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A recent post by the CRR shows that non-working Baby Boomers age 55 to 61 (ages ineligible for Social Security benefits) are wealthier now than non-working 55 to 61 year olds of the past. The post explores how they’ve accumulated the wealth and why they chose to leave the labor force. An important point of the article is that, though they find themselves wealthier than non-workers of the past, they still only have a median wealth figure of $98,000. This “isn’t a lot of money for a boomer with a long spell of retirement ahead of them.  Boomers who leave the labor force often put themselves at risk of depleting their 401(k) assets too soon.”

Full post from the Center for Retirement Research.

Post Introduction: “Baby boomers who’ve left the labor force in their pre-retirement years are in better financial shape than they once were.

The wealth of non-working Americans between ages 55 and 61 increased from $83,000 in 1992 to $98,000 in 2008, according to new research from the Urban Institute in Washington.  (Comparisons are in constant dollars.)

Potential explanations for this trend range from greater U.S. inequality that launched more boomers into the top wealth tier to a rise in the numbers of married men who don’t work – but have wives who do.  Barbara Butrica, a senior research associate at the Urban Institute, said her study did not look into the “why” for the emerging group of voluntary non-workers who are approaching traditional retirement ages, married and single men in particular.  One possibility, she said, is that “they are leaving the labor force because they can afford to.”

…Read the full story

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Today the University of Massachusetts Boston has made the fourth edition of “The Guide for Elders: Planning that Protects You and Your Assets” available for free online. The Guide which started in 1993 and has continued to be revised over time (most recently in 2010) hopes to be a resource for older adults so they know what steps to take to get and keep their affairs in order. There are “increasing numbers of reports of elderly people being abused, exploited, or victimized in ways that rob them of their life savings and their dignity. Those cases involving financial exploitation saw elders victimized by friends, neighbors, and even family members.”

Financial and health care matters are often confusing and the Guide provides their readers with clear descriptions and scenarios to illustrate problem areas. After reading the Guide you should be able to answer a number of questions: Why do I need a power of attorney, health care proxy, or will? When should I consider entering a nursing home? What can I do if I get “ripped off,” or if I am the victim of a crime or abuse?

Although not intended as a substitute for individual counsel and assistance, the Guide will allow you to prepare and determine if your situation needs additional professional advice. As clearly stated in the introduction, “Elders need to know what steps they can take to avoid being victimized and what they should do when and if it happens to them. This Guide’s…emphasis is on prevention and avoidance of problems, with the recognition of the old adage that an ounce of prevention is worth a pound of cure.”

While on a recent phone conversation with my best friend we got to talking about her parents and their (in her opinion) impulsive purchase. They were in North Carolina on vacation and bought a plot of land. They plan to build a house on it over the next couple of years and by the time they retire it will be ready for them to move in. Being a gerontology student and always thinking about long-term care needs, I babbled on for a few minutes about universal design. If they intend to build this home and stay in it for as long as possible, I told my friend, then they should consider their future needs.

Recent statistics show that about 80% of baby boomers want to remain in their homes for as long as possible (and Obama’s new Affordable Care Act may help them do just that with the Community Living Assistance Services and Supports (CLASS) program and the expansion of Home and Community-Based Services. A story for another time). If you start planning for it now, you don’t have to have oodles of money to build a house from scratch like my friend’s parents. Let me share with you what I feel are the key components of universal design and home modifications:

  • Think About Daily Activities – when modifying your home to support you in old age focus on making it easy to perform basic activities like bathing, cooking, or getting into and out of your home. Examples:
  1. Install grab bars in the bathroom
  2. Replace doorknobs or faucet handles with lever handles
  3. Install handrails on both sides of any staircases inside or outside your home (or consider ramps)
  4. Create some easy access storage in the kitchen such as a pull-out pantry or adjustable shelves
  • Consider the Age of Your Home – Most older adults live in homes that are over 20 years old and these can have some issues as you age. Some updates to your home can help you age in place. Examples:
  1. Install proper insulation, storm windows, and air conditioning so you have good heating and ventilation
  2. Create 36-inch wide doorways throughout the house for easy access with a wheelchair or walker
  3. Move outlets 18-inches off the floor so you’ll be able to reach them without much bending
  4. Put your laundry on the main floor (definitely get it out of the basement!)
  • Make Safety a Priority – Think about your aging parents. What parts of their home make you nervous? The clutter, the dim lighting, the slippery bathroom? These may also become a safety concern for you one day. Examples:
  1. Get rid of throw rugs (they are very hazardous!)
  2. Place non-slip strips in the bath tub, the kitchen and on any outdoor or indoor stairways
  3. Install bright lighting inside and outside the home, and make sure switches are easy to use and access
  4. Rearrange your furniture so there is plenty of space to move around a room

There are many companies out there that will sell you some pretty sleek looking products. You definitely do not need to spend that kind of money, but I think some people fear their home will look like a hospital if they integrate basic universal design.  Just remember this is entirely up to you, your tastes and your budget. If you start planning for it now and modify your home over time the benefits could greatly outweigh the costs. Below are some resources if you are interested in learning more:

National Resource Center on Supportive Housing and Home Modification

  • Comprehensive list of online resources
  • Directory for finding services in your area

US Department of Health and Human Services

I live in New England and this weekend’s snow got me thinking about the older adults in the area. We have had a pretty bad winter and the snow on my lawn has been present since January. Many older adults upon retirement, choose to move to a sunnier location for the wintery part of the year. Given the minimal shoveling of sidewalks, I can see why. But one has to have the means and many older adults do not. This has implications for the region they move to and the one they leave behind. Their resources come with them, boosting the economy wherever they go. Because the winter migration patterns are a significant number of older adults, it has such an impact when people are deciding to stay home. This is occurring now in the current economic times. For example, in Florida the number of snowbirds fell 5.7 percent in the fourth quarter.

What makes this more interesting is how the Baby Boomers claim they will retire. I found this article by Eric Gillin titled, Baby Boomers Busting the Retirement Migration Mold. About 83% of boomers say they would love to remain in their current residents for as long as possible and have little intention of moving. Those present retirees who are moving are heading to surprising places. Between 1990 and 2000, in places like Alaska, Colorado, Delaware, Wyoming, North Carolina, South Carolina and Georgia, the number of people over the age of 65 increased by more than 20%. Arizona became the second largest receiving state, next to Florida, and for the first time Nevada entered the top ranking retirement states. It will be very interesting to see if the 2010 Census gives us even more dramatic numbers.

Residential areas are popping up for retirees everywhere, attempting to attract them in droves. Like I mentioned before, they bring resources and provide an economic boost to the area. States will try to make areas accommodating, attractive, and exciting to encourage older adults to move in. And why not? Everyone sees the migration impact on Florida’s economy.

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