Dear Friends,

With the tax deadline rapidly approaching, everyone is thinking about money and finances. Market fluctuations, inflation, unexpected expenses all can disrupt your sense of health and wellbeing. In this issue, Editor Laurel Baer presents some surprising facts and figures and practical ideas that can help you attain greater financial security.

Thank you for your support of The Village Chicago. We look forward to seeing you at an upcoming event or program and join you in hoping for an early Spring!

Warm Regards,

Darcy L. Evon, CEO

Everyone deserves the safety and dignity of economic security. It determines the quality of life for all of us, but has an outsize impact on older adults, their children, and families. As of February 2022, 65% of Americans considered money a major source of stress, which can take a toll on mental and physical health.

Although the economy has rebounded, for many of us economic pressures continue. The share of people reporting difficulty paying regular expenses (things like groceries, rent, and healthcare) has nearly doubled over the last 12 months and now stands at 35% among those 65 and over. Many people are relying on debt to make ends meet.

Contrary to widely-held perceptions, millions of older adults hold high-risk debt. Before the pandemic, debt was growing among older households. And now about two in five seniors (43%) carry revolving credit-card debt, according to a survey from advocacy group The Senior Citizens League (TSCL). More than 4.5 million hold medical debt.

Surprisingly, Americans aged sixty-two and older are the fastest-growing demographic of student borrowers. Researcher Eleni Schirmer writes, “Americans are not aging out of their student loans—they are aging into them.” According to an AARP study, between 2004 and 2018, aggregate student-loan balances for borrowers over fifty increased by 512% (inflation adjusted). Defaulting on these loans is particularly dangerous for older adults as they risk garnishment of their social security benefits.

For years, the term "sandwich generation" referred to adults (mostly women) taking care of their aging parents and their minor children at the same time. But demographics and the economy have now created layers of caregiving extending one or two generations back or forward – what some call the "club sandwich generation." These are older adults in their 50s or 60s who are embedded between aging parents, their adult children, and possibly grandchildren.

This term can also refer to younger adults in their 30s or 40s who have children, elderly parents, and aging grandparents. AARP reports that one third of midlife adults (40-64) provide regular financial support to their parents and 42% expect to be doing so in the future.

Meanwhile, meeting the needs of older parents is not the only financial burden that midlife adults carry. Half of midlife adults (51%) are still providing money to their adult children age 25 or older for basic expenses. This can strain their own budgets and prevent them from building retirement savings for themselves.

According to the U.S. Census Bureau, nearly one-third of older adults (14 million) live by themselves. While most solo agers are content at present, enjoying independence (60%), satisfaction (50%), and happiness (38%), many are not prepared for the future. About three-quarters (77%) of solo agers report they’ve been unable to save enough money to afford care or assistance if needed in later life. Just half have an advance medical directive, and only 44% of those who have one have given it to their primary care doctor.

A new report from AARP finds that the rate of financial exploitation of older adults has more than doubled in the last three years. And these figures do not tell the whole story: only 1 in 44 older adult victims tell the authorities – especially if they have been victimized by someone they know and trust. According to the study, family members steal twice as much money as strangers. Kathy Stokes, AARP Director of Fraud Prevention says, "They need to understand that these crimes can happen to anyone, it's not their fault."

Village Board member Jacqueline Boland, Branch Manager of Village sponsor Wintrust, Delaware Place, says “The best way to protect against frauds and scams is to change your passwords often, and never, ever give personal information to someone you don’t know.”

Another strategy is to form a relationship with your family banker just as you would with a family doctor. Boland says, “We try to familiarize ourselves with as many customers as we can. This makes it easier for the bank to spot irregularities and keep your money safe.”

The most common financial scams targeting older people include government impersonation scams, sweepstakes scams, and robocall scams. One common robocall is the “Can you hear me?” scam. When the person says “yes,” the scammer then has a recorded voice signature to authorize unwanted charges on items like stolen credit cards.

Meet a long-married couple – William (67) and Joyce (65). When he was diagnosed with Alzheimer’s, she sold everything she could to pay for his care. But it still wasn’t enough. They had done everything right – saved for college, paid off their mortgage, donated to charities, and between the two of them, paid 70 years worth of taxes – many thousands of dollars. And now Joyce cannot retire and faces an uncertain future. They can’t afford the high costs of care on their own, yet their resources are too high for them to qualify for Medicaid and other government programs. For families like Joyce and William, there is no safety net.

In an update of their groundbreaking “Forgotten Middle” study, researchers from NORC at the University of Chicago find that even with home equity, 39% of middle-income seniors cannot pay for assisted living.

This issue along with affordable housing does have the attention of the U.S. Senate, which held a hearing last March on the "housing needs of America's seniors.” Testifying at this hearing, Harvard University's Dr. Jennifer Molinsky, Project Director, Housing an Aging Society Program, identified four urgent needs: 1) affordable rental housing; 2) accessibility – less than 4% of the US’s housing stock is wheelchair accessible; 3) supports and services delivered to middle-income older adults who cannot afford assisted living and 4) housing in livable neighborhoods.

As people move towards retirement, they are confronted with an overwhelming array of choices that can impact their life-long financial security. When to claim Social Security? Which Medicare plan to choose? What's an Advantage Plan? Is it too late to save for retirement? How much money will I need? Can I help my parents and my kids? Here are some resources and ideas that can help:

The Consumer Financial Protection Bureau has created an outstanding resource to help navigate some of the important decisions that can affect later-life financial security.

The National Council on Aging also has a well-designed, helpful planning tool.

The Village Chicago provides a comprehensive and compassionate network of resources to help you with estate and life planning, advance directives, and more. Our professional staff will help you manage transitions, provide you with referrals, and connect you to peer support groups.

