The Senior Scene

Preparing for retirement can easily be pushed into the “some day” category as people focus on present needs and expenses. Very few Americans have a plan for retirement savings that is adequate for their desired standard of living after they retire, according to results of the Employee Benefit Research Institute’s 2019 Retirement Confidence Survey.

The survey found that workers who have any retirement plan are more likely, along with their spouse, to have saved any money for retirement. However, the U.S. Bureau of Labor and Statistics reports only about 51 percent of all workers participate in workplace retirement benefit options.

For a better approach to saving for retirement, the state Department of Commerce (DOC) suggests using the Retirement Marketplace. The online service (retirement-marketplace.com) helps Washington businesses and individuals shop for retirement savings plans that the state has verified are low-cost, meaning no administrative fees to employers and a cap of no more than 1 percent in total annual fees.

Plan enrollments are managed by private financial-services firms.

“The Retirement Marketplace removes barriers and allows easy access to retirement savings plans,” said DOC director Lisa Brown. “When people are better prepared to live comfortably in retirement, it strengthens communities and local economies.”

Besides its website, more information on Retirement Marketplace is available at retirementmarketplace@commerce.wa.gov and 360-725-5070.

For individuals who are preparing to start or already receiving their Social Security benefits, current and future changes may impact their retirement plans.  For some advance knowledge and tips that might save thousands of dollars, a free online workshop will be presented Nov. 4 by the Social Security Administration and Pierce County Aging and Disability Resources.

“Social Security Retirement 2021” is scheduled for 4 to 5:30 p.m. at https://piercecountywa.zoom.us/j/92955776796. Participation by phone is available at 253-215-8782 or 888-788-0099. The Webinar ID is 929 5577 6796.  .

The presentation will be given by Kirk Larson, a Social Security representative.  He said one of the best ways to understand benefits is by opening and using a mySocial Security online account at www.socialsecurity.gov/myaccount/ and having the information available during the workshop.  Larson can help participants set up an account after the presentation.

The workshop will present ways to maximize benefits, including the rules about working–either full-time or part-time–while receiving benefits.

One in six Americans receives Social Security benefits, and about 40 percent of older Americans rely exclusively on Social Security for retirement income, according to the National Institute on Retirement .

Additional information on the workshop is available from Aging and Disability Resources, a program of county government, at 253-798-4600.

With a strong housing market over the past several years, home prices have risen dramatically.  As a result, many older adults have significant equity in their homes.  At the same time, living expenses have also risen dramatically – 14 percent over the past three years.

Reverse mortgages (also known as a home equity conversion mortgage) have been around since 1961.  Early problems gave them something of a black eye.  Today, the program is tightly regulated and has become a viable option for older adult homeowners seeking to take advantage of their equity.

“Reverse Mortgages: Things Have Changed,” an information-only, online presentation hosted by Pierce County’s Aging and Disability Resources, assesses the pros and cons of reverse.  The free sessions will be offered on:

• Oct. 8 at 7:00 p.m. Join online at https://piercecountywa.zoom.us/j/94340458572, or by phone at 253-215-8782 or 888-788-0099; Webinar ID: 943 4045 8572
• Oct. 10 at 10 a.m. Join online at https://piercecountywa.zoom.us/j/91214406665, or by phone at 253-215-8782 or 888-788-0099;  Webinar ID: 912 1440 6665

A reverse mortgage — a loan available to homeowners 62 years old or older — allows them to convert part of the equity in their homes into cash to use as they wish. The financial product was conceived as a means to help retirees with limited income use the accumulated wealth in their homes to cover living expenses and pay for healthcare.

“There are many misconceptions around reverse mortgages,” said Aaron Van Valkenburg, manager of Aging and Disability Resources, a program of Pierce County government. “With time and regulation, they have become a viable financial tool for older adults who want another way to pay for long-term medical expenses or care at home or in a facility. Reverse mortgages have many more options for consumers than ever before. Homeowners should know the possibilities.”

Additional information about the presentations is available from Aging and Disability Resources at 253-798-4600 or 800-562-0332.

Financial hardships created or worsened by the COVID-19 pandemic will be much worse for older Americans living alone and could force nearly 3 million of them into possible poverty or greater health risks, according to an organization that’s monitoring the issue.

“Recent history shows us what happens to an already vulnerable population of older adults living in single households,” said Susan Silberman, a senior director of the National Council on Aging (NCOA), an advocacy organization for seniors. “Their far more precarious financial situation is worsened by an economic downturn to a greater degree than older adults living with others. This is only part of the story. Older adults living alone will likely face devastating health impacts related to social isolation.”

NCOA reported its concerns as co-author of a study that applies historical data from the 2008 recession to today’s economic and public health crisis.

In part, the analysis found that the number of vulnerable older adults living alone is likely to increase as married couples lose their partners because of the pandemic. Although the analysis focused on the potential financial risks to older adults during an impending recession, COVID-19 adds potentially devastating health consequences on top of any economic impacts, NCOA noted.

“It is critically important to maintain a strong social safety net and ensure that people who need to access benefits are able to do so,” while also “narrowing financial disparities” for the older population, Silberman said.