ShAARP Session: Observations from AARP

Elizabeth Pope has a great piece on AARP.org on how to avoid very easily made mistakes when searching for work. As we already know, too many older Americans are out of work and desperately seeking employment during these tough times, but are also susceptible to making simple errors that can cost them a new job. A new study by the MetLife Mature Market Institute says so:

"'The harsh truth is, nobody cares about your experience,' says workplace expert David DeLong, author of the report 'Buddy, Can You Spare a Job?' 'In a performance-driven marketplace, you have to frame your experience and show how you can solve a company's problems. You can't expect the potential employer to figure that out.'

The study, released Oct. 13, also found that older job seekers routinely overestimate their computer skills, fail to seek extra training, and may feel ambivalent about returning to work in spite of financial need. If potential employers sense that ambivalence in an interview, it can kill any chances of a hire."

Read up and learn how to avoid this from happening!

Check out President Obama's speech to the financial industry on Tuesday, calling on them to support health care reform.

Yesterday, AARP Executive Vice President Nancy LeaMond made AARP's stance on age discrimination known: AARP fully and "vigorously" - according to the New York Times - backs the proposed legislation Protecting Older Workers Against Discrimination Act.

The legislation would overturn a four-month-old Supreme Court ruling that makes it difficult for workers to win age discrimination cases. In the case, Gross v. F.B.L. Financial Services, the court established a different burden of proof for age discrimination than that of discrimination based on race or gender. For age discrimination, the burden of proving that age was the deciding factor in a demotion or layoff now fell upon the employee instead of the employer.

And, with the growing unemployment rate of Americans over 50 that we've discussed, the decision came at the most inopportune time for those seniors trying to find work.

LeaMond said, "Unless Congress passes this bill, too many older workers who have been victims of arbitrary age discrimination will be denied their day in court."

Read AARP's press release on its endorsement of the bill.

Other big news of the day includes discussions of another stimulus (but don't call it a "stimulus"!) - and the unemployment rate is the big issue here too. With unemployment nearing double digits, Roll Call reports that House Democrats are trying to find a balance between a "bailout-weary public" and the "ranks of the jobless." Read more commentary from the Washington Post here.

While we know that the recession has been tough on older workers, some low-income people are reaching rock bottom, to the point where they are having to choose between food, medication and paying rent.

In fact, 46 percent of low-income older workers researched in a new study says they needed to find jobs so they can keep the roof over their head. A similar percentage said had to choose among the three: paying rent, purchasing food or purchasing medication. 46 percent. Not to mention nearly half of those surveyed said they had been looking for work for over a year.

I know it's a downer, but it's an issue that needs attention. Read the entire article here. Also check out Experience Works, who conducted the study and provides assistance to folks in need, as well as the AARP Foundation if you're in this situation. We shouldn't have to go hungry or get sicker to keep a roof over our heads.

You may have heard the term "public option" tossed around lately in the same breath as "health care reform.

If you're confused about what that means, be sure to check out and forward this valuable explanation from Nancy-Ann DeParle, White House Office of Health Reform, who appeared on AARP's Prime Time Radio this week.

We thought we'd fill you in on what AARP Executive Vice President, Nancy LeaMond, had to say in response to President Obama's speech today on Wall Street. You can read the full release here, but below is a snippet:

"Older Americans saw their retirement savings decimated by the economic crisis. AARP has long maintained that consumers must be armed with as much information as possible so that they can make sound financial decisions. In a world where individuals must plan for their own financial futures, information is imperative and greater protections are needed in the marketplace.

"AARP supports the creation of a Consumer Financial Protection Agency that would advocate on behalf of consumers' needs in the financial marketplace. It is important that individuals know they are buying products and getting financial advice from industry certified advisors. It is important that when individuals buy a product that has been recommended to them it is the right product for their needs.

