NDSU Extension Service - Ramsey County


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Retirement Threats

Retirement Threats


                If you are one of the minority of Americans who feel comfortable with your retirement nest egg and plans for retirement, congratulations!  As a whole, Americans are lacking on planning for their retirement future.  Still for those who have made retirement plans there are several factors that can put their retirement at risk.  Be wary of:

                - Being physically incapable of working or caring for a spouse.  Most retirees plan to work at least very, very part-time for both income and socialization.  Even a small amount of income from a part-time job can make a big difference in life style and quality of life.  When a spouse becomes ill, the other spouse is typically the first caregiver of choice.  If that spouse is physically unable to provide care, retirement savings may be needed to pay for health care.

                - Caring for children and grandchildren.  Boomerang children of any age and young grandchildren who come to live with grandpa/grandma all add to household expenses thus changing your retirement expense plan.  If they continue to live with you as permanent members of the household, long range expenses such as health care and education costs can have a major impact on your retirement savings.

                Lack of emergency savings.  You might have heard of someone saying, “I can always take money from my 401K and replace it later.” In most cases, the dollars are not replaced and even if they are, you have lost the earnings potential of when the money was not in the account.

                Retirement scams.  The normal anxiety of not having enough money for retirement, makes retirees an easy target for scammers.  The Financial Industry Regulatory Authority (FINRA) , a nonprofit watchdog for consumers , advises to be wary of any scheme that promise investment returns much higher than existing accounts pay.  If the offer is too good to be true, it probably is!

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