Why Social Security is more crucial than ever for your retirement- By Dan Kadlec

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Social Security, the long-embattled entitlement that lifts 15 million seniors out of poverty and is the sole source of income for nearly one in four recipients, turns 80 on Aug. 14. Its future remains tenuous as ever. Yet the program has never served a more vital and widespread need.

Social Security isn’t just a lifeline for the less advantaged; it’s an increasingly rare source of guaranteed lifetime income for just about everyone. Four decades ago, traditional private pensions played much of that role by providing lifetime monthly payments to millions of retired Americans, giving them the ability to live well even if they had little savings. Today, most workers have a 401(k) plan and will have to rely on their own ability to draw down assets at a rate that won’t bankrupt them before they die.
That’s a tall order. Most folks have little ability to properly manage their life savings. Common strategies like the 4% withdrawal rule, while helpful, are oversimplified and do not always work . Efforts are under way to help savers seamlessly and inexpensively convert their nest eggs to a guaranteed lifetime income source. But such policy change takes years, so for many seniors Social Security will stand alone as a reliable means to cover inflation-adjusted fixed living costs until the day they pass.
Social Security benefits have been in peril since even before the first check was cut to Ida May Fuller on Jan. 31, 1940. When the program was enacted in 1935, during the first presidential term of Franklin Delano Roosevelt, critics charged it was redistributionist and should be ended. Those arguments failed to stop the program, but today many see the entitlement as unaffordable. Indeed, the Social Security trust fund is on track to run dry in 2034 . At that time, the program would be able to meet only 79% of scheduled benefits; over the following 55 years, payouts would decline to just 73% of benefits.
And yet somehow the program survives. Today the Social Security Administration collects payroll taxes from 210 million workers. It pays out more than $800 billion in annual benefits to 60 million retired and disabled beneficiaries. Despite the fiscal problems, the largest percentage of American workers in 15 years say that Social Security benefits will be a major source of their retirement income.
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That’s partly due to many Americans not saving enough. More than half of U.S. adults have not taken any steps to address the risk of outliving their savings, according to the Northwestern Mutual 2015 Planning and Progress study . A third believe there is at least a 50% chance they will outlive their savings, while 12% say they are certain their savings will run out.
Faith in Social Security as a backstop, however, is strongest among Americans 50 and older. More than 80% of those ages 20 to 49 are concerned the program will not be there for them, according to a study from Transamerica Center for Retirement Studies. Reflecting the shift away from traditional pensions, 68% in the study say their 401(k) or IRA will be a significant source of retirement income.
Only now is this shifting income source beginning to be felt on a broad scale. In 1982, 44% of retiree income came from traditional pensions and Social Security, Brookings Institution found . By 2009 that figure had barely changed, rising to 46%. This is because traditional pensions have been phased out slowly and millions of today’s retirees still receive them. But we’ve reached an inflection point —from here on, new retirees will receive increasingly less of a pension benefit. This will make Social Security an ever-larger component of the typical senior’s retirement income.

Even retirees with considerable savings depend to a surprising degree on this program. Payouts from Social Security and pensions account for 35% of income for the wealthiest seniors, according to Brookings researchers. The rest comes from savings withdrawals. If wealthier retirees do not manage their drawdowns well—and as traditional pensions fade away—Social Security will become a vital resource for them, as it is now and long has been for much of America.
Culled from Money.com:

Your Parents has little or less to ensure your happy Retirement-Odunze Reginald

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According to recent research, the latest life expectancy figures reveal that a 6o year old pensioners today are expected to live off their pension for an average of 15 years- this is nearly a quarter of their whole life. According to Robert Kiyosaki (1999) in his book ‘Cash flow quadrant, the Rich dad guide to financial freedom’ he noted that people invest for two basic reasons,

      

         To save for retirement

        To make lot of money

The first one underscores the importance of pension schemes, it all means that you are at the top of your game in all cases pertaining  to pensions.