"In a recent AARP survey, 95 percent of people 25 years and older believe in having investment services firms increase their transparency around the costs, risks and benefits of all financial products they offer. The same number of individuals believe companies that manage 401(k) plans should be required to clearly explain their fees on participant's annual statements. AARP has long advocated for transparency in 401(k) plans, having known that the majority of investors are unaware of the fees associated with their retirement savings."

As we find out today that the unemployment rate is the highest it's been in 26 years, AP also released a story about the fact that the poverty rate among older Americans could be nearly twice as high as the traditional 10 percent level. This is according to the National Academy of Science's new formula for calculating medical costs and geographic variations in the cost of living. AARP weighed in:

"'It's a hidden problem,' said Robin Talbert, president of the AARP Foundation, which provides job training and support to low-income seniors and is backing legislation that would adopt the NAS formula. 'There are still many millions of older people on the edge, who don't have what they need to get by.'"

Check out the whole piece, it's a must-read.

These days, everyone's talking about how to save money. But living simpler isn't just good for your wallet - it's good for the environment, too. You might not get your "flowers" at the dollar store like this guy, but we can all agree a little composting helps the landfills and the bank account.

Watch below:

I came across a great AP article about how older workers are struggling to find a job during the recession, and largely because of their age.

As there has been much evidence that companies discriminate based on a person's age, folks are going to great lengths to appear younger on paper and even in person - from omitting college graduation dates to actually taking botox injections. (Yes, really.) When a group of people are changing their lives and identity in such a way to avoid being discriminated against, that tells me there's a problem.

Check out the entire piece here, and also take a look at AARP's recent feature on how to look out for signs of bias or discriminatory questions in job interviews.

Sorry to be a downer guys, but this AARP Bulletin piece was too important not to highlight; while folks may think the economy may be on the up and up, the unemployment rate is still hitting older workers, and hard:

"The unemployment rate for workers age 55 or older hit an all-time high of 6.7 percent in May, a level 116 percent higher than at the start of the economic downturn in December 2007, according to an AARP analysis of the latest government employment data. The jobless rate for younger workers also grew precipitously over the same period--63 percent among those ages 16 to 24, and 110 percent for workers 25 to 54.

Among all workers, the unemployment rate climbed to 9.4 percent in May, more than double the 4.5 percent reported in December 2007. An estimated 15 million people are without work."

The article also highlights differences between younger and older workers' experience with unemployment (and employment) during the recession; it's definitely work checking out.

I am in love with this woman. Clara, 93-year old cook and great grandmother, not only shows us how food was cooked during the Great Depression, but tells us stories from her childhood during that time. It's a wonderful way to learn how to cook while listening to some intriguing tales. You can also check out her website here.

Cook on, Clara!

Know someone over 60 who is changing the world? They could win $100,000 for their passion. Nominate them for the Purpose Prize.

The Purpose Prize awards up to $100,000 to social innovators over 60 who are creating new ways to solve pressing social issues - from education to health care, poverty to global warming. Winners are finding purpose in an encore career and putting their experience to work for the greater good.

Click Here for stories on past winners and the nomination form.

Good luck!

Looks like sunny California isn't as sunny as it seems. New research conducted by UCLA Center for Health Policy Research found that 47% of California residents aged 65 and older are unable to pay for basic needs. The Mercury News reports:

The new data reveal far deeper poverty rates among seniors than was previously known. According to the decades-old standard of measuring poverty, only 9 to 10 percent of California seniors were considered poor, that is, earning less than $10,000 a year. Researchers note that amount is peanuts in high-cost California, failing to reflect the true cost of survival.

"For us, what's striking is that these numbers are not even taking into account the latest economic crisis," said co-author Susie Smith, a program director at the nonprofit Insight Center for Community Economic Development. She noted the report used 2007 census data. "We can only imagine when we update this information next year, what the numbers are going to look like."

