AARP “Deeply Dismayed” Over Obama Budget Proposal

Following the release of the White House budget proposal for fiscal year 2014, AARP says it is “dismayed” at the cuts it includes that will be harmful to the aging population. 

Pointing to Social Security and Medicare cuts, AARP says it is concerned about the retirement savings and mechanisms retirees rely upon and urges the president to reconsider.

“As the President and Congress work to address the budget challenges facing our nation, AARP believes it is time for responsible solutions, not harmful proposals that would hurt older Americans and threaten the retirement security of future generations,” said AARP Executive Vice President Nancy LeaMond in a statement. “AARP is deeply dismayed that President Obama would propose cutting the benefits of current and future Social Security recipients, including children, widows, veterans and people with disabilities, to reduce the deficit. Social Security is a self-financed program that doesn’t contribute to the deficit, so it shouldn’t be cut to reduce it.”

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The budget, as proposed, includes a chained consumer price index that would reduce Social Security benefits “significantly” over the next decade, AARP says, a measure that is opposed strongly by the organization and by 84% of voters aged 50 and older. 

“As retirement security grows ever more elusive for Americans of all ages, Medicare and Social Security have become increasingly important for today’s retirees and their kids and grandkids,” LeaMond says. “AARP believes it is wrong for the President to try to balance the budget by weakening the programs that provide the very foundation of retirement security for current and future generations.”

Written by Elizabeth Ecker

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  • While AARP continues to undermine the wisdom of seniors getting HECMs, they seem to be waking up to the reality that government has limited resources. How long will it take for AARP to wake up to financial common sense which says that seniors need a financial plan which provides for greater liquidity flexibility not just at the end of retirement but throughout retirement?

    When properly employed, an adjustable rate HECM is not just a growing loan but rather a tool to delay otherwise unavoidable financial loss and to participate in potential gains and true additional income which would otherwise not be available without increasing debt yet with only overall marginally increased risk — as described by Harold Evensky and Dr. Salter.

  • I still do not believe they have done sufficient research on their own of those folks that have a reverse mortgage already in place. If AARP recognized the real life benefit of this product the may find more of their members grateful for the endorsement, it certainly doesn’t keep them from advertising on the right hand side of their home page for AARP Dating, AARP/New York Life Term Life, or an AARP Chase credit card. What could POSSIBLY go wrong with seniors dating when once you get your new credit card with that big line of credit?

    They don’t seem to have any issues with those things.

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