excerpts from Catey Hill, Marketwatch
Used with Permission Fort Greely Interceptor
1. We’re broke
Each day, roughly 10,000 baby boomers turn 62…the average age at which people actually retire, according to a recent Gallup poll. Retirees numbers are increasing: by around 2030, nearly one in five Americans will be over the age of 62.
The Census Bureau’s Supplemental Poverty Measure, which takes into account out-of-pocket health-care spending and government benefits like food stamps, in addition to income, roughly 15% of people over the age of 65, that’s 6.1 million
And tomorrow’s retirees aren’t in much better financial shape: Among workers 55 and older, nearly 60% have saved less than $100,000 for
retirement, and 24% have saved less than $1,000 according to Employee Benefit Research Institute. Financial Advisors typically estimate that
Americans will need roughly 11 times their final working salary when they retire…so someone with a $50,000 salary would need $550,000
upon retirement to maintain his/her standard of living. This may explain why even retirees with savings say that they rely heavily on Social Security…which pays an average monthly benefit of around $1,290.
2. Retirement is more stressful than it looks.
Retirement is supposed to be the ultimate in relaxation…doing whatever you desire. But for many people, it’s just the opposite. In a study by the American Institute of Stress, retirement was ranked the 10th most stressful out of 43 life events. Death of a spouse ranks number one. Only 39% of people who are actually retired say that it is less stressful than life during the five years before they retired. Studies show that again, money tends to be the number one stressor. “Running out of money to live comfortably” was the biggest
concern for the Silent generation (68-88) and the boomers, followed by the worry that they are or will be a burden to the family.
It is also hard for many retirees to give up working. Our happiness is often from purpose and meaning in our lives and jobs give us that. Retirees get stressed out by the lack of structure and change, even if it is positive, can be stressful.
3. We spend too much time by ourselves
Roughly one in 10 people aged 65 and older report that they are severely lonely. Often the lack of a career exacerbates loneliness. When retirement begins, most of those daily connections are gone. People in the 80’s and older tend to experience higher rate of loneliness than younger people as friends and spouses pass away. Worse yet, loneliness can lead to health problems and premature death. Health consequences include disrupted sleep, elevated blood pressure, increases in the stress hormone Cortisol, altered gene expression in immune cells, increased depression and lower overall well-being.
4. Our health care costs are huge
While Medicare covers plenty of health-care expenses for older folks, it doesn’t cover everything…a fact that surprises people. In fact, Medicare doesn’t cover longer term skilled nursing or rehabilitative care, hearing aids, eye exams and most dental care.
A couple who retire at 65 need an average of $220,000 over cover their out-of-pocket expenses over the course of their retirement according
to Fidelity Investments. This does not take into account the possibility of having to go into a nursing home, which Medicare doesn’t cover under
most circumstances. A semi-private room in a nursing home costs a median of $77,000 per year and living in an assisted living facility can cost $42,000 or more per year. Given how little most people have saved for retirement, many retirees are likely to struggle to afford the health care they need.
5. We’re planning to move in with you.
More than 43 million adults in America care for someone 50 or older, according to the National Center on Caregiving. What’s more, the proportion of adult children providing personal care and/or financial assistance to a parent has more than tripled over the past 15 years. While most care recipients live in their own homes (58%), one in five lives with their caregiver, usually in a spare room in the house. Making matters worse, many
caregivers take a dual financial hit, as they care both for their parents and their children. The caregivers suffer lost wages due to leaving the labor
force and this includes loss in social security dollars. people in all…live in poverty.