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What the proposed NYS budget means for affordable housing

Friday, January 20th, 2012

September 18, 2012 Courtesy of New York Housing Conference (thenyhc.org)

New York State 2012-13 Budget – Affordable Housing Highlights

Governor Andrew Cuomo has released his budget proposal for the coming fiscal year. The plan, which needs to be approved by the Legislature, closes an estimated $3.5 billion budget gap in the coming year with $2 billion in savings and $1.5 billion derived from the recently reworked tax code that increased levies on top earners.

The plan calls for total agency operations to decrease by four-tenths of a percent over the current fiscal year. As expected, the state will spend an additional 4 percent on education and Medicaid in the year ahead. The plan includes the creation of a new and less-generous pension tier for new employees that’s anticipated to save local governments $79 billion over the next 30 years. The retirement age would be raised, and employees would be required to make increased contributions. Cuomo also plans to tie a share of school funding to the adoption of a statewide teacher evaluation system.

Cuomo recommends $291.71 million for the Division of Housing and Community Renewal. This is a decrease of $22.35 million from the 2011-12 Budget. The decrease primarily reflects the elimination of funding for the Neighborhood and Rural Preservation Programs and a reduction in excess Federal authority for the Small Cities Community Development Block Grant.

The proposed Budget recommends a workforce of 759 full time equivalents (FTEs) for the Division. This is an increase of 14 FTEs from the 2011-12 Budget. The increase reflects the additional staff needed to support the new Tenant Protection Unit in the Office of Rent Administration.

The Governor proposed the elimination of the popular Neighborhood and Rural Preservation Companies programs, but he also called for expanded funding of the State Low-Income Housing Tax Credit program and the Rural Rental Assistance Program. All other Capital programs remained funded at last year’s levels. The affordable housing program highlights are below.

Local Assistance Funding for Affordable Housing:

The Executive Budget would eliminate funding for community based nonprofit organizations under the popular Neighborhood Preservation Companies program (NPCs) and Rural Preservation Companies program (RPCs). According to the plan, NPCs would lose $8.479 million and RPCs would lose $3.539 million “in order to preserve resources for other critical housing initiatives”. Last year the Governor proposed budget language that would have combined the two programs into one and significantly change their funding criteria, but the legislature rejected those changes and the final enacted 2011-12 budget increased funding above what the Governor had proposed.

The Executive Budget calls for an increase in funding for the Rural Rental Assistance Program (RRAP). RRAP provides State funded rental subsidies to approximately 4,700 low income occupants of rural housing projects partially financed by the US Department of Agriculture. The cost of the program increases annually due to federally approved rent increases. Additional funds are needed to continue the current number of rental units participating in the program.
The Executive Budget includes two initiatives that will assist homeowners and tenants. Within the Department of Financial Services (formerly the Department of Banking which was merged with the Department of Insurance), a new Foreclosure Relief Unit will be established to provide counseling and mediation services to help New Yorkers stay in their homes. Within DHCR or New York Homes and Community Renewal, a new Tenant Protection Unit will be established to proactively enforce landlord obligations and impose strict penalties for failure to comply with New York State’s rent laws.
The Executive Budget also calls for the suspension of the New York City Shelter Supplement Funding. The 2011-12 Budget included $15 million for a new initiative to prevent eviction and address homelessness in New York City. Because the initiative remains under development, additional funding will be suspended pending a determination of the efficacy of the program.

Capital Budget for Affordable Housing:

The Governor’s proposed budget calls for the expansion of the Low Income Housing Tax Credit Program. The Commissioner of the Division of Housing and Community Renewal would be authorized to allocate an additional $8 million annually in each of the next five years in aggregate credit awards to taxpayers who develop qualifying housing projects for low-income New Yorkers. Credits are given in equal installments for a ten-year period. The total amount of credits that would be awarded from this new authorization would be $400 million over a multiyear period. The Governor projects this will increase low income housing opportunities by 600 units annually.

