Ask Our Experts
By: Source: AARP Bulletin Today Date Posted: 2004-02-06 12:00:00-05:00
The AARP Bulletin's Ask Our Experts column provides answers to important questions affecting older Americans. Read below for this month's column, or review our archive of previously published questions and answers sorted by topic. (Note: Recent news or changes to regulations may affect the guidance offered in this previously published column.)
Submit your own question to the Ask Our Experts column via our easy-to-use online form.
Q. Is there a rule of thumb to help me figure out how much money I will need to retire comfortably?
Yes. Experts say most people can maintain their present living standard in retirement with about 70 to 80 percent of their preretirement income. But they caution that other factors can change that picture radically. If, for example, you hope to travel extensively or anticipate major health care costs, you can count on needing more income.
You should also recognize that, given inflation, what might be adequate income at age 65 may be inadequate at 80 or 85.
Social Security, with its annual cost of living adjustments, can provide some help in keeping pace with inflation. It's estimated that Social Security replaces about 42 percent of preretirement earnings for average wage earners receiving full Social Security benefits. That leaves the rest of your living costs to be made up in other ways—by pensions, savings, investments or part-time work.
For below-average wage earners, Social Security supplies about 56 percent of needed retirement income. But for higher earners, Social Security will cover only about 35 percent of living costs.
If you retire early, you'll get less from Social Security and have to rely more on other sources of income.
The AARP Bulletin Online recently updated a calculator that can help you determine how much you should save to be comfortable in retirement.
The website of the American Savings Education Council, a nonprofit group in which AARP is a member, has other interactive tools to help you save for retirement and manage your personal finances.—Expertise provided by Sara Rix
Q. I want to join a support group for caregivers of parents with Alzheimer's disease. How can I find such a group in my community?
The Alzheimer's Association sponsors many support groups nationwide through its local chapters. Call the association at (800) 272-3900 any time of the day or night to be put in touch with the chapter nearest you. You can also find your nearest chapter online.—Expertise provided by Elizabeth Clemmer
Q. I'm not on the Internet. Is it possible to get Social Security information by phone?
Yes. The Social Security Administration has a toll-free number—(800) 772-1213; TTY, (800) 325-0778—that's staffed from 7 a.m. to 7 p.m. Monday through Friday. If you have a touch-tone phone, you can get recorded information on many topics 24 hours a day. Have your Social Security number handy when you call.—Expertise provided by Laurel Beedon
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