your retirement a financial planning guide.pdf

7/28/2019 your retirement a financial planning guide.pdf

1/35

Your Retirement: A Financial Planning Guide 1980

--Jennings, Cynthia L., SEA Home Economist

Tippett, Katherine S., SEA Home Economist

Science and Education Administration

Home and Garden Bulletin 230, USDA, 1979.34 pages

Revised November 1980

Archive copy of publication, do not use for current recommendations.

The PDF file was provided courtesy of the National Agricultural Library.

Scroll down to view the publication.

Agricultural Network Information Center


2/35

* ' Your Retirement:A FinancialPlanning Guide

xSrX UNITED S T A T E SItilM D E P A R T M E N T OFA G R I C U L T U R E

PREPARED B YS CIE NCE A N DEDUCATION

HOME ANDG A R D E N B U L L E T I NNUMBER 230


3/35

YOUR RETIREMENT:A FINANCIAL PLANNING GUIDE


4/35

CONTENTS

Preret irementA sse ss your retirement income

an d expensesWomen need special plans 1

Retirement 2Review your holdings * 2Anticipate changes .2Living on your retirement income 2

Resources 3Organizations 3Publications 3

Washington, D.C. Revised November 19


5/35

YOUR RETIREMENT:A FINANCIAL PLANNING GUIDEBy Cynthia LJennings and Katherine S.Tippett,SEA Home Economists1

Whether your retirement is far in the future, oryo u are ready to enjoy its benefits now, thispublication can be helpful to you. It ca n answeryour questions on how to prepare for anadequate retirement income, how to anticipatechanges that may affect that income, and how tomanage your income during retirement.Retirement can be a new and rewarding phaseof your life. Like any new venture, however, a

successful , happy retirement doesn't j us thappenit takes planning and continuousevaluation. Thinking about retirement inadvance can help yo u understand the retirementprocess and gain a sense of control about the

1 Family Economics Research Group^ AgriculturalResearch, Science and Education Administration,Federal Building, Hyattsville, Md. 20782,


6/35

PRERETIREMENT

futureeven when, as is true for most persons,,you can't control everything. Jus t anticipatingthe changes ahead can be useful.

If you are young, the section on preretirementwill be most useful to you. You can figureout where your income will come fromwhen you retire and, if necessary, plan how tosupplement this income. If your income levelr ises as you grow older, you will want toreevaluate your income plans and possibly adjustthe amount you are investing towards yourretirement.

If you are close to retirement, you will want todecide on your goals for retirement and figureout whether you can meet these goals. Making abudget by using the guide in the preretirementsection (p. 4 ) can help you. The section onretirement (p. 20 ) will help you to understandthe phases of retirement and suggest ways to liveon your retirement income and take advantageof services offered for retired persons.PRERETIREMENT

To start, you will want to anticipate yourretirement years by analyzing your long-rangegoals. Retirement can mean many things. Whatdoes it mean to youan opportunity to stopwork and rest? Or does it mean time to travel,develop a hobby, or s t a r t a second career?Where and how do you want to live duringretirement? Once you have considered yourretirement goals, you are ready to evaluate thecost of your plans and whether you can affordthem.A sse ss Your Retirement Income and Expenses

Four major s teps in planning your retirementincome are (1) estimating needs, (2) adjusting forinflation, (3 ) evaluating planned retirementincome, and (4) increasing income if needed.

Estimate Your Spending NeedsThe exact amount of money you will need in

retirement is impossible to predict, but you canestimate your needsconsidering changes inspending patterns and where and how you planto live.

Your spending will likely change. A studyconducted by the Bureau of Labor Stat ist ics(BIS) on how families spend money shows thatretired families use a greater share for food,housing, and medical care than nonretiredfamilies. Although no two families are alike inhow they adjust spending with changes in lifecycle, the following tabulation can serve as aguide for anticipating your own future spendingpatterns.


7/35

PRERETIREMENT

Spending patterns of retired an d nonretiredfamilies1

(Percentage of total family income before taxes)Retired 2 Nonretired3

Total family income beforetaxes

Consumptionexpenditures:Food . .HousingTransportationClothingMedical carePersonal careOther4

Taxes .Gifts and contributions ..Personal insuranceMiscellaneous

100

192911492

106820

100

142114

542

1116

472

Expenditure patterns are for al l families and singleconsumers in 1972-73. From Consumer ExpenditureSurvey: Integrated Diary and Interview Survey Data,1972-73, Bull. 1992, U.S.Department of Labor, Bureauof Labor Statistics, 1978.

includes persons over the age of 50 who reportedreceiving retirement income and who did not workeither full time or part time.includes self-employed, an d salaried an d wage

earners.includes recreation, reading, education, alcoholicbeverages, tobacco products,dry cleaning and laundry,and miscellaneous expenses.

You can estimate which of the followingexpenses may be lowered or eliminated:Work expenses.You will no longer have to

make payments into your retirement system.You will not be buying gas and oil for the driveback and forth to work or paying bus fares. Youma y be buying fewer lunches away from home.

Clothing ex penses .You probably will notneed as many clothes after yo u retire, and yourdress may be more casual .

Housing expenses.If you have paid offyour house mortgage by the time you retire,your cost pf housing may be reduced, althoughincreases in property taxes may offset this.

Federal income taxes.Federal income taxeswill be lower. No Federal tax needs to be paidon some forms of incomesuch as socia lsecurity, railroad retirement benefits, and certainveterans ' benefits. A retirement credit is allowedfo r some sources of income such as annuities.After 65 years of age, an extra deduction isallowed for both husband and wife. Youprobably will be paying taxes at a lower ratebecause your taxable income will be lower.

Under the U.S. Civil Service retirement system,income is not taxed until the amount you haveinvested in the retirement fund has beenreturned to you. After that, the income youreceive is taxable.

You can estimate which of the followingexpenses may increase: Insurance.The loss of your employer'scontribution to health insuranceand lifeinsurance will increase your payments. Medicare,however, may of fset part of this increasedexpense.

Medical expenses.T hese expenses varyfrom person to person, but general trendsindicate that medical expenses increasewith age.


8/35

PRERETIREMENT

Expenses for leisure activities.With morefree time, many retirees want to spend more inthis area. You may want to put aside extramoney for a retirement trip or other largerecreation e xp e n se s .

Gifts andcontributions.Many retireeswhocontinue to spend the sam e amount of moneyon gifts and contributions find that as incomedecreases, expenses in this area take a largersh ar e of the budget. Some retirees may want toreevaluate their spending in this category.Estimate Your Living Needs

Where you live in retirement can influenceyour financial needs. You must make someimportant decisions on whether to move or stayin your community and whether to stay in yourpresent home or move to another type ofhousing. Everyone var ies in needs andpreferences; you are the only one who candetermine the location and housing that is bestfor you.