The Executive Budget also calls for $32.2 million for the Low-Income Housing Trust Fund Program, which provides grants of up to $125,000 per unit to construct or renovate low-income apartment projects.
The plan includes $25 million for the Affordable Home Ownership Development Program, which provides grants of up to $40,000 per unit to construct or renovate homes for low and moderate- income families.
The Budget includes $6.4 million for the Public Housing Modernization Program, which subsidizes repairs at 74 State-supervised public housing projects across the State. A total of $400,000 will be reserved for capital activities aimed at reducing illegal drug activities at these projects.
The Governor asked for $7 million for the Homes for Working Families Program, which combines State funds with other available public and private sector moneys, Federal Low Income Tax Credit proceeds and non-State supported bond funds to construct affordable rental housing for low- and moderate-income households.
The plan calls for $400,000 for the Housing Opportunities for the Elderly Program (also known as RESTORE), which provides grants to low-income elderly homeowners for emergency home repairs.
The Budget includes $1 million for the Access to Home Program, which provides funding for home adaptations for individuals with disabilities to enable them to continue to live in their own residences and avoid institutional care; and $2.2 million for the New York Main Street Program, which provides assistance to communities for the revitalization of historic downtowns, mixed-use neighborhood commercial districts, and village centers.

NOTE: Last year’s Executive Budget had called for $12.8 million in funding for the Public Housing Modernization program – the same as the prior year. The program provides capital funding for rehabilitation of state public housing units. Under the final budget, half or $6.4 million was repurposed to other state housing programs. These funds would have gone to the New York City Housing Authority (NYCHA), but the City’s 20,000 state public housing units were federalized last year and are now eligible for federal capital funds. Last year, in place, the Housing Trust Fund received an additional $3.2 million, the New York Main Street program received $2.2 million and the Access to Home program received $1 million. The Executive Budget for next fiscal year maintains this same funding arrangement.

Seniors’ New Year’s Eve Ball

Sunday, January 1st, 2012

Kingston, December 31, 2011:

Thanks to the generosity of community supporters, Kingston NY area seniors danced the night away waiting for the 2012 ball to drop. The annual New Year’s Eve event was held at The Hillside Manor, a leading fine dining and events facility. Host Denni Demosthenes managed to get all guests to the table despite the many attendees who arrived up to an hour early! Over 350 seniors attended and enjoyed a full dinner and dessert, dancing to both live and DJ’d music, a champagne toast and, of course, New Year’s hats and noisemakers. The music makers mixed it up with the predictable old favorites and many contemporary hits that got everyone on the floor rocking.

For the third year, the main sponsors were Birchez Associates, the Bruderhof, and the Demonthenes family which owns The Hillside Manor. Other local purveyors also helped out. For example, Adams Fair Acres Farms donated beautifully prepared (and delicious) cookie platters for each table, Deisings Bakery provided the dinner rolls.

The smiles of the seniors were evident at the festively set tables in both the full rear ballroom and the restaurants front function room. Not to be outdone by the decor, many of the ladies were “dressed to the nines.” As one quipped, “Where else am I going to get the opportunity to get so dressed up. I love it!” Join the festivities via video (only a minute and a half in length) in which Birchez principals Steve and Judy Aaron welcome one and all.

Several political leaders stopped by to lend their support, most notably Congressman Maurice Hinchey who greeted many by name. Outgoing legislator Walter Frey and encumbent councilman Jimmy Bruno traveled from Saugerties. Majority Leader for the Kingston Common Council Tom Hoffay was in early attendance. Newly elected Alderperson Deb Brown, 9th ward Kingston, shared her thoughts on the video.

Seniors who attended and who would like to comment on the evening can contact us at birchezassociates@gmail.com. We’d love to share your thoughts as we enter 2012!

Top-Ten Senior Housing News Stories of 2011

Friday, December 30th, 2011

December 28, 2011: The senior housing and care industry has experienced its share of ups and downs throughout 2011, from favorable demographic growth and recovering occupancy rates to Medicare cuts and lack of new construction capital. Here’s a list of the most-read stories published on Senior Housing News this past year, in descending order of popularity.

