Short on Retirement Savings? - Find Solutions

How much money do you think you will need in order to retire comfortably?  The honest truth is you probably need more, much more, than you actually have.  According to SeniorLiving.org, half of Baby Boomers, the generation which is currently retiring at a rate of 10,000 people a DAY, have saved less than $100,000.  Over one-third have saved less than $50,000.  This means a substantial number of Baby Boomers have not saved enough money to produce a modest retirement income, even when combined with their Social Security benefits, and they are at a serious risk of outliving their retirement savings.

Breakdown of Baby Boomer Savings

The report at SeniorLiving.com showed the following statistics for Baby Boomers as of December, 2016:

37% - Saved less than $50,000
13% - Saved between $50,000 and $100,000
14% - Saved between $100,000 and $200,000
12% - Saved between $200,000 and $300,000
09% - Saved between $300,000 and $500,000
15% - Saved $500,000 or more

How Much Does the Average Retiree Spend?

According to the Bureau of Labor Statistics, the typical household whose head of house is age 65 or older spent $44,664 in 2015.  That cost-of-living has probably increased since that time.

How Much Income Can the Average Retiree Expect?

Social Security is designed to replace approximately 40% of an employee's pre-retirement income, although many Baby Boomers mistakenly believe it will replace 90% of their income, instead.  In 2017, the average single retired person collects $1,360 in Social Security benefits.  The average couple receives $2,260 in benefits.   This translates to an income of $27,120 a year for a retired couple, far below the $44,664 the average household spends.  At a 6 percent return, only the people who have saved $350,000 or more (less than one-fourth of retirees) will have enough savings to make up the difference between their income and the average cost-of-living for the typical retired couple.

To make matters worse, many certified financial planners recommend retirees withdraw no more than 4% of their retirement savings per year at the beginning of retirement, and increase that amount very gradually, in order to be confident they will not run out of money during the remainder of their lifetime. This means they would actually need to have $450,000 or more in savings in order to maintain an average lifestyle.  Unfortunately, the vast majority of retirees do not come close to having that amount of savings.

What to do if You Have Not Retired Yet

If you are getting close to retirement, but you have not stopped working yet, here are a few steps you can still take to deal with a shortage in your retirement savings.

1.  Start cutting your expenses now, while you are still working, so you can adjust to your future cost-of-living and, at the same time, free up more income for savings.  It is better to make small sacrifices now, if it means you will be more comfortable later in life.

2.  Increase the amount of money you have going into an IRA, 401(k) or 403(b).

3.  Postpone retirement until age 70, which could increase your Social Security benefits by approximately 24% over what you would receive if you begin to collect at age 67.  This action alone could substantially reduce the amount of savings you will need during retirement.

4.  Pay off all your bills, including your auto loans and mortgages, if possible, to minimize your expenses during retirement.

5.  Discuss your retirement plans with a certified financial planner to make sure your savings are invested appropriately to maximize your earnings and growth.

What to do if You Have Already Retired

If you have already retired and realize you are going through your savings much more quickly than you expected, you may want to see if you can find a part-time job and reduce the size of your savings withdrawals ... or even postpone making additional withdrawals until you are older and unable to work.  This is the best way to maintain your independence and salvage your savings after retirement.

Retirees who are falling short may also want to see if they can find a less expensive place to live, cheaper car to drive, or make other adjustments to cut their cost-of-living.

Finally, if you are concerned about outliving your money, you may want to talk to a financial planner to see if you can increase your income without using up the principal you have saved.

If you are interested in more ideas about preparing financially for retirement, where to retire, common medical problems, changing family relationships and more, use the tabs or pull-down menu at the top of the page to find links to hundreds of additional helpful articles.

For an overview of retirement planning, watch for my book, Retirement Awareness, which is being published by Griffin Publishing and will be available in 2018.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  morguefile.com

How to Find Jobs Late in Life

Many people nearing retirement age will need to keep working until they are in their 60s or 70s in order to have enough money to support themselves and their families.  However, sometimes people lose their jobs in their 50s, or they work in physically demanding jobs and know their bodies will not be able to take the punishment much longer.  What can people do when they need to change jobs late in life?

The good news is that it is quite possible to find new careers or less physically demanding jobs as you age. My husband and I have known a number of people who have started new careers in their later years.  For those who are having difficulty finding a new job on their own, there are many special programs to help them.

How to Find an Job After 50

Whether you are looking for a new job because you are no longer physically able to handle your current one, or because you were fired or laid off, especially during the Covid-19 pandemic, you may believe you are getting too old to find another career.  Some people talk themselves into the idea that no one will hire them after they have reached a certain age. However, you may be pleasantly surprised to know there are more opportunities than you realize, if you know where to find them.  Below is a list of organizations which could make your job search a little easier.

 

Jooble.org - This is a job search engine created for a single purpose: To help you find the job of your dreams! When you perform a search with Jooble, you'll get links to job postings from more than 22,305 different job sites throughout the USA that are the most relevant to your search terms. Jooble is created to save you time and energy, enabling you to find your desired job from a single query. Jooble's operation features work in the same way as any other search engine operates. Jooble does not compile all the information in its own database, but searches it out and does this much better other search engine you might use to hunt for jobs.