Before moving, consider what it involves.Moving is expensive, and returning to yourformer home if you are not satisfied with yournew location may be impossible. Consider thesocial aspects.Will you want to be near yourchildren, other relatives, and good f r iends? Areyou prepared for new ci rcumstances?

The best way to be reasonably sure you will likea different area is to try it out. Do not limit yourstay to a weekend or week. You maywant tocheck with others on the range of weatherconditions throughout the year. Youalso will wantto know something about the people living thereand the activities. Consider renting for a yearbefore you make a commitment to move.

If you decide to retire in the same communitywhere you have been living and working, you can

estimate some of your future living costs basedpa s t expenses.

If you plan to move to a new location, theinformation in the tabulation on the next page cgive you some idea of comparative costs of livinin different parts of the country. The index figure100 is used to represent the average cost of anintermediate-level budget for a retired couple foall cit ies of the United States. This guide showsthe index figure for selected cities in each regioComparing the index figures of a specified areacity with the area you live in will give you an ideof how your expenses will be affected by a chanin location. This index is based on the experiencof couples but may still be helpful to singlepersons as a general guide.

The second big decision involved indetermining where you will live iswhat type ofhousing is best. As we grow older, our housingneeds often change. Ease and cost ofmaintenance and nearnessto publictransportation, shopping, church, andentertainment become important to the retiree


9/35

PRERETIREMENT

Index of cost of living for a retiredcouple inselected cities a nd areas1

(Average cos t in all U.S. cities = 100)Area Index

Urban United States .100Metropolitan 103Nonmetropolitan areas 2 90

Northeast:Boston, Mass. ..... 118Pittsburgh, Pa : 102Nonmetropolitan areas 99

North Central:"Cleveland, Ohio 104Cincinnati, Qhio-Ky.-Ind, 98Non-metropolitan areas ................... 92

South:Washington, D.C.-Md.-Va. 107Durham, N.C. .... 96Austin, Tex 94Orlando,--Fla , 93Baton Rouge, La. 91Nonmetropolitan areas 86

West:S an Francisco-Oakland, Calif , 106Bakersfield, Calif. 94Nonmetropolitan areas 91

1Based on an intermediate budget for a retired couple(husband age 65 or older), autumn 1977. Estimatesdeveloped by U.S. Department of Labor, Bureau ofLabor Statistics.

2Nonmetropolitan areas in each region indicatesplaceswith population of 2,500 to 50,000,

There are many housing alternatives. Considerhow each of the following alternatives wouldmeet your housing needs:

Staying in your present house withoutrenovating.

Renovating your present house. F ederal loansfrom the U.S. Department of Housing and UrbanDevelopment (HUD) are designed especially torehabilitate or convert older homes. T h e s e loanshave low interest rates and favorable terms forolder adults. For more information, contact yourbanker or your county or city government. Inaddition, your county's Farmers Home Administra-tion office has loans and grants available tocertain homeowners for making urgent homerepairs.Buying a smaller house that is easier and less

expensive to care for and is in a more convenientlocation. The sale of your larger home couldprovide extra cash for retirement. If-you are overage 55 and have been living in your present homefor 3 of the last 5 years , you do not have to payFederal income tax on the first $100,000 capitalgains profit from the sale of your house. But youmay use this exemption only once in a lifetime.Renting an apartment, a smaller house, or a

room in a hotel. Renting has many advantages forthe retiree. First/you can move more easily.Monthly costs usually are fixed and predictable.Maintenance and repairsare minimal. Specialservices and facilities may be provided at little orno additional cost. If you are at the low- ormoderate-income level, you may be eligible torent public or subsidized housing.A disadvantage is that many rental units arebeing converted into condominiums and youmight have to buy or move. Rents usual lyincrease with inflation and may become tooexpensive for a retiree on a fixed income.


10/35

PRERETIREMENT

Purchasingor renting amobile home. Thepurchase price is usually less expensive (persquare foot) than other types of housing, and amobile home can be easy to care for, Anotherappeal is the neighborly atmosphere of the typicalmobile home park. Mobile homes, however, havesome disadvantages . Unless properly anchored,they can be damaged by high wind, and they havelow resale value.Buying a condominium or becoming part ofa cooperative. These forms of housing are a

cross between homeownership and theconveniences of an apartment. (In acondominium, you own the unit in which yo ulive an d assume a shared responsibility fo r costsof the common areas. In a cooperative, you buya share of the coop erative corporation that ownsth e housing development.)

Living in a retirement home or community.Many types of hous ing developments aredesigned especially fo r older people. Many ofthese developments offer a combination ofindependent living with group activities,

convenient facilities, and special services ormedical care. Since retirement facilities varywidely in their cost and facilities, makecomparisons and visit them several times beforemaking a final decision.Do not feel that your immediate choice inhousing has to be permanent. If you enjoyworking in the yard and garden, moving to ahouse with grounds could be a f irs t step. Whenyo u want less work later on, you can change toan apartment or hotel.

Now that you have cons idered your probableretirement situation, you are ready to listestimated expenses. Using the fol lowingworksheet, list your present expenses andestimate what these expenses might be if youwere retired.


11/35

PRERETIREMENT

Your expenses

Item NowPer month Per yearR e t i r e m e n t

Per month Per year


12/35

PRERETIREMENT

Adjust for InflationYou no w have a list of your probable monthly

and annual expenses if you w ere to retire today.With inflation, however, these expenses will notbe fixed. Almost everything will cost more. T heeffect of inflation can be especially severe fo rretired people who cannot easily increas e theirincome. The following tabulation sh ows howprices have been rising rapidly in the fourcategories where retired people spend most oftheir money.For every dollar you You would have paidspent in 1970 on: in 1979:Food $2.04Housing 1.91Medical care 1.99Transportation 1.88

Source: A dapted from Consumer Price Index, U.S.Department of Labor, Bureau of Labor Statist ics, 1979.

T o help you cope with this probable increasein your expenses, plan your retirement incomeneeds acco rdingly. By us ing the followinginflation factor table you can approximate whatyour monthly and annual expenses will be whenyou retire.

Inflation factor tableYears to Estimated annual rate of inflationbetween now and retirementretire- ment 6% 7% 8% 9% 10% 11% 12% 13%5 .8 .101215182025

1.3 1.4 1.5 1.5 1.6 1.7 1.8 1.1.6 1.7 1.8 2.0 2.1 2.3 2.5 2.1.8 2.0 2.2 2.4 2.6 2.8 3.1 3.2.0 2.3 2.5 2.8 3.1 3.5 3.9 4.2.4 2.8 3.2 3.6 4.2 4.8 5.5 6.2.8 3.4 4.0 4.7 5.6 6.5 7.7 9.3.2 3.9 4.7 5.6 6.7 8.1 9.6 11.4.3 5.4 6.8 8.6 10.8 13.6 17.0 21.