#1. August 10: Shift Away From Nursing Home Care Reveals Challenges. In the past ten or so years, there’s been a national trend away from nursing home care in favor of other forms of care, including home health care or assisted living, and this trend coupled with Medicare reimbursement cuts pose challenges to the skilled nursing industry.

#2. June 12: Number of Senior Households to Increase 35% by 2020 says Report. A report from the Joint Center for Housing Studies discusses the impact the impending wave of baby boomers will have on the housing market as they approach retirement.

#3. October 26: HARP 2.0: Obama Administration’s Revised Policy to Further Aging In Place. The Obama Administration releases a second version of its Home Affordable Refinance Program with features that could help increase monthly cashflow, among other benefits, for qualifying seniors.

#4. May 2: Senior Housing Occupancy Rates Rise, Inventory Growth Hits Record Lows During Q1 2011. The senior housing market heads toward recovery as occupancy levels rise while inventory shrinks, shifting supply and demand fundamentals.

#5. January 19: U.S. Home Remodeling Industry Could See Bull Run Start in 2011. A Joint Center for Housing Studies report points toward lower household mobility as more people choose to remodel their homes rather than move and purchase new ones.

#6. September 15: What is Holding Back New Construction in Senior Housing?. Despite the hype about the growing numbers of retirement-age baby boomers, construction starts for senior housing remain low, due primarily to difficulty in financing projects.

#7. June 21: Criticism from Congress Forces HUD to Provide More Support for Senior Housing. Congress calls out HUD on the substantial backlog of Section 232 applicants in the HUD queue, prompting the department to hire extra staff to speed up the underwriting process.

#8. September 25: Nuns Default on High End Senior Living Facility, Biggest of the Year. A senior living facility financed by the Franciscan Sisters of Chicago defaults on its municipal bonds, with blame placed on the poor economic and housing environment.

#9. September 18: Medicare Cuts Will Cripple Home Health Agencies says Report. Proposed changes to the home health prospective payment system by the Centers for Medicaid and Medicare Services would lead to negative Medicare financial margins for more than half of all home health agencies, according to a report analyzing data from the proposal.

#10. August 23: CMS Medicare Cuts Drive Nursing Home Operators to Economic “Tipping Point”. Healthcare providers respond to the 11.1% cut to Medicare reimbursement rates, with some pointing to the industry’s already slim operating margins.

Written by Alyssa Gerace

AARP: Seniors’ Desire to Age in Place Faces Serious Challenges

Wednesday, December 21st, 2011

December 20, 2011

Unless there are significant changes in how communities are constructed and what services are offered, many older adults will find it increasingly difficult to live in their communities and may have to consider institutional care, says an AARP state survey on Aging in Place.

“The great majority of older adults have a strong desire to live in their own homes and communities,” says AARP. “However, unsupportive community design, unaffordable and inaccessible housing, and a lack of access to needed services can thwart this desire. Starting in 2011, growth of the older American population will accelerate, in part because the leading edge of the baby boomer generation will reach age 65.”

Policies for affordable housing, transportation, and land use (which can help older adults live closer to or within walking distance of the services they need) are the three major components AARP lists as ways states can enable aging in place.

One way to encourage aging in place is through issuing the Department of Housing and Urban Development’s low-income housing tax credits to develop housing near transit and in a livable community setting.

More than 100,000 affordable apartments are created or rehabbed through this program each year, and as states are required to create an allocation plan to establish the preferences and priorities for awarding the tax credits, it’s an opportunity to align the program with state goals and policies, says AARP.

“Nearly 90% of people over age 65 indicate they want to stay in their home as long as possible, and four of five in that age bracket believe their current home is where they will always live,” says AARP, which emphasized importance of accessible building standards that allow people to stay in their homes instead of having to spend money on retrofitting or relocating.

Other concepts that can aid aging in place include preserving existing affordable housing near transit; establishing state housing trust funds to work with programs that build and finance affordable housing, including senior housing; and utilizing efficient locations for communities that reduce the need for transportation.

It might be a good idea to design houses and communities that are accessible to all people, including older Americans and those with disabilities, and some states encourage developers of affordable housing to install features that make it easier for older adults to age in place, says AARP.

