Realigning Facts and Fantasy Of Retirement

Here’s how some Americans longingly view retirement before they even reach their peak working years: Relief from laboring at tedious jobs, Idyllic vacations at top resorts underwritten by hundreds of thousands of dollars in retirement savings, returning to a beautiful home that’s paid off, good health sustained by the most modern medical science, the family who loves them, and lots of time on their hands to do with as they please.

Then, as often as not when they get closer to retirement age, reality sets in. As with everyone, no matter how physically fit you are, you develop age-related aches, pains, and disorders. Some seniors are faced with the horrifying reality that they needed all of the money they made during their career just to live, so there went the cozy cushion of retirement savings.

I personally believe, and, indeed my advice to people nearing retirement age is that if you’re in good health, you enjoy your job, and don’t have mandatory retirement requirements, caregiving responsibilities, or other obligations, DON’T RETIRE! I saw my healthy father retire from the civil engineering job he loved, despite his aerospace employer urging him to stay on. Toxic loneliness and depression set in, and he went into decline.

Once retired, one of the biggest hurdles is finances. Here are several items of good advice from the Federal Deposit Insurance Corporation – FDIC.Gov – on how to manage finances and avoid pitfalls:

• Before borrowing from the equity in your home in retirement especially if you’re looking at a reverse mortgage, research the potential benefits as well as the risks and costs.
• Do your research and/or pursue in-depth counseling before agreeing to any loan backed by your home.
• Closely monitor credit card bills and bank statements. Try to pay off charge cards, monthly. Keep low balances on credit cards, and try to pay those off monthly, as well.
• Sign up at your bank for direct deposit; it’s the fastest, safest way to receive money or other payments.
• Protect your personal information; never give out ID numbers, including social security numbers, to callers.
• Review your credit reports periodically even if you aren’t applying for a loan. Institutions with which you do business do make mistakes, and this is the best way to catch them. It can also alert you to fraud.
• Make a retirement budget for yourself, which means you can’t spend more than you make on a fixed income.
• Consider limiting the mail and phone calls you receive from marketers, which can create unnecessary temptation to spend. Check out call blocking with your phone company.
• Review your credit cards for subscriptions you may want to cancel and be particularly vigilant about subscription fees that automatically renew monthly or annually.

Lastly, look into discounts – senior discounts can offer nice savings – Think AARP.org is one of the best memberships available for good advice, resources, assistance, and discounts/deals for seniors.

We want to hear from you, so feel free to share tips, ideas, and resources for seniors with Grannybooster. Email me, Maris Somerville, at [email protected]