Note: Figures taken from a compound interest tableshowing effective yield of lump sum investments afterinflation.

First, choose from the lefthand column theapproximate number of years until yourretirement.Second, choos e an es timated annual rate ofinflation. Th is cannot be predicted accurately andwill vary from year to year. In 1979, the inflationrate was 11 percent.

Third, find the appropriate inflation factorcorresponding to the number of years until yourretirement a nd the es timated annual inflation rat(Example: 10 years, 11 percent inflation yields a 2,inflation factor.)Four th , multiply the inflation factor by yourestimated retirement expenses.(Example $6,000 x 2.8 = $16,800.)

Annual inflated ret irement expenses


13/35

PRERETIREMENT

Yo u may wish to refigure your inflatedretirement income needs several times during thepreretirement years, sinceunforeseencircumstances ma y change your estimate of theinflation factor or your retirement expenses.Once you retire, us e he inflation facto r table tohelp plan ahead,Evaluate Your Retirement IncomeNow that yo u have some idea of w ha t yo u willneed during retirement, let's examine yoursources of retirement income, which may becoming in from various income retirement plansor investments.

Social Secur i tyThis is the most widely usedsource of retirement income. It s hou ld not beyour only source, however. Social s ecurity coversalmost all kinds o f em ployment andself-employment, with the Federal Governmentbeing the biggest exception. If yo u are eligible forsocial s ecurity, you may collect monthlyretirement benefits at age 62 or older, or disabilityat any age under 65 if a severe disa bility p reventsyo u from wo rking a year or more. Your eligibilityfor so cial se cu rity benefits generally is based onyour lifetime earnings record (o r your spouse'searnings record) and you r age.

You must be "fully insured" under socialsecurity to be eligible fo r retirement and disabilitybenefits on your own earnings record. This meansthat yo u must have credit for a certain amount ofwo rk covered by social s ecurity. The amount ofwork needed for both retirement and disabilitybenefits depends on your age and ranges from 11/2years to 10 years. A person who reaches age 62 in1980, for example, needs T k years of coveredwork to be fully insured. In addition to being fullyinsured, a disabled person (except a persondisabled by blindness) also needs credit for some

recent work under social security. F orspecificinformation contact any Social Security office.If you are a dependent of a worker who is

covered under social security and who hasretired, become disabled, or died, yo u also maybe eligible for a so cial secu rity check.

Monthly retirement or disability payments canbe made to a retired or disabled wo rker's :Unmarried children under age 18 (or 22 if

fulltime students).Unm arried ch ildren age 18 or older who were

severely disabled before age 22 and who continueto be disabled.

Wife or husband age 62 or older. Wife under age 62 f she's caring forworker 'schild under age 18 (or if child is disabled) who'sgetting a benefit ba s ed on the retired or dis abled

worker's earnings.Monthly payments can be made to a deceasedworker 's : Unmarried children under age 18 (or 22 f

fulltime students). Unmarried son or daughter age 18 or olderwho was severely disabled before age 22 and who

continues to be disabled.Widow orwidower age 60 or older.Widow, widower, or s urviving divorced

mother if caring for worker's child under age 18(or if child is disabled) who is getting a benefitbased on the earnings of the deceas ed w orker.

Widow orwidower age 50 or olderwhobecomes disabled within 7 years of a worker'sdeath, or within 7 years after the widow orwidow er s topped receiving benefits for asurviving child.Dependent parents age 62 or older.

Check can also go to a divorced w ife (who has notremarried)at age 62 or older, or a surviving divorcedwife at age 60, or to a disa bled s urviving divorced

10


14/35

PRERETIREMENT

wife age 50 or older if the marriage lasted 10 yearsor more. Children may be eligible fo r socialsecurity benefits based on grandparent's earningsunder certain conditions.

Social security benefits are not paidautomatically. You must file an application. If youhave decided when yo u will retire, phone or visitany Social Security office about 3 months beforethat date to file your application. Bring proof ofyour age and a record of your most recentearnings (for example, W-2 statement or taxreturn). Y ou may wish to visit the office towardthe end of the week or the month as it is lesscrowded then than at other times.If you are contributing to social security, checkyour record of earnings fo r accuracy about every 3years. This is especially important if you havechanged jobs frequently. A sk at the So cial S ecurityoffice for a post card form to us e in requesting astatement of your earnings. If you are age 56 orolder, you can also ask for an estimate of whatyour retirement benefits will be at retirement age.

T he amount of your monthly payment check isbased on your average earnings covered undersocial security (o r those of the insured worker's)an d on your age.

Social s ecurity benefits are protected againstinflation. Benefits au tomatically ncreasewhenever living costs climb 3 percent or more ina previous year.If you are contributing to s ocial s ecurity, checkyour record of earnings for accuracy aboutevery 3 years. This is especially important if youhave changed jobs frequently. A sk at the SocialSecurity office for a post card form to use inrequesting a statement of your earnings. If youare 56 or older, you can also as k for an estimateof what your retirement benefits will be atretirement age.


15/35

PRERETIREMENT

Other publ ic pens ion plans.Besides socialsecurity., the Federal Government administersseveral other retirement plans (for FederalGo vernment and railroad emp loyees). Thelargest of these public administered pensions isth e L A S . Civil Service Ret i rement System withboth the Federal employee and the U.S.Government contributing to this system.Employees covered under this plan are notcovered by social security. T he VeteransAdminis t rat ion provides pensions fo r manysurvivors of men and women who died while inthe Armed Forces and disability pensions fo religible veterans, T he Rai l road Re t i rementSystem is the only retirement systemadministered by the Federal Government thatcovers a single private industry. Many State,county, and ci ty governments operate retirementplans for their employees. To learn more detailsabout each retirement system, contact theappropriate administering agency.

Private pension. Another s ource of retire-ment income for you may be the pension planoffered by your company. A s private pensionplans vary, youwillneed to go to yourcompany's personnel office or union office tofind out the specifics of your plan. You shouldfind out:

When do you become eligible for pensionbenefitsEligibility for pension benefits usuallyis determined by age and years of service as amember of the retirement plan. T he sooner yo ucan become a member of the retirement plan,the so oner you can accumulate work credittowards a pension. You should know the exactbasis on which yo u receive work credit. Youneed to know what a year of credited service is ,whether there is a cutoff point before or afterwhich no credit is given, and, especially,

12

whether a break in service cancels all previouslyearned credits.

