May 28, 2019
Cars Separate U.S. Retirees from Germans
Retired Germans spend more days outdoors than retirees in this country. But when older Americans leave the house, they stay out longer.
What makes the difference? The car. Americans love their automobiles and overwhelmingly rely on them, according to a new study by MIT’s AgeLab. If they’re going grocery shopping, they might as well run their other errands.
Only about half of Germans, on the other hand, say driving is their favorite way to get around. And they venture out more frequently, because they can walk – or bike – to the market, which tends to be closer to home.
As people age and recognize the inevitability of their limitations, they begin to think more carefully about whether they will be able to remain in their homes. To gain insight into this issue, the AgeLab surveyed older Germans and Americans to compare their retirement experiences and satisfaction with their lifestyles – the AgeLab calls it “residential mastery.”
This goal is achievable for seniors everywhere, if they can find a way to continue to live healthily in a particular cultural and social environment. “Americans may reach residential mastery by having access to a car, ride-sharing or taxi services, while Germans may reach residential mastery by having shops and amenities in walking distance,” concluded an article in the Journal of Environmental Psychology.
In the survey, retirees in each country were asked what they need and what their neighborhoods provide. Both Germans and Americans put the most value on living close to healthcare facilities and their family and friends, who can provide the day-to-day support they need. They agreed on 12 of 17 aspects of their lifestyles – affordability, places to sit and rest, cultural institutions, green spaces, etc. – as being critical to them. …Learn More
May 21, 2019
Retirement Dates Don’t Always Fit Plan
Today, half of U.S. workers say they want to work past age 65 – in the 1990s, only 16 percent did.
Apparently, people are getting the message that, if they want to be comfortable in retirement, they will need to work as long as possible. However, good intentions don’t pan out for more a third of workers closing in on retirement age. And the older the age they had planned to retire, the more they fall short of the goal.
Researchers at the Center for Retirement Research, which sponsors this blog, wanted to uncover why people do not follow through. Their study was based on a survey that asked people in their late 50s when they planned to retire and then watched them over the next several years to see what they did and why.
Two factors – the researchers call them shocks – play important roles in pushing people to retire early. The big factor is health. One health-related reason is intuitive: when older people develop a new condition, they become more likely to retire earlier than they’d planned. A second reason is that, when setting a date, they over-estimate how long they’ll be able to work if they have already developed health conditions like arthritis, heart disease, or emphysema. …Learn More
May 9, 2019
ROMEOs: Retired Old Men Eating Out
Every Thursday morning, five, six, seven of them meet for a hearty breakfast and freewheeling conversation at the Sunrise Bistro in Summerville, South Carolina.
The retirees’ talk careens from Tammany Hall and texting while driving to their military experiences and the aches and pains of old age. Several of the men had technical careers, so they recently dived deep into analyzing why a Coast Guard cutter carrying Zulu royalty crashed into a New Orleans dock.
“We talk about man things,” said Bob Orenstein, an 83-year-old Korean War veteran who is retired from a Wall Street computer firm. “Men are mainly loners frankly, but everybody has found something to identify with in the group.”
The truth is that the ROMEOs – retired old men eating out – get much more than that from their weekly assemblies. “I think it’s just the friendship, the camaraderie,” said Paul Brustowicz, 74, a former jack-of-all-trades for an insurance company.
Friendship is the best antidote to isolation, which is dangerous for older Americans because it can lead to depression, poor health habits, and other problems. Most of the men in the breakfast club are South Carolina transplants, and their meetings have led to socializing and phone calls outside the group. Two of the men go deep-sea fishing together for redfish, and others share memories of growing up in New York or the tricks of the trade for constructing sailboat and railroad models. …Learn More
May 2, 2019
Retiring Can Strain Food Budgets
More than 10 percent of the nation’s retirees struggle with hunger.
New research offers one explanation: when people retire and give up a regular paycheck, they sometimes adjust to having less income by reducing their food intake.
After retiring, the men in the study ate 17 percent less protein, which becomes more important as people age. Their total calorie intake also dropped 19 percent, and their Vitamin E consumption fell 16 percent, on average, according to researchers at the University of Michigan and University of Delaware. The retirees also cut back on several other nutrients.