Examples of this include accessible entrance doors; entry-level hallways that are wide enough for mobility devices; ramped or beveled door thresholds; and accessible bathroom.

There are a number of models policymakers are considering that provide services and support to older residents who wish to remain in their homes instead of moving to assisted living or retirement centers, says AARP. One such model is a Naturally Occurring Retirement Center, housing complexes or neighborhoods “that were not planned specifically for older people, but have organically evolved to house a large population of older Americans.”

This model is being used in at least six states, including Massachusetts, Pennsylvania, and Missouri, to “better provide services and promote the ability to age in place.”

“Because of the profound demographic shift, state legislators will want to be aware of how the policies discussed in this report affect the ability of older adults to age in place as they consider introducing or amending similar legislation,” AARP concludes in its report. “On the whole, state adoption of policies and practices that facilitate aging in place is a prudent way to help ensure our communities are livable throughout the lifespan.”

Read the full report, “Aging in Place: A State Survey of Livability Policies and Practices.”

Written by Alyssa Gerace, Senior Housing News

Chambers Elementary Students Serenade Neighboring Seniors

Tuesday, December 20th, 2011

By KYLE WIND, Freeman staff, December 20, 2011

TOWN OF ULSTER — The Chambers Elementary School chorus on Monday spread some holiday cheer to its little corner of the world when students caroled and performed songs from their latest concert for residents of The Birches at Chambers and the Chambers Court senior communities.

Traditional holiday hymns 51 fourth- and fifth-grade students performed for their neighbors at the apartment complex, which is a short walk from the school, included “Joy to the World,” “The First Noel,” “Silent Night,” and “Hark the Herald Angels Sing.”

“It was wonderful,” said 80-year-old Fran Gillis, one of the 25 residents who watched the performance. “It means very much to me, and the kids are really great.” (To see the accompanying video, click here.

Chorus Director Mona Stovall said the carolling is part of a longstanding Chambers tradition she started in the late 1970s or early 1980s. Students have caroled in different places around town over the years ranging from the Golden Hill Health Care Center to Barnes & Noble.

Fifth-grader Kiera Gallo, who was excited for the chance to perform her solo in “The Holly and the Ivy,” described the visit as “a chance to spread cheer through The Birches and Chambers Court.”

“The children get great joy out of it, and so do I,” said Stovall, who said she began the tradition because she believes in community service.

Stovall said the experience often exposes students to elderly people with disabilities, and some of her former students went on to become special education teachers, perhaps being put on that path as the result of their early carolling rounds.

Going Strong at 100

Tuesday, December 6th, 2011

Recent projections on seniors living longer are certainly borne out at The Birches communities. Just last week members of the Residents Club for The Birches at Chambers and Chambers Court met to fete William McDonough on the occasion of his 100th birthday.

Bill was born November 23, 1911, and he considers himself “just an ordinary guy.” Bill didn’t know why people would make such a fuss. So he was surprised at the turnout that included residents, owners Steve and Judy Aaron, and staff of Birchez Associates and Rondout Properties. Or that we would want to interview him.

Earlier this year, Bill was honored as a centenarian by the Ulster County Office for the Aging. On the left, pictured before the luncheon began at the Hillside Manor, is Bill with his loyal helper Dorothea Schwenk, a resident of Chambers Court since 2004.

Since the County’s celebration, it’s been about six months of birthday acknowledgments. He brought one to the party this week, a birthday card from the President and First Lady (click on the photo so you can read it!). This was in addition to the number of declarations and proclamations from many local politicians and dignitaries including State Senator John Bonacic, Assemblymember Kevin Cahill, and Ulster County Executive Mike Hein.

Bill lived in the area for 25 years before moving to Chambers Court early in 2008. He values living in a safe senior community. Bill says he’s found a really nice place and values the new friends he’s made.

Bill served as a conductor for the New York Central Railroad for many years. His “route” was Grand Central to Buffalo on the 20th Century Limited. At the time it was the fastest train out there. Today Bill wonders why people want to go much faster. “When I think of some of these tiny cars speeding down the highway at 70 miles per hour, I don’t think it’s safe. Why is everyone in such a hurry?”