What benefits will you be entitled to-Everyprivate pension plan has a benefi t formula that isused to determine the size of your pension. Itusually is based on both your years of serviceand your level of earnings. Some formulas,however, merely specify a set amount to be paidfo r each year of service or a flat pension fo r allqualified retirees. Som etimes the am ount of yo ursocial security benefits will be deducted fromyour pension benefits ,

Find out about all the pos sible benefits towhich you are entitled. Some plans providebenefits fo r dependents; some provide fo rdisability; and some provide death benefits fo ryour s urvivors. Some plans provide increasingbenefits tied to the cost of living while othershave fixed retirement payments.

What happens to your pension if youchange jobs"If yo u have a vested interest inyour company's plan, you are entitled to aretirement income even if you change jobs an dwork for a different company. Vesting provisionsare determined by how long you have been amember of the plan. If yo u leave your companybefore being vested, you get back only yourcontributions to the plan plus interest. Vestinggives you a claim on your employer'scontribution and whatever benefits it willpurchase fo r you. Some plans p rovide fo r gradedvesting (for example, 50 percent ves ting after10 years, increas ing each year to full ves ting after15 years). If you leave a company when partiallyvested, you are entitled to that portion of thedeferred pension.Some pension plans allow fo r portabil i ty. Thisallows you to carry earned p ension benefits fromone employer's pension plan and invest them inanother plan when yo u change jobs .


16/35

PRERETIREMENT

Individual reti rement plans.If you areemployed but are not pa rticipating in acorporate pension plan, a governmentretirement plan (Social Security or Rai l roadRetirement do not count), or another tax-supported retirement plan, you can still providefor a retirement income through an individualretirement account (IRA). You also ca n receive atax deduction now for your contributions tosuch an account.

An IRA is a retirement plan that allows you toput up to 15 percent of your salary or $1,500 ayear, w hichever is less, into an IRA investmentprogram and not pay taxes on it until yo u retire.Yo u may not use the IRA funds before age 591 /2without tax penalty, and you must startwithdrawing funds no later than ag e 701/2.

Your employer ma y contribute 15 percent ofyour salary or $7,500, whichever is less, to an IRAin your name. However, yo u must include youremployer's contributions in your gross income. Ifyour employer makes a contribution that is lessthan the maximum allowed, you may contributethe difference an d receive a tax deduction fo rthat amount.

If you are a nonworking spouse, you also ca nparticipate in an IRA if your working spouse putshalf of his or her annual IR A contribution into aseparate account in your name. T he totalamount contributed to both accounts cannotexceed 15 percent of your spouse's salary or$1,750, whichever is less.Many so urces are available for you to us e asan IRA. A few examples are insu rance com-panies, banks, savings and loan as so ciations,mutual funds, stocks, and retirement bonds. T heInternal Revenue Service ( IRS ) requires the sellerof an IRA to give you a disclosure statement7 days before you sign a contract. This statement

must include facts about interest rates, taxrequirements, and penalties, as well as fees andcommissions.

Because of the complexity of tax rules andchoices of IRA's available, consult your nearestIRS office and a specialist, such as a lawyer oraccountant, to make sure that you qualify forthe tax benefits and that the type of IRA you'vechosen fits your investment needs.

If you are self-employed, you are eligible toestablish a Keogh plan. T he Keogh plan (alsoknown as HR 10) is a tax-deferred retirementinvestment plan very similar to IRA. Under theKeogh plan, you may contribute up to 15 percenof your ne t business income, but no more than$7,500 a year. In addition, if you employ full-timor regular workers, you must include thoseworkers in your pension plan.

Other income sources.Don't forget anyincome-producing holdings you may have thatwill contribute to your retirement income.Some investments that often yield a regularcontribution to retirement income are annuitiesinsurance policies, interest from savings accountand bonds, dividends from stocks, and rent fromreal estate investments.

Some investments such as savings bonds orinsurance policies often yield a lump-sumretirement benefit.

If yo u plan to work part-t ime duringretirement or will be pursuing a hobby that willbring in money, estimate your income fromthese sources. However, income from part-timeretirement wo rk may reduce your s ocial s ecu ritybenefit.

1


17/35

PRERETIREMENT

Will you have enough money d ur ingre t i rement?Now that yo u have reviewed allyour possible sources of retirement income,estimate what your annual retirement incomewill be using the following form. Don't forget toinflate incomes or investments that increas e withthe cost of living (such as social security) to whatthey will be whe n you retire. (Us e the inflationfactor table on p. 9 .)Compare your total estimated retirementincome/as figured on page 14 , with your totalinflated retirement expenses, as figured onpage 9 .If your es timated income exceeds yourestimated expenses and a large portion of yourplanned income will automatically increase withRetirement income

the cost of living during your retirement, you arein good shape. You probably will want toevaluate your plans every few years betweennow and retirement to be sure your plannedincome is still adequate to meet your plannedexpenses.

If, however, your planned retirement incomeis less than your estimated expenses, now is thetime to take action to increase your retirementincome. In addition, if a large portion of yourretirement income is f ixed and will no t increasewith inflation, yo u should make plans for a muchlarger retirement income to meet your inflatingexpenses during retirement.

Source Amount per year

Incomenow inflatedincome


18/35

PRERETIREMENT

Your Age at RetirementA n early retirement can be costly.Although you can collect social securitybenefits as early as age 62 (age 60 if you area surviving spous e), these benefits arepermanently reduced w hen you collectbenefits before age 65. Once yo u receive areduced benefit payment, yo u will receive areduced amount for the rest of your life.You are not eligible for Medicare untilage 65 unless you become disabled andreceive disability checks for at least 2 years.If you are no longer covered by yourcompany's health insurance program, yo umay find health care extremely expensivebetween the year of an early retirementand age 65.If you will be collecting a privatepension, the amount yo u receive may bereduced with an early retirement. Sincepension benefits are often based on theaverage of the top 5 years of salary, an earlyretirement could reduce the number ofhigh-earning years on which your pensionis f igured.Recent legislation makes it easier for youto delay your retirement. T he legislationprohibits employers from forcing mostemployees to retire because of age beforethey are 70 and eliminates mandatoryretirement altogether fo r most Federalemployees.A delayed retirement ca n increase yourretirement income. If you reach age 65 after1981 and decide to delay retirement, yoursocial security benefit later on will beincreased 3 percent fo r each year f rom age65 to 72 that yo u were eligible to receivebenefits but did not take them. If you reachage 65 in 1981 or earlier an d delay gettingbenefits, the present retirement credit of1 percent a year will continue to apply. If youare a surviving spouse of a worker who wasentitled to this delayed retirement benefitincrease, then you can receive thisincreased benefit also.

