ShAARP Session: Observations from AARP

There is an interesting posting on the Los Angeles Times' "Booster Shots" blog that talks about older patients and sleep problems - and how those sleep problems aren't just something people have to deal with as they age. The article does say that aging does bring about changes in sleep patterns, but those changes often are related to chronic diseases - like diabetes and high blood pressure - that also happen to be more common as we age. Once those ailments are treated, so too are the sleep issues.

However, the plot thickens - some medications used to treat those same conditions can also interrupt sleep patterns. Doctors sometimes don't mention those possible side effects, leading patients to not mention their sleep troubles. So, don't think your trouble sleeping isn't worth mentioning to the doc. They might be able to help you out!

One more article to check out: this one from BusinessWeek. Remember how companies were preparing for the wave of baby boomers who were entering retirement? Now, companies are looking for ways to handle the "unretirement" of those baby boomers. Check out the article to see what businesses are saying are the challenges and advantages of this aging American workforce.

Yesterday, AARP's Director of Financial Security, Jean Stetzfand, was featured in a segment NPR's "Tell Me More" program. Stetzfand is discussing the issue of older workers and unemployment - a topic that is gaining more and more exposure in the media recently, and obviously one that is important to AARP and its members. Read the transcript or listen to the segment here.

Stetzfand discusses the fact that workers over age 55 spend more time looking for work, possibly because employers see older workers' skills are "out of date," forcing job seekers to "reinvent themselves," which can prove to be a daunting challenge. So - "Why not just retire?" the host asks. Stetzfand explains that many Americans just aren't financially prepared for retirement. Give the story a listen to see what she has to say about how retiring at different ages affects your income.

In other financial security news today, on the ABC News website, David McPherson writes a column about Roth IRAs - what he calls "one of the best defenses against potential future increases in federal and state income taxes." Are Roth IRAs right for you? Individuals can convert current retirement savings into Roth IRAs, or can start an account and make yearly contributions. See what McPherson has to say for the nitty gritty that might help you determine what's best for the future of your retirement savings.

In an AdWeek article posted yesterday, the author takes a look at Americans' financial unpreparedness for retirement, especially in these tough economic times. The story reports on a study from the Center for Retirement Research at Boston College called "The National Retirement Risk Index: After the Crash."

Other studies are showing that younger generations are taking notice - and therefore taking steps to make sure they are doing a better job of saving in pre-retirement years. A report from AARP is mentioned - one that shows that 49 percent of 45-64-year-olds are not confident that they "will have enough money to take care of your medical and living expenses in retirement." Do you fall into that category? What steps are you taking to make sure you do have enough money throughout retirement?

AARP's David Certner is also quoted in the AdWeek article. He talks about how Americans are working past retirement age - but are facing obstacles along the way, like age discrimination. He also points out that this recession could change people's saving behavior for good, especially if the economy continues to be "muddled" for a number of years.

Pedestrian Safety
Another study making waves today is one from Transportation for America, a national transportation coalition, that lists the safest and most dangerous cities for pedestrians. AARP's Elinor Ginzler is mentioned in several articles - because pedestrians age 65 and older are particularly vulnerable to accidents. Check out a few of the stories about the study: Washington Post; AFP; Christian Science Monitor; and Miami Herald.

The Los Angeles Times is reporting today on the Schwarzenegger administration's rush to begin background checks for home health workers for the elderly and disabled - the plan is for those checks to begin next week. But, as the Times reports, social service chiefs from around the state are not ready to begin the time-consuming application process. This delay could mean that some patients go without care.

On another note...
CNNMoney.com has a valuable piece today answering the question of "When is a good time to invest in my 401(k)?" That answer: a resounding NOW! Walter Updegrave, Money Magazine senior editor, says in the story that "regardless of what's going on in the economy and the financial markets at any given moment," we should always, always be contributing to our 401(k). He points out that we cannot predict when the economy will be up, when it will be down, or anything else about it for that matter - so it makes sense that the only way to build up a large enough nest egg is to regularly be investing in this varying economy. And hey - could it be easier to invest in a 401(k)? Convenient payroll deductions mean there's no excuse to be contributing throughout your career.

Following up on yesterday's news...
The Chicago Tribune is reporting again on the compromised care in Illinois nursing homes. The new development is that half of Illinois' best nursing homes have now been cited for improper use of psychotropic drugs since 2001. Check out the story for the alarming details.

The recurring theme of older works and unemployment was in the news again this weekend. This one from the New York Times says that there are more Americans 65 and over working than any time in history: 6.6 million. And in addition to those 6.6 million in the workforce, another 500,000 seniors want to work but cannot find work. The article really delves deep into the dire situation.

