Category Archives for Retirement

Financially Surviving Your Retirement Years

            Published August 10, 2012, Pawtucket Times

             Moving into their mid-fifties and sixty’s a growing number of Baby boomers wonder if Social Security benefits in their retirement year’s will even pay the bills.  Will they be able to survive in their “golden years”? 

             Federal officials say that there may be cause for alarm. 

             At the end of April, the released 242 page Social Security Trustee’s report, picked up by the nation’s media, gave bleak but “advanced” warning to future retirees that the Social Security program can pay full benefits until 2033, however, warning that probably only three-quarters of promised benefits could be paid out beyond that time.

             So it is not so surprising that the Associated Press (AP), a media cooperative owned by its contributing newspapers, radio, and televisions in the United States, announced last week that the news agency will publish a four part series, to be released over four Sundays in August, examining the long-term financial viability of the nation’s Social Security program.  The series plans to also take a look at policy proposals that will be debated during the upcoming election by Presidential and Congressional candidates, that might strengthen, the nation’s primary retirement program.

             AP recognized that Social Security, a very politically-charged issue, is a topic that must be discussed meaningfully in the upcoming November election.  Because of this AP has chosen to bring substantive coverage of this important policy issue to the upcoming political debates that will take place in the upcoming months.

             “Few things affect more Americans than the future of Social Security, and yet it’s an issue most invisible during the current campaign, said AP Washington Bureau Chief Sally Buzbee, who is directing the series.  “This series of stories tires to lay out complex issues in the most accessible way possible.  This is part of the ongoing efforts by The Associated Press this fall to make sure issues [like Social Security] aren’t absent from the campaign, but front and center…”states Buzbee.

             The headline of AP’s first report, published story on the upper fold of the August 6 issue of the Pawtucket Times, warn’s that “Social Security not deal it once was.”  The AP wire story notes that today’s retirees will be the first to have paid more in Social Security taxes during their lifetime careers than they will ultimately receive in retirement benefits once they retire.  Previous retirees paid less payroll taxes but got more benefits.

   Planning Key to Adequate Retirement Funds

             If Social Security bennies are chopped taking personal responsibility in planning your retirement may well become your financial safety net in your later years.

             Economic woes fueled by the worst economic downturn since America’s Great Depression, have left many Baby boomers financially struggling to make ends meet and to save adequately for their retirement years, according to survey findings released in July 23, 2012 by the Consumer Federation of America (CFP) and the Financial Planner Board of Standards.

              According to a 60-page report, conducted by Princeton Survey Research Associates International (PSRAI), nearly two-fifths (38%) of the 1,508 household financial decision-makers surveyed said they live paycheck to paycheck, while less than one-third (30%) indicated they felt comfortable financially and only about one-third (34%) think they can afford to retire by age 65.

             Survey findings indicated that only 31 percent of respondents said they had a comprehensive financial plan, while about two-thirds (65%) indicated they follow a plan for at least one of their savings goals.  Those who have prepared a personal savings plan feel more confident and report more success managing money, savings and investments than those who don’t.

             By a margin of 50 percent to 32 percent, and for all but the lowest income bracket (under $25,000) where few have a comprehensive plan, those planning for retirement are more likely to feel they are on pace to meet all of their financial goals, such as saving for retirement or for emergencies, stated the survey findings.

             Additionally, an even larger margin of 52 percent to 30 percent, and across all income brackets, those planning for their retirement years are more likely to feel “very confident” about managing money, savings and investments;

             Kevin R. Keller, CEO of CFP Board: “Consumers understandably are more nervous about investing their money given recent revelations about financial fraud, manipulation and abuse of clients. This doesn’t mean that people shouldn’t create a financial plan and be prepared.

   Taking Personal Action NOW

             Unless strong political pressure is placed on Congress to act swiftly to enact needed policy changes to fix the nation’s ailing Social Security program, expect political gridlock to continue to block any efforts in both Chambers to come up with bipartisan solutions.   

             Don’t get caught up in the political spins and negative rhetoric as Presidential and Congressional candidates begin their debates on Social Security before the upcoming September primaries and November election.  Become an educated voter and tell the Congressional candidates who seek your vote to seek bipartisan solutions to making the  Social Security Trust fund solvent once and for all. 

             Watch out for AP’s upcoming reports on Social Security to learn more about this important policy issue.  That’s a good first step.  Second, learn more about AARP’s  “You’ve Earned a Say’ initiative (www.earnedasay.org), a web site that can provide aging baby boomers with both factual and straightforward information about retirement policies being debated inside the Beltway by Congress, ones that hopefully will financially strengthen the nation’s Social Security program. 