Determining Additional Income NeedsT o figure the amount of additional retiremeincome you will need, take the following steps1. Estimate the number of years you will be in

retirement. From the tabulation on the nextpage you can es timate your average ifeexpectancy upon reaching retirement age. A llowsafety margin in your estimate by choosing afigure several years a higher th#n the highestapplying to either you or your spouse. (Forexample, a retiring husband an d wife, both ag e65, would have 13 and 18years, respectively, ofexpected lifetime. They shou ld estimate theirretirement to last about 20 years2 years morethan the highest figure.)

2. Estimate your inflated expenses forretirement.Multiply your annual inflatedretirement expenses from page 9 by thenumber of years you expec t to be in retiremen(from step 1) . $ _3. Estimate your total retirement incomeMultiply your annual retirement income frpage 14 by the number of years you expect to beretirement (from step 1). $

4. Figure the amount of additional retiremincome needed.Subtract total income (stepfrom total expenses (step 2). $ _


19/35

PRERETIREMENT

Average fu ture lifetim eAge at

retirement

50-5455-5960-64

. 65-6970-75

Average remaining yearsMale Female

24 3020 2516 2113 1811 14

Source: U.S. Department of Health, Education, and Welfare,National.Center fo r Health S tatistics , 1974 data.

Providing for Additional Income NeedsHow can you provide fo r this additional

retirement incom e? You will want s omething safe,but adequate, to keep pace with inflation. Thebest way to achieve both goals is to have aretirement fund that includes tw o parts safe,guaranteed-income investments, and riskierhigh-growth investments.

Low-r isk inves tments . T h e guaranteed incomepart of your retirement fund consists of moneypaid into lower yield ye t very safe forms ofinvestment. This part of your fund already may betaken care of through social security or anotherretirement plan as mentioned in the last section.If you would like to add to this part, other low riskinvestments are:

Savings accounts and certificates.Institutions such as commercial banks, savingsand loan associations, or credit unions offer thesafest form of investment through savingsaccounts . The rate of return, however, is o ftenlowat or below the rate of inflation. Youma y purchase savings certificates, w hich requirea larger initial investment than a savings account,

bu t yield a slightly higher return. T o receive thishigher return, the money must be kept in theaccount for a specif ied per iodusual ly 1 year ormore.

Bonds.When you buy a bond, you arelending your money to the issuer of the bondwhether it is the U.S. G overnment, amunicipality, or a corporation.

U.S. Government bonds, the safest type ofbond, include savings bonds, treasury bonds,and Federal Agency bonds. Series E savingsbonds, treasury bonds, and Federal A gencybonds are bought at less than face value, reachmaturity within a stated number of months oryears, and can be cashed in for the face value.Series H savings bonds are sold at face value an dheld to maturity with interest being paidsemiannually.

Municipal bonds are sold by local or Stategovernments to raise money. A lthough municipalbonds have a record of being safe investments,you should consider the highest rated A A A a n dA A General Obligation Bonds. Because incomefrom municipal bonds is tax exempt, they areespecially desirable to those in the higher ta xbrackets.

Corporate bonds are the riskiest type of bond;however, they also have a fairly high rate ofreturn. T hey us ually are considered long-terminvestments. Corporate bonds are rated, with thehighest quality bonds receiving rat ings of A A A ,AA, A, and B A A . T he lower the rating th e morerisk is involved and the higher the rate of return.


20/35

PRERETIREMENT

Life insurance.Insurance companies offerseveral types of savings policies; however, theirreturns are usually low.

A whole l ife insurance policy, besidesproviding life insurance coverage, builds up acash value that can be used by you inretirement.

A n endowment policy offers decreas ing terminsurance with a paid-up savings plan. You paypremiums and receive insurance protection untilthe policy is maturethe end of the endowmentperiod. A t that time, premiums and insurancecoverage stop and you are entitled to the facevalue of the policy. You can receive paymenteither in a lump sum or in the form of monthlyincome.

Annuit ies, purchased from l ife insurancecompanies, offer no insu rance protection. T heyare a type of savings plan in which the investor isguaranteed an income for a specif ied period oftime. A n annuity can be purchased with a lumps um or with installments over a period of time.You can purchase a "straight" annuity that willprovide income as long as you live, or you canbu y a ''joint and survivorship" annuity that willprovide income for two lives (us ually husbandan d wife) as long as either person remains alive.

Higher r isk i nves tments . T h e other part ofyour ret irement fund should be invested inhigh-growth investments that will protect youfrom a decline in the value of your money. Such aprecaution is called a "hedge against inflation/'One such hedge against inflation is to put so m eof your money into investments that us uallyincrease in value during inflation, such as realestate. If you own your own home, yo u alreadyhave some protection against inflation. Of course,there are risks involved, and investing in realestate involves a fair amount of capital in the

beginning. F or some people, however, this is anexcellent way to beat the costs of inflation on along-term investment. Other investments thatusually increase in value during inflation, if goodchoices are made, are common stocks, bonds,alnd mutual funds. These investments all involvecertain amount of r isk and should be thoroughlyinvestigated f irst.T he amount you put into each part of yourretirement fund should largely depend on yourag e and pers onal situation. If you are many yeaaway from retirement, you can take more riskwith retirement money than if you are within afew years of retirement. If you have severaldepend ents, large debts, o r low income, youmay be constrained in your ability to make riskhigh-growth investments.

From th e fol lowing tabulat ion you candetermine how much yo u should invest monthlin either a low-yield investment (guaranteedincome) or a high-yield investment (riskierincome) to reach your goal for additionalretirement income (as figured on p. 15 ).

1


21/35

PRERETIREMENT

Determining investmentsAnd it will be years before retirement

If you need this amounttotal extra money for retirement

10 15 20 25You should save this amount each month

In an investment yielding a 6% rate of return$ 5,000 , $ 74.40 $ 31.57 $ 17.88 $ 11.32 $ 7.59$10,000 148.81 63,13 35.77 22.64 15.18

$15,000 223.21 94.70 53.65 33,97 22.77

$20,000 297.62 126.26 71.53 45.29 30.36$25,000 372.02 157.83 89.41 56.61 37.95$30,000 444.05 189.68 107.39 67.95 45.57

In an investment yielding a 9% rate of return$ 5,000 $ 69.68 $ 27.43 $14.19 $8.14 $ 4.92$10,000 139.35 54.86 28.38 16.29 9.84

$15,000 209.03 82.29 42.57 24.43 14.76

$20,000 278.71 109.72 56,77 32.58 19.68$25,000 348.38 137.15 70.% 40.72 24.60

$30,000 418.06 164.58 85.15 48.86 29.52

18


22/35

PRERETIREMENT

Women Need Special PlansT he su ggestions in this publ ication for

planning and evaluating retirement income areespecially important fo r women. If you are awoman, married or unmarried, do not assumeyour financial security is assured without f i rs tdetermining where your retirement income iscoming from and how much it will be.

