What are some unique challenges that retirees are facing?
• The ever-changing investment environment
Retiring means that your income and sources of income may change, but they may not. Social Security, which usually begins between the ages of 62 and 70, is one source of income. On the plus side, you can’t accept early distributions, and Social Security is “secure.” On the downside, Social Security was most likely the poorest investment you made throughout your working life.
Because you paid into Social Security with after-tax monies, you get taxed on your total payout, not just the minuscule “gain” on the sums you paid in, which amounts to double taxation. Also, you have to decide which retirement funds to use first and how much to withdraw each year. You will need current guidance from a specialist on which retirement funds to use first. Tax regulations are constantly changing, and sound advice one year may be disastrous the next. Furthermore, what is best is highly personal and reliant on your circumstances, investments, tax status, and personal desires.
Check out The Four Percent Rule for Retirement for some ideas on how much money you might be able to take out each year. There may also be difficult decisions to make about how to handle income above your immediate retirement requirements (re-investing and how?), bonds, CDs, or assets that have matured, as well as any other unavoidable financial concerns. If such decisions become difficult, you should talk with a trusted family member or possibly hire a financial expert to manage your assets on your behalf.
• An elevated risk of elder abuse and fraud, particularly financial fraud
Caution begins to decrease at the same time that financial abilities begin to wane. It is not uncommon for con artists to specifically target the elderly to defraud them of their hard-earned cash. Examples of seniors getting bogus philanthropic solicitations, being duped by unscrupulous (and sometimes unlicensed) contractors, being abandoned or abused by family or caretakers, or being the victims of theft or violence can be seen in the news every day. Financial Abuse of the Elderly has further information. The seniors who have begun to suffer from aging impairments, referred to as vulnerable individuals, are provided with extensive protection under Florida law (as do the elderly in the majority of states).