"That so many of them are still trying to find work shows how bad the economic situation is. A lot of people normally give up at that age," says AARP's legislative policy director, David Certner, in the article.

The article also gives statistics from AARP's Public Policy Institute - such as the fact that unemployed older workers, on average, take 40 percent longer than the general unemployed to find work -- 36.5 weeks on average.

In addition, the issue of age discrimination is discussed, a topic that AARP has been talking about a lot lately, backing the proposed legislation, Protecting Older Workers Against Discrimination Act.

It's a very informative article that hits home on a lot of key points on unemployment and older workers - check it out.

A short but noteworthy article is on WSJ.com today - and it is a nice bit of news for those of us, young and old, still socking away money each paycheck in our 401(k)s. It says that "about half" the companies that suspended their matching benefit are "quietly" planning to match a portion of their employees 401(k) contributions. Check out the story for all the details.

Another story worth checking out today is in Newsweek - it's called "Un-Retiring." The story says that with "bigger than expected bills and smaller than expected nest eggs," workers between 55 and 70 expect to keep working until they are 70, and those already over 66 say they expect to work until they are 76. Check out the story for some resources on the best way to re-enter the job market if you're an older worker. Of course, the story points out AARP's list of 50 Best Employers for Workers Over 50. Check that out too!

All this older worker talk reminds me of an interesting post on WalletPop.com from yesterday...It says that more than half of the babies born in industrialized countries after the year 2000 will live to be 100. Great news, right? But it took this story to make me really think about the financial consequences of a longer lifespan. Check it out for yourself to see how the game changes when you life to be 100. AARP's John Rother is featured!

The Wall Street Journal had several great articles over the weekend on a few very pertinent topics for baby boomers. See them below.

The first one is a very informative article about employee-driven 401(k) plans. For the past 30 years, the investing industry has been "experimenting" with employees taking the lead on their retirement savings, but now, employers are taking the wheel, automatically investing their employees in retirement savings accounts. The article says that by having employers do the automatic investing, they help workers save enough in time for retirement and improve their diversification. Do you think the automatic enrollment is a good idea? Of course, workers can opt out if they choose...but according to the WSJ article, they "rarely do."

Another article is an entertaining (and maybe inspirational!) one about retirees who have literally made their dream come true: they've turned their hobbies into careers. We're all looking for ways to make extra money these days, and they've found fun ways to do it. But don't be fooled - it's still work. Check out the story.

Here is one that does the work in determining which financial services programs will work for you in figuring out whether your savings are going to last you through retirement. Many companies are trying to tap the baby boomer market by offering services at little to no cost to you...but read this article before you decide who to use!

Finally, check out this great story about ReServe Elder Service Inc., an organization you might want to get to know - they work to set up retirees with non-profits who can use their skills and pay them for their time. The program is in New York, but it's expanding!

The big news around AARP this Friday is all about the announcement that for the first time since 1975, people who rely on Social Security will not receive a cost of living adjustment, because consumer prices have remained stagnant in this economic climate. The Washington Post covers the story here - and AARP is mentioned in the article, too.

AARP released a statement on Wednesday contending that the government should provide emergency relief to older Americans by way of a $250 one time payment. The reasoning? Seniors need to spend more money on healthcare than younger generations - and the cost of health care has been increasing rapidly over consumer prices. "Without relief, millions of older Americans will be unable to afford skyrocketing health care and prescription drug costs, as well as other basic necessities," said AARP COO Tom Nelson in the statement.

AARP was also mentioned in all of these stories on the COLA announcement: get all the facts here: U.S. News and World Report, Bloomberg, AP, and Washington Times.

Other News of Interest...
I thought this blog post from CNBC was a good one - and might be useful to you if you're planning for your retirement. The author lists five common mistakes that you may identify with - from listening to the wrong people to choosing the wrong pension. Check it out for his advice on making the decision to retire stress-free!

There is a great Q&A style article on CNNMoney.com today that addresses concerns of older Americans who were looking to retire, but like many in the country, don't have the same amount of certainty in their financial stability that they once had. The author touches on going back to work (but does that make sense when the rest of America is looking for work, too?) and social security eligibility. Check it out if you're looking to retire early...or already have and are second-guessing your choice.

A Longevity Effort

You may have heard about the "Vitality Project," an initiative that was put together by AARP and Blue Zones, a healthy living organization...but if not (and even if so!) read this really cool story from Minnesota Public Radio yesterday about Albert Lea, a little town in Minnesota that has been the subject of a longevity effort.