While Obama's stimulus will provide temporary relief to SSI recipients who are blind, elderly or disabled, stronger initiatives needs to be taken in-state to track poverty rates among older people so appropriate local action can be taken. Assemblyman Jim Beall, D-San Jose, has introduced a new bill, the Elder Economic Dignity Act of 2009, which calls for California to track seniors in poverty, but by using new measurements. Believe it or not, officials currently use a 50-year old federal measure to decide who is above or below poverty.

"There are a lot of hungry seniors, a lot of seniors who have suffered economically over the last decade," said Beall, "So to use a measurement that goes back to the 1950s is clearly not appropriate."

Can't get much clearer than that! Sheesh. Let's cross our fingers that this bill gets picked up.

While we've been discussing the various ways in which the economic crisis has been effecting our retirement funds, our jobs, and our financial security, we haven't really delved into the way in which these times are effecting our emotions. In the other words, is the stress of it all getting the best of us?

AARP.org has a great piece, "Losing Control: Why Money Worries Are Keeping Us Up at Night", that discusses the ways in which the economy has our stress levels sky-high:

According to an American Psychological Association (APA) poll released in October, the miserable economy "significantly stressed" a whopping 80 percent of Americans in September, up from 66 percent in April. The survey compared the stress levels of more than 2,500 adults nationwide.

Among the respondents, women reportedly felt more anguish about declining economic conditions than men did--84 percent compared with 75 percent. And those over age 63 reported more stress (86 percent) than boomers ages 44 to 62 (83 percent) and those ages 18 to 29 (71 percent). However, when it came to day-to-day pocketbook issues, the youngest age group (83 percent) reported being more worried than boomers (79 percent) and those 63-plus (73 percent).

And of course, stress isn't good for the body, says Katherine Nordal, executive director for the APA's professional practice. "If Americans continue to experience these high levels of stress for prolonged periods of time, they're at risk for developing serious illnesses." And considering the high costs for health care, that is the last thing Americans - particularly older Americans - need right now.

So if you're feeling anxiety, it may be time to start thinking about ways to reduce the stress in your life. My best outlet is yoga - the perfect zen body and mind workout. How do you de-stress?

Looks like my pithy commentary about Starbucks woes got more than a few folks fired up! I, like a few of you who commented earlier, count myself among the lucky. I have another 30 years more in the workforce and am taking care of myself, not a family or even my parents...yet.

I think the most important point here, is that we're all feeling the pain...in our own ways. My mom feels it when she goes to fill up the gas tank. My father feels it when his company (where he's worked for 30 years) announces yet another round of lay-offs or buy-out opportunities.

From the comments posted, everyone's feeling the pinch everywhere you can possibly think of spending money. One reader, Peggy, left a note that struck a chord:

People having to move in with other family members or even strangers just to try to make ends meet. I for one just moved in with my daughter and grandkids hoping to be able to survive. Between the high cost of rent (even though the housing has gone down) and going to the grocrey store there goes everything. Forget trying to save a dime for retirement. Where oh where is this world going to.

So what now? If you could tell President-elect Obama to do one thing in his first 100 days...what would you tell him to do?

I went for my usual before work Starbucks run this morning and while I was standing in line I had a moment of pause. Do I really need a muffin? Aside from trying to be healthier, is it really worth the $1.65? Maybe I should get a grande instead of a venti?

Seems like these days every where I go I'm taking an extra moment to think about my purchases. I'm not planning my retirement, or even working toward buying a home right now...I'm just trying to make my dollar stretch a little further so I can see a movie this weekend!

Where are you feeling the pinch the most? Is it your utility bills? Or maybe at the grocery store (I feel your pain there!)? Share with us and I'll pull some of your stories up for highlights later today and tomorrow!

I found this Bulletin Today article really interesting, and one that applies to many more people than we think. The title, "Are Your Risking You Own Retirement If You Give Financial Help to an Adult Child?"