Bill is, at the moment, the only centenarian living at one of the Birches Communities but there are a number of residents close behind. Currently there are 43 residents aged 85 and over, with 14 of those 90 or over. In the picture to the right taken at the Residents’ celebration, Bill is pictured with Tess Glassman, a Birches at Chambers resident who turned 90 on November 20th. Between them is Steve Aaron, founder and managing member of Birchez Associates which developed and manages four senior communities in Ulster County.

Steve Aaron spoke about aging in place in independent living communities. “Bill’s a great example of why I believe so in the aging-in-place concept. It’s a better quality of life and much more economical for society than nursing homes or alternate level of care facilities.” Most units at The Birches Communities are handicapped ready if not fully ADA handicapped accessible. Home care and personal care aides from a number of local agencies can help provide assistance with daily living tasks which allows many seniors to spend their time “at home.”

Steve went on to say, “Annecdotally, we’re hearing that our residents, when they do have to be hospitalized or spend time in a rehab setting, are coming home sooner because the apartments’ features encourage that. They don’t have to wait for a ramp to be built or a bedroom created on the first floor or even the necessity to move from their home.”

– K.J. McIntyre, Director of Marketing, Birchez Associates

“We’re Not Ready”: More Bad News About Retirement

Tuesday, December 6th, 2011

Source: DailyFinance.com by Eamon Murphy posted 12/5/11

The idea of retirement in America is becoming increasingly far removed from the idyllic notion of our “golden years.” For many, it’s now just another source of worry, despair and resignation.

Last month, Ameriprise Financial and Wells Fargo each separately released ominous retirement surveys. The first reported that respondents aged 40 to 75 in the nation’s largest cities were significantly less confident this year than last about their ability to retire; increased feelings of retirement-related anxiety and depression were also reported.

The second report, based on a poll of 1,500 middle-class Americans, declared that when it comes to retirement, “80 is the new 65,” with 74% of middle-class respondents expecting to work past the traditional retirement age, and a quarter expecting to work until at least 80 to achieve a comfortable retirement. There was one small ray of hope in those the numbers — 35% said they expect to work past 65 because they want to, not because they’ll need to.

These days, though, even relatively sunny retirement news comes tinged with dark qualifications. A study of retiree attitudes produced by the Society of Actuaries, LIMRA and the International Foundation for Retirement Education found that although confidence was on the rise, financial planning is fundamentally inadequate: Only 45% of respondents believed that their retirement assets would need to last 20 years, the figure given by experts as the smart target. “It’s clear that retirees are hoping for the best or even taking an autopilot approach,” said one of the study’s authors.
Now, USA Today is reporting that “more Americans are finding themselves in their 50s and 60s with practically no money saved for retirement.” The last decade saw no growth in the stock market and included two bear-markets that devastated portfolios. Unemployment has been a scourge, preventing many from getting back on their feet after financial adversity. And the torpid real estate market has sucked value from people’s homes, undermining their use as financial safety nets.

Jogging headlong into this confluence of horrible economic conditions is the massive Baby Boom generation, setting up a potential nightmare scenario in which the ranks of the retired are swelled by fresh millions of Americans largely unable to pay their expenses.

That danger is real. According to a survey by the Employee Benefit Research Institute, 56% of workers say they have less than $25,000 in savings. This figure is deeply distressing, given how expensive retirement promises to be: Assuming 3% inflation and a 5% annual return from investments, a 65-year-old will need to have $1.1 million saved in order to net an income of $50,000 a year in inflation-adjusted dollars.
Those who simply have insufficient savings are hardly the worst off: 42% of those polled by the EBRI said that their current level of debt is a problem.

for Advice for the Far-From-Retirement Crowd see the full article

So what can younger people learn from the perilous state of those currently approaching retirement? America’s twentysomethings are clearly in need of advice: In a recent survey by the PNC Financial Services Group (PNC), only 23% rated themselves as totally independent, and just 18% expressed confidence that they’ll have enough money to live comfortably when it comes time to retire.

