Retirement 101

 Downsizing, Upsizing and Rightsizing. Boomers were the first generation to be able to graduate from high school and enter the job market expecting to earn a living wage.  Now, they are the first group of employees that are perceived by management as ‘LESS’ valuable than younger, entry level, lower paid Gen Xer’s entering the job market today. You probably know of at least one baby boomer who was forced to take early retirement or who was forced out of the job market due to cut backs and streamlining. These boomers find themselves too young to receive any social security benefits and apprehensive about going back to school to acquire new skills.  But, without a college degree or high technology skills, many are currently working in lower paying jobs or sitting home frustrated that they want to work but can’t find employment. Compound this situation with the current inflation and a failing economy and the question arises, will our generation, the one that was promised a better life than our parents, end up worse off than our parents?

I invest regularly in my retirement fund, but I often find myself wondering if it will be enough and if I will be financially prepared to enjoy my retirement?  Without job responsibility and time constraints, I will be able to do the things that I have always wanted to do, but I also must be able to support myself in my new lifestyle. I also worry that someday I will not be able to live on my own without having to burden my children. What about medical care and cost of living adjustments?  How do I know if I am prepared?

Did you know that Medicare does not cover ALL the expensive medical costs such as physicians’ bills, dental care, hearing aids, eye glasses etc? Medicare only pays up to 100 days for long term care in a skilled
nursing facility which can costs upwards of $4000 a month. 

 We know we will not be able to live on Social Security alone but will there be any money left for us by the time we are eligible? Do we have any other retirement funds to cushion the unforeseeable events of the future? These issues will be facing us sooner than we care too admit.  In fact, in this year alone, about half of the soon-to-be-62-year-olds are expected to do just what their parents generally did: file for Social Security benefits at the youngest possible age, in exchange for a smaller benefit package than they’d get if they waited to retire at 66. Many are relying on conventional wisdom that suggests they’re better off filing for Social Security as soon as possible.

Sometimes we are known as “The Sandwich Generation” ‘Today’s “Sandwich Generation” has a unique financial burden. Many families not only have to provide for themselves and their children, but also for their aging parents as well.’ (quoted New York Life) This takes a substantial amount of money.  I have friends who plan on working several years past retirement age in order to recover some of the costs from their sandwich years.  As it is now, I  have to reach the age of 67 to qualify for full benefits; another reason to take care of my health.

Is a million dollars enough to retire on?  US News and World Report offers three viewpoints on this subject that might change your mind. You might want to check them out.  Despite the fact that we know we should put money away for our retirement, a Gallop Poll taken in 1995 revealed that four in ten “baby boomers” set aside less than $1,000 in savings per year; compared to what our parents saved, this is much less.  So, what do we do.  Do we need to downsize, upsize or are we the right size?  The best way to determine this is to find a good financial advisor, one who has a track record, offers a variety of products and stays up on the current financial institutions.  Don’t be afraid to ask for recommendations from their other clients.  This is your future, one you can’t aford to gamble with.  Do you want it to be comfortable and rewarding or do you want to have to scrimp and worry?’; //leave this line

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