While some parents may think that they must always support their children no matter what, but this piece may give you some questions to think about. A couple of example:

• Was it a situation that your child couldn't control? Or are you paying to help him recover faster from financial carelessness? The most valuable help you could give toward becoming financially responsible may be not to help.
• Is it an investment that will pay off eventually in financial independence for your child? As they say: That's priceless.

And if you're a parent with a younger child, I find it incredibly important to teach your children about finance and how to manage your money, it could be an enormous tool for them as they grow up. Not to mention, the current state of our economy is all the more reason to do it!

Hardworking Americans watching the activities of the House Monday afternoon couldn't have liked what they saw. That's because the chamber rejected a bill aimed at stabilizing our financial markets and ensuring that credit would be available in the future to those who need it, want it, and have proven they deserve it.

Of course, the parameters within which we began to debate this rescue package were set askew from the very start. That's because it was introduced to the American people as a bill to manage "illiquid assets," a plan to help "Wall Street fat-cats," and, worst of all: A "bailout." While none of that is true, the attachment of that last word very nearly preordained the bill's outcome. It hardened opposition and prevented many from actually giving the bill a second (or, in some cases, first) look.

Now, I'll admit: The concept introduced by Secretary Paulson last week was not one I was comfortable with. But having been tapped by Leader Boehner to take up that plan, restructure it, and negotiate a good deal on behalf of the American people, I took a second look at the bill and started talking to people with a much broader understanding of the consequences of inaction. It didn't take long to arrive at the realization that our economy had a real problem on its hands.

The economic stability package the House is set to consider this week would achieve a couple of key objectives. For one, it'll allow the Treasury to bring some stability to the market by providing time for assets of currently uncertain value to reach their true level of valuation. When that happens, the American taxpayer will be first in line to collect that value - and if Treasury is able to achieve what experts believe it will, it may actually make a profit on those investments and help pay down our national debt.

In the meantime, the challenges we face are significant - and the window of action available to us is closing rapidly. I hope when the House brings this bill up for a second time this week, members will have benefited from taking a second, maybe third, look at this bill. And if they do, I'm confident we'll be able to pass it.

Republican Whip Roy Blunt

On Monday, despite the support of 60% of Democrats, the House of Representatives voted down a rescue package to save our country from an economic emergency. By the end of the day, $1.2 trillion of invested wealth had been wiped out.

It's easy to think of Wall Street as almost another country, far removed from our daily lives. But think of how much of that $1.2 trillion was in pension funds, retirement accounts, or 401(k)s. What happens on Wall Street affects all of us. Bill Novelli, the head of AARP, wrote that he's found 10 ways in which a financial crisis could harm families and retirees, from higher credit card interest rates, to more home foreclosures, to layoffs, to devastated pension funds. In fact, the value of equity investments held by pensions has declined 23% over the past year--that means that nearly $600 billion in retirement savings had evaporated. This morning brought the news that the economy lost 159,000 jobs last month, and more than three-quarters of a million jobs this year.

Worse could be on the way without strong action from Congress. Fortunately, we're bringing a new version of the rescue plan to the floor of the House today. The Senate passed that version on Wednesday, and we hope to do the same.

Both Democrats and Republicans have significantly improved the President's plan. We fought to ensure that taxpayers will be the first to profit if and when those assets rise again in value.

We restricted executive compensation, because CEOs whose recklessness helped bring on this crisis do not deserve taxpayer-subsidized golden parachutes.

Finally, we will help homeowners renegotiate their mortgages, to prevent a further flood of 2 million projected foreclosures that would devastate our communities.

On Wednesday, the Senate raised federal insurance of bank accounts from, $100,000 to $250,000, and also chose to add several tax cuts.

I disagree with those tax provisions, because they will be financed irresponsibly, by borrowing more money on top of our huge national debt.

But an emergency like this is the time to compromise. For the sake of families struggling to keep their homes, workers afraid of pink slips they did nothing to earn, and millions of seniors who deserve to keep the money they saved all their lives--the House must act today.

