shAARP Talk: Observations from AARP

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?