Tag Archives for AARP Rhode Island

Protecting Retirement Savings Should Be a Priority

Published on March 7, 2015 in the Pawtucket Times

Last month, President Obama used his presidential bully pulpit to publicly support a proposed U.S. Department of Labor (DOL) rule, endorsed by a coalition of aging, labor and consumer groups, that reportedly limits conflicts of interest, increases accountability, and strengthens protection for Americans receiving retirement investment advice.

At the February 23 press conference held at the Washington, D.C.-based AARP headquarters, attended by Obama, Save Our Retirement Coalition members and lawmakers, the President called for the issuing of the proposed rule, still awaiting Office of Management and Budget (OMB) review and final DOL action. The updating of DOL rules and requirements would require higher standards for financial advisors, requiring them to act solely in their client’s best interest when giving financial advice, said Obama.

The Save Our Retirement Coalition says that the final rule is “needed to help protect Americans’ hard earned retirement savings from advisers who recommend investments based on their own interest – such as those that pay generous commissions – not because they serve their clients’ best interest.”

Existing Rules Outdated

In his remarks at AARP, Obama called the rules governing retirement investments written over 40 years ago “outdated,” filled with “legal loopholes,” and just “fine print,” needing an overhaul.  The existing rules governing retirement investments were written “at a time when most workers with a retirement plan had traditional pensions, and IRAs were brand new, and 401ks didn’t even exist,” the President explained.

At the event, Secretary of Labor Thomas E. Perez., claimed that his agency has substantially reached out to “a wide range of stakeholders,” to craft the proposed rule that was sent to OMB.  “The input we have received to date has been invaluable, but we’re not even close to being done. We have a lot more listening to do, and once the Notice of Proposed Rule Making is published in the coming months, I look forward to hearing from as many stakeholders as I can. We’re going to get this right, because the strength of the middle class depends on a secure retirement,” he says.

“We know the people we represent have worked hard to save for retirement, and we believe that they deserve to have financial advisers who work just as hard to protect what they’ve earned,” said AARP CEO Jo Ann Jenkins, in her remarks.  AARP is a member of the Save Our Retirement Coalition.

“AARP, a major consumer advocate, has been fought for this consumer regulation for over five years to ensure that Americans of all ages get the best financial advice when planning for their retirement,” says Jenkins. “Recently AARP also found that 9 out of 10 employers who sponsor retirement savings plans support holding advice to such a ‘best interest’ standard,” she adds. .

“In today’s world, it’s hard enough to save for retirement and achieve your financial goals” added Jenkins. “We don’t need to make it more difficult by allowing some on Wall Street to take advantage of hard-working Americans. Bad financial advice is just wrong,” she says.

According to Save Our Retirement Coalition, “the need for the proposed rule was made starkly apparent in a White House report released showing that conflicts of interest are costing middle class families and billions of dollars annually. The 30 page report, released last month, details the current regulatory environment for financial planners, providing evidence on the negative financial impact of conflicted professional investment advice draining older American’s retirement saving accounts.

The White House report, issued by Council of Economic Advisors, cited evidence pulled from the literature, showing that “conflicted advice reduces investment returns by roughly 1 percentage point for savers receiving that advice” The report also found that “a retiree who receives conflicted advice when rolling over a 401 (k) balance to an IRA at retirement will lose an estimated 12 percent of the value of his or her savings if drawn down over 30 years.  For those receiving conflicted advice “takes withdrawals at the rate possible absent conflicted advice, his or her savings would run out more than 5 years earlier.”

Holding Wall Street Accountable

“Many investment professionals do what’s right,” said AARP Rhode Island State Director Kathleen Connell. ”But loopholes in the law are allowing some on Wall Street  to take advantage of hard-working Americans, recommending investments with higher fees, riskier investments, and lower returns to make even higher profits for themselves. Last year alone, hidden fees, unfair risk and bad investment advice robbed Americans of as much as $17 billion,” she states.

“AARP agrees that financial professionals of all types serve a valuable role in building the wealth and security of the investing public,” added Connell. “We simply want to achieve some consistency in the standards across the industry. Here is Rhode Island, many retirees are very concerned about their investment savings and they deserve protection. Our position is that retirement accounts managed by a broker should receive the same protections as regular investment accounts held with an advisor,” she says.

