Discovering The Mature Lifestyle Demand for “Mother-In-Law” units increasing Page 6
Finance
February 20, 2015
February Issue
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hen it comes to money, many senior citizens have similar concerns, according to Brian Jones of the Edward Jones Investment firm in Farmington. “The biggest things retired people worry about are whether Social Security will be there for them, the way the stock market goes up and down – its volatility and continuing risk – and inflation and the escalating costs of things,” Jones said. Bottom line, he said: “Everyone worries about running out of money.” “You can only take so much out of your retirement accounts every year, or you’re going to run out,” Jones said, adding that “a lot of people try to do it on their own by investing on the Internet.” But, he warned, “A lot of people are not disciplined enough to do that.” He suggests that people first must look at their life situation and their lifestyle. “Some people can get by on $30,000 a year; some couldn’t get by on $100,000,” he said. The majority of people have not and do not save enough money, according to Jones. “Getting people to save when they’re young – even if it’s only $50 or $100 a month – will set them up really well when they reach 65 or 70,” he said. Once people are retired, Jones said, “They need to have a good solid plan. Most people don’t have anything on paper. Not everybody will do that. But you need a plan in place that you review on a regular basis.” Many people are continuing to work into their 70s, Jones said. “There also are a lot of people who quit work at 62 and take Social Security,” he said. “The majority of people begin taking Social Security at 62. You should wait as long as possible to begin
Retirees need a solid financial plan on paper BY SUE WEBBER CONTRIBUTING WRITER
doing that.” He also sees people with enough money to retire who still are working because they’re afraid Social Security will run out, Jones said. He suggests that retirees make sure their investments are properly diversified. “If you have that, the risks and concerns of retirement will take care of themselves,”
he said. Jones offers an information class monthly at the Rambling River Center in Farmington that deals with a variety of topics of interest to seniors, including Social Security, income and retirement, and health care. Aging 2030, sponsored by the Minnesota Dept. of Human Services, the Min-
nesota Board on Aging and the Minnesota Department of Health, is a program set to prepare the state for demographic shifts expected in the next 20 years. In 2011, the leading edge of the large baby boom generation (those born between 1946 and 1964) began to turn 65 at the rate of 10,000 people per day across the U.S. By 2030, the state is expected to have 1.3 million people over age 65. Metro Area Agency-Aging estimates that by 2020, Minnesota’s 65-plus population will be larger than the 5-17 school-age population. By 2030, the Minnesota Department of Human Services expects that one in four people in Minnesota will be over the age of 65. Aging 2030’s booklet titled “Timeline to Retirement” guides people to examine their lifestyle, finances and health and legal issues through the time when retirement is still a dream, to 5-10 years before you plan to retire, then 3-5 years before retirement, 1-3 years before retirement, the year before you retire, and in the year after you retire. The booklet notes that fewer people receive pensions from their employers, and that retirement can last for 30 or more years. The amount of money needed for retirement depends on individual lifestyles. “Some experts say you will need 70-80 percent of your current income to maintain your standard of living in retirement; others say up to 100 percent,” the booklet said. Personal savings become a critical factor. Ideally, people have saved 10 percent of every paycheck or 10-12 percent of their gross income, the booklet said. Information: 651-431-2500, www.dhs. state.mn.us/2030, or health.state.mn.us