Yours parents or family members have little or nothing to offer, so the earlier you start working out plan , measures, schemes to ensure your happy retirement, the better for you.

Experience has shown that nearly most businesses owned both the rich and the poor all fizzled out following the death of the bread winner or the owner of the business.

According to research also most family members are also enmeshed in family squabbles over who takes over the estates of the deceased especially if he dies interstate. So what happens if the deceased do not bequeath anything to a family member?  Will they decide not to bury the deceased, what about if the deceased willed all his or assets to charity. What will the family members do?  And even when the family member that dies has no will, there is that squabble between the relations  and the wife and children of the deceased, as there is unwritten maxim in Africa that the relations of the deceased has been before the coming of the wife and children of the deceased.

This calls for self awakening and a deliberate programme and strategies in ensuring your own successful retirement devoid of family input.

There are steps to achieving that and according to Wall Street cheat sheet “TCRS offers the following three strategic steps for achieving retirement readiness and success:

1. Save for retirement. Start saving as early as possible — and as much as possible to maximize potential compounding of investments. Save consistently over time. Avoid taking loans and early withdrawals from retirement accounts as they can severely inhibit the growth of long-term retirement savings.
2. Calculate retirement savings needs, develop a retirement strategy, and write it down. In creating a plan, consider lifestyle, living expenses, healthcare needs, government benefits, and other factors, as well as a backup plan in case retirement comes early due to an unforeseen circumstance.
3. Get educated about retirement investing. Whether relying on the expertise of professional advisers or taking a more do-it-yourself approach, gain the knowledge to ask questions and make informed decisions. Seek assistance from a professional financial adviser, if needed.” (Wall street cheat sheet)

What we are trying to say is that every human being should endeavor to put in place measures towards achieving a successful retirement during old age and not to look upon family estates as a means to survival.

Putting a hope on family estates and parents’ retirement pot portrays a lack of confidence among family members and in most extreme cases built up of hatred, murder, kidnap and other vices that the love for money can aggravate.

You can also be excluded from the will, even it exits based on family intrigues, power play, politics and insider dealings, where one unscrupulous member may have connived with the lawyer to doctor the will to his own advantage remember, money has its own issues, and tendencies that seems to play when it is a huge amount. And according to Kiyosaki “the world of money is filled with con men and charlatans”

How then do you deal con men and charlatans, there are no defined rules, the basic rule is to rely on your own.

NB : Comments and suggestions are highly welcome as no man is reservoir of knowledge.

Odunze Reginald is the Lead Consultant, Chareg Consulting, a marketing and management consultant , a social media consultant and social marketing consultant , you can visit our twitter anchor @regydunze, find us on Facebook @ Reginald odunze and reginaldodunze.com, at google+ @ Reginald Odunze and at Linkedin@reginald odunze.

MAJOR FACTORS THAT MAY AFFECT YOUR RETIREMENT -Odunze Reginald C

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According to Emily Brandon in an article captioned   “8 tips for people who will retire in 2015-Emily Brandon”  “What you decide to do in retirement will have a big impact on your costs and quality of life.  "Certainly you will spend less on gas and don't have to spend as much on work clothes, but some people are also going to spend more money now because they have the time and don't just want to sit around the house," says Craig Schmith, a certified financial planner in Durham, North Carolina. "If you've got pent-up demand to travel, especially internationally, and you haven't had time to do that, you need to think about budgeting that in."

In article captioned  “4 dangerous assumptions that could hurt retirement plan” ,which appeared in Morning star,  Christine Benz noted that  ”Continued portfolio contributions, delayed withdrawals, and delayed Social Security filing can all greatly enhance a retirement portfolio's sustainability. Given those considerations, as well as the ebbing away of pensions, increasing longevity, and the fact that the financial crisis did a number  of setbacks on many pre-retirees' portfolios, it should come as no surprise that older adults are pushing back their planned retirement dates. Whereas just 11% of individuals surveyed in the 1991 Employee Benefit Research Institute's Retirement Confidence Survey said they planned to retire after age 65, that percentage had tripled--to 33%--in the 2014 survey. In 1999, just 5% of EBRI's survey respondents said they planned to never retire, whereas 10% of the 2014 respondents said that”.

