Latest news with #guaranteedincome
Associated Press
24-06-2025
- Health
- Associated Press
These LA community college students are getting paid to go to school
In November last year, Los Angeles City College student Brenda Olazava got an email notifying her that she had been selected to participate in a guaranteed income pilot program. She would receive 12 monthly stipends of $1,000 to spend however she wanted. 'We'll see if this is true or not,' she thought. The pilot program for the Los Angeles Community College District, Building Outstanding Opportunities for Students to Thrive, or BOOST, provides monthly payments for one year to eligible community college students majoring in a health care field. Olazava's skepticism disappeared when she received her first monthly stipend in time for Thanksgiving 2024. Throughout California, dozens of guaranteed income programs provide participants with monthly stipends. But only a few reach college students. Even fewer reach community college students. In Santa Clara, a pilot program provides a $1,200 monthly stipend for two years to unhoused students between the ages of 16 and 20. In another pilot program, some former foster youth, formerly incarcerated people and CalWorks recipients at 10 California community colleges started receiving monthly guaranteed income in March 2024 through Hire UP. BOOST is unique because it specifically targets health care students as part of an effort to address California's chronic nursing shortage. California community colleges offer academic pathways to jobs in health care, but many of the nursing programs in the Los Angeles Community College District have some of the highest attrition rates in the state. The program also provides students stipends during the critical period after they complete their degrees and transition into employment. Guaranteed income helps student focus on psychology program Though Olazava was skeptical when she heard about the program, she figured, 'Why not apply?' The money has made a difference. Olazava now pays her bills on time, takes her kids out to eat and buys her son the clothes and shoes he needs. She has more time to study, has As in her courses and is on the honor roll. Olazava found her passion taking care of elderly adults during the pandemic. She was fascinated by how the body and mind function following accidents or as individuals age. But after a work injury in 2021 sidelined her, she realized she needed to find a new career. Her therapist suggested going back to school. Olazava signed up for a psychology class at Los Angeles City College, even though the semester had already started. She loved the class and decided to keep going. She signed up for a full course load and took classes in sociology, psychology and humanities. A decade earlier, Olazava had earned her associate degree in criminal justice as a single parent to an infant and a toddler. Now she returned to school full time as a single parent to two teenagers. She worked on campus as a student employee and drove for Uber Eats or Lyft at night. She was managing, but it was a struggle. 'Just being a single mom, it's just overwhelming financial needs all the time,' she said. Since her first payment in November, Olazava has saved some money for when she transfers to Cal State Los Angeles in the fall. The extra $1,000 a month gives her more time to study and be with her kids. She has less financial stress and can splurge on ice cream for her kids or a late-night snack. She graduated on June 10 with four associate degrees in psychology, sociology, social and behavioral science and liberal arts. She will transfer to Cal State Los Angeles to study psychology and plans to pursue a master's degree in social work. When Olazava started college for a second time at age 37, her kids were skeptical that she'd persevere. 'But I always told my kids, it doesn't matter how old you are, as long as you want to do something, go ahead and do it,' she said. Guaranteed income recipients plan to enter health fields The pilot includes 251 students at East Los Angeles College, Los Angeles Southwest College, Los Angeles City College, and Los Angeles Trade-Tech College in the Los Angeles Community College District, which serves about 250,000 students. About half the students in the community college district report incomes at or below poverty level, according to Kelly King, chief advancement officer for the Los Angeles Community College District and executive director of the district's foundation, which manages the BOOST program. The monthly stipend is not tied to enrolled units or grades and students choose how they spend the money, whether on diapers, groceries, car repairs or to pay down debt. While few guaranteed income programs target community college students, the need is there. More than two-thirds of nearly 67,000 California community college students surveyed struggle to meet their basic needs, according to the 2023 RealCollege Survey. BOOST's program is studying two groups: the 251 health care and psychology students who receive the monthly income, and a control group of 370 who don't receive the stipend. The monthly amount is not intended to fully cover the high living costs in L.A. County, but to help participants ease financial stressors. Participants in other community guaranteed income studies who received a $1,000 monthly stipend reported lower stress levels, fewer skipped meals, and the ability to plan ahead, lower their debt, or upgrade their housing, King said. Researchers at the University of Pennsylvania cite one other guaranteed income pilot program for community college students in Santa Fe. They found that giving students $400 a month for one year led to positive outcomes. At the end of the pilot program, more recipients were employed, felt they could weather a $400 emergency, spent more time with their children, and were able to save more. Most of the participants said the money went to running the household and buying food, according to the report. Higher education researchers and policy makers often assess the value of guaranteed income in terms of progress toward economic mobility. But the Santa Fe study revealed more intangible benefits. Participants described pursuing higher education for reasons distinct from job training, said Amy Castro, lead researcher on the BOOST study. 