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SEPTEMBER NEWSLETTER August 2011 | July 2011 | June 2011 | May 2011 | April 2011 The Challenges of Growing Old
in the 21st Century
The Fear of RetirementAs strange as it might seem, for many today, there exists a very real fear of retiring. It’s not a fear of the unknown, but rather what is known. That is … a fear that I’m not prepared, financially, to face the prospect of living on a fixed income, especially if I find myself (or my spouse) with health problems.Even for those who have a pension, and have faithfully set aside funds in an IRA, or have accumulated a nice investment portfolio, there are the risks of market fluctuations, national economic uncertainty, adjustments to Social Security and Medicare benefits, and the list goes on. However, the sad truth is … a significant portion of our aging population don’t have the benefit of supplemental income from a pension or investments, but are solely dependent on Social Security and Medicare for their retirement income. And that’s scary. Not wanting to be a burden to their children, or worse yet, having a broken relationship with children that is likely to result in having to face an uncertain future alone, many seniors are living lives of desperation and despair. Sleepless nights worrying about what “might be”, or experiencing guilt and depression because it appears too late to correct the deficit, is a common dilemma. For many it seems overwhelming and hopeless. The result is that many today are delaying retirement, hoping that their health will permit them to continue working for as long as possible. And even when someone does retire, they are immediately looking for some type of employment (full or part-time) that can supplement the cost of their life-style, and ease the stress of the transition. So … what can someone who finds themselves in this dilemma do? Is there hope? I believe there is, but it’s going to require taking some immediate and intentional action. In his book, Thriving in Retirement, Jason Parker, a local financial advisor and member of KARE, offers the following advice: “My prospective clients often ask, ‘Can I afford to retire?’ I have found that retirement is all about cash flow, not net worth. The most successful retirees I know have learned to live within their means.” In other words … there needs to be some disciplined, “corrective” action: downsizing … adjusting spending habits to reflect a more simplified lifestyle … and getting some counsel from legal and financial experts on how to structure and protect what assets you do have so that there are adequate resources for the future. Although there are many competent and trustworthy professionals in our community, I can confidently recommend the members of KARE as a great resource. Please check them out at www.kare-wa.com. Retirement doesn’t have to be scary, but it does require taking some action NOW.
Community Relations Director Kitsap |
Carl R. Johnson|
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