Continuing Benz noted that “With that in mind, there appears to be a disconnect between pre-retirees' plans to delay retirement and whether they actually do. While a third of the workers in the 2014 survey said they planned to work past age 65, just 16% of retirees said they had retired post-age 65. And a much larger contingent of retirees--32%--retired between the ages of 60 and 64, even though just 18% of workers said they plan to retire that early. As Morningstar.com assistant site editor Adam Zoll discusses and observed  the following factors, -the variance owes to health considerations (the worker's, his or her spouse's, or parents'), unemployment, or untenable physical demands of the job, among other factors.”

The seven major factors that may affect your retirement are as follows:

1Not saving enough

Almost more than two third Nigerians of working populations do not have a pension account, including the informal sectors, those with various state governments and other categories too many to mention. Also the savings are not enough as people are not keying into voluntary contributions. What they contribute is basically not enough to carry them.

 

2 Investment decision Tom Macphail in 10 costly Pension Mistakes noted that “If you have a pension, have you ever reviewed it? Millions of people haven't. Moreover, recent research revealed more than two in five adults (41%) - 8 million people - cannot remember how their pensions are invested. Why is that alarming? Performance can vary quite dramatically across investments and even a seemingly small difference could have a significant impact on the size of your pot” Continuing he stated that these are just projections. Investments will not always go up in value, they also go down, so you could get back less than you invested; what is certain is that they won't perform as predicted. Also, these values are in today's terms, without considering inflation, which will reduce the spending power of your money over time “According to several researches, people invest for two basic reasons; they are follows, to make provision for old age and to be wealthy. Being wealthy is a function of the state of mind of the owner and the generosity of the individual.

So many people cling to their money as if their life depends on it. While some are willing to give almost half of their possessions but that is not our subject of discussion.

Venita Van Caspel according to schuller noted  while studying investment “heard a very startling statistics of every people reaching age 65, only 2 percent were financially independent” continuing  Schuller op cited opined that Venita was raised in a Christian home without money, which she claims gave a health respect  for a dollar.

From the startling revelation, it all means that many are bound to fail should they kept deaf ear to investment.

What the article is saying is that apart from your pension contribution, you can also embark on one or two investment instruments to protect your age.

And in embarking on investment, it is wise to consult the professionals in that field, these investment advisers, analyst are able to study investment trends and be able to make informed decisions to that effect.

3 Fraud   Schuller (1988:112) noted that success without social respect can be an ultimate and dismal failure.

Old age has one problem according to psychologist, it tend to make old people vulnerable to issues of money making, as they have dream idea of trying to achieve what they fail to achieve during their working career. They now want to achieve it     during old age and by so doing enter into one wrong investment decision or the other.

Whatever they have not achieve they tend to believe that retirement fund will afford them that opportunity, by so doing they enter into wrong hands who will fleece them of their hard earned money. The result is that most of the retirees return back to work in order to survive and enjoy their old age. But what these scammers do not know is that wealth do not bring happiness as it is stated in Ecclesiastics 5 verse 10-11 “ How absurd to think that wealth brings happiness, the more you have, the more people come to help you spend it and  continuing  in Ecclesiastics 5 verse 12, 14, it sates “ But the rich are always worrying  and seldom get a good night sleep” Riches are sometimes hoarded to the harm of the saver, or they are put into risky investment that turn sour and everything is lost”

And continuing in Ecclesiastics 5 verse 19 and 20, “And it is good thing to receive wealth from God and the good health to enjoy it” “To enjoy your work and accept your lot in life- that is indeed a gift from God, people who did this rarely look with sorrow on the past, for God has given them reason for joy”.

