Floridians Juggle "Retirement" With Work

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When Diane Maxwell of Tallahassee visualized retirement, she thought about travel and leisurely days at the beach. A retired college professor, she put money aside in Individual Retirement Accounts (IRAs) and expected Social Security to be a part of her retirement income—enough, she figured, so that she could live comfortably.

Because she taught at a local community college, having earned her master’s degree at age 52, Maxwell wasn’t part of the state’s retirement system. So she took the initiative to save. Now, she says, she’s been penalized for planning ahead.

“What I didn’t know is there’s a cap on how much you can earn before it starts cutting into the little Social Security you do receive,” said Maxwell, now age 72. “So now, I find myself needing to work to earn enough money just to pay for my living expenses because my monthly check keeps going down.”

Maxwell knows she’s not alone in her struggle for a quality retirement. Like thousands of Americans, she found the Divided We Fail website and signed the pledge because the need for a secure financial future resonated with her own experience.

As more Americans reach retirement age, the issue of lifetime financial security will only become more critical.

Only one in five American workers is still covered by a traditional pension. Half of all workers eligible for an employer savings program like a 401(k) are not even enrolled in such a program, and many who have saved for retirement have a long way to go.

Americans find themselves unprepared for retirement and the costs of aging, including health and long-term care.

A 2006 study conducted by AARP shows the average monthly cost of privately paid long-term care in Florida to be $6,200. When asked, just 15 percent offered an estimate within 20 percent of the state’s average cost, either on the high or low end. Moreover, three quarters (74 percent) either gave too low of an estimate (47 percent) or said they “didn’t know” (27 percent) the monthly costs.

“If we don’t give Americans effective tools to prepare for their own futures, millions of older Americans could be forced to accept a bleak future,” said Lori Parham, AARP Florida state director.

An Uncertain Future for Many Americans
Maxwell laughed as she read a letter from the Social Security Administration giving her the good news that her monthly benefit was to increase.

“On the one hand, I’m getting an increase,” said Maxwell. “But on the other hand because they have to round out benefits to the next dollar, my benefit actually decreased by $1. It’s funny, but it’s not. I think it’s most definitely time that we took some action on this and other financial issues affecting Americans.”

To help send this message to leaders in Washington, D.C., visit Divided We Fail http://www.dividedwefail.org/ and share your story about retirement security, or call 1-866-595-7678.

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