             But on a personal level, until federal lawmakers get serious about financially shoring up the nation’s retirement program, developing a personal financial plan may well become an effective short-term solution to managing your money, savings and investments that could well supplement a shrinking Social Security check.  One useful tool is the website LetsMakeaPlan.org, allows a person to learn more about preparing a financial plan, including working with a financial planning professionals.

             Herb Weiss is a Pawtucket-based freelance writer who covers aging, health care and medical issues.  He can be reached at hweissri@aol.com

The Best of…Keeping Your Memory Sharp in Your Later Years

Published October 2008, Pawtucket Times  

          In her twenties, while attending nursing school, Donna Policastro discovered she had a photographic memory.  Years later, even in her middle years, theProvidenceresident’s memory was still pretty good.  She had no need for appointment books or PDA’s to keep up with her hurried work schedule as a Registered Nurse.  Like an elephant, she never forgot, always remembering minute details, never missing an appointment or meeting.

             Approaching age 50, missing meetings and even some appointments forced Policastro, Executive Director of the Rhode Island State Nurses Association (RISNA), to keep a To-Do list and to use her computer’s calendar program. Policastro, now age 59, speculates that being overwhelmed at work because she had no support staff combined with not being able to say no to taking on new duties and responsibilities took a toll on her memory,

            Sometimes the aging baby boomer, like many,  would forget a colleague or patient’s name all together, or just not remember either their first or last moniker.  She became physically exhausted trying to remember their full name or little details of their initial meeting.  Sometimes it even bothered Policastro “to no end” when she could not remember an actor’s name she saw on a television program, becoming obsessed in an attempting to remember the name.

          As Policastro would ultimately discover when reading Aging With Grace, a book that described a longitudinal health study of an order of nuns, she was not losing her mind or becoming afflicted with dementia or devastating Alzheimer’s, her memory loss was due to normal aging. 

 Memory Gradually Declines with Age

           Laurence M. Hirshberg, Ph.D., Director of the Providence-based Neuro Development Center, would agree with Polacastro’s self-assessment of why her memory was not as sharp or clear as in her earlier years.  “Advancing age seems to cause gradual declines in some aspects of memory and thinking, brain structure, and brain functioning, while sparing others,” he says. 

            The Clinical Psychologist notes that research findings indicate that up to half of people over age 50 have mild forgetfulness linked to age-associated memory impairment,

           According to Dr. Hirshberg, who serves as a Clinical Assistant Professor in the Department of Psychiatry and Human Behavior at Brown Medical School, as a person ages, there is often decline in one’s ability to encode new memories of events or facts, as well as the ability to hold the information you need to perform a simple task (for example, to dial a telephone number).  “Studies also show declines in memory of events, times, places, associated emotions., certain forms of reasoning, and numeric and verbal ability.  Procedural memory – remembering how to perform a process, for example playing the piano, is less affected by aging, as is memory of words and memory of emotional experience, both of which are enhanced with age,” Hirshberg says.

           “All of us show some forgetfulness at times, notes Dr. Hirshberg, especially when we forget where the car is parked, forget a persons name (but remember it later), forget events from the distant past, or forget parts of an experience.   He notes that signs of more serious memory problems include forgetting an experience or recent events, forgetting how to drive a car or read a clock, forgetting ever having known a particular person or loss of function, confusion or decreased alertness.

           Memory loss can be caused by a variety of factors, Dr. Hirshberg says, from lack of physical or mental activity, boredom, social isolation, stress, drug or alcohol use, smoking, poor nutrition, to an array of medical conditions that includes sleep disorders, head trauma, depression, diabetes, impairment to vision and hearing, head trauma, and even high blood pressure and cholesterol..

Living with Memory Loss

           Preventing memory loss in your later years can be as simple as staying socially active, keep learning and staying mentally active, eating nutritious meals, reducing stress and seeking help from medical conditions, Dr. Hirshberg suggested,  “Making lists and creating schedules can be effective strategies to increase memory skills. Many people use technological aids such as Palm Pilots.”  

            Even brain exercises can be helpful in keeping your memory sharp, Hirshberg says, specifically working cross word puzzles and soduko, playing chess, checkers, bridge and other card games. Reading, attending lectures, learning a new skill are also beneficial, along with using formal brain exercise programs for the computer (such a Mental Fitness, Brain Power, Captains Log, and Sharper Brain). Some examples of computerized brain exercise games can be seen at youcanstaysharp.com.

          Many aging baby boomers wonder when is the appropriate time to see their physician about memory loss.  Dr. Hirshberg says the rule of thumb that clinicians often use is, if you’re worried about your memory, it’s probably not that serious, but if your friends and relatives are worried about it, then it probably is more serious. . 

           Final note…You can also take part in a comprehensive mental fitness training program through the Stay Sharp Mental Fitness Center. This center offers brain fitness training exercise and EEG guided brain training to train your brain younger. For more information, visit youcanstaysharp.com or call 401 383 4104.

