Your “golden years” should be a relaxing time full of all the best parts of life, but concerns about money can really get in the way. Many seniors worry about how to keep their retirement savings and income safe, especially when it could be difficult or impossible to earn more without going back to work. With the constant barrage of financial scams, many of which are targeted at seniors, and the complexities of managing your savings and investment portfolio, this isn’t an unwarranted concern. Keeping your finances safe in retirement is essential to keeping your golden years golden! In this post, we’ll guide you through some ways to protect your savings and assets, and how to avoid common scams.
Understanding The Financial Landscape in Retirement
Financial health in retirement is an entirely different situation than for a young person who is just beginning a career. Being retired might mean that you won’t be earning any additional income, and instead will be relying on savings and/or Social Security. If you have a stock portfolio, annuities, or other investments, you may still be able to reap some additional income. However, this may be variable depending on the market.
Regardless of your current situation, inflation, market volatility, and unexpected healthcare costs can cause money problems for many seniors. Keeping your finances safe and protecting against these unknowns will help your peace of mind, and ensure you won’t outlive your savings.
How to Safeguard Your Finances
There are a few ways you can keep your finances safe in retirement. These are important steps no matter what your current financial portfolio looks like, and regardless of your income level or your assets.
- Budget wisely. Check out this post to learn more about budgeting in retirement. A budget will help you keep an eye on your spending targets, and avoid overspending that would deplete your savings accounts too quickly.
- Diversify your investments. Don’t put all your financial eggs in one basket. Have a variety of different types of investments, like dividend stocks, mutual funds, money market funds, health savings accounts, bonds, and annuities. This can help keep your money safe regardless of world events and market volatility.
- Talk to a financial advisor. Consulting with a financial advisor is extremely beneficial for most seniors. This can give you an idea of how your finances are doing, and allow you to make any changes that may be necessary to maintain your quality of life. Investment portfolios can be especially confusing and difficult to manage. Find a good financial advisor to help you invest wisely and keep track of your income.
Avoid Scams and Fraud
Unfortunately, many scammers target seniors and the elderly, especially through technology. Because some seniors aren’t interested in keeping up with current technology, they can be particularly vulnerable to online scams. Avoid scams and frauds by staying current with technology, and maintaining suspicion of any unknown sources. Here are a few current common scams aimed at seniors to watch for. You can also check whether a communication you’ve received is legitimate or not on fact-checking websites like Snopes.
Telephone Scams
Telephone scams happen when a scammer calls you on the phone with a false story to get your identifying information and/or money. These scams might include:
- Someone posing as a long-lost “grandchild” with a complicated backstory who needs money and urges you not to call their parents. Call their parents to verify this story before talking with this “grandchild” any longer!
- A caller posing as someone from the IRS, SRS, or Social Security Administration. None of these organizations, and no other government entity, will ever call you as a first or only resort. You’ll always receive communication through the mail first. If you haven’t received any mail notices from any of these organizations, ignore these calls. If you think the call could be legitimate, call the organization’s official number (IRS, Social Security Administration) and inquire with them directly. Don’t call back on the number that called you or the one left on your voicemail. The SRS is not a real government organization.
Internet Scams
Internet scams are famous for targeting senior citizens. Current internet scams include:
- Phishing scams, where you receive an email asking for personal information or bank information from a source that appears legitimate. Never send any personal or financial information over email. If you think your bank has contacted you, call or visit your local branch of your bank directly (do not use any phone numbers from within the email, search online for the official contact information). Government institutions will not email you asking for this information. Often, the email will come from a website or email address that is close to the one for the real organization. Don’t respond to any of these emails, and contact the organization directly instead.
- Tech support scams involve pop-up messages or unsolicited calls claiming your computer has a virus and you need to call a number right away. Be especially suspicious of anyone offering remote services to “remove” the virus. They want access to your computer to steal your password and financial data. Your computer will not alert you of a virus via a pop-up message. If you suspect your computer has a virus, take it to a local electronics or repair shop.
- Sweepstakes or lottery scams contact you claiming you’ve won a prize. If you’ve played a sweepstakes or the lottery, it’s up to you to watch for the results. Typically, they won’t contact you at all. Again, don’t give personal or financial information over email, and not over the phone either unless you’ve verified the source.
More Scams
These are just a few of the most common scams around right now. Identity theft, counterfeit drug sales, fraudulent medical billing, Ponzi schemes, investment scams, and fake charity scams abound. A good rule of thumb is that if it seems too good to be true, it probably is. Verify anything that seems suspicious with a second source.
If You’ve Been Targeted
If you think you’ve been the target of a scam, notify the appropriate authorities right away. Call your bank or the issuer of the credit card and explain the situation. Most banks have fraud protection systems in place, as well as zero liability protection, which means you won’t be financially responsible for fraudulent charges. Credit card companies typically flag charges that may be fraudulent, so it’s possible the scam was caught before any of your credit was used.
You should also file a report with local police and the Federal Trade Commission. If it was an online scam, you can also report the incident with the Internet Crime Complaint Center (IC3).
Change any online passwords for all financial accounts, and monitor your accounts closely for several weeks to be sure you are in the clear. Keep and maintain detailed records of bank statements, credit card statements, any evidence you have, and any communications that may have occurred with the scammer. If you suffer financial loss as a result of a scam, consult a lawyer.
Keeping your finances safe in retirement isn’t easy. Stellar Living hopes this guide helps you rest easier knowing what to watch for and what to avoid. Senior living communities can be a great place to find additional peace of mind. Tour a community near you today!