Majority Leader Steny Hoyer

Uh-oh. A new study shows that the bankruptcy rate is apparently sky-rocketing among older Americans. Via NPR:

The Consumer Bankruptcy Project examined a sampling of noncommercial bankruptcies filed between 1991 and 2007. Researchers found that the older the age group, the more bankruptcies there were. People 65 and up were more than twice as likely to file during that period, and the filing rate for those 75 and older more than quadrupled.

Harvard Law Professor Elizabeth Warren, one of the study's authors, said older Americans are hit by a one-two punch of having to keep working but facing medical problems, and the two are often intertwined.

People are entering retirement with debt, still struggling to pay off their mortgages. Between that and paying for medical treatment, it makes sense so many are going bankrupt! Not good.

The New York Times had a really good (yet upsetting) piece this weekend on the severe effects that the rising gas prices are beginning to have on older folks:

"Faced with soaring gasoline prices, agencies around the country that provide services to the elderly say they are having to cut back on programs like Meals on Wheels, transportation assistance and home care, especially in rural areas that depend on volunteers who provide their own gas. In a recent survey by the National Association of Area Agencies on Aging, more than half said they had already cut back on programs because of gas costs, and 90 percent said they expected to make cuts in the 2009 fiscal year."

Without Meals on Wheels, they would need transportation or home care. Without transportation, they need home care or Meals on Wheels. So without any of the three, where exactly does that leave them? And it doesn't end there - not only are these necessary programs being cut, but it's getting more and more difficult to get volunteers, who are increasingly harder to recruit as they cut back on their miles.

The article touches on a couple of personal stories from citizens of Michigan that really hits home; we can talk prices and numbers all we want, but humanizing the problem and seeing how this is affecting real Americans is what will resonate with people.

One ray of hope is that the agencies are currently urging Congress to account for fuel inflation in reimbursement rates and reinstate special increases for providers in rural areas - a program that actually expired in 2006. It looks like we need it now more than ever.

There was an interesting piece in the New York Times yesterday from Bob Herbert, talking about the Millennials. Aside from the political conversation, what’s so interesting to me is that Herbert discusses the bleak financial picture for this age group. Combine this with the new research out today from AARP on boomers and the stress they feel about their finances.

Herbert writes:
“The landscape is changing before our eyes. Younger voters struggling with the enormous costs of a college education, or trying to raise families in a bleak employment environment, or using their credit cards to cover everyday expenses like food or energy costs are not much interested in hearing that the government to which they pay taxes can do little or nothing to help them.”

The survey released yesterday found almost 25% of people ages 45-64 are prematurely taking money out of their 401(k)s and other investments. Younger boomers (ages 45-54), in particular, are doing things like postponing paying bills (27%) and even cutting back on medications (17%).

Seems like young and old alike are struggling today, even sometimes with the same challenges – meeting basic needs.

New survey out today that says boomers are feeling the pinch of the sluggish economy. 81% of Americans 45 plus say the economy is in fairly bad or very bad condition. Even more upsetting, one in ten is borrowing to pay everyday expenses and more than a third of them are helping their children pay bills.

For boomers (45-64) almost a quarter are prematurely taking money out of their 401(k)s and other investments. For those 65 plus, almost six out of 10 are having a harder time paying for food, gas and medicine.

This is tough news for the state of the economy. But it may be even tougher for politicians. Almost three-in-four (74%) say their elected officials are not doing enough to help people caught in the economic squeeze. Sounds like a warning to me.

We haven’t talked about the stimulus in awhile but since checks are in the mail starting today, I thought we'd start entertaining the possibilities. New summer clothes? A new set of golf clubs? Some bills?

Share your ideas in the comments section here or if you need inspiration, check out this great website and read what other people are doing. A notable post is from Bill and Jackie Nopar in Phoenix, who are spending their stimulus on their prescription drugs. How about you?