BankWork$ - This is a free training program which teaches people of all ages how to become bank tellers and customer-service reps.  They will also help you polish your resume and find a job.  

 
Department of Labor Job Centers - The Department of Labor operates over 2,000 American Job Centers which are committed to helping workers of all ages who either want to be re-trained or find a new job.  These centers are also called CareerOneStop.

 
The Senior Community Service Employment Program (SCSEP) - Although the Department of Labor program mentioned above is for people of all ages, SCSEP is specifically for unemployed people ages 55 and older who have low household incomes.  The program participants are paid the minimum wage while they get experience working for nonprofits and public institutions.  SCSEP is affiliated with the National Council on Aging (NCOA).  You can get more information on the NCOA website at https://www.ncoa.org/economic-security/matureworkers/scsep/ 

AARP Back to Work 50+ - This AARP program works with community colleges, nonprofit partners and workforce boards to help people over the age of 55 who do not qualify for SCSEP because their household income is too high.  You can call (855) 850-2525 for more information about the program.

Where Else Can You Find Help Getting a New Job?

If you have explored the above organizations, but are interested in seeing what other options are available in your community, here are a few additional ideas to help you find a new career, even if you are 55 or older.

Attend job fairs in your community - They may lead you to jobs you never considered ... either full or part-time, permanent or temporary. A wide variety of jobs can often be found at these local events.

Apply to your local community college - Local colleges frequently offer training programs and job placement assistance with businesses in the community.  Many of them offer training which meets the specific needs of factories, industries and businesses in your town.

Contact local unions and trade associations about job opportunities - At the very least, these organizations can often put you in touch with job training and apprenticeship programs.

Visit your neighborhood senior center - Senior centers not only hire senior citizens themselves, but they often know of job opportunities for retirees in your area.

 

You may also want to read "The 2-Hour Job Search: Using Technology to Get the Right Job Faster." It contains many resources to help you. 

Most important, do not give up your job search.  There are opportunities available, even for people in their 60s and 70s. Go to local retail stores and other businesses and politely ask to fill out an application, just as you did when you were younger.  Look for help-wanted ads in the newspaper and online. You need to keep searching until you find the opportunity which is right for you.  Remember, you have a lifetime of skills and experience to offer a prospective employer.

If you are interested in learning more about financial planning for retirement, where to retire, common medial issues, changing family relationships after retirement and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional articles.

 

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission at no extra cost to you.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo courtesy of morguefile.com

STEP Program for Overseas Travelers

One of the joys of retirement is the ability to travel virtually anytime you want. You are no longer tied down by your job's allowable vacation schedule or your children's school holidays. You can even move to another country, if you choose. However, when traveling overseas, it's not smart to simply throw caution to the wind.

Make sure you take full advantage of the Department of State's Smart Traveler Enrollment Program (STEP), as well as their other services.

Emergency Help from the U.S. State Department

Enrolling in the STEP program will give you the latest security updates. It will also make it easier for the local U.S. embassy or consulate to contact you if there is an emergency. You can either use the internet to enroll at https://step.state.gov/step/ or you can go to the nearest U.S. embassy or consulate and enroll there.

The Smart Traveler Enrollment Program (STEP) is a free service which allows U.S. citizens and nationals traveling abroad to register their trip with the nearest U.S. Embassy or Consulate. 

According to the STEP website, the program can help you:

• Receive important information from the Embassy about safety conditions in your destination country, helping you make informed decisions about your travel plans.
• Help the U.S. Embassy contact you in an emergency, whether natural disaster, civil unrest, or family emergency.
• Help family and friends get in touch with you in an emergency.

Other State Department Services which Help Foreign Travelers

In addition to signing up for the STEP program, you should regularly check the State Department's website.  It is different from STEP.  Instead of waiting for them to contact you, it is a site where you can check out the current Travel Warnings, Travel Alerts, and Worldwide Cautions.  This could help you decide on the best or worst travel destinations before you make your reservations.  If you are planning to retire overseas, it could also help you decide which countries and areas within the countries are best for American expatriots.

One helpful page on the State Department's website is the State Department Travel page.  You can get information about passports and other travel related information there.

If you are planning to move to another country, you can contact the local consulate or embassy for information on a wide variety of services available to U.S. citizens, including passport renewal, obtaining federal benefits overseas (such as receiving your Social Security benefits in another country), transmission of citizenship to your children, documenting their birth overseas as U.S. citizens, and obtaining visas. 

Whether you are planning to spend time in another country for a week or live overseas for decades, it is important that you take full advantage of all the services available from the U.S. State Department, as well as our embassies and consulates around the world.

If you are interested in more information about traveling overseas, moving to another country, where to retire, financial planning or common medical issues, use the tabs or pull down menu at the top of the page to find links to hundreds of additional topics.

If you are beginning to plan your retirement, watch for my book, Retirement Awareness, which will be available in 2018 from Griffin Publishing.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  morguefile.com