And so in making wealth, it is pertinent for us to have that God given joy that gives one  happiness- a lasting happiness.

Anything short of that may not augur well especially for con artist as Robert Kiyosaki in his book Rich dad Poor dad, noted that there are so many ways, one can be rich, and he included the following, through inheritance, playing lottery, investing or by being a crook or an outlaw but there is a price, you risk going to jail. Kiyosaki  (1995:351) continuing he stated that ‘A great story must interest , excite and cause people to look into the future and dream a little, there should also be integrity behind the story, because our jails are filled with great story tellers without integrity”.

4 Health

The desire of every pensioner is to take care of his or herself during old age, but is it  the  retiree financially stable to shoulder such responsibility , bearing in mind that the period 60 and above comes with various lingering issues including medical health problem.

The medical and health challenge is of varying dimensions, high blood pressure, stroke, obesity, heart attack, cancer of the breast, prostate cancer   that and other medical issues comes with old age.

With the developing state and coupled with the inability of the African governments to have a viable medical programme for old people as prevalent in other continents like Europe, North and South America, Asia , Australia etc. Africa countries with the exception of few African countries like South Africa, Egypt etc have not been able to develop a medical programme for old people and senior citizen. Even where it is said to be existing, there are bottlenecks, corruption and other vices militating against it.

So what do they do in such economy where there are little on non existing medical program for old people, what will the old people do in such a situation, will they resort to the little or no  contribution of their pension pot.

5 Alienating family member – One of the major disaster of retirement is a life of solitary confinement, human being are gregarious, people tend to be happy when they associate with like minds. Even on a cosmetic level, people that value association spends most of their valuable life Face booking and engaging in other social networks, and that has accounted for the increase in social networks channel.

It becomes more rewarding , when a retiree is in good relationship with family members especially their wives and children .The more a retiree stay connected to a happy love life, the better for him. In a research carried out in the United States has it that people tend to be happy when they are married than when they are not. And as they say that divorce is more devastating; coupled with the financial implications and the legal battle that comes with it. It went on to say that people are more likely to commit suicide when they are disconnected with their love life or life partner.  But I will also add that men are likely also to commit murder when they are disconnected from their love life and the emotional torture of such act can also drive them to take their own lives. 

6 Negative attitude

Maintain a positive attitude towards life and pension inclusive; according to book of job what people fear most always comes to them. And according to Robert Schuler, in his book , “the power of positive thinking “ he noted that  one of the basic ingredient of success is maintaining a positive outlook to life, believe that you will make and you will make it, believe that you will not , and you will definitely not”

Therefore maintaining a positive attitude in all aspect of life is pre requisite for all facets of life and Le Boeuf (1987:21) noted that “your world is a mirror and your mind is a magnet what you perceived in this world is largely a reflection of your own attitudes and beliefs. And life will give you what you attract with your thoughts. Think, act and talk negatively and your world will likely be negative. Think, act and talk with enthusiasm and you will attract positive results.

7 Marrying a new wife.

The danger of marrying new wives during retirement leads to the following Alienates the first wife and set aside the existing will as the law of interstate states that marrying new wife set aside the existing will. It will also brings collusion between family members, There is also the pressure of meeting up with financial and emotional needs of the new partner, and the extreme part is meeting the sexual needs of a teenager have driven most men to a point of taking sexual enhancing drugs, and these drugs increases the risk of high blood pressures , hypertension and even stroke.

And according to Eileen Sweeney (1979:31) in her book titled “Another country” Sweeney noted that “marriage was something more rounded than mere infatuation, and once a man had built his home, things were different with him. He must still need his home and would never be the same without it”

Odunze Reginald is the Lead Consultant, Chareg Consulting, a management consultant,  a social media consultant and social marketing consultant , you can visit our twitter anchor @regydunze, find us on Facebook @ Reginald odunze and reginaldodunze.com, at google+ @ Reginald Odunze and at Linkedin@reginald odunze.

