When I read this article, I knew it was something that all seniors should read and heed. Today there are many companies out there that are very willing to take seniors retirement funds, in the guise of helping them, to only cause them financial ruin in the end. Reading the fine print is so important for everyone to read, but none more than seniors. There are many seniors who are facing eviction from their homes, not getting proper nutrition, taking half of their daily medications in hopes of stretching them out because of the astronomical cost of drugs, and freezing in winter and dying of heat exhaustion in summer simply because they are trying to stretch the few dollars they are receiving in benefits. That’s when they are most vulnerable to these companies who tell them we can let you have an advance on your retirement funds to help you through this tough time, but fail to loudly and emphatically let them know when it comes to repaying those funds, the interest rate is going to be out of the roof! They are going to be in worse shape than ever.
There has to be a better way to help these seniors who are suffering and barely getting by every single day. I’m not sure what the answer is, but I do know borrowing on your retirement, and reverse mortgages are scary.
“To retirees, the offers can sound like the answer to every money worry: convert tomorrow’s pension checks into today’s hard cash.”
“But these offers, known as pension advances, are having devastating financial consequences for a growing number of older Americans, threatening their retirement savings and plunging them further into debt. The advances, federal and state authorities say, are not advances at all, but carefully disguised loans that require borrowers to sign over all or part of their monthly pension checks. They carry interest rates that are often many times higher than those on credit cards.”
Continue reading this article at NewYorkTimes.com. This article is part of a series that examines financial challenges and pitfalls faced by older Americans in lean economic times.