'These students were saying, 'I am pursuing higher education to be somebody who has a degree, and I want to learn because it has value for me and dignity to me, and it's the way that I want to honor my family,'' she said. Decoupling the guaranteed basic income from academic requirements allows researchers to continue to observe effects of guaranteed income on community college students through periods when they may not be enrolled due to life events, scheduling challenges or academic recesses. '(This) provides a really fascinating window into the actual lives and progression of our students,' King said. The BOOST pilot provides researchers a first-of-its-kind, randomized, controlled trial in higher education at this scale, said King. Because the participants share a common goal – employment in a health field – researchers can study the impact of guaranteed income on progress toward a specific outcome. Costs of attendance for community college students can exceed costs for the University of California or California State University, especially in high cost of living regions like L.A. County, King said. California community college students receive less state aid than UC and Cal State students. And across the state, the costs of college have risen exponentially over the last three decades. Private donors provided the nearly $4 million needed to run the pilot program. The Broad Foundation gave nearly $3.2 million and the L.A. Community College Foundation contributed nearly $870,000 from its Young Adults Forward Fund. Initial BOOST success guides disaster relief grants in LA Informed by the research on and success of guaranteed income pilot programs, the Los Angeles Community College Foundation will offer ongoing financial payments to a small group of students who lost housing for a long period of time or experienced significant hardship due to the January 2025 wildfires. The hope is to help students recover from the losses incurred by the wildfires and to continue on their educational path. The grants provide $1,000 a month for 12 months to 24 eligible students. The foundation raised more than $3 million in private donations for disaster relief, which will fund the monthly payments to Los Angeles students as well as go to disaster relief programs at Glendale and Pasadena community colleges, according to King. The BOOST pilot program brings together strategies to help students stay on track with their studies and a year of guaranteed monthly income. King said the foundation applied this formula to long-term disaster funding, to ask how disaster response grants could accomplish two types of goals: supporting students in their education through the disaster and making sure their future educational or career training goals weren't disrupted. Next, King plans to create a guide for other colleges to start similar programs. She also aims to secure funds for future pilot guaranteed income programs for health care students, as well as for students raising children while attending community college. ___ This story was originally published by CalMatters and distributed through a partnership with The Associated Press.
CBS News
24-06-2025
- Business
- CBS News
How much would a $400,000 annuity pay monthly if bought at 70?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Before purchasing a $400,000 annuity, it's important to have a clear idea of what your monthly payments could be. Getty Images It's mid-2025, and there are a lot of uncertainties looming in today's economic landscape, from inflation to stock market volatility and questions about the sustainability of the Social Security program. As a result, many retirees are looking for ways to add stability to their retirement plans via guaranteed income options that aren't tied to the stock market. And, one way to do that is through an annuity, which is an insurance product that helps bridge the gap between retirees' savings and their monthly expenses. The appeal of an annuity is straightforward: With this type of retirement tool, you convert a lump sum into guaranteed monthly income that lasts as long as you live. And, with interest rates still relatively high now, annuities are even more attractive. Elevated rates mean stronger payouts for new buyers, especially those purchasing immediate annuities that start paying right away. So, for retirees in their 70s who want to lock in income without the stress of managing investments, this could be a prime opportunity. But just how much income can you expect from an annuity? Let's break down what a $400,000 annuity could pay monthly if you buy one at age 70 — and what factors could cause your check to be bigger or smaller. Find out how to add an annuity to your retirement plan today. How much will a $400,000 annuity pay monthly if bought at age 70? The monthly payout from a $400,000 immediate annuity purchased at age 70 varies significantly based on several key factors, with your gender being one of the most impactful. Here's what a single premium immediate annuity purchased at age 70 today could pay each month, based on an analysis of Cannex data by Male, age 70: around $2,923 per month around $2,923 per month Female, age 70: around $2,763 per month around $2,763 per month Joint life (both spouses age 70): around $2,449 per month Here's why each figure differs — and why the numbers could look different depending on your personal situation: Gender and life expectancy Women statistically live longer than men, so annuity companies pay them a slightly lower monthly amount for the same premium because the payments are likely to stretch over additional years. Learn more about your annuity options online now. Single vs. joint life annuity Single life annuities pay out until the original annuitant passes away. Joint life annuities, on the other hand, continue payments to a surviving spouse (or designated beneficiary) after one partner dies. Because of that added