Retirement Health Costs: Planning for the Wild Card...

What you might owe and 8 ways to prepare Be honest, now: When you do your retirement planning, do you factor in potential health care costs and long-term care costs? Odds are, you don’t, figuring there’s no way to know what they might be — not to mention the subject is depressing and the numbers could be scary. But ignoring what Ken Dychtwald, CEO of the aging consultancy Age Wave agewave.com, calls “the retirement wild card” could be the biggest retirement planning mistake you’ll ever make. And you actually can plan for health and long-term care costs; I’ll give you eight ways shortly. Age Wave and Merrill Lynch today released a fascinating, if disconcerting report (Health and Retirement: Planning for the Great Unknown) based on a comprehensive survey of 3,303 adults. They call health care expenses “the missing link in retirement planning.” The Survey Says… Five of the survey’s striking findings: Health care expenses are the top financial concern for retirement among Americans age 50+, regardless of their wealth level Only 15 percent of pre-retirees have tried estimating how much money they might need for health care and long-term care in retirement Just 7 percent of those 55 to 64 feel very knowledgeable about Medicare options; a mere 19 percent of Medicare recipients do 71 percent of couples age 50+ haven’t discussed how much they need to save to pay for health care during retirement Health problems were the No. 1 reason people retired earlier than expected Nationwide Insurance has also polled boomers about retirement health care costs. “The one word that comes up is ‘terrified,’” says Kevin McGarry, director of the Nationwide Financial Retirement Institute. The danger of not penciling out health- and long-term care costs, and taking...

The Sly Tricks Marketers Use to Get You to Buy...

Tips to guard against them from a ‘Hidden Persuasion’ co-author As a consumer reporter for more than two decades, I’ve come to consider myself a savvy shopper. I thought I knew most of the marketing gimmicks and advertising “gotchas” and that my buying decisions were completely rational. But after reading ‘Hidden Persuasion: 33 Psychological Influence Techniques in Advertising’ I now realize, sadly, that’s not the case. The book, written by Dutch social psychology professors Matthijs van Leeuwen and Rick van Baaren and visual design art director Marc Andrews, lays out clever techniques used in advertising, packaging and websites that are designed to get you to buy. Hidden Persuasion is a graphic romp that’s both eye candy and eye opening. You’ll never look at an ad, an online shopping site or product packaging the same way again. One of my favorites from the book: The three “e’s” on Heineken bottles are slanted backwards, designed to be smiling at you so you’ll be more inclined to buy them. I spoke to van Leeuwen, an assistant professor of Social Influence and Persuasion at the Radboud University of Nijmegen, to learn more about these sly tactics and how we can avoid falling for them and spending money on items we don’t really need. Here’s an edited excerpt of our conversation: Why did you write this book? van Leeuwen:  Consumers have a lot to gain in understanding how they’re influenced. They see ads, but believe they can resist because they believe the only tricks used are the smiling faces, the humor and/or the persuasive arguments made to sell a product. But there are many social-influence techniques that affect consumers unconsciously. By informing consumers about these techniques, we hope they will be better able to...

Why I’m Not Buying the Retirement Gloom...

In the emerging Unretirement movement, you are your best investment Gray wave. Age wave. Geezer tsunami. (Pick your favorite — or most hated — euphemism.) Catchphrases like these capture the realization that we’re living longer and that older Americans make up a growing share of the population. As economist Laurence Kotlikoff and columnist Scott Burns say in The Coming Generational Storm: “The aging of America isn’t a temporary event. We are well into a change that is permanent, irreversible, and very long term.” Living longer should be a trend worth celebrating. But many people believe that America’s boomers can’t afford retirement, let alone a decent retirement. They fear that aging boomers are inevitably hurtling toward a lower standard of living. And here’s their evidence: We’ve just been through the worst downturn since the 1930s, decimating jobs and pensions. Retirement savings are slim. Surveys show that boomers aren’t spending much time planning for retirement. The prediction that the swelling tab for Social Security and other old-age entitlements will push the U.S. government and economy into a Greece-like collapse seems almost routine. The Unretirement Movement Don’t buy into the retirement gloom. I’m not. Here’s why: The signs of a grassroots push to reinvent the last third of life are unmistakable. Call it the “Unretirement” movement — and it is a movement. Unretirement starts with the insight that earning a paycheck well into the traditional retirement years will make a huge difference in our future living standards. You — and your skills and talents — are your best retirement investment. What’s more, if society taps into the talents and abilities of sixty-somethings and seventy-somethings, employers will benefit, the economy will be wealthier and funding entitlements will be much easier. The Unretirement movement...

Why 50+ Women Should Take Control of Their Money...

It’s not too late to start managing your financial future. Here’s how. When I ask my working girlfriends when they plan to retire, or if they plan to retire, I usually get a quizzical look — and then a shrug. Most of them are in their 50s and 60s and they all seem to think the notion of not working for pay is rather unrealistic. Why? “If I stop bringing home a paycheck of some sort, I’m afraid I’ll outlive my money,” one of my college friends, who is single, told me recently. Even the ones who are married and have a spouse who has presumably also been socking money away echo that deep-seated sentiment. It’s there lurking in the shadows and pushing many of us out of bed to get to work: the bag lady specter. While I truly dislike this image, there is a grain of reality in the fear. Retirement Fears Are Pervasive A 2013 survey from PNC Financial Services Group found that more than half of women agreed with the statement: “I’m afraid I may not be able to retire.” And 38 percent of women said they believed they were prepared for retirement; 48 percent of men felt that way. For women over 50, the stakes are especially high. “Women age 50 and older — especially unmarried women — face extreme financial risks and potential poverty in retirement,” Transamerica Center for Retirement Studies President Transamerica Center Retirement Research told me. Many of these women who Transamerica has surveyed say they plan to work until age 70 or later or don’t plan to retire at all. That plan, however, might be faulty. “Life’s unforeseen circumstances such as health issues or a job loss can derail the...

