Older Americans are more vulnerable now than they have ever been, in light of the down economy, a representative for SEC Commissioner Luis Aguilar told attendees of the American Retirement Summit last week.
Citing a personal story shared by actor Mickey Rooney of investment exploitation, the representative noted the increasing instance of financial fraud with older targets.
“We all know that Mickey Rooney’s story of exploitation is one many investors experience,” he said. “Commissioner Aguilar is growing increasingly concerned about issues arising from financial exploitation of the elderly. It is clearly on the rise. It has been estimated that at least one in five Americans over the age of 65—that’s 7.3 million seniors—has been victimized by financial fraud. It is the responsibility of regulators to represent the vulnerable by writing and enforcing rules that reduce the opportunity for fraud to take place.”
Some of the factors influencing the trend: market volatility, plummeting values of retirement assets, high unemployment and job loss, a shift away from employer-based retirement plans, a greater percentage of seniors and cognitive declines.
“Even with the Dow looking a bit more positive these days, a retirement crisis still looms on the horizon,” he said. “Moreover, this retirement crisis is taking on a new urgency for reasons that are not receiving the attention they require.”
The SEC urged attention to the issue not only on the state level, but on the federal level as well.
Written by Elizabeth Ecker