Dec 232016

When you retire, you will find that your income has drastically dropped so you must think about lowering your expense as you might not have the funds you want for the lifestyle you planned on.

Here are some expenses to consider:

Education expenses

Unfortunately when you reach retirement age you might still be paying for your children’s education or helping them pay off an education loan.

Because if you have not paid off your child’s student loan which you co-signed (or even your own education loan), the government can withhold up to 15% of Social Security payments from you.

In the United States about 700,000 senior citizens still have a student loan debt.

Over 27% of the student loans in default are by retirees over 65.

Unfortunately, you can’t declare bankruptcy to get out of paying a student loan. Although there is a movement to ask Congress for a moratorium on senior student loan payments.


If you were unemployed during your working career, those years of zero income will lower your average drastically. Or if you have worked less than 35 years then each year in which you had no income* will count as zero income and drastically bring down your average monthly income which is used to calculate your Social Security benefits.

*(unemployment benefits are not counted as income)

Supporting a relative

Many seniors are still supporting a son or daughter who is living with them because good jobs are hard to find or they haven’t finished school.

Or perhaps you have a mother, father, spouse, or other relative that you continue to support.

Statistics show that 29% of retirees are currently supporting a parent, spouse, or other relative of which 38% are supporting their children.

Providing financial support and unpaid care may be one reason why many Americans have trouble saving for retirement.

Medical Expenses

Even though you can collect Social Security at 62, you will not be eligible for Medicare until you are 66.

Medicare only covers about 62% of the expenses associated with health-care services. And as Medicare runs into financial problems, Congress has been changing Medicare limits and coverage making seniors pay a greater share of the costs.

So additional medical expenses might be depleting your retirement funds.

If you have your own retirement business, it is possible to take a deduction for the supplemental medical policy which the company might purchase for its employees (you and your spouse).


More and more seniors are getting divorced. A divorce will drastically cut your retirement resources.

You might have to continue to pay high alimony even if you are now living on a reduced retirement income.

Are you forced to supplement your retirement income?

For many of us, the financial problems that come with retirement seem overwhelming and we feel that we ARE FORCED to find some way to earn supplemental retirement income. That will be the subject of my next blog post.

 Posted by at 5:11 pm

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