $160,000.

She went through a foreclosure in 2010, and she worked for another decade until retiring in January 2020.

She lives off about $3,300 monthly gross income from Social Security pre-deductions and a pension, but medical expenses, such as contributing $3,500 for a wheelchair, have put a dent in her wallet. After a recent hospitalization, she's planning to move to a senior living facility that she expects will deplete her savings by 2027.

"Most places I've looked at now are $3,000 a month for a 400-square-foot unit, which is twice the cost and half the square footage of a regular apartment," Lovell said. "The 'assistance' is an additional charge, depending on needs, and I'll likely need the most expensive level, at about $2,000 a month."

Relying too much on the market

D. Duane MaGee, 78, thought he prepared well for retirement, but after losing thousands in the 2008 market crash, he regretted putting too much faith in the market — and hasn't touched investments since.

MaGee made six figures as a manager at Ford. He retired in his early 50s as the plant shuttered. He'd saved money throughout his career, though not enough. To compensate for his reduced income, he worked in security at a hospital and in hotel management.

His wife had a quadruple bypass surgery three decades ago, and he became her caregiver in between his work shifts. His wife's medications ate up a portion of their savings each month. The 2008 market crash erased nearly $80,000 of their limited retirement savings — much of which was his wife's inheritance from her mother — and he wished he had been more proactive about saving while at Ford.

MaGee, who still cares for his wife, was diagnosed with Parkinson's disease six years ago. He gave up his retirement job shortly after the diagnosis, and they rely on about $62,000 a year in retirement income from Social Security and a pension. Meanwhile, rising inflation has made them even more cautious about spending.

"I don't know how I'm going to get savings now because we're getting a lot older now, and so we have things facing us now where we don't know where the money is going to come from," MaGee said.

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• Steve Ballmer said his investment strategy is partly influenced by Warren Buffett.
• But Ballmer, whose net worth is larger than Buffett's, has an unconventional investment portfolio.
• More than 80% of Ballmer's portfolio is held in Microsoft stock, per The Wall Street Journal.

Steve Ballmer has an unorthodox investing approach.

The former Microsoft CEO is worth $151 billion, per the Bloomberg Billionaires Index, making him the ninth richest person the world.

That puts him ahead of famed investor Warren Buffett by a nearly $10 billion margin.

In an interview published Sunday, Ballmer told The Wall Street Journal that his investment strategy is partly influenced by Buffett, who has long said that since most people picking stocks cannot beat the returns of a general index fund. But there's one key difference.

The Journal reported that Ballmer keeps more than 80% of his portfolio in Microsoft stock. The rest is held in index funds. Ballmer declined to say how large his stake is in Microsoft.

"Microsoft's outperformed just about every other asset I could have owned," Ballmer told the Journal.

Ballmer's investment strategy goes against conventional wisdom, which suggests that people reduce their risk by diversifying their capital across different asset classes. And the world's wealthiest people typically go beyond stocks and bonds to invest in non-liquid assets like private equity and real estate. Ballmer said he is "mostly dialing out of private equity."

To be sure, Ballmer wasn't always going against the trend.

The 68-year-old tried diversifying in the past but said he struggled to find money managers who consistently beat the market.

"The only stock I really study still is Microsoft, because that's still overwhelmingly, overwhelmingly, overwhelmingly the No. 1 thing that I own," Balmer told the outlet.

Ballmer began his career at Microsoft in 1980 and succeeded founder Bill Gates as CEO in 2000.

According to regulatory filings, Ballmer held 333 million shares, or a 4% stake, in Microsoft when he stepped down as CEO in 2014.

Microsoft's shares are up 16.1% this year. The Seattle-based tech giant has been in front of the AI race with huge bets on startups like Sam Altman's OpenAI and France's Mistral AI.

In October, Microsoft CEO Satya Nadella said in an earnings call that the company's AI business is on track to top an annual revenue run rate of $10 billion next quarter.

This would make it the fastest business in Microsoft's history to reach that milestone, Nadella added.

Ballmer attributes his bumper gains in Microsoft's stock to luck.

"Forget the stock price. I had luck, essentially, in getting to listen to the right people," Ballmer told the Journal.

"But I also had luck in terms of my loyalty to the company and not wanting to be a seller as a leader of the business. It turned out to be a great investment thing, too," he added.

Ballmer did not respond to a request for comment from Business Insider.

• Russia's central bank has kept the key interest rate at 21%, bucking expectations of a hike to 23%.
• Russia's top central banker said she is eyeing "excessive cooling" in the economy.
• Russia's high interest rates are impacting business investments and profits, business leaders complain.