longevity protection, monthly checks are lower, though they continue as long as at least one person is alive. Interest rate environment Annuity payouts are deeply influenced by current interest rates because the money you hand over is invested by the insurer in bonds and other fixed-income securities. Today's elevated interest rates generally translate into stronger payouts for new annuities. If rates tighten further or come down, though, the payouts on future annuity purchases could be less generous. Type of annuity Not all annuities are created equal. A fixed immediate annuity, which the above estimates assume, delivers a guaranteed monthly check for life but doesn't account for inflation. Inflation‑adjusted annuities keep pace with the Consumer Price Index but start at a lower initial payout for the same premium. Then there are variable immediate annuities, where your payout fluctuates based on how the underlying investments perform — which is riskier, but with upside potential. Optional riders and guarantees Want the option to pass a death benefit to heirs? Or a cost of living rider? Something that guarantees a minimum payment even if the annuity's underlying investments stumble? Those extra features, or "riders," will reduce your monthly income because the insurer is assuming more risk. In contrast, a straight, no-frills life annuity yields the highest payout for the money. How to get the highest monthly payout from your annuity If your goal is to maximize the monthly income from your $400,000 annuity, there are a few strategic decisions that can make a big difference, including: Opt for a single-life annuity If you don't need to provide for a spouse or dependents after your death, this option offers the most value. Adding joint coverage or death benefits can give you peace of mind, but it will reduce your monthly check. Lock in when interest rates are favorable Buying when rates are elevated can lock in stronger payments for life. If rates drop in the future, new buyers could see smaller monthly checks for the same premium. If you're unsure about the direction of rates, a split annuity strategy (buying in phases) could help you hedge your timing. Skip the optional riders While tempting, add-ons like inflation adjustments, period certain guarantees, and death benefits often reduce your monthly income substantially. If you're focused strictly on maximizing income, it's often best to go with the most basic version of an immediate annuity, which is just pure monthly income for life. The bottom line A $400,000 annuity purchased at age 70 can provide meaningful monthly income ranging from approximately $2,400 to $2,900, depending on your specific circumstances and the options you choose. But while this guaranteed income stream provides valuable protection against market volatility and the possibility of outliving your savings, the reality is that annuities aren't right for everyone. Once you purchase an immediate annuity, your $400,000 is no longer accessible as a lump sum, and you can't change your mind if your circumstances shift. So, make sure to do your homework, weigh the benefits and possible downsides and ensure an annuity makes sense for your retirement portfolio before buying in.
Fast Company
12-05-2025
- Business
- Fast Company
How 2 guaranteed income programs have taken hold in Minnesota
Artists and cultural workers are falling through the cracks of our economy at a time when their work has never been more needed in society. Their ability to exist and thrive is threatened by the cost of living and housing affordability crisis, our increasingly precarious economy, and cuts to grant funding under the new administration. Many exist in a structural grey area between independent gig workers and small business owners. Their work is often episodic, making them easily left out of safety net programs like unemployment and healthcare—this is especially true for artists from historically marginalized communities. To address these challenges, we need new systems and solutions to increase economic equity and ensure that our communities have access to creativity and culture. One such area we've seen a wave of interest and experimentation around the potential of in recent years is guaranteed income. What is guaranteed income? It refers to unrestricted recurring cash payments that people can use however they see fit to cover their basic needs and reach their personal and professional goals. Guaranteed income programs can be focused geographically on specific cities, on specific communities—for example young people, entrepreneurs, or parents—or a mix of both. At Springboard for the Arts, we've been delivering one of the longest running guaranteed income programs in the country since 2021, focusing on both urban and rural artists and creative workers in Minnesota. Our 100 recipients to date include painters, sculptors, hip‑hop artists, singers, composers, teaching artists, performers, and writers who are receiving $500 a month over a five-year period. This has given us the opportunity to reflect on what we've learned and what insights we can offer to others thinking about doing this work. Adapt each program to the historical, cultural, and economic extractions in that community At its best and most effective, guaranteed income is a tool for justice and repair by supporting populations who have been exploited by social, cultural, and economic systems in America. These programs should be tailored to a community's needs by considering the connection points between the economics, culture, and physical design of our cities and the impact of policy and planning harms from the past. Both cities and rural places bear the generational impact of economies based on the extraction of natural or cultural resources including redlining, land theft, the interstate highway system, and placement of industrial infrastructure, like trash burners, that has caused generations of environmental harm and adverse health impacts. The results of these policy decisions fall disproportionately on American BIPOC communities and neighborhoods, particularly Native and Black communities. For