In late March, I described my new
book called, Flipping
a Switch, which will be now be out in June due to COVID-19 delays. The book
describes 35 “flipped switches (i.e., transitions) that people experience in
later life. At the end of each chapter is a section called “How to Flip This
Switch” with suggested action steps for each transition. I wrote in my earlier post
that some of the “switches” that older adults face are the same issues Americans are
facing right now with the pandemic.
I noted seven weeks ago that it is
almost like socially distancing workers have been forced into “retirement.” I
then provided six examples of flipped switches: creating a paycheck, adjusting
to a changed (often reduced) income, becoming “fraud bait” with new COVID-19
scams, too much “togetherness” at home, keeping busy, and staying socially
connected. Blogger Gary Weiner @Super Saving Tips, had the same idea and
recently asked
“Is the Pandemic a Retirement Dress Rehearsal?”
Below are five more “flipped
switches” that older adults leaving long careers and quarantined Americans have
in common:
¨
Tax Adjustments- Retirees often have to make withholding adjustments for
new streams of income instead of a paycheck. For example, taxable pensions and
required minimum distributions (RMDs) from tax-deferred retirement savings
accounts. Similarly, laid off or furloughed workers, or workers with a change
in income, should make tax withholding adjustments. Also, arrange for withholding
or estimated taxes for unemployment benefits. Workers with a reduced income may
also qualify for the earned income tax credit (EITC) for 2020 income taxes due
in 2021.
¨
Prioritizing Estate
Planning- According to a 2017 survey
less than half (42%) of 1,003 adults had wills. People are more likely to do
estate planning at an older
age closer to their life expectancy. Older adults also realize more viscerally
that “you can’t take it with you.” COVID-19 had shown us that people of any age
can be sickened by the virus and almost 90,000 Americans to date have died.
COVID-19 is a wake-up call to contact an attorney and prepare a will, living
will, and durable power of attorney. If 58% of, say, 85,000 adult victims lacked wills,
that is almost 50,000 people who died intestate.
¨
Financial Organization
and Simplification- My book urges
readers to list key financial data in one document including bank and brokerage
accounts, insurance policies, credit card numbers, loans, names of financial
advisors, and the location of key documents. A good template financial
inventory form was
developed by the Vanguard investment company. COVID-19 has provided the gift of
more free time to many people. Take the time to get your financial affairs in
order.
¨
Answering the “What
Do You Do? Question- Older adults often
need a new answer to this question, whether it is an encore career, hobby,
volunteer work, or even something humorous like “whatever I want” or “as little
as possible.” Many laid off workers will also need a new answer for a new act. Make
a list of your top work-related skills and create an action plan to become
re-employed (e.g., networking, LinkedIn profile, and training or certification programs).
¨
Getting Help
When Needed- In Flipping a Switch,
I discuss how older adults may need help with household activities. Examples include complex financial decisions,
asset management, house cleaning and maintenance, yard work, bill-paying, and
transportation services when someone is unwilling (e.g., night driving) or
unable to drive. Similarly, many people today need help, often with basic needs
like food and paying essential household expenses. A good resource for local government
and non-profit human services is the phone number 211 or www.211.org.
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