Russia's economy has been running hot on wartime activities, prompting the country's central bank to hike rates up to 21% — but it's now worried about too much cooling.

Elvira Nabiullina, Russia's top central banker, expressed that concern on Friday when she kept the key interest rate unchanged. Analysts polled by Reuters had expected her to hike rates to 23%.

"Our politics is aimed at prevention of extreme scenarios, which means that we cannot let the economy overheat further," Nabiullina said at a press conference following the rates decision, according to TASS state news agency.

"It is necessary to make sure that overheating subsides. That said, it is necessary to avoid excessive cooling, which is why we keep a close eye on this," she said.

Nabiullina said the central bank kept the interest rate steady as monetary conditions have "tightened even more than was implied by the key rate increase" in October, when the bank raised the rate from 19% to 21%. Russia started the year with its benchmark interest rate at 16%.

"Consequently, lending growth notably slowed down in November," she said. "We will need some time to assess how steady this deceleration in lending is and how the economy is adjusting to the new conditions."

Russian business leaders complain about high interest rates

Nabiullina's comments came as Russia's inflation hovered around 8% in the year to November, compared to the target rate of about 4%. Staples, like the price of butter and potatoes, have shot up this year. But the central bank's three straight rate hikes since June may be working, the top central banker signaled.

"Tough monetary conditions have evolved in the economy, which are to provide for inflation slowdown in coming quarters," she said, per TASS.

Russian business leaders have been complaining about the central bank's high interest rates, which they say are stifling business activities.

Sergei Chemezov, the CEO of the defense conglomerate Rostec, said in October that record-high interest rates were "eating up" the profit from the company's orders.

"If we continue to work like this, then most of our enterprises will go bankrupt," Chemezov said.

Economic cracks in Russia

Even Russian President Vladimir Putin on Thursday acknowledged that his country's economy is not in a good place — and he blamed the central bank and federal government.

The Russian leader said that the central bank could have used instruments other than interest rates to cool the economy and that the federal government could have worked with economic stakeholders to improve supply.

"There are some issues here, namely inflation, a certain overheating of the economy, and the government and the central bank are already tasked with bringing the tempo down," Putin said during his marathon annual press conference.

Price rises had been an "unpleasant and bad" outcome, he said.

Given the sweeping sanctions against Russia's economy, Nabiullina faces a challenging job to keep Russia's seemingly resilient economy going.

Economic cracks are emerging as the Kremlin focuses on shoring up its defense industry for its war in Ukraine — but at the expense of other sectors, Alexandra Prokopenko, a fellow at the Carnegie Russia Eurasia Center fellow wrote on Friday.

Prokopenko, a former Russian central bank official, wrote that growth momentum could stall next year, with social and fiscal challenges developing into crises around 2026.

• Apple is developing smart home locks with face recognition tech.
• This move aligns with Apple's growing interest in the home devices market.
• Apple's device would compete with Google's Nest and Amazon's Ring in home security.

Apple is reportedly working on bringing its facial recognition technology to home security.

The tech giant is developing a smart lock and doorbell that would allow residents to automatically open their home doors by scanning their faces, Bloomberg reported on Sunday.

The report said that Apple's doorbell system could work with existing third-party locks or the company could partner with one lock provider to sell a complete product. The technology is still in the early stages and could be released at the end of 2025 at the earliest, the report said.

Apple did not respond to a request for comment sent outside regular business hours.

The smart lock adds to Apple's growing interest in the home devices market. Last month, Bloomberg reported that Apple is working on an artificial intelligence-powered, wall-mounted tablet. The iPad-like device could be voice-operated, serve as an intercom, and control home appliances. Earlier this year, Bloomberg also reported that the company is working on building home robots.

Not all these developments may come to life. This year, Apple scrapped its car project and stopped efforts to develop a subscription model for the iPhone.

The door device could give the company an opportunity for more cross-selling with its other home products and its existing lineup of devices, like the iPhone and Apple Watch.

It could also allow the iPhone maker to compete with Google's Nest and Amazon's Ring. These devices have doorbells with a motion sensor that activates the camera and records a video of the surrounding area.

Such a product could draw the company into new debates about balancing users' privacy rights and working with law enforcement. Through emergency requests, police departments have received videos from Ring without receiving consent from the owner.

Apple and its CEO, Tim Cook, are known for prioritizing user privacy. In 2016, Cook refused to cooperate with the US government to unlock an iPhone used by a shooter in a mass shooting and attempted bombing in San Bernardino, California.