Boomers: The Pot Holes In Retirement Planning

BOSTON (CBS) - This is not about the potholes in the roads!

These pot holes have a way of messing up the best laid plans of the retiree. Some you can plan for, some you can avoid and others just happen!

• Credit cards. The greatest increase in personal bankruptcy is occurring among retirees. Many are using their credit cards to supplement their income. Their incomes have dropped in retirement and they have not been willing to adjust their lifestyles to accommodate the lower income.

• Divorce: Largest increase in divorce is for individuals over age 55. This is the number one reason people over 55 contact an attorney.

• Children & grandchildren. Our children are like boomerangs, we toss them out and they bounce back and sometimes they bounce back with kids of their own. And sometimes they leave without taking the grandkids. According to AARP over 5 million kids are being raised by their grandparents. And another 25% of grandparents provide childcare for the grandkids.

• Elderly relatives to care for. Our parents are living longer and often require our help. At 65 you could conceivably have an 85 year old mom and a five year old granddaughter both needing you to drive them to daycare.

• Illness or disability. These can foul up the best of plans. You, your spouse, your parents. Doesn't matter who.

• Death of a spouse. Death can shatter the dream of a comfortable retirement.

• Alcohol and drug abuse. For some retirees its 5:00 PM somewhere in the world so they start drinking when they get out of bed in the morning. Or they become addicted to pain killers. A sweet elderly man asks his doctor for more pain killers. He doesn't look like an addict. Many retirees have the dollars to support their addictions so it goes undetected.

• Inflation. Always going to be there. A big problem for many retirees who are on a fixed income. Each year stuff costs more. Many boomers have bought cars that cost more that their first house. Stamps have increased over 300% since the 80s. Movie tickets are up over 400%.

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You can hear Dee Lee's expert financial advice on WBZ NewsRadio 1030 each weekday at 1:55 p.m., 3:55 p.m., and 7:55 p.m.

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