“Rhode Islanders have who have worked hard for their money and deserve a new standard that holds Wall Street genuinely accountable for helping them choose the best investments for themselves, their family and their future,” she adds.

Security Trade Group Concern

             The Securities Industry and Financial Markets Association (SIFMA), a trade group representing securities firms, banks and asset management companies, is waiting to see the details of the proposed rule.  SIFMA CEO Kenneth E. Bentsen, Jr., stated: “While we cannot comment on a proposal we have not yet seen, we have ongoing concerns that the DOL regulation could adversely affect retirement savers, particularly middle class workers.  The new regulation could limit investor choice, cause inconsistencies as different regulators would apply different standards to the same regulatory accounts, prohibit guidance, and raise the costs of savings for retirement.”

But, both Obama and the Save Our Retirement Coalition strongly disagree with SIFMA’s assessment of the potential impact of DOL’s proposed rule, which has not yet been issued and is ultimately subject to change after the public comment period.

A large majority of financial planners put their clients first when giving them investment advice. But, as you know a few bad apples can truly spoil the barrel.  If trade groups representing financial planners fail to act to rein in financial planners who give conflicted advice to pad their pockets, than federal regulations can quickly do that job by applying “simple, commonsense standards.”

It makes practical and political sense to me.

Here is a linked to President Obama’s comments at the AARP Press Conference: http://www.whitehouse.gov/photos-and-video/video/2015/02/23/president-obama-speaks-aarp.

Herb Weiss, LRI ’12 is a Pawtucket-based writer who covers aging, health care and medical issues.  He can be reached at hweissri@aol.com . Or call 401/ 742-5372.

Local Filmmaker Documents Innovative Hunger Project in Maine

Published in Pawtucket Times, January 3, 2015

Last July, long-time Rhode Island resident, John Martin, who filmed the 2013 web-based hunger documentary, “Hungry in the West End,” packed his bags and equipment to head off to rural Northern Maine. Martin, an AARP award-winning AARP filmmaker and AARP’s Communication’s Director, began filming a new short film to put a spotlight on the work of Dale Flewelling, to feed Maine’s hungry. The life-long resident of Houlton in Aroostook County, who founded the of Friends of Aroostock, a nonprofit agency, has worked for nearly seven years to provide fresh locally grown produce and emergency winter fire wood to low-income families throughout Aroostook County.

Maine AARP’s commissioned short film on Flewelling’s efforts, titled “With Friends Like These: Dale Flewelling & Friends of Aroostook,” profiles the retired businessman’s “passionate and charming crusade” to enlist friends, volunteers, leaders and businesses to help seniors in Aroostook and Washington Counties suffering daily from food insecurity.

After watching Martin’s short film (just over 11 minutes), it gives a simple message. By bringing together the community and working together we can put nutritious, fresh food on the tables of the nation’s needy. Creative ways of growing food, like at Aroostock’s farm, should be organized on farms throughout Rhode Island and the nation.

Yes, in hard times getting your hands dirty (by harvesting crops) rather than complaining may well be a simple solution to reducing hunger in America.

Stars Fall in Alignment

Looking back, Martin says, “Some things seem meant to be. There was a last-minute cancellation by a videographer who had been hired to shoot the film for our Maine State Office. In a bind, they turned to me, based on my, “Hungry in the West End,” he says.

Martin, a former Providence Journal reporter, says, “This was a dream assignment. The location was gorgeous. Overnight rained stopped right on cue. People were doing things more than talking about things, which is a lot better way of telling a story. I chose to follow Dale around during part of the day rather than sit him down for an interview. He is not big on sitting and, so, that may have been the best decision I made. And at the end of the day he insisted on loading me up with green beans, Maine potatoes dug that very afternoon, tomatoes and zucchini. How good is that?”

According to Martin, first impression of the town of Houlton was that of a community hit hard by the nation’s recent recession. “Last summer, no one was talking much about an economic recovery there,” he remembers. After an overnight stay at a trucker’s motel, Martin began his filming at Aroostook Farm at 5:30 a.m. “I was pretty shocked to see volunteers already at work picking string beans,” he says.

Martin notes that Flewelling is as charming in real life as he comes across in the film, observing that his work has added tremendous meaning to his retirement.