This contradicts previous studies, which had failed to uncover a link between diet and retirement income. Skeptical of the findings, the researchers did an exhaustive study that used various types of analyses and several datasets to follow male heads of households from employment through retirement. They controlled for race, education, household size, and health.
They consistently found, across several data sources, that a drop in income reduces food intake. In fact, the effect was so large that it exceeded the impact of another dramatic financial event: unemployment among working-age people.
Although a small minority of seniors are threatened by hunger, it’s a serious problem. …Learn More
April 25, 2019
Do Couples Save Enough for Two?
Since only about half of all private sector workers currently have access to an employer 401(k) plan, it’s not at all unusual for spouses who are both working to have only one saver in the family.
When that’s the case, is the person who is contributing to the employer retirement plan saving for two? The answer is definitely not, concludes a new study by the Center for Retirement Research.
The challenge for couples living on two paychecks is that they have to save more money to maintain their current lifestyle after they retire. But households with two earners and only one saver end up saving less than others – only about 5 percent of the couple’s combined incomes, compared with more than 9 percent when both spouses are working and saving, the study found.
Couples who rely on a lone saver need that person to pick up the slack. Employers could help them if they considered the employee’s family situation when setting a 401(k) contribution rate in plans that automatically enroll workers. …Learn More
April 16, 2019
Dementia is a Threat to Managing Money
The perils of aging generally escalate around 75, and they are becoming more pervasive as more Americans live to very old ages.
One of these perils – declining cognitive ability – often creates financial problems. A new study that summarized the research on this side of the retirement equation identified the financial fallout from dementia.
Currently, dementia afflicts roughly a quarter of seniors in their early 80s. And geriatricians and demographers have predicted for years that dementia will become a serious societal problem in the future as the tsunami of baby boomers reach older ages.
The first sign of deteriorating financial skills might be forgetting to pay a bill. But when severe dementia sets in, the vast majority completely lose their ability to manage their finances and risk making big mistakes, such as losing money in a fraudulent investment scheme.
Another concern is retirees’ growing reliance on 401(k)s for more of their income. Increasingly, they are grappling with the complicated question of how much money to withdraw each year from their 401(k) accounts – this is difficult for anyone but virtually impossible for people with dementia.
Fortunately, most of them get assistance managing their finances. But the seniors who don’t get help face potentially grave repercussions, such as having difficulty affording food, housing and medical care.
Managing money is not the only financial risk posed by dementia. A more serious issue is the potential need for a lengthy stay in a nursing home, which will be addressed in a future blog post. …Learn More
March 27, 2019
Elderly Report Financial Abuse by Kids
A son uses his elderly mother’s ATM card at casinos and liquor stores or takes her to the bank to withdraw money from her account.
A woman reports that her sister stole thousands of dollars’ worth of jewelry from their mother, who suffers from dementia.
An elderly couple assigns power of attorney to their son, only to watch him sell their house and spend the proceeds he was supposed to use to create a living space in his home for his parents.
News accounts like these are rare. But reports about financial abuse of the elderly are increasing. The problem lurks largely in the shadows, because parents view it as a private family affair and are loathe to file a police report, says Julie Schoen, attorney and deputy director of the National Center on Elder Abuse (NCEA) at the University of Southern California.
“People just don’t want to do that to their loved one,” said Schoen, whose organization refers victims to the National Adult Protective Services Association for help.
Financial exploitation affects at least 5 percent of older Americans. The majority is perpetrated by family members, especially adult children, say researchers. Victims’ average age is 75, and African-Americans, the poor, disabled people, and elderly people living alone are common targets.
The problem is so poorly understood that advocates are raising awareness – Elderly Abuse Awareness Day is June 15 – and encouraging people to act when they suspect an elderly acquaintance, friend, or family member is the victim of financial abuse.
One form of abuse occurs when parents sign a power of attorney allowing a child to take over their financial affairs without reading or understanding the legal document. “Power of attorney is the heartbeat of your estate plan. A lot of people have them done and have no idea it’s in there,” she said. …Learn More