Kids are walking over a mile to school instead of hopping on the bus, and that's just one of the little things the citizens of Albert Lea are doing to improve their well-being. Focusing on their physical environment, and making little changes, such as choosing a salad instead of French fries, is key to the project, and it sure seems Albert Lea is embracing the change! They are an inspiration to us all. J

On Friday, this great article about AARP's health insurance options was featured on CBS Money Watch. The article takes an in-depth look at AARP's range of health insurance plans and what they mean for you, in terms of deductibles, preventative care and more.

The author, Bob Trebilcock, says: "After talking to nearly a dozen experts and comparing quotes from more than 50 companies, here's our conclusion: AARP health policies, while rarely the least expensive, are competitive, and might be the best plan for you if you have health problems." Check out the story for the low-down on all things AARP health insurance.

If you're looking for tips on your finances in this tough economic climate, check out this story that appeared in the L.A. Times this weekend, "How to Be Your Own Financial Planner." There is advice on budgeting, retirement planning and spending, taxes and more.

In health care reform news - the Senate Finance Committee is scheduled to vote on the "Baucus bill" tomorrow - we'll be keeping tabs!

Have a great Monday.

Happy Monday!

Yesterday, The New York Times ran a story on the heated debate among AARP's generation gap, focusing on a dinner gathering of AARP members that took place in Wisconsin last week. That dinner was just one of 37 in Wisconsin alone over the past six weeks. AARP's intensive campaign to address the concerns of its older members has paid off, according to the article, with support for an overhaul growing as the campaign kicked into high gear over the past few months.

The article portrays the concerns of a wide range of AARP members, and also quotes David Certner, director of legislative policy for AARP and Nancy LeaMond, executive vice president of AARP.

In other news, an interesting story in the Chicago Tribune advises retirees to consider taxes when thinking of relocating in retirement. It's worth checking out. The author says, "No matter where you live, your federal taxes will be about the same. But you'd be amazed at how much your state and local tax burden may vary."

Finally, an AP story that got a lot of pickup over the weekend explained the waiver of the government required withdrawal from IRAs and employee-sponsored 401(k)s and profit sharing plans. The requirement is that once a person reaches 70 ½ years of age, they must withdraw money (called required minimum distributions) - but a law passed last year temporarily lifted that requirement to prevent retirees from having to withdraw from accounts that were hit hard by the stock market. It's temporary relief - but it's relief!

USA Today had an article recently on a new study showing that 80% of couples disagree on retirement, such as what age to retire, whether they'll work in retirement or where they'll move to retire.

While the economic recession surely can't help, experts advise to be open and communicative about retirement plans, which is hard when often one partner is responsible for the finances of the household. The other thing to do is make sure both people are aware and knowledgeable of their expenses and investments. After all, only 15% of people said they were confident one partner could handle family finances if the other died.

The piece also gives some basic steps you can take when beginning to talk about retirement with your honey. Check it out.

Via Wallet Pop.

I've spent a good amount of time here discussing lists of the best places to retire. There are many different sites to check out and they use varied criteria in assessing rankings. Here's one list that actually compiles and compares the results of other rankings. You can see how each different study values aspects of cities and determine which methods best suit your priorities. Of course, you can also check out the list AARP put together on the subject. How do your experiences compare with these rankings?

Never got around to saving a bunch of money for retirement? Retirement account take a big hit when the market tanked? Many Americans find themselves looking into a gap between the savings they have and what they need to retire. For some of these people, retiring abroad may be able to bridge the divide. In many countries the cost of living is significantly lower than here in the U.S. You may be able to greatly reduce your retirement costs without sacrificing quality of life by moving to another country. Just keep in mind, there are a few important things to keep in mind when retiring abroad. For starters, you'll need to find health insurance as Medicare won't cover you. Despite having to deal with changing your currency and dealing with differences in local culture, spending your retirement overseas could be the key to resolving your financial woes.

Earlier this week I wrote about how retirement can still be attainable in tough times. One major step in preparing to retire is finding cheaper living arrangements. Well here is a list of some of the cities with the most affordable housing in the country. Many are in upstate New York, but there are other cities throughout the country that offer some hope. Just make sure they aren't also on this list.

If you listen to all the doomsday predictions and naysayers, then you probably don't think you have any shot at retiring. Not so says one Kansas State University professor. According to Fred Brock, people can still retire even during a steep recession. The key is not only trying to maximize earnings, but more importantly cutting costs. It's often unpopular to resort to scrimping and saving every last dime, but this is your retirement people! If it is truly important to you then you may have to make sacrifices. You might even need to move into a smaller home. If you owe money on your current home, renting it out could provide an additional source of income. In short, no pain no gain.

If you're like me, then you probably don't think of credit cards as a tool to help you save for retirement. However, there are a couple of credit cards that will do just that. Both American Express and Visa have a card that can contribute a percentage of the money you spend to a retirement account. There are other cards that can help to pay for prescription drugs and other health expenses as well. While these aren't a substitute for good planning and saving, it's nice to think that your next trip to the mall could bring you a little closer to reaching retirement.

