The National Association of Government Defined Contribution Administrators, Inc. (NAGDCA) just completed a report full of mind-blowing statistics on retirement and how completely unprepared we are for it.

Here are a few of the stunning statistics released:

• Only 22% of workers think they have enough money for retirement. This is according to a survey done by the Employee Benefits Research Institute.  What are the other 78% thinking? Are they even thinking about retirement?
• 45% of Americans have exactly zero saved toward retirement.  This is especially true for those in the lower ends of the income spectrum. This information came from congressional testimony. “In two-thirds of working households with earners between ages 55 and 64 years, at least one earner has saved less than one year’s income for retirement.”
• Women face a greater challenge than men because they live longer and make less money. The Department of Labor statistics show that women were more likely to work part-time jobs that don’t qualify for a retirement plan or interrupt their careers to stay home and care for family members, resulting in less retirement plan savings.
• Only one in every six employers offers some sort of health insurance coverage to retirees. More people are relying on Medicare to take them through their golden years. Some may be lucky and have invested in some sort of long-term care insurance to assist in their future care.
• It is estimated that the average 65 year-old couple can expect to pay out over $220,000 in medical costs over the next 20 years thanks to not having any insurance to pick up the tab. This is if you don’t have some sort of catastrophic illness or injury to run the costs up higher.
• The projected annual rate of growth for health care spending is projected to be 5.8%. The standard projection is based on withdrawing 4% per year to live on during retirement.  
• Expect to pay 38% of your medical expenses when you file a claim with Medicare.  The report goes on to show that you’ll pay 23% for out of pocket drug expenses, 32% for Medicare premiums for parts B and D, and 45% for Medicare co-pays, cost-sharing and deductibles.
• Do you have $200,000?  That’s what you could have to pay to cover a year of living in a skilled nursing facility or a high-end assisted living facility.  Have you factored that into your retirement budget?
  

How are you prepared for retirement? Have a conversation with one of the Great Lakes Insurance & Financial Advisors to see what can be done to ensure a better retirement future for you and your family.
Contact Great Lakes Insurance & Financial Services Agency at 888-883-5290 or email Kinzie@GLIBrokers.com.

Many people look to Social Security as an important component of their retirement income, but don't realize that the age you begin taking Social Security benefits along with the filing status impacts the benefit amount.

For example:

• Collecting Social Security at age 62 can result in decreased income by as much as 30%.
  
• Waiting to take Social Security income past full retirement age can provide an 8% increase for every year you wait.
  

These amounts can make a big difference in overall income over the course of a 30-year retirement. This is why it's important to consider Social Security as part of your overall retirement plan and include annuities to provide additional lifetime income.

If you'd like a review of your situation, please contact Great Lakes Insurance & Financial Services Agency at 888-883-5290 or email Kinzie@GLIBrokers.com

You occasionally hear these stories in the news.  An elderly person hires a nurse, housekeeper or even ends up as a resident in a nursing home and is talked into signing over homes, bank accounts and assets. It even happens when the elderly are moved into nursing homes and a professional guardian is appointed by the state to care for them.  These “guardians” are given access to the assets and have drained them away.  When the family starts to ask questions they can be denied future visitation with the elderly and have to start a lengthy legal process to have rights restored and accountings completed.

It is estimated senior citizens lose $36.48 billion each year to elder financial abuses. Originally, it was estimated the number was only $2.9 billion because it is so underreported to authorities. The problem is 12 times worse in reality. Worst yet, $16.9 billion of this amount is said to be from deceptive yet technically legal tactics taken most often by unscrupulous probate attorneys who are brought in to represent the elderly through guardianship.

Why don’t we hear about these things more often?  Simply put, the elderly and the families are embarrassed at what has happened and want to put it in the past. 

Starting in January 2016, for the 2015 calendar year, large employers, those with 50+ full-time employees, are required to distribute 1094-B or 1094-C reports to all full-time employees, and to file the reports with the IRS.

Previously, the fines for failure to file were $100 per missed returns, with an annual cap of $1.5 million.  Under the Trade Preferences Act passed by Congress in June 2015, the penalty for non-filers more than doubled to $250 per missed return with an annual cap of $3 million in fines. And if the failure to file is related to BOTH the payee statement and the IRS return information, the cap is DOUBLED again to $6 million.

Are you prepared to file these returns? Has the proper data been tracked for the 2015 calendar year? Contact your insurance agent and accountant today to make sure these fines don’t apply to you.

If you'd like a review of your situation, please contact Great Lakes Insurance & Financial Services Agency at 888-883-5290 or email Kinzie@GLIBrokers.com