Preparing the family to maximize everyone's financial security is a sensitive process. It requires patience and is not going to happen in a single conversation. Below is some guidance for this important and necessary step.

Genevieve Waterman, NCOA's Director of Economic Security says, “Understand that your credit card debt is not a character flaw. Most retirees aren’t using their charge cards for frivolous purchases. They’re using them out of necessity. Don’t be shy about asking for help. Many credit card companies are willing to work with you...” Here are some questions to ask:

Once you agree to any new terms, be sure to get them in writing

Read the fine print and try to have someone with expertise review contracts and agreements. For example, some long term care facilities will tell you that a caregiver, family member, or friend must pay the resident’s bill if the resident can’t afford to. This is generally illegal. Under the federal Nursing Home Reform Act, nursing homes can’t ask or require you to use your own money to pay for someone else’s nursing home bill, as a condition of that person’s admission to or continued stay in the nursing home.

Implementing a well thought out plan is the best way to have agency over your future life. In their research and reporting on solo aging, AARP cites Villages as a means to help older adults age successfully in their communities. And for making plans, Forbes provides these options for solo agers to consider as a way to preserve autonomy and dignity:

Consider a part-time job that can also bring social connection and sense of purpose. Some occupations are less impacted by ageism: free-lance writing; selling on Etsy, eBay or Amazon; and real estate. AARP has identified and ranked for satisfaction the 25 most common part-time jobs held by workers over age 55, based on data from compensation research firm Payscale.

From the same resource, AARP also identified eight popular part-time jobs that can be done from home.

Utilizing the equity in your home can go a long way to ease financial worries. Here are six ways to tap into your home's equity.

According to data from Yelp, reviewer mentions of “senior discounts” soared 36 percent from 2021 to 2022. And AARP says a growing number of its more 38 million members are taking advantage of benefits for gas, event tickets, and health care.

Many Chicagoans are unaware of the reduced fare permit anyone 65 or older can obtain from the Regional Transportation Authority. This includes CTA, Metra, and Pace.

“Tens of billions of dollars of benefits are going unused every year because older people don’t know about them, find applications too difficult to complete or feel conflicted about asking for help," said Josh Hodges, at the National Council on Aging

Millions of older adults are eligible for food assistance from the Supplemental Nutrition Assistance Program. Contrary to popular belief, the average monthly benefit for a single older adult is $105 and can be as much as $200 per month. More information here.

Get help from the State to pay for Medicare Parts A and B premiums through one of four Medicare Savings Programs. More information here. 

To see if you qualify for benefits, visit The National Council on Aging's easy to use and comprehensive Benefits Check-Up.

We asked Eric Mayer of Village sponsor Meike Wealth Management Group to provide his perspective on some of the financial issues of today. You can read his thoughtful insights here.

We will hold our Annual Members Meeting the evening of Tuesday June 20, at the Chicago History Museum. All neighbors and friends are invited to socialize and learn about what's new at The Village Chicago.

In early May, the Village will launch “Not In It Alone,” an 8-week program with the goal of improving participants’ understanding of how to maintain and expand social networks. Creating connections requires much more than just being around people. Building a strong internal foundation based on confidence, self-knowledge, and knowing how to use resources available both within and outside the Village will create a sustainable path towards complete and fulfilling friendships.

There will be an information session about this program on Zoom Wednesday, April 19 2:00 PM - 3:00 PM. The informational portion of this presentation will be recorded and emailed to all who register - you can sign up even if you cannot attend the session live. For more information and to register, click here.

Become an Ageless Innovator – and experience intergenerational co-mentoring - a relationship where both participants take on the role of mentor and mentee. This popular program connects successful innovators (working or not) across generations and across businesses to provide reciprocal, mutual learning.

This cohort will run from July - December 2023. Participants will commit to around 10 hours with their co-mentor partner over the course of this 6-month period. There is a $150 enrollment fee, and the application is free. For more information, and to apply, click here or, click here to find an FAQ sheet. The application deadline is Tuesday, April 18. Please email Laura at lauraj@chicagoinnovation.com if you have any questions.

The Village Chicago is excited to launch our new Community Outreach Program, partnering with local churches, synagogues, and community centers, to promote the services and programs of the Village and provide our members an opportunity to engage with others in the community. Our inaugural program will be a three-session series entitled “Who Will Take Care of Me?” in partnership with Third-Space Community Center starting on Wednesday, April 26 from 12:30 PM - 1:30 PM, and continuing the following two Wednesdays. This program will focus on all the relevant issues and planning needed for later life. We hope Village members will attend these programs and help promote The Village Chicago and take advantage of the opportunity to connect with other people in the community. Click here to read more and register for the first part in this series.

Learn more about the Village by calling us at 773.248.8700 or click here to download the membership application form.

David Baker, President 

Judith Gethner, Secretary

Dick Sullivan, Treasurer

Thomas C. Eley III, Vice President

Joan Goldstein,

Therese Meike,

Kathie Kolodgy, Member at Large

Karen Terry, Immediate Past President

Don Bell

Stefanie Clark

Charles G. Cooper

Carol Hitchie

Ira Kohlman

Angie Levenstein

Molly Matthias

Liz Metzger

Gail Moss

Carol Stein

Lois Stuckey

Vamse Kumar Subbiah

Jan Walters

Joyce Winnecke

Advisory Council

Neelum T. Aggarwal, MD

Robyn L. Golden, LCSW

Joanne G. Schwartzberg, MD

Mary Ann Smith

Darcy L. Evon

2502 North Clark Street, Chicago, Illinois 60614. 773.248.8700