Forget 'Exit Interviews.' Here's Why You Should Conduct Stay Interviews Instead. -Curtis Odom

@MSN_Money

So, another employee is about to leave your employ: But rather than focus on an exit interview to find out why this individual is leaving, think about conducting “stay interviews” instead, and find out why existing employees are staying with you. Knowing the answers can help you build a better mousetrap for retaining top talent.
What exactly is a stay interview? you may be asking . How do you conduct one, and why you should start doing it now?
In response, I would cite that old practice in HR, the exit interview, which in my opinion has seen the end of its useful life. It used to be that you would ask employees why they were leaving, in the hopes of getting useful and actionable information to help you correct the course.
The problem, however, was that the data obtained was tenuous at best; and, even worse, the employee was already lost, so your changes were coming too late. The exit interview did little to help you keep any more top employees from leaving.
Certainly, it's OK to have some turnover in the ranks, but with competency shortages and the war for talent heating up, you don't want your best people walking out the door. Here's where the "stay interview" comes in: as a retention tool, used by managers and HR professionals alike, to build engagement by allowing your employees' opinions to be heard, acted on and cared about . . . while they're still your employees.
The premise is pretty straightforward. Stay interviews are easy to conduct (and getting even easier with new micro-pulse technologies) and offer up rich, actionable data. They're not intended to replace an organization's engagement surveys, but rather to target high-performing or high-potential employees who may be looking to leave. Used correctly, the stay interview shows employees that you’re taking the time to understand what’s working and what’s not.
Such interviews are also intended to be individualized and focus on the key factors that keep employees at the organization as well as the triggers that might cause them to leave. Unearthing this information helps managers better understand how their actions might impact an employee's particular engagement level as well as his/her desire to stay or leave the company.
So, if you’re ready, here are some tips on how to conduct a stay interview:

1. During your first foray into the interviews, keep things simple.

The goal is to engage your employees. The conversation should be a positive experience for all involved. Asking your employees what really drives them, what engages them in their work and why they stay in the organization, are questions at the crux of the stay interview.

2. Anticipate that some employees won't be fully transparent.

There will surely be some cases where an employee may not feel like telling all, but give it time, and let the interviews stay the course. You'll welcome the input and your employees will appreciate your commitment to understanding what’s working for them and what’s not. Acting on the feedback shows an even greater commitment.

3. Think ahead about the questions you'll ask.

1. Keep questions simple and informal.
2. Ask questions about what motivates an employee to stay in the organization.
3. Ask what drives the employee to succeed in his or her role.
4. Ask what aspects of the culture are working for the employee and what aspects are not.
5. Ask, “If you were your own manager, how would you manage yourself?”
6. Ask what’s missing in the employee's day-to-day routine, and what you could do differently to help.

Keeping stay interviews simple is truly key to their success. Employees want to share with you what’s working and what's not. All too often, we let employees guess about where they stand and how they can grow. Communication and transparency are critical in today's workforce. Showing your employees that you care about what motivates them is just good talent practice. So, don’t wait until a good employee leaves your organization to find out what went wrong.

Culled from Entrepreneur in MSN Money

4 Ways Healthcare Costs Can Derail Your Retirement-By Paula Pant

You probably think you have a good handle on your retirement expenses.

