proven programs for earning, managing, and protecting ... · manage: low income older adults...

Soaring into the Future Seeking New Horizons in Aging and Philanthropy 2015 #GIAging2015

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Keys to Economic Security Proven Programs for Earning,

Managing, and Protecting Retirement Income

Ellen A. Bruce, GIA

Emily Allen, AARP Foundation Roslyn A. Quarto, ESOP, Cleveland

Valerie Soroka, U.S. AoA



Improving Economic Security

•  Increase income – While working – After retirement

•  Reduce expenses –  Individual planning – Government supports

•  Protect resources



Elder Economic Security Standard Index – Elder Individual 2014

Expenses Owner w/o Mortgage

Renter Owner w/ Mortgage

Housing $482 $811 $1,338

Food $252 $252 $252

Transporta8on $250 $250 $250

Health Care $410 $410 $410

Miscellaneous $279 $279 $279

Total per Month $1,673 $2,002 $2,529

Total per Year $20,076 $24,024 $30,348



Approaches to Improving Economic Security

Local State Na7onal

Services Benefit Counseling Pension Counseling Social Security Hotline

Policy Property tax credits Medicaid Expansion Social Security Reform

Research Local issues State issues Na8onal issues

Educa8on Job training Investor fraud preven8on ad campaign

Webinars



AARP Foundation

Insights and Strategies on Increasing Economic Security Older Adults

Emily Allen Senior Vice President

AARP Foundation

October 2, 2015



AARP Foundation Vision and Mission

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Foundation Four Focus Areas

In America, 10 million people age 50+ face the threat of hunger.

Low income people age 50+ experience the nega8ve consequences of isola8on, including poor health outcomes, limited access to resources, and loneliness.

Over 20 million low income people age 50+ do not have adequate financial resources and are at risk of not mee8ng one or more of their basic needs.

Income

Isolation

At least 13 million households headed by low-‐income, 50+ people live in unaffordable and/or inadequate housing.

Housing

Hunger



AARP Foundation Impact Areas

Pave the way to stable income

Improve access to safe and affordable housing

Tackle hunger proactively

Reconnect Those in Isolation to Families and Community

We focus on four priorities where immediate action and legal advocacy will have the greatest impact:



AARP Foundation’s Income Security Goal: Develop and deliver solutions that help vulnerable 50+ secure opportunities to generate income and secure, protect and maintain financials assets. Theory of Change: •  If 50+ individuals able to generate a steady source of income through

employment and; •  If they able to develop the financial behaviors and capability that help them

manage their income effectively and; •  If communities building the requisite and sustained capacity to help older

adults take advantage of economic opportunities to secure their short- and long-term financial future…..

…THEN low income older adults will be more financial stable and secure



AARP Foundation’s Income Security Framework

Our work focuses on the best ways to help struggling people 50+ earn, manage, and protect their incomes and improve their economic stability. Strategic Objectives: EARN: Low income older adults obtain stable and adequate income through employment, access to income supports, and/or other income generation opportunities. MANAGE: Low income older adults increase their financial stability through access to innovative and relevant products, services, and education. PROTECT: Low income older adults maintain their income by learning how to recognize, refuse and report financial fraud, scams and abuse.



Senior Financial Empowerment Initiative

Helping older adults age in place with greater

economic security

Roslyn A. Quarto Executive Director

Empowering and Strengthening Ohio’s People



Who We Are

Empowering and Strengthening Ohio’s People is a non-profit HUD-approved housing and financial counseling agency.

Our Mission

To foster the economic empowerment of disenfranchised communities through outreach, education and advocacy.



Programs Available for Older Adults

•  Financial Education Workshops

•  Financial Coaching/Counseling

•  Foreclosure Prevention

•  Senior Property Tax Loan Program

•  Benefits Assessments/Ohio Benefit Bank Site

•  Free Tax Preparation & Filing Service



Robust Suite of Fully Integrated Services

Senior Workshops

Financial Capability Counseling

Income Tax Prep

Ohio Benefits Bank

Property Tax Loan

Foreclosure Counseling

My Budget Coach



Senior Financial Education Workshops

Six Modules •  Elder Financial Exploitation •  Preparing for the Unexpected •  Goal Setting •  Budgeting •  Understanding Credit & Debt •  Building Savings

Senior Workshops



Financial Capability Counseling

Financial Counseling/Coaching

•  Counseling vs. Coaching

- Crisis vs. Goal Setting - Counselor Directed vs. Client

Directed

•  Coaches work to move clients forward to reach goals

•  Counselors explore root cause of problems

and then direct clients on how to confront problems



My Budget Coach

My Budget Coach

•  12 monthly sessions, either virtually or in-person

•  Seizing upon best practices for both financial wellness education and financial coaching

•  Sessions are designed to provide clients with a fundamental understanding of household finance best practices along with practical experience in budgeting techniques.