According to a recent Time Magazine article, having to postpone retirement for a few years might not be such a bad thing. When millions of Americans have spent their careers preparing for the day they could retire, there are benefits to holding onto your job for a bit longer. The country could see a big boost in the size of the economy if boomers were to stay at their jobs for a few more years. Moreover, the extra years of work could lessen the impact of the looming labor shortage resulting from retiring boomers. On a more individual level, as many as two thirds of older boomers aren't fully prepared for retirement. Working longer could help these people properly prepare for an enjoyable and secure retirement.

In the wake of harsh criticism and a growing number of headlines like this, many people are having doubts about the usefulness of 401(k)'s as a retirement savings tool. However, despite shaken consumer confidence and an unstable stock market, 401(k)'s still have their supporters. Individual retirement accounts are really the only way to prepare for retirement over the long hall and they can be the difference between affording retirement or having to keep working. Times may be tough right now, but these accounts are all we've got at the moment so we need to stick with them.

So the stock market has hit its lowest levels in four years, credit is tight and home values are down. We are all starting to get accustomed to these facts, but the real-world implications for the economic slow down are just starting to reveal themselves. One of the big losers in the current economic climate is retirement savings. Even before the markets really tanked, an AARP survey showed that 20% of baby boomers had stopped contributing to their retirement savings, and a third were considering postponing retirement. It's doubtful that the swooning economy of recent weeks has done much to improve these numbers. So if your nest egg is starting to look like this:

You're not alone.

The Associated Press has a piece about how stock losses are taking a heavy toll on retirement savings:

So close and yet so far. It's a frustration being felt by Americans who thought the finish line to their working life was almost in sight.

The financial crisis that toppled major Wall Street banks and snarled credit markets around the world has also taken a toll on nest eggs, forcing people to rethink when -- and even if -- their savings will allow them to retire.

More than half of people surveyed in an Associated Press-GfK poll released Wednesday said they worry that they will have to work longer because the value of their retirement savings has declined. (Emphasis mine)

Of course this poll doesn't come as much of a surprise. The crazy thing to me is that older Americans had already begun to have second thoughts on retiring before this financial meltdown. If we were in a crisis before, what is a more adequate term for what we're in now?

A common theme to my posts here is the massive demographic shift the country is going through. Baby boomers are retiring (or trying to) in huge numbers and this means the way we approach many government programs from Medicare to Social Security will have to change. Well, a major part of this shift is the aging of the Latino boomer population. However, next to no data exists for how this segment of baby boomers is preparing to retire. We know that Latinos have, on average, less education than their African-American and Caucasian-American counterparts. It has also been shown that amongst those Americans with lesser education levels, Latinos earn less than other ethnic groups. This would point to more Americans of Latin descent taking jobs with fewer benefits leaving fewer options to prepare for retirement. Despite all of these disadvantages, Latinos live longer than the population as a whole. The combination of low education and earnings with a longer life-span means we could be in for a troubling trend of Latinos who can't afford to retire. Or not. The point is no research has been done so we just don't know, and that's the problem.

As a part of their series on retirement issues in the 21st century, USA Today had a not-so-happy piece today about how many of the 1.6 million people becoming eligible for Social Security this year are actually postponing retirement because of health care costs and other economic problems the country is currently facing. Via Kaiser:

In 2007, only 45% of large companies subsidized health insurance for early retirees, compared with 88% in 1991, according to Hewitt Associates. As a result, many employees who retire before age 65, when they become eligible for Medicare, would have to find a new source of health insurance, such as the individual coverage market, Rick McGill, head of retiree medical consulting at Hewitt, said.

A recent AARP piece has a bit more of a positive spin on the trend of delays in retirement. After all, we shouldn't assume all people will automatically want to retire once they're eligible for Social Security; many older Americans love their work, and aren't ready to give it up.

AARP The Magazine has published a list of America's ten healthiest cities to live and retire in. Topping the list? Ann Arbor Michigan. While many people tend to think of warm locales as the best places to retire in, cooler cities did very well on the list. Why? It's not all about the weather. Cities like Ann Arbor have a great health care infrastructure, many parks, year long activities, and clean air and water. The whole list is below:

1. Ann Arbor, Mich.

2. Honolulu

3. Madison, Wisc.

4. Santa Fe, N.M.

5. Fargo, N.D.

6. Boulder, Colo.

7. Charlottesville, Va.

8. Minneapolis-St. Paul

9. San Francisco Bay area

10. Naples-Marco Island, Fla.