When Does It Pay to Go Back to School in Midlife?...

Getting a degree or certificate won’t guarantee a job. Here’s what you need to know to increase your chances of finding new work. I suspect many Americans in their 50s and 60s are considering going back to school to improve their career prospects. After all, getting additional education in midlife — whether it’s a bachelors degree, a masters or a certificate — can be an excellent way to move into a new career, earn a promotion or make more money. But college isn’t cheap and there’s no guarantee that further schooling will lead to a new job or fatten your paycheck. So when does it pay to go back to school after age 50 or so? A Midlife Degree Is No Job Guarantee I got to thinking about this issue after my editor forwarded me an email from a distraught 59-year-old Next Avenue reader. She couldn’t find a job after picking up a bachelor’s degree in social work because employers said she lacked the necessary experience. That’s an all too common chicken-and-egg predicament faced by many new, older graduates: You need relevant experience to get a new job, but you need a job to gain relevant experience. If going back to school, either for a degree or a certificate, is something you’re thinking about, here are three considerations for choosing a program wisely, plus two tips to help you find a job after completing your studies: How to Select a Back-to-School Program Research employment rates for new graduates. There was a time when pretty much any college degree was a ticket to a new job. But those days are long gone. According to “Hard Times, College Majors, Unemployment and Earnings 2013,” a study just released by the Georgetown University...

Housesitting: A Fun Way to Travel the World on a Dime...

Here’s how it works and what to watch out for When boomers want to escape the 9-to-5 workplace grind and the demands of caregiving for parents and/or kids wane, many dream of traveling. A recent survey found that 59 percent of retirees look forward to exploring new places during the second part of their lives. But people soon realize the cost of traveling for extended periods can be daunting, especially when living on a reduced income. That’s why housesitting has become an increasingly popular way to live away from home without the steep pricetag. What is Housesitting? Housesitting entails taking care of someone else’s property (and possibly their pets) in exchange for your stay. In the past, it typically took the form of informal arrangements between people who knew each other. Less commonly, individuals or couples were hired by professional agencies that employ housesitters at a salary, usually for long periods of time. Over the past decade, though, technology has spawned a new model of unpaid housesitting, with websites connecting homeowners and potential sitters for jobs lasting weeks or months at a time. This peer-to-peer model is part of the same “sharing economy” that laid the foundation for successful businesses such as Uber and Airbnb. Retirees are leading the pack among housesitting-site users. The sites are also popular with people who are semi-retired or have location-independent (portable) careers. “Without a doubt, other housesitting networks would agree that ‘silver surfers’ are a trusted mainstay of our customer base,” says Lamia Walker, founder of HouseSitMatch.com. Why Housesitting Isn’t Entirely Free Housesitting isn’t a totally free ride. While it can offer substantial savings on accommodations, housesitters still must pay for their food, airfare and transportation costs. Since it can be difficult to...

How to Comfort Someone Who Just Lost a Job...

A career coach offers six tips on what to say and do when a friend or loved one becomes unemployed Losing a job is an all too common, and often traumatic, experience. Years ago, I remember walking toward the exit on my last day at work, packed boxes in hand, alongside my manager. A colleague ran into us and asked my manager if she was leaving. I jumped in and said, “No, I’m leaving,” then burst into tears. Not knowing what to say, my co-worker instinctively gave me a big hug. If your friend, spouse or family member recently became unemployed, it can be hard to know exactly what to say and how to be helpful, beyond offering a hug and expressing sympathy. That’s especially true if the person held the position for many years and hitched his or her identity to the job title. Based on my experience as a career coach, I’d suggest you take these six steps to offer comfort and assistance: Acknowledge the loss. That’s what the colleague who gave me a big hug on my last day essentially did. Anyone who has just become unemployed will appreciate your recognizing the misfortune. Just keep your words simple with something like, “I’m sorry to hear the news.” When the person is ready to talk — and chances are, you’ll notice the signs — listen without adding your own commentary. Ask what he or she needs to ease the transition. Then offer to help. Maybe you can sort through the packed boxes together. Or you might provide a sympathetic ear, letting your friend or loved one talk about what it means to leave the position and how he or she feels about it. Assisting someone in making...

Second Career? They’re on Their Third and Fourth...

You, too, just might have a succession of encore careers Most of my boomer friends tell their adult children to plan on multiple jobs and careers. The era of corporate loyalty and the organization man and woman is long gone, they (and I) say — due to a hypercompetitive global economy and their likely desire to embrace new opportunities throughout their work lives. Good advice. But boomers ought to heed this insight, too, embracing multiple acts during the second half of life. I think you shouldn’t just plan on a second career, but maybe a third or a fourth. Linda Lyman: On Her Third Career That’s also what Linda Lyman told me with a smile when we met at a Phoenix breakfast event for UMOM, a nonprofit helping families break the cycle of homelessness. She’s exploring her third career in what I call Unretirement (also the title of my new book on the trend). Lyman moved to Phoenix 31 years ago, eventually managing legal services for a land developer. On the 17th anniversary at this job, a colleague congratulated her and asked: “What will you do for the next 17 years?” The thought of spending another 17 years at one place jolted Lyman, then 46. “I have to get out of here,” she thought. “I am going to do something more meaningful.” Lyman next began working at a small nonprofit that mentored at-risk kids, New Pathways for Youth, and ran the group successfully for a decade. She loved the work, but decided it was time to “retire” earlier this year. “Ten years is a long time,” Lyman says. “I needed to have more life balance. I left on my own terms. It’s good.” Now Lyman, 58, is eager to...