Month: August 2016

Less than half of retired Americans are very satisfied in their retirement according to a new study by the Employee Benefit Research Institute. Only 48.6 percent currently report that their retirement has been “very satisfying” (down from 60.5 percent in 1998), while those reporting their experience as “not at all satisfying” has increased to 10.5 percent (from 7.9).

While this downward trend was seen in every economic group, higher retirement satisfaction was still positively correlated with net worth and good health. If you’d like to be among the most satisfied in your golden years, you’ll need an aggressive savings plan as well as a willingness to explore a few of these adventurous suggestions to get more enjoyment out of your retirement.

Make your own excitement. Imagine all the things you can do once you’re no longer obligated to punch a time clock every workday. Forty hours a week is more than enough to write a book, learn a new language, take up an instrument, mentor young professionals, help those less fortunate or pursue any other passions you’ve previously ignored for lack of time.

Reconnect with old friends. Busy lives naturally create distance in all but the closest relationships, and chances are good that you’ve lost touch with a few friends over the years. Now that you’re retired, it’s time to reach out and reestablish those connections. Social media platforms such as LinkedIn and Facebook are great tools for locating old chums. If you don’t know how these sites work, your grandkids will probably enjoy showing you how to use them.

Build a few new friendships as well.Research has shown that a strong network of friendships can help ward off depression, improve health and lead to a longer life. You can meet potential new friends while volunteering for charity, working a part time job, taking a class, exercising at the gym, hiking the local trails, walking in the park or attending community events. Look for senior meet ups all over the world here, or find interesting volunteer opportunities in your area here.

Don’t get too attached to a routine. We all tend to be creatures of habit, and it’s far too easy to exchange the daily work grind for a repetitive post-retirement routine. Unfortunately, doing the same things over and over again, day after day and week after week, can lead to boredom and a decline in overall happiness and satisfaction. Spontaneity is the antidote. You can inject a bit of it into your everyday life by trying out new hobbies, checking out new restaurants, visiting new cities, traveling to new countries, or even doing something as simple as taking a different route home from the grocery store.

Whether you’re still years away from retirement or have already collected your last paycheck, it’s never too late to improve your retirement savings plan. We’re here to help you review investments, explore options, and make certain you get as much satisfaction out of your senior years as possible.

According to TransUnion, one of the nation’s three major credit reporting companies, many seniors undervalue the importance of their credit score after retirement. Their recent survey of more than 1,000 Baby Boomers found that nearly half of them believe this vital number matters less after the age of 70. Though 70 percent agreed that a high credit score is important when refinancing a mortgage, only 62 percent realized it is also important when co-signing a loan. A mere 32 percent understood that their credit score might be considered when they apply for nursing home care or move into a long-term care facility.

If it has been awhile since you purchased a home or car, or bought homeowner’s or auto insurance, you probably haven’t thought much about your credit score in some time. Unfortunately, if you haven’t been making mortgage or auto loan payments, or using your credit cards regularly, it’s very possible your score has declined. In fact, avoiding the use of credit in retirement can actually cause your credit report to become so sparse that you lose your score entirely. This can make it virtually impossible to obtain credit again should you need it.

Because much of your credit score is based on active credit, you should talk to your financial advisor about adding credit utilization to your financial plan. Payment history accounts for 35 percent of a credit score, while the amount you owe counts for 30 percent. The length of your credit history will make up 15 percent of your score, new credit 10 percent, and the types of credit you have in use 10 percent.

If your score has fallen over the years, there are steps you can take to improve it. Your financial advisor may have additional suggestions, but you can start by:

• Asking for a limit increase. Credit cards with low balances and high credit limits can boost your credit score. Periodically ask your credit card issuers to increase your limits.
• Keeping your accounts open. It may be tempting to close accounts you haven’t used in years, but cancelling them will reduce the amount of credit you have available. This can decrease your credit score.
• Checking your credit report. Missed payments, late payments and collections all reduce your credit score. Review your report every year (you can get one for free at annualcreditreport.com) to look for errors. If you notice debt that isn’t yours, you may be a victim of identity theft. And if there are payments reported as late or missing that were actually on time, you can ask the reporting agency to make a correction.

If you’ve avoided credit for so long that you no longer have a credit score at all, you may want to get a secured credit card through your bank. A secured card allows you to deposit money into an account that becomes your line of credit. Using the card regularly and responsibly will help you rebuild your credit history over time.