If you are a married woman whose work ha salways been in the home, you may not havetaken an active role in family financial planning.You should do so now. Life expectancy recordsshow that women tend to live longer than men.This means you may have to manage yourfinances alone in your later years. You can makespecial plans fo r retirement in the followingways:

Learning about family finances and propertyand knowing your f inancial advisers.Yourhusband ca n help by including you in planningfo r retirement income.

Knowing what to do if your husband dies.-Learn what procedures you will have to gothrough to change the title on property or jointbank accou nts and to col lect so cial security,veterans', or insurance death benefits.

E xamining your retirement income fund.Will you be eligible for s ocial secu rity benefits asa spouse or survivor based on your husband'searnings record? If you are eligible fo r widow'sbenefits and are over age 60, you can continueto receive them even if you remarry. Are youcovered under a survivor's clause on yourhusband's pension plan? You r husband may haveto s pecifically elect survivor's benefits fo r you. Ifyour husband contributes to an IRA, he also ca ncontribute to an account fo r you.


23/35

RETIREMENT

Establishing your own financial identity.Have charges on jointly owned credit accou ntsreported in your name as well as your husband's.Open a separate savings and checking account(in addition to holding any joint accounts). Ifyour husband dies, you may not be permittedaccess to joint accounts until the estate is settled.Your ow n account will provide funds for you tolive on during that period.

Making your ownwill,This will insure thatyour estate will be distributed the way you wantit.

Women w ho work outside th e home needto evaluate what retirement income might bedue them from their own w or k history. If youhave worked continually over the years for oneemployer, you may be covered by both socialsecurity and a company pension plan. If youhave worked continually but at many differentjobs; or if you have alternated work in andoutside the home, you may never have becomevested in a company pension plan andretirement income may be lacking. If youforesee this work pattern fo r yourself, considerestablishing an IRA. An IRA could providecontinuity to your retirement fund even thoughyour work situation may change. If yourcompany allows you to refuse its pension plan,yo u will become eligible to make tax-deductiblecontributions to your IRA. If you choose to use acompany pension plan, a "rollover" IRA canhelp yo u trans fer your interest in one pensionplan and invest it in another plan tax free. T heIRA rules are complicated and require a lot ofadvance planning and good timing. Consult withan expert fo r advice on IRA investments. Inaddition, ask IRS for a copy of Tax Informat ionon Ind iv idual Ret i rement Savings Programs.

RetirementIf you are now ready to retire or are alreadyretired, it is time to look at your present andfuture situation. Retirement is a changeable state.Just like your life before retirement, situations willchange and you may go through several phases.For instance you may be in an active phase in theearly years of retirement, with a more dependentlifestyle in later years. T he active phase ofretirement is characterized by fairly good healthand independent living. It ma y be a time for activeparticipation in a new lifestyle, free of theresponsibilities of the work years. T he dependentphase of retirement often occurs in the later yearsof retirement and usually is characterized byphysical or mental limitations and moredependency on others.

Yo u ca n prepare you rself for the various phasesof retirement by anticipating declining health or achanged family situation and planning for anadequate financial position to meet thes echanges.Review Your HoldingsReviewing your holdings to make sure theyare suitable for retirement is a good idea. Makenecessary shifts in your investments and holdingsto fit your new circumstances. As indicated inthe following tabulation, evaluate your assetsand liabilities.

20


24/35

RETIREMENT

Your holdings

/Assets an d liabilities AmountA sset s :

House $Other real estateLife insuranceU.S. savings bondsStocks and other bondsNet cash value of businessAutomobile _ _ _ _ _ _ _Checking accountsSavings accountsOther:

Tota l assets $Liabilities:

Mortgage $Personal loansInstallment contractsNotesCharge accountsOther:

Tota l liabilitiesConsider the following factors in reviewing

assets: Housing.If you own your house, it isprobably your biggest single asset. The amounttied up in your house may be out of line,however, with your retirement income. If it is,consider selling your house and buying a lessexpensive one. The selection of a smaller, moreeasily maintained house can also decrease yourmaintenance costs. The difference saved couldbe put into a savings account or certificates that

2


25/35

RETIREMENT

draw interest or into other income-producinginvestments. If your mortgage has been largelyor completely paid off/you may be able to get areverse annuity mortgage to provide extraincome during retirement. In this arrangement alender uses your house as collateral to buy anannuity for you from a life insurance company.Each month, the lender pays you (thehomeowner) from the annuity, after deductingthe mortgage interest payment. The mortgageprincipal, which was used to obtain the annuity,is repaid to the lender by probate after yourdeath. Reverse annuity mortgages are fairly newand may not be widely available in your area.Check with your banker or a savings institutionabout availability and details.

Life insurance.Your life insurance mighthave been set up to provide support andeducation for your children. Now you may wantto convert some of this asset into cash or income(a n annuity). Another possibility is to cut backon the face value of your insurance to reducepremium payments. This will give you extramoney to spend for living expenses or to investfor additional income. Spend some time learningthe retirement possibilities of your insurance.

U.S. savings bonds.You may now want toexchange any Series E U.S. savings bonds thatyou bought for investment purposes for Series Hbonds that will pay you interest periodically.Other investments.Consider any otherinvestments you may have. Perhaps at the time

you chose them you were more interested inhaving your money grow than in getting an earlyreturn. Has the time come when you want theincome from your money? Now you may wantto take dividends rather than reinvest them.

Anticipate ChangesTo make a realistic retirement budget, you will

want to examine your health and family situationnow and anticipate any possible changes thatmay affect your budget.Health Care

The cost of health care has increaseddramatically in recent years and has become amajor concern in the budget of many retirees.Besides the direct cost of paying for medicalcare, a change in your health can have a largeindirect effect on your retirement ex penses .Health problems may force you to move toanother area of the country or into a differenttype of housing. If health problems limit yourability to do things for yourself (that is, mow thelawn, service an appliance, or sew your ownclothes), payrng someone else for such servicescould be a major new expense to your budget.Even if you are in good health now, rememberthat health-related problems increase greatlyaspeople grow older.

You can often prevent a future health crisis withsimple preventive measures. Good nutrition,regular physical activity, and periodic medicalexaminations are all good investments toward ahealthy retirement.

You can also prepare yourself to handlefinancially any health crisis that may arise byhaving adequate health insurance coverage andbeing aware of the following sources ofassis tance:

Medicare.Administered nationally by theHealth Care FinancingAdministration, U.S.Department of Health and Human Services,Medicare is aFederal health insurance program.Local Social Security offices take claims andprovide information. J u s t about all people age65and older have Medicare; so do some disabled

22


26/35

RETIREMENT

people under age 65 who have been gettingdisability checks at least 2 years, or people of anyage who need treatment for kidney failure. Thetwo parts of Medicare are hos pital ins urance andmedical insurance.