“It only occurred to me recently that I thought I was making a hunger film, but as far as AARP is concerned, it also is a great example of Life Reimagined – AARP’s resource for making life decisions, adapting to change and developing next-chapter careers,” says Martin, adding that Flewelling “personifies the benefits of identifying your “what next” opportunity and pursuing a dream.”
“He is so connected to the earth and growing food. You have to give him credit for finding a great place to focus his energy in his life after running a business,” states Marin.

“Also, for me the day at Aroostook revealed the great need the community faces,” Martin added. “In contrast to the urban poverty that frames the issue in the West End of Providence, here you find people who lived well for generations in rural Maine who are increasingly unable to meet their monthly expenses based on little or no personal savings and sometimes minimal Social Security benefits”.

But either way, these seniors are worried about outliving their resources, he says.

We Can Be Part of the Solution

“My conclusion after spending six months reporting in the West End [in Providence] was that government can do only so much; non-profits are helping as best they; but volunteers can make a huge difference. I hope that both Hungry in the West End and With Friends Like These sparks recognition that when you volunteer to help feed struggling seniors, the feeling you get back is a tremendous reward. We all can be part of the solution. And younger people, especially, need to pay it forward because some day they may be the ones needing help,” says Martin.

Dale Flewelling, executive director of the Friends of Aroostook, says “Generally speaking, a young organization such as Friends of Aroostook has to make a decision whether to utilize financial resources to build capacity or spend money on publicity and awareness. Like many, if not most, we choose to build capacity. To have John travel all the way from Rhode Island to Northern Maine and committing many hours and his talents to produce this film is almost overwhelming.“

“Words can’t describe the benefit this film brings to our programs. Friends of Aroostook and the hungry we serve own a heartfelt thank you to John, AARP Maine State Director Lori Parham and everyone at AARP who address the hunger needs within our less fortunate population, adds Flewelling, noting that this problem “is not going away. “But as you can see, people can make a big difference. So the film means a lot.”

Getting People Involved

“One of the results of Dale’s work at Aroostook Farm is that people see him in action out in the fields and better understand both the importance of the work and Dale’s ability to get people involved,” says Lori Parham, State Director, AARP Maine:

Parham says actually seeing people work the farm land makes it far “less intimidating” for those who might be reluctant to seek out or ask for help. “As the film shows, the neediest seniors are actually helping others – they pick a bag for themselves, and then pick a bag for someone else. We knew that capturing these images and sentiments in a short video would be a great way to illustrate Dale’s efforts to relieve hunger in Maine,” she says..

“John knows a lot about senior hunger and he is a great visual storyteller. We hope that the film inspires people from across Maine and other parts of the country to join in similar movements to engage entire communities and create a shared resource that, quite literally, can grow from season to season, notes Parham.

To watch, “With Friends Like These,” go to http://states.aarp.org/category/rhode-island/.

Herb Weiss, LRI ’12, is a Pawtucket-based writer covering Aging, Health Care and Medical issues. He can be reached at hweissri@aol.com.

New Report Warns of Nation’s Housing Not Meeting Needs of Older Adults

Published in Pawtucket Times, on September 12, 2014

In the coming decades, America’s aging population is expected to skyrocket, but the nation is not ready to confront the housing needs of those age 50 and over, warns a new report released last week by the Harvard Joint Center for Housing Studies and AARP Foundation. While it is expected that the number of adults in the U.S. aged 50 and over is expected to grow to 133 million by 2030, an increase of more than 70 percent since 2000, housing that is affordable, physically accessible, well-located, and coordinated with supports and services is in too short supply, says the Harvard report released on Sept. 2.

According to Harvard Report, Housing America’s Older Adults – Meeting the Needs of An Aging Population, housing stock is critical to quality of life for people of all ages, but especially for aging baby boomers and seniors.  High housing costs currently force a third of adults 50 and over—including 37 percent of those 80 and over—to pay more than 30 percent of their income for homes that may or may not fit their needs, forcing them to cut back on food, health care, and, for those 50-64, retirement savings.

 Challenges and Issues

The Harvard report also noted that much of the nation’s housing stock lacks basic accessibility features (such as no-step entries, extra-wide doorways and lever-style door and faucet handles, and insufficient lighting, preventing older persons with disabilities from living safely and comfortably at home. Moreover, walkways, bike lanes, buses, subways, and other public transportation are not available to a majority of older adults who live in suburban and rural locations.  They become isolated from family and friends without the ability to drive.   Finally, disconnects between housing programs and the health care system put many older adults with disabilities or long-term care needs at risk of premature, costly institutionalization and readmission to hospitals.