Doing 90

Tuesday, November 29th, 2011

November 29, 2011: The Report 90+ in the United States: 2006-2008 was issued this month by the American Consumer Survey (ACS), which is sponsored by the US Census Bureau. The ACS gathers data for the Census Bureau on an annual basis; this data is utilized by communities in allocating investments and services. Unfortunately, crunching the data and reformatting it into readable, intelligible reports takes time. Hence the appearance of three-year lag; in reality the 2010 census is cited in some instances.

Significant in the findings is that 90+ is the new 85+. Many demographic reports analyze age groupings such as 55 to 64, 65 to 74, and then 85+. This assumes a commonality in the group and/or smaller numbers that may not be reliable statistically. Yet the reality shown in this report is that there are some sharp distinctions, even in the five year segment breakdowns of 85 to 89, 90 to 94, and 95+. Certainly as our seniors of today age healthier than their predecessors this will morph expectations for these segments.

This segment is growing both in size and proportion of the older population. Between 1980 and 2010, the people aged 90 and over almost tripled to 1.9 million. Projections are that the 90+ segment will more than quadruple by 2050, in comparison to a doubling of the population 65 to 89.

New York currently ranks third (after California and Florida) in the sheer number of 90+ residents, but it’s not even in the top ten when comparing the percentage of 90+ versus the 65+ populations by state.

The report details racial and educational statistics, and considering the report covers those born in 1918, this is an educated group. Perhaps not a surprise that women aged 90+ outnumber 90+ men nearly 3 to 1.

The economic numbers are certainly of interest in the affordable housing field:

Social Security represents almost half of total personal income for the 90+ (47.9%)
The poverty rate for the 90+ is higher than that for those aged 65-89
16.5% of women and 9.6% of men aged 90 and older were in poverty 2006-2008

When one considers this in the perspective that many baby boomers are ill prepared for retirement, and certainly for living some 20 years longer than expected, the economic forecast for this segment is of concern. Further compounding this is that the report addresses the 2006-2008 period, during which the source of 29.8% of 90+ income was ”other” (which would include directly held investments), and 18.3% came from retirement accounts. Given the financial upheaval from the end of that period to the present would indicate that the 2011-2012 period would mean the 90+ segment might well be relying on Social Security for more than half of their income.

Difficulty doing errands alone and mobility-related limitations are the two most common types of disability for the 90+ (disability in this context is defined as a substantial limitation in a major life activity). Appropriate transportation modalities, proximity of services and handicapped accessibility will be key features of senior housing to come.

Aging in place will play an important role for the 90+ segment. While the percent of people with disabilities increases sharply with aging (see below), the nature of the disability(ies) may determine whether the individual needs an institutionalized setting or not. Certainly advances in senior housing facilities and services offer alternatives to more expensive nursing homes or even alternative level of care facilities.

Ages 85-89 80.4% report one or more disabilities
Ages 90-94 82.7%
Ages 95+ 91.2

To see the full American Community Survey Report, 90+ in the United States: 2006-2008, authored by Wan He and Mark N. Munchrath, click here.

- K.J. McIntyre

Stylin’ Seniors

Tuesday, November 29th, 2011

November 28, 2011 – As Baby Boomers take center stage, much is written on their spending patterns, use of technology, travel ideas, and more. But one of the most encouraging and inspiring takes comes from stylist Ari Seth Cohen in his blog Advanced Style, which proffers “Proof from the wise and silver haired set that personal style advances with age”. Ari’s subjects, male and female, are over 50 — and fabulous! He certainly demonstrates that age is no barrier to style.

To the right, meet Rose, age 100, as she poses for Ari’s blog.

Ari’s book, Advanced Style, is on pre-order with Amazon with an April 2012 publication date (that’s a shame because I would have loved to gift it this holiday season). As with his blog, the book promises insights from his subjects, an interview with a 91 year old subject, and delicious photos (many apparently candid, on-the-streets of New York photos).

Meanwhile, Ari’s blog also offers videos and enchanting tidbits on matching vintage items, and playing with different costumes and styles. Hats are plentiful and I predict an influx of designer canes!

