The student loan debt impacts Boomers and beyond...

The Washington Post reports some interesting data regarding student loans and seniors. The article reports that new research from the Federal Reserve Bank of New York shows that Americans 60 and older still owe about $36 billion in student loans, providing a rare window into the dynamics of student debt. More than 10 percent of those loans are delinquent. As a result, consumer advocates say, it is not uncommon for Social Security checks to be garnished or for debt collectors to harass borrowers in their 80s over student loans that are decades old.

That even seniors remain saddled with student loans highlights what a growing chorus of lawmakers, economists and financial experts say has become a central conflict in the nation’s higher education system: The long-touted benefits of a college degree are being diluted by rising tuition rates and the longevity of debt.
Some of these older Americans are still grappling with their first wave of student loans, while others took on new debt when they returned to school later in life in hopes of becoming more competitive in the labor force. Many have co-signed for loans with their children or grandchildren to help them afford ballooning tuition.

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Why baby boomers are breaking up late in life

The following is an excerpt from a fascinating article written by Susan Gregory Thomas of the Wall Street Journal.

For the new generation of empty-nesters, divorce is increasingly common. Among people ages 50 and older, the divorce rate has doubled over the past two decades, according to new research by sociologists Susan Brown and I-Fen Lin of Bowling Green State University, whose paper, "The Gray Divorce Revolution," Prof. Brown will present at Ohio State University this April. The paper draws on data from the 1990 U.S. Vital Statistics Report and the 2009 American Community Survey, administered by the U.S. Census Bureau, which asked all respondents if they'd divorced in the past 12 months.

Though overall national divorce rates have declined since spiking in the 1980s, "gray divorce" has risen to its highest level on record, according to Prof. Brown. In 1990, only one in 10 people who got divorced was 50 or older; by 2009, the number was roughly one in four. More than 600,000 people ages 50 and older got divorced in 2009.

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Do you know what Medicare covers?

A significant number of retirees on Medicare lack a solid understanding of the health insurance program’s coverage and costs. Two out of three, for example, did not know if Medicare covers long-term care. This lack of knowledge results in unexpected financial surprises, according to research by the Bankers Life and Casualty Company Center for a Secure Retirement.

The study, Retirement Healthcare for Middle-Income Americans, focused on 400 pre-Medicare Baby Boomers (age 47 to 64) and 400 senior citizens (age 65 to 75) with an annual household income of between $25,000 and $75,000.

It found that one in three Medicare enrollees still did not know how much the program covers for doctor's visits (33 percent) or hospitalization (31 percent), which are the basic components of the program's health benefits.
The CSR study also found nearly half (49 percent) do not understand their benefits for vision care and hearing care, both which are services typically not covered by Medicare.
Long-term care was found to be the least understood and the greatest perceived threat to financial security for middle-income Americans. Two out of three (66 percent) Medicare recipients did not know if the program covers long-term care or overestimate its long-term care coverage.

Medicare has long been labeled as an entitlement program but middle-income Americans say it is not the free ride many assume it is. Two-thirds (65 percent) of those on Medicare report paying the same or more for healthcare now that they are on Medicare, resulting in unexpected financial surprises.
The most common financial surprises for Medicare enrollees is the cost of monthly Part B premiums with nearly half (44 percent) who report paying more than they had expected.
The unexpected financial surprises coupled with the uneasy economy have forced 78 percent of middle-income Americans on Medicare to take at least one action to reduce their healthcare expenses, including -
● switching to generic prescriptions (69 percent),
● holding off going to the doctor (22 percent),
● changing to a less expensive health plan (15 percent) or
● splitting pills to make their prescriptions last longer (12 percent).

"Financial fallout from healthcare related expenses can devastate savings and strip away the enjoyment of one's retirement years," said Chris Campbell, vice president of strategic marketing and business development for Bankers Life and Casualty Company, a national life and health insurer.

"Review your Medicare plan options annually and look into new health and prescription drug plans that better meet your needs. Also, consider purchasing additional healthcare insurance to address services not covered by Medicare and

Millions of Americans struggle to provide care from a distance.

As lifespans lengthen and the number of seniors rapidly grows, more Americans find themselves struggling to care for an ailing loved one from hundreds or thousands of miles away.

The following is an excellent article that appeared in The Washington Post. If you have aging parents it is a must read...

85 and older outpacing all other age groups in America

The 65+ senior population in the United States has outpaced the growth of all other age groups over the course of the last decade, and Census data released Wednesday indicates that the trend toward an aging America—including for the country’s “oldest old” population—is continuing.
The most recent Census data finds that there were 40.3 million people who were 65 years or older as of April 2010, up 15% from 35 million a decade earlier. As of April 2010, that population represented 13% of the overall population in the United States.

The aging of the baby boom bulge is “unprecedented,” said Carrie Werner, statistician, Age and Special Populations Branch, Population Division at the U.S. Census Bureau, in a call with members of the press Wednesday.
Of older Americans, the 85- to 94-year-old age group showed the greatest increase at near 30%.

Regionally, the Census shows that the South contains the greatest number of people 65 and older, but the percentage of those who are 65+ in the Northeast is greater than in any other region. Of 21 counties that saw their 65+ populations double over the past decade, five were located in Colorado, five in Georgia and five were in Texas. Additionally, the older population is more likely to live inside a metropolitan or micropolitan statistical area.

Confused by Medicare? Join the club.

Only 46% of seniors and baby boomers have a solid understanding of how Medicare works, and half of people over the age of 60 say they have a poor understanding of healthcare reform, a new report finds.

What's more, 39% of all seniors say their ability to navigate the numerous Medicare options is fair to poor, according to a survey of 1,500 seniors released by UnitedHealthcare and the National Council on Aging.

This lack of knowledge leaves seniors poised to make uninformed choices about their own healthcare, particularly low-income seniors, investigators say. According to the survey, 47% of limited-income seniors have heard of Medicare's Extra Help program, and only 13% have ever applied for help, through it. Fewer than 31% have heard of the Medicare Savings Program.

Depending on the state they live in, seniors who have trouble meeting Medicare premiums and deductibles can apply Medicare Extra Helpand the Medicare Savings Program for assistance with coverage.

Older Americans more comfortable with social networking

The number of adults using social media sites increased to 65%, according to a report from a new national survey by the Pew Research Center’s Internet & American Life Project.

It’s the first time more than 50% of all adults said they’re using the sites, and a dramatic increase from the first survey in 2005, which showed that just 8% of internet users or 5% of all adults said they used them.

While 61% of users aged 30 or older reported they use social networking site on a typical day, it remained relatively flat over the last year. Baby Boomers (ages 50-64) on the other hand reported that social networking site usage on a typical day grew a significant 60% (from 20% to 32%).

“The graying of social networking sites continues, but the oldest users are still far less likely to be making regular use of these tools,” said Mary Madden, Senior Research Specialist and co-author of the report. “While seniors are testing the waters, many Baby Boomers are beginning to make a trip to the social media pool part of their daily routine.”

Usage by those 65 and older grew more than any other group, with 33% of the cohort saying they use the sites, up from 26% last year.

In the past two years, social networking site use among internet users age 65 and older has grown 150%, from 13% in April 2009 to 33% in May 2011. Similarly, during this same time period, use by 50- to 64-year-old internet users doubled—from 25% to 51%.