           Herb Weiss is a Pawtucket-based Freelance writing who has covered aging, health care and medical issues.  This article was published in October 2008.  Contact him at hweissri@aol.com .

The Best of…Lack of Guaranteed Income Makes Retire Years Bleak, Study Says

Published in All Pawtucket All the Time on July 18, 2008

Good health, combined with a strong work ethic, keeps sixty-nine year old Herman Brewster looking for full-time job in his later years.  The former Providence School Teacher now works part-time at the state’s Adult Corrections Institute (ACI) as a counselor, a place he once worked at for over 18 years.  Since 2006, Brewster has held a number of part time jobs since he left his full-time teaching position.  He believes a recession along with being almost seventy years old, hinder his chances of landing a full-time position with benefits.

Herman and his wife, Madeline, are life-long Rhode Islanders who have raised two sons in their Eastside residence. Now empty nesters, they are faced with a lower household income.   With less household income, the couple no longer  takes annual vacations or trips, nor do they have discretionary income to purchase Native American pottery for their collection, a once favorite past time.

Madeline, 57, a secretary in the Applied Math Department at Brown University, has now become the major breadwinner of the family, bringing health insurance benefits to the couple.

Cutting Back Expenses

“We have already cut back on our [household] spending,” says Herman, acknowledging that the couple’s belt tightening is due to skyrocketing gas, utility and food costs.  Although the couple is now eating out less to save money, they will splurge weekly by going out for Sunday breakfast, a less expensive alternative when compared to ordering from a lunch or dinner menu.

Herman acknowledges that he cannot even live comfortably now on his Social Security check.  “Fortunately between our two jobs we have not gone into our savings yet,” he says.  When retirement comes, probably in five years, he plans to take income out of his retirement annuity.

While currently walking on a financial tight rope, the Brewster’s ultimate retirement will be made easier because of Social Security payments, combined with their guaranteed incomes, an annuity and pension.  According to a newly released Ernst & Young Study, others may not be so lucky, especially those living only on a Social Security check.

New Retirement Study Released

According to the national economic study released by Ernst & Young on Monday, 54 percent of retirees in theOcean State entering retirement are at high risk of outliving their retirement savings. The study, commissioned by the Americans for Secure Retirement coalition, finds that in order to not outlive savings, the average Rhode  household will have to reduce their standard of living by a whopping 19 percent.  Both national and state-specific data were made available in the study entitled, “Retirement Vulnerability of New Retirees: The Likelihood of Outliving Their Financial Resources.”

“Many Americans envision a leisurely retirement where their lifestyle continues much as before,” said Tom Neubig of Ernst & Young, in a press release heralding the release of the economic study.  “Our work shows that this is not a realistic expectation and that, with the current state of savings, retirees will have to cut back far more on expenditures than they had ever expected.”

The researchers also found that retirees in Rhode Island are much better prepared to have a financially secure retirement if they have a guaranteed source of retirement income beyond Social Security, such as annuities and defined benefit plans. For example,Rhode Island residents who have a guaranteed source of retirement other than Social Security have an 18 percent chance of outliving their assets if they retain their pre-retirement standard of living.  However, those with Social Security as their only guaranteed income have an 80 percent chance of outliving their assets during retirement.

“As a guaranteed source of retirement income, life annuities relieve the risks and burdens of managing a nest egg and can maximize savings’ value over the course of an individual’s retirement years,” adds Joe Reali, Chairman of the Americans for Secure Retirement coalition. “Life annuities are the only vehicle besides pensions and Social Security that provide a steady stream of income for life – a “paycheck for life.”

Other key findings of the study include:

Almost three quarters of middle-income Rhode Island households seven years from retirement (near retirees) can expect to outlive their financial assets if they attempt to maintain their pre-retirement standard of living;

Over half of middle-class Rhode   retirees can expect to outlive their financial assets;

Almost nine out of ten near retirees and eight out of ten new retirees without an employer pension plan in Rhode Island are likely to outlive their assets;

Married couples are more likely to outlive their financial assets, due to their longer joint life spans, than single households. Single females are more likely to outlive their assets than single males;

Near retirees in Rhode Island would have to reduce their standard of living on average by 32% to reduce the likelihood of outliving their financial assets (failure rate) to only five percent;

Finally, new retirees in Rhode Island would have to reduce their standard of living on average by 19% to reduce the likelihood of outliving their assets to only a five percent failure rate

The national study should serve as a warning to many of the 77 million middle income baby boomers — it’s never too late to get your financial house in order.  Guaranteed sources of income can be instrumental help you maintain your pre-retirement standard of living.

Herb Weiss is a Pawtucket-based freelance writer who covers aging, health care and medical issues.  This article was published in July 2008. He can be reached at hweissri@aol.com.