A recent article by NCOA discusses Pres. Obama’s White House budget and how it will effect the senior community due to proposed cuts of 45% in the Community Service Employment Program.
For many seniors, they are using these extra funds from part-time employment to maintain their ability to survive from month to month and without them will experience severe difficulties in paying for their day to day needs. And on top of this blow, more will come from each state as they look for ways to cut back on spending by eliminating some programs that seniors have come to rely upon.
As much as some seniors don’t want to consider using a Reverse loan to stay in their homes and self-fund their costs of living, they at least have this as an option to increase their cash flow.
Seniors need to get past their fears about the myths concerning the loan program and take advantage of the free HUD counseling that is available as of this post & find out how a Reverse loan can help them.
Once they have done some research from reliable and credible resources, will they be in the position to decide if using one is right for them.
NOCA: Obama Budget Slashes Jobs for Low Income Seniors
“Spending cuts included in the White House Budget released this week ”would drastically slash initiatives that empower older Americans to sustain their health and economic independence,” according to a statement from the National Council on Aging (NCOA).
The organization points to a proposed 45% cut in the Senior Community Service Employment Program, which it says is the only major jobs program targeted toward helping disadvantaged older adults who need to remain in or return to the workforce to avoid financial crisis.
The program serves the extremely low income population, and NCOA says the proposed budget cut would lead to the loss of 55,000 part-time jobs, as well as struggle among thousands within the senior demographic who need to remain employed.
“At a time when Democrats and Republicans are both talking about jobs, it just doesn’t make sense to cut the only jobs program for seniors,” said Jim Firman, president and CEO of NCOA. “The unemployment rate just went down in December as 36,000 new jobs were created and now the Administration wants to give them right back.”
Among other points in the budget aimed toward seniors, NCOA expressed disappointment in response to a proposed cut from the the Low Income Home Energy Assistance Program (LIHEAP) budget by almost half, and praise for continued funding for family caregivers under the Older Americans Act.”
NCOA is one resource for home equity and reverse mortgage counseling for seniors.
Written by Elizabeth Ecker
I know that this isn’t any news when you consider in light of the financial markets crashing in the last few years, but the Boomer generation will not have enough money to retire. They may not even have any money to fall back on as they age. The following article discusses the latest figures on this and mulls about the solution.
I feel that the Reverse loan will become a more and more attractive consideration for the Boomer generation. They are and will be less fearful of it and will consider it to be a logical solution to lack of cash flow as they age and will allow them to remain in their homes and independent.
Baby Boomers: 25% Have No Retirement Savings
February 16th, 2011 | by eecker Published in News, Retirement, Reverse Mortgage
“Retirement savings numbers are falling across age groups, says a November Harris Interactive poll.
The November survey, which included 2,151 adults from around the U.S. found 34% of Americans have no retirement savings and 27% have no personal savings.
For baby boomers, many of whom are quickly nearing retirement age, 25% of those surveyed have no savings for retirement. Of those who are 65 and older, the proportion was 22%.
In terms of portfolio mix, 70% of adults said they have not changed their portfolio mix in the last six months.
Eighteen percent report keeping their retirement investments mostly in stocks and mutual funds and 22% say they keep retirement funds in an equal mix of stocks/mutual funds and investments such as bonds and money market funds.
‘Current economic conditions seem to be driving somewhat less risky investment behavior by Gen Xers, which goes against the grain of traditional investment advice,’ said Harris Vice President of Financial Services Research, Barbara Bertner, of the findings. Those who are closer to retirement age, however, and do not have any savings, may need to seek alternative sources of income or delay retirement.”
Written by Elizabeth Ecker