•  12-month program develops skills and imparts knowledge necessary for a lifetime of financial stability.



Foreclosure Counseling

•  ESOP helped 35,000 families avoid foreclosure

•  In Cuyahoga County, more than 40% of clients we assisted were 55+

•  More than 41% of senior homeowners in Cleveland remain underwater

•  Nationally, 1/3 of adults over 50 pay excessive shares of income for housing [56% in Cuyahoga County]

•  Nationally, 70% of homeowners 50-64 and 40% of homeowners 65+ are still paying a mortgage

Foreclosure Prevention Counseling



Property Tax Loan

•  Cuyahoga County the epi-center of foreclosure crisis

•  7,000+ seniors at risk of foreclosure due to unpaid property taxes

•  Our “Commitment to Action” through the Clinton Global Initiative

•  Private/Public Partnership

•  55+

•  $500-$6,500

•  10% interest over 3 years

•  Mandatory Financial Coaching

Senior Property Tax Loan Program



Ohio Benefit Bank

The Ohio Benefit Bank [OBB] Certified Counselors

$1,276,485,620

$258,369,407

$76,227,280

$65,146,199

$272,255,780

$289,983,396.59

SNAP Benefits Not Accessed

EITC Funds Not Accessed

Federal Children's Medicaid Benefits Not Accessed Federal CHIP Benefits Not Accessed Medicare Part D Benefits Not Accessed Value of Pell Grants Not Accessed

•  The OBB is a program of the Ohio Association of Foodbanks, Ohio’s largest charitable response to hunger.

•  In Ohio, more than $2.24 billion in

support programs and tax credits go unclaimed each year.

•  ESOP Counselors assist clients in

identifying & applying for Federal, State and Local Benefits



Income Tax Prep

•  Year-round free VITA tax site

•  Capitalizing on refunds/teachable moment •  Gateway into other services •  Advocacy related to extending EITC for seniors

still working

Free Income Tax Preparation



First Year Community Impact

•  100+ Financial Education Workshops •  1400+ Senior Attendees

•  250+ Seniors Engaged in Counseling/Coaching

•  300+ Benefits Bank Checkups

•  20+ Senior Property Tax Loans > $100,000

•  600+ Tax Returns Prepared for Clients 55+



Program Goals and Outcomes

•  Creating a budget

•  Spending within a budget

•  Increase in benefits and entitlements

•  Increase in awareness and avoidance of financial exploitation

•  Decrease in payday loans and increase access to traditional financial

products

•  10% increase in savings

•  10% decrease in unsecured debt

•  30 point increase in credit score



Collaboration

DIVISION OF SENIOR AND ADULT SERVICES



U.S. ADMINISTRATION ON AGING’S

PENSION COUNSELING & INFORMATION PROGRAM

Helping America’s workers, retirees and their families get the retirement bene9its they’ve earned.



The Landscape

Ø Over 700,000 plans

Ø Confusing matrix of laws

Ø Private representation hard to find

Ø No formal govt. responsibility to assist participants



AoA's Pension Counseling & Information Program

Promotes protection of the rights, financial security,

and independence of older individuals Ø  1992: Congress directs AoA to fund demonstrations

Ø  2000: Permanent program under Title II, OAA

Ø  2003: Regional projects serve multi-state area

Ø  Today: - 6 projects, covering 30 states* - Natl. Pension Assis. Resource Ctr.

Ø  Funding: FY 2015: $1,513,772 (@ $188,000 for each regional project and $385,772 for resource center) *Illinois jointly funded by The Retirement Research Foundation & AoA



Program Description

Common Pension Problems:

Ø  “Lost” Pensions »  Relocation »  Change of Company Name »  Mergers & Acquisitions »  Out of business

Ø Benefit Miscalculations & Denials Ø Spousal Issues

»  Divorce »  Survivorship

What the Projects Do:

Ø Answer questions re complicated laws Ø  Track down benefits from past employers Ø Correct pension miscalculations Ø Appeal benefit denials Ø  Target outreach to female, minority, limited-English speaking, rural, and

low-income retirees



Program Outcomes

Ø 9 : 1 return on federal investment Ø $206 million in client benefits Ø Over 52,000 clients served directly; many others indirectly

Ø Peace of mind



Program Evaluation & Lessons Learned

Consistency across projects

Ø Data collection & reporting

Ø Regional (multi-state) project structure

Ø Key project staff licensed to practice law

Ø Institutionalized training

Ø Local technical assistance network

Ø Uniform messaging platform



Valerie Soroka Program Officer •  Office of Elder Justice & Adult Protective Services •  Admin. on Aging/Admin. for Community Living •  U.S. Dept. of Health & Human Services •  Washington, D.C. 20001

•  202-357-3531 •  [email protected]

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