I’ve seen many of our senior residents at the Birches communities, where the average age is in the 70s, styled and ready for their close up. Whether they are dressed for the fitness studio, the movie theater, or on their way out the door, many show great flair.

The old perception that the elderly dressed in dusters and wasted away their waning years in front of the TV just doesn’t play with today’s seniors. Fair warning, we’ll be featuring some of our own Stylin’ Seniors in future blogs.

Another of Ari’s elegant subjects is Ruth, shown to the left, who is also 100 years old.

-- K.J. McIntyre

80 is the New 65 for Retiring Americans

Thursday, November 17th, 2011

Source: AOL by David Schepp posted 11/16/11

The idea of retiring at age 65 is no longer a reality to many Americans, with many anticipating that they will have to work another 15 years – to age 80 — before they can afford to quit work, a new survey shows. Further, the poll of 1,500 middle-class Americans showed that 76 percent of respondents felt it was more important to save a specific amount for retirement, compared to 20 percent who said it was more important to plan to retire at a specific age, regardless of savings. The survey, conducted in August and September by Wells Fargo & Co., defined “middle class” as households having income or assets of $25,000 to $100,000.

“The fact that the vast majority of middle-class Americans expect to work well past the traditional retirement age has significant societal and economic implications,” says Joe Ready, director of Wells Fargo Institutional Retirement and Trust, in a statement released with the study. Among the questions raised, Ready says, are whether people will be physically and mentally able to work later in life and the way in which postponed retirements will affect employment opportunities for youth. (For accompanying video, click here. )

Working Out Of Necessity

Results from the survey showed that three-fourths of respondents said they expect to work in the retirement years. Of those, 39 percent said they will do so out of necessity, while 35 percent said they will work because they want to. Among respondents aged 40 to 59, more than half (54 percent) said they will need to work past retirement age, compared to 34 percent of those 25 to 39. Likewise, just 25 percent of those aged 40 and 59 say they will work past 65 because they “want to,” compared to 45 percent of 25- to 39-year-olds. The poll further showed that of those Americans who plan to work in the retirement period, nearly half (47 percent) expect to do similar work, while 42 percent expect to be employed in a position that requires less responsibility.

Factors contributing to workers’ belief they will need to delay retirement, Wells Fargo says, include the reduction of the number of private employers offering traditional pension plans. In recent decades, many companies abandoned so-called defined-benefit plans in favor of 401(k) and other types of defined-contribution plans, which are tied to the performance of the stock market. But the volatility of stock prices in recent years has left many Americans feeling the stock market is no place to put hard-earned retirement funds. The poll showed that 68 percent of those aged 25 to 75 have little confidence in the stock market as a good place to invest for retirement.

When asked how they would invest $5,000 for retirement, half of respondents said they would invest in a mutual fund or stocks, while 45 percent said they would purchase a certificate of deposit from a bank. The survey also showed that anticipated cutbacks in Social Security and Medicare benefits have many U.S. workers rethinking how much help they can expect in support from government programs.

Scaled-Down Expectations

Perhaps unsurprisingly, the survey showed that younger Americans are more willing to accept cuts to Social Security and Medicare programs to help reduce the ballooning U.S. debt. About half of those polled who were aged 25 to 49 are willing to accept future cuts, compared to 28 percent of 50- to 59-year-olds, and 19 percent of those aged 60 to 75.

Along with changing attitudes toward work in retirement, Americans are also revisiting their expectations for support from social-welfare programs, says Laurie Nordquist, director of Wells Fargo Institutional Retirement and Trust, in a statement. “As as we look for solutions to strengthen the country and address the debt load of our nation,” she says, “there is a willingness among younger Americans to put traditional support systems on the table for reform.”

The poll also showed that middle-class Americans are underestimating the amount of out-of-pocket health-care costs they are likely to incur in retirement, with respondents planning to spend a median $60,000. But, notes Wells Fargo, a 2010 study from the Center for Retirement Research at Boston College estimated the total cost of uninsured health-care costs for a typical married couple aged 65 is nearly $200,000.