You understand your current spending patterns. You can reasonably estimate how much money you'll need for groceries, gasoline, vacations, utilities, and other regular bills. If you still have a mortgage, you know exactly when it will be paid in full. You're confident you can cover your bills during retirement.
You're probably not worried about health-related costs. After all, Medicare will cover medical expenses, so why worry about it, right?
Unfortunately, reality isn't that simple. The rising cost of healthcare has the potential to add incredible financial stress to what otherwise would have been a happy retirement.
Here are four reasons healthcare costs can derail your retirement, and what you can do about it:
1. Medicare won't stretch as far as you thinkAccording to data from the Employee Benefit Research Institute, or EBRI, Medicare will only cover about 60% of an individual's medical expenses during retirement. The other 40% needs to come out of your pocket.
How much money are we talking about? As of 2014, a 65-year-old married couple with median prescription drug expenses is projected to need $241,000 in retirement savings to have a 90% chance of covering their healthcare expenses during retirement. A single male needs $116,000 to have a 90% chance of covering his healthcare expenses. A single female, because of her longer life expectancy, needs $131,000 in retirement savings.
Think these are inflated projections? Think again. This data is recent and comes from authoritative sources -- and it only gets worse.
Medicare will cover a declining percentage of healthcare expenses in the future, EBRI projects. Retiree out-of-pocket healthcare costs are rising, and this trend is expected to continue.
2. Medicare won't cover this long list of expensesWhat are some of the out-of-pocket healthcare costs burdening retirees?
Here are just a few examples of expenses that are unlikely to be covered: dental care, hearing aids, routine foot care, dentures, eye exams for prescription eyeglasses or contact lenses, long-term care, and any type of medical care required outside the United States.
Does that sound like an exhaustive list? We're just getting started.
Medicare will cover some of the most critical expenses, such as surgeries, physician and specialist appointments, and routine preventative checkups. But don't expect it to cover every dime of health-related costs.
Also don't forget that even if Medicare does cover a service, you're still responsible for paying deductibles, co-insurance, and co-payments.
3. You may need to cover ancillary costsThat list doesn't even cover the crucial -- and often overlooked -- ancillary costs associated with health problems.
During retirement, you may need to hire people to take care of day-to-day tasks and errands you currently manage on your own. For example, you may need to hire workers to clean your home, mow your lawn, and take care of other repair and maintenance tasks you typically handle. If you have a severe health condition, you may even need to hire people to handle your grocery shopping and food preparation.
And this doesn't even broach the subject of intensive long-term care. If you have severe medical problems, you may need help with a category called "activities of daily living," which include taking showers, getting dressed, brushing your teeth, and other day-to-day activities.
These unexpected costs can put a strain on your budget if you're not prepared.
4. You may need individual health insurance if you retire earlyLet's also not forget that Medicare doesn't necessarily start on the day you retire.
Many people are choosing to retire before 65, which is when they become eligible for Medicare. If you aspire to join the ranks of other early retirees, you'll be responsible for finding an individual health insurance policy until you reach 65.
Premiums for an individual health insurance policy vary based on the level of coverage received. Generally, you can expect the monthly premiums for a person in his or her 50s or 60s to be on the pricier side. If you're hoping to retire early, budget adequately for this expense and review your options.
The Patient Protection and Affordable Care Act categorizes plans into four coverage levels: Platinum, Gold, Silver, and Bronze. Platinum plans have the highest monthly premiums, but they pay (on average) 90% of health-related expenses. Bronze plans have the lowest monthly premiums, but they pay out only 60% of health-related expenses, on average.
Key takeawayMedical expenses will occupy a large and growing portion of an individual's retirement budget. In fact, healthcare costs are the second-largest expense for older Americans (after housing), and medical bills are the No. 1 cause of bankruptcy in the United States. Nearly half of all Americans cite healthcare as their biggest financial concern.
If you haven't started planning for healthcare costs in your retirement budget, it's time to begin. To learn more, check out the 5 Ways to Manage Healthcare Costs e-book I sourced for this article, review the wealth of helpful retirement-related articles here on The Motley Fool, and, most importantly, make the time to talk with a financial advisor.

The $60K Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could ensure a boost in your retirement income of as much as $60,000. In fact, one MarketWatch reporter argues that if more Americans used them, the government would have to shell out an extra $10 billion… every year! And once you learn how to take advantage of these loopholes, you could retire confidently with the peace of mind we're all after. Simply click here to receive your free copy of our new report that details how you can take advantage of these strategies.

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