Hos pital ins urance helps pa y for inpatienthospital care and for certain followu p care afteryo u leave the h os pital. You are entitled to this partof Medicare if you are 65 years old or older (youdo not have to be retired) and you are eligible fo ra social security or railroad retirement checkeither as a worker, dependent, or survivor.Applying fo r your Medicare insurance 3 monthsbefore your birthday month is a good idea s o thatyo u will be protected by the time you reach age 65.

Medical insurance helps pay for your doctor'sservices, outpatient hospital services, and manyother medical items and services no t coveredunder ho sp ital ins uran ce. When you ap ply forhospital insurance, yo u will be enrolledautomatically fo r medical insurance, unless yo usay you do not want it. If you do choos e medicainsurance protection, however, yo u mus t pay amonthly premium for it ($9.60 per month for th12-month period starting July 1,1980).Even if you are not eligible fo r Medicare, yo ucan buy the hos pital ins urance protection if youare age 65 or older. The cos t will be $77 per mofor the 12-month period starting July 1,1980. Ifyou buy Medicare hospital insurance, however,you must also enroll in the medical insu rancepart.

Check with your Social S ecurity office for thelatest information on eligibility, monthlypremiums, and benefits fo r Medicare. Medicaid.A Federal-State health insuranprogram, Medicaid provides health care fo religible needy and low-income persons. Contacyou r local co unty Department of Public W elfareEligibility office fo r financial eligibility details.Medicaid can pay what Medicare does not pay iyou are eligible fo r both programs. Private health insurance.If you want mohealth coverage than is provided with Medicarconsider private health insurance.The two basic health insurance plans availabto individuals are a group plan and an individuor fam ily plan.

The group plan usually ha s lower premiumsyo u were enrolled in a group plan offered byyour employer or a professional group, thebenefits from this plan may continue after youretirement or you may be able to continue


27/35

RETIREMENT

under a group plan if you agree to pay youremployer's share of the premium.If yo u decide to get an individual or family

plan, be sure you understand the provisions forrenewing your policy.Be sure to review your health ins urance policyoften to insure that it is meeting your needs.Policies that were once right when you haddependent children at home are not necessarily

the best ones for you in retirement. Look atwhat Medicare pays and what it covers. Manyinsurance companies o ffer s pecial policies thatfill in the gaps and pay for expenses no t coveredby Medicare.

Mail-order health insurance.This type ofinsurance, offered in the mail by somecompanies, often provides low-cost nsurancewith no regard to passing a physical examination.Since this insurance can be fraudulent, studypolicies careful ly and get qualified advice beforeenrolling.* Community health programs.This type ofprogram offers a big advantage to the elderly.Communities often offer free testing andinnoculation programs . Become aware of thehealth programs in you r community-and plan tous e them to help s tretch your medical-caredollar.Family Situation

What is your family situation as you enterretirement? Married or single?With or withoutdependents? If your situation were to change,would yo u stil l be in good financial shape? As youplan your retirement income, make sure that yourincome is adequate for you as a retired couple (ifthat is your situation) an d also for the survivingspouse, in addition, prepare yours elf fo r possiblechanges by reviewing the following areas:

* Insurance.On a limited retirement income,you are less able to f inancia l ly handle acatastrophic loss. So as you ap proa ch retirement,review your insurance coverage. Is the lifeinsurance coverage on you and your spouse ordependents adequate? You should try to haveyour policy paid up at retirement a ge. This willrelieve the drain of insurance premiums on yourretirement income. Make sure yo u haveadequate homeowners and automobileinsurance. Estate planning.Make arrangements foryour property and assets to go where yo u wantthem to.

24


28/35

RETIREMENT

Make sure your will is in good order, or makea will if you do not already have one. Without awill your estate must be distributed according tothe laws of your State, and this may not be whatyo u desire.

Seek expert advice. A n accountant, banker, orlawyer ca n help yo u determine the mostadvantageous way to d ispose of your estate asyou desire. Have a lawyer draw up your will fo ryou. Even a small change in a will, incorrectlymade, ca n legally cancel an entire will.

Important information.Assemble all yourimportant papers an d decide on a safe place tokeep them. Designate som eone to take over andmanage your affairs in case of death or

disablement. Inform them of the location ofimportant information, how you want youraffairs managed, and any funeral preferences.

You may wish to join a memorial society toassist you in preplanning fo r dignity, simplicity,and economy of funeral arrangements.

Pension.You canassure a continuingincome for a su rviv ing spous e by electing asurvivor's clause as part of your pension benefit


29/35

RETIREMENT

Living on Your Retirement IncomeBalancing the Budget

A s you planned your retirement, yo uest imated,a-budget or spending plan. Now youare in retirement and it is time to make a newbudgetone that reflects your actual retirementexpenses. You may find that your expenses aremore than you had anticipated.T he first step in stretching your retirementincome is to make sure you are receiving all theincome to which you are entitled. Examine th epossible sources of income mentioned earlier formore programs yo u could quali fy for or foraddit ional benefits, Wh at a s s e t s or valuablescould you use as a cash or income source ifneed be?

Yo u ma y also need to make some changes inyour spending plans to stay within your income.Some hints to help yo u balance you r retirementbudget are:

1. Shop for specials.2. Us e consu mer information to help makeinformed buying decisions and learn money-

saving t ips.3. Buy prescription medicines by their generic

names.4. Us e your skills an d time instead of money.

There are probably many things yo u could doyourself instead of paying so meone else.5. Install or increas e energy-s aving measuressuch as insulation, weather stripping, loweringthe thermostat, and being cautious with use ofelectricity.

6. Take advantage of free and low-costrecreation you may enjoy /such as walks, picnics,public parks, lectures, m us eums , libraries , artfairs, gardening, and church and club programs.

26


30/35

RETIREMENT

Services for the ElderlyUs e all the extra services available to you as a

senior citizen. T hese vary from place to place.The following services are typical:

1. Free transportation or discounts on publictransportation.

2. Discounts on prescription medicine.3. Legal advice.4. Travel discounts.5. Senior citizen clubs.6. Low-cost meal programs'either in group

setting or home delivered.7. Discounts at movies, plays, restaurants, and

department stores. (You may need to show yourMedicare card or some other identification.)

8. Special low-cost recreation programs offereby the YMCA or YWCA or other communityorganizations.

9. Free or low-tuition courses of study atcommunity colleges and universities.

Ta x AdvantagesBe sure to take advantage o f all ta x savings

given to retirees. You may need to file aquarterly estimated income tax return beginningwith the f i r s t quarter of your first year ofretirement. For more information, ask your locaIRS for a free copy of T ax Benefits fo r OlderAmericans. If you have any questions about youtaxes, get help from someone at the IRS.