“Recognizing the implications of this profound demographic shift and taking immediate steps to address these issues is vital to our national standard of living,” says Chris Herbert, acting managing director of the Harvard Joint Center for Housing Studies. “While it is ultimately up to individuals and their families to plan for future housing needs, it is also incumbent upon policy makers at all levels of government to see that affordable, appropriate housing, as well as supports for long-term aging in the community, are available for older adults across the income spectrum.”

*Tackling the Challenges

“What jumped out at us from this study is that when it comes to where people want to live as they age, the ‘field of view,’ if you will, has very quickly widened. People today are thinking about this at a younger age with expectations that are vastly different from their parents’ assumptions,” observes AARP State Director Kathleen Connell. “Most people are worried that retirement savings will not cover their long-term needs. They want housing that is affordable, physically accessible and well-located. But they also realize that, eventually, they’ll need coordination with supports and services. The challenges have never been more evident.

“There are many ways to approach this, with choosing healthier lifestyles very high on the list. But the report makes it clear that where we live matters,” Connell continued. “Growing older in car-dependent suburban and rural locations is a real problem because pedestrian infrastructure is generally unfriendly if you have stopped driving. That leads to isolation, which can severely compound just about any negative that comes with aging. And if access to the health care system is restricted, many older adults – especially those with disabilities – are candidates for more costly premature institutionalization. We need to pre-empt that cycle by building communities where people can better age in place

The Harvard report notes that the older population in the U.S. will continue to exponentially grow with the large number of younger baby boomers who are now in their 50s. With lower incomes, wealth, homeownership rates, and more debt than generations before them, members of this large age group may be unable to cover the costs of appropriate housing or long-term care in their retirement years.

Indeed, while a majority of people over 45 would like to stay in their current residences as long as possible, estimates indicate that 70 percent of those who reach the age of 65 will eventually need some form of long-term care. In this regard, older homeowners are in a better position than older renters when they retire. The typical homeowner age 65 and over has enough wealth to cover the costs of in-home assistance for nearly nine years or assisted living for 6 and half years. The typical renter, however, can only afford two months of these supports.

“As Americans age, the need for safe and affordable housing options becomes even more critical,” says Lisa Marsh Ryerson, President of the AARP Foundation. “High housing costs, aging homes, and costly repairs can greatly impact those with limited incomes. The goal in our support of this report is to address the most critical needs of these households and it is AARP Foundation’s aim to provide the tools and resources to help them meet these needs now and in the future.”

Making Your Community Livable

Even with this alarming report that calls on policy makers to confront the looming housing crisis for the nation’s old, a large majority of aging boomers have not reached the age where their housing needs become a serious problem.  For those choosing to age in place in their community they can plan ahead to improve their future housing options.

“AARP is committed to this because we know it’s what most people want. That’s why we encourage residents to participate in how streets, roads, sidewalks, crosswalks are designed as well as make their thoughts known on decisions regarding access to recreational space.”

On Sept. 19, AARP Rhode Island will host an Active Living Workshop at Kirkbrae Country Club in Lincoln. Nationally recognized expert Dan Burden will lead the event, which will focus on proposed improvements along New River Road in Lincoln – specifically in the village of Manville. Representatives of the RI Department of Transportation will be on hand to discuss the project and hear suggestions to make this neighborhood more walkable. Mr. Burden will conduct a sidewalks and streets survey, followed by a discussion. The one day event, involving both a classroom style session and a community walking audit, is free and includes breakfast and lunch. You can sign up by logging on to www. aarp.org/ri. Or, you can call Deborah Miller at 401-248-2654.

According to AARP Rhode Island, the goals of this bring together residents, government and elected officials to promote a shared language.

Groups invited to participate include Lincoln town officials, Lincoln Senior Services, the Bicycle Coalition, the Lincoln Police Department, the Blackstone Valley Tourism Council, GrowSmart, the RI Department of Health and the Northern RI Chamber of Commerce.

To access Housing America’s Older Adults – Meeting the Needs of An Aging Population, go to http://www.jchs.harvard.edu/housing-americas-older-adults-embargoed.

Herb Weiss, LRI ’12, is a Pawtucket-based writer covering aging, health care and medical issues.  He can be reached at hweissri@aol.com.