our work in Saint Paul, we've focused our efforts in Frogtown and Rondo—two neighborhoods that are culturally vibrant, resilient, and community oriented, yet that continue to be disproportionately impacted by historical disinvestment, discrimination, and extraction. Rondo, for example, is a historically Black neighborhood whose cultural and business corridor was destroyed in the 1950s and '60s by highway construction, causing generational economic and cultural harm that residents deal with to this day. Our rural work is focused in Otter Tail County, in West Central Minnesota. This community, like many rural areas across the U.S., is in the midst of economic transformation, including the loss of major employers, lack of affordable housing, and increase in predatory businesses like dollar stores and payday lending. Here, guaranteed income can be a tool for attracting and retaining the creative people these communities will need to imagine a different future. The focus on artists and creative workers is rooted in the idea that, like caregiving and community work, cultural work is a form of labor that communities depend on to be healthy but is not adequately valued by our current economy. Use artists to help change the narrative about guaranteed income programs While the idea of guaranteed income is gaining traction across the country, there are still embedded cultural and political beliefs that limit how far economic justice policy change can go. These are often harmful tropes like: 'Do people deserve it? How do they spend the money? Why don't they just get a job?' One of the most effective ways of countering these questions is for people to experience the stories of these programs on a human level, which can transform pervasive narratives about inequality and poverty into belief systems of belonging, deservedness, and inherent self‑worth. In this way, artists—particularly those participating in guaranteed income programs and who are locally rooted in their communities—have a unique role to play in guiding and delivering a narrative shift around guaranteed income. With this in mind, we created a project within our wider guaranteed income work, collaborating with a cohort of artists on Artists Respond: People, Place, and Prosperity. In this program, artists created public projects highlighting the root causes that lead to the need for guaranteed income, and its impact on families and communities. (These projects were supported separately and outside of artists' participation as guaranteed income recipients.) Artists have designed projects that range from podcasts and coloring books, to postcards, a public installation, and a collaborative performance/dance meditation made available on YouTube, all of which use messages that are reflective of their local communities. A billboard on rural Highway 210 by artist Kandace Creel Falcón looked at guaranteed income's connection to rural values, with the message 'In Rural We Tend to the Herd' as a way to root messaging in the collective values of that community and counter individualistic narratives that attempt to malign safety net programs. Cross-sector investment and collaboration are key Our original pilot was a cross-sector partnership—designed in collaboration with the City of Saint Paul's People's Prosperity Pilot guaranteed income program and supported by local and national funders including the McKnight, Bush, Surdna, and Ford Foundations. We recently announced the expansion of this work, which includes extending the Saint Paul pilot and adding additional participants to the pilot in Otter Tail County, Minnesota, totaling 100 artists across both locations and committing to five years. The majority of the pilots taking place across America have been 12 to 18 months, in part because that's the amount of time that cities were able to raise and access relief funds during the pandemic. These are a great start, but to have the kind of longevity that will allow us to make a meaningful—not just temporary—impact requires bringing more and different kinds of partners on board and moving from pilots to policy. This is an area where philanthropy has an opportunity to be a true partner by seeding longer-term pilots in more geographies and by supporting advocacy and policy work. Research and evidence matters When it comes to expanding the reach and impact of guaranteed income, research and evidence matters. Groups like Mayors for a Guaranteed Income, led by Saint Paul Mayor Melvin Carter, are integrating learning and research from local pilots into state and federal policy recommendations. Springboard for the Arts is working with the University of Pennsylvania Center for Guaranteed Income Research to collect data through community-led participatory research in both rural and urban locations, allowing us to understand what's working and how people are using these funds. Emergent themes from this research are compelling, with monthly income contributing to general financial stability; participants' ability to do longer term planning toward healthcare, savings, business ownership and housing; and increasing financial security so artists can generate creative work for their community and stay in their neighborhoods. This money is going toward rent and supplies but it's also being put to everyday expenses like fixing a car so that an artist can get to their job or buying snow boots for their children. Being able to point to these tangible impacts allows us to bring in more partners and more effectively advocate for policy. Even if it feels tedious, having a growing body of data will bolster all of our efforts for both individual programs and the movement as a whole. The experience with our pilot has shown us that guaranteed income works as a tool for supporting both an individual's economic security and their ability to contribute to their communities in creative ways. As our economy becomes even more stratified, there is an urgent need to advocate for policy innovations, like guaranteed income, that offer more Americans the freedom to take care of their families and communities and imagine and build a better future.