31/35

RETIREMENT

Working During RetirementYou may want to start a new career in

retirement or work part-time. Retirement workca n provide a greater sense of usefu lness,involvement, and self-worth and may be theideal way to add to your retirement income. Youmay want to pursue a personal interest orhobby, or you can contact your State or localagency on aging for information on employmentopportunities for retirees. TheFederalGovernment offers opportunities for volunteeror income-producing employment through thefollowing agencies or programs:

ACTION, 806 Connecticut Ave. NW.,Washington, D.C 20525Foster Grandparent Program Retired Senior Volunteer Program (RSVP) Volunteers in Service to America (V I STA) Peace Corps Senior Companion Program

U.S. Department of Commerce, Bureau of theCensus, Washington, D.C. 20233 Census interviews

U.S. Department of Education, Washington, D,C.20202 Teacher Corps

Smal l Business Administration, 1441 L StreetNW., Washington, D.C. 20416 Service Corps of Retired Executives

(SCORE)U.S. Department of Labor, Washington, D.C.20212

Senior Community Service EmploymentProgram (SCSEP)

Comprehensive Employment and TrainingA ct (C E T A )

F or more information on these programs, contactthe appropriate agency.

28


32/35

RETIREMENT

If yo u decide to wo rk p art time after retirement,yo u should be aware of how earnings will affectyour social security retirement income. A s long asyou do not earn more than the annually exemptamount2, your so cial secu rity payments will not beaffected. If you do earn more than the annual

exempt amount, your social security paymentswill be reduced by one- half the am ount o ver theexemption. (For example, if the exemption is$4,500 and you earned $5,500, you r s ocial s ecuritypayment will be reduced by $500.)

T he f irst year that you are eligible for socialsecurity benefits and have little or no earnings fo rat least 1 month is considered your "grace year/'During your "grace year" you can collect amonthly benefit for every month in which you donot earn more than the monthly exempt amount(1/12 of a nnual exempt amount), even if you rannual earnings are more than the annual exemp tamo unt. Any time you are no longer eligible forone type of social s ecurity benefit an d after abreak of at least 1month become eligible foranother type of benefit, you are entitled toanother "grace year."

Your earnings ma y affect your dependents'social security checks as well as your own. But ifyou get checks as a dependent or su rvivor, yourearnings can affect only your own check. If youare over age 72 (after 1981age 70) you can earnas much as you like with no reduction in yoursocial s ecurity benefits. To get more information,contact your local Social Security off ice for apamphlet called, "If you work after you retire/'You should also note that different rules apply towork performed by people getting benefitsbecause they are disabled. F or more information,as k for a copy of the leaflet, "If you becomedisabled/'

2T he annually exempt amount in 1980 is $5,000 forpeople age 65 and older, and $3,720 for people underag e 65. Since the amount changes with wage levelseach year, however, you should check with the SocialSecurity Administration.

29


33/35

RESOURCES

ResourcesOrganizations

Some other organizations that may be able tohelp you with your retirement plans are:U.S. Department of Health and Human Services(HHS)Administration on AgingOffice of Human Development WelfareWashington, D.C.20201(tel: 202-245-0724)The Administration on Aging (HHS) s p o n s o r sprograms that benefit the elderly throughout thecountry. The National Clearinghouse on Agingmakes available various publications in the field ofaging, and a magazine entitled,Aging, ispubl shed 10 times a year.National Retired Teachers Association ( N R T A )

American Association of Retired Persons ( A A R P )1909 K Street NW.Washington, D.C. 20036(tel: 202-872-4700)

NRTA and A A R P are companion organizationsthat offer a broad range of services in retirementplanning, including a series of retirementpreparation booklets and two magazines,Modern Maturity and NR TA Journal, A A R P ,through its division called AIM (Action forindependent Maturity), of fers retirement-planning seminars and training programs foremployers and other organizations and groups.AIM publishes a magazine, Dynamic Maturity,for those persons still in the preretirement years.NRTA-AARP have many local clubs and offereducation and travel programs, drug discounts,and insurance.

National Council on Aging1828 L S treet NW.Washington/D.C. 20036(tel: 202-223-6250)

The National Council on Aging has publisheda Guide for Selection of Retirement Housing andhas designed and implemented preretirementplanning programs for var ious groups nationally.The National Council on Aging publishesaquarterly journal, Industrial Cerontology.Institute of Life Insurance277 Park AvenueNew York, N.Y. 10017(tel: 212-922-3000)

The Institute of Life Insurance has publications-on pensions, life and health insurance, and otnerpertinent topics related to preretirementplanning.National Council on Senior Citizens1511 K Street NW.Washington, D.C. 20005(tel: 202-347-8800)

The National Council of Senior Citizens is anational membership organization with localclubs. The council offers discounts on healthinsurance, drug service, and travel, and publishesa monthly newsletter, Senior Citizens N e w s .Retirement Living Magazine85 0 Third AvenueNew York, N.Y. 10022(tel:212-593-2100)

30


34/35

RESOURCES

Reti rement Living Magazine, a monthly publi-cation, focuses on various aspects of retirement,including money management, health, housing,leisure-time opportunities, and travel hints. Inaddition, the magazine publishes a retirementplanning kit called Planning Your T o mo r r o w .

Be sure to check with your county or StateCooperative Extension Service an d with yourState or local Agency on Aging fo r additionalinformation or help.

3


35/35

RESOURCES

PublicationsHere are some publications that may help youplan for your retirement. Single copies areavailable free from the Consumer InformationCenter, Pueblo, Colo. 81009.Consumer Information CatalogA Brief Explanation of Medicare, No. 571HA Woman's Guide to Social Security, No. 539HYour Social Security, No, 540HKnow Your Pension Plan, No. 534H

Listed below are some publications of the U.S.Department of Agriculture that may help you livewithin your retirement budget. Singles copies areavailable free from the Publications Division, U.S.Department of Agriculture, Office ofGovernmental and Public Affairs, Washington,D.C. 20250. Please include your return addressand Zip Code.

Order no.Home Care of Purchased

Frozen Foods G-69How to Buy F r e s h Vegetables G-143How to Buy Eggs G-144How to Buy B e e f Roasts G-146Keeping Food Safe to Eat:

A Guide for Homemakers G-162How to Buy Canned and Frozen

Vegetables G-167Your Money's Worth in Foods G-183Renovate an Old House? G-212

The following are for sa le by theSuperintendent of Documents; U.S. GovernmentPrinting Office, Washington, D.C. 20402:Cooking for Two, PA1043Buying FoodA.Guide for Calculating Amounts

to Buy and Comparing Costs in HouseholdQuantities, HERR 42

Date post:	03-Apr-2018
Category:	Documents
Upload:	peli1974
View:	214 times
Download:	0 times