by Dave Kutcher
I just read the top 5 articles that popped up in my business email this weekend. Every single one of them is speaking to current difficulties of folks trying to get by in their daily lives or highly concerned about their personal plan of retiring.
What caught my eye the most, however, was an article on financial fitness that included a study that used several factors to measure and score all 50 US States in terms of the risk of their senior citizens (retirees) facing financial risk that can quite likely lead to bankruptcy.
Bankruptcy is defined in this survey as someone who has insufficient assets and income to cover their expenses and/or repay their debts.
Alarmingly, I then read that our own state of Alaska is number two on the list! Meaning, other than California, and based upon the factors measured, a senior citizen residing in Alaska is going to have a very difficult time managing finances in a way that can keep up with the rising daily living costs, healthcare and overwhelming income to debt ratios.
Cited as the two most concerning factors as to why Alaska poses such a high risk of financial distress are healthcare costs and groceries. Healthcare costs in Alaska per capita are at $13,600, second only to New York, and grocery store prices are 24% higher in Alaska than the national average.
Of course, there is more to the equation than noted above, but it is without a doubt an important consideration for those residing here and looking forward to living out their golden years in peace and happiness and enjoying all that Alaska has to offer in a positive way for our lives.
Financial difficulties as a senior are particularly troubling because there are limited ways to resolve the problem at this time in your life. If you are committed and determined to try and get ahead of the issue, however, there are ways to make a positive difference for yourself in the years ahead including use of guaranteed income products, hybrid long term care plans and other financial instruments that can help ease the situation.
The trend to bankruptcy for seniors is rising as more and more find themselves with unaffordable mortgages, overspending to try and maintain lifestyle, overwhelming debt and rising healthcare costs. The remedy to recover is different for seniors … there is no time, there are limited opportunities to make more money and seniors may find themselves upside down and at the risk of losing their entire life savings at a time when the need it the most.
Don’t hesitate to get help. Plan and be diligent and please do not underestimate the difficulty of trying to resolve financial matters during or while approaching your golden years. The economy is not going to be your friend over the near term and so a huge dose of reality is coming.
In case any of you are interested, it appears the mid-west has the lowest risk of senior citizen bankruptcy issues with the top 5 least risky for seniors as Iowa, Nebraska, Wisconsin, North Dakota and Kansas. The top 5 most risky are California, Alaska, Massachusetts, Hawaii and Maine.
Source for the data included above; Financial Advisor Magazine 7-28-2024 in their Financial Fitness section in an article titled “Massachusetts Seniors are Facing Serious Financial Risk”.
My name is David A. Kutcher, a retired Marine Corp Captain. My business partner in the lower 48 is Richard C. Scott, CLU, LUTCF. For nearly 40 years we have been helping folks with their personal retirement decisions. You can catch us on the radio every Saturday morning, “Retirement in the Last Frontier”, 8:30-9:30 on AM 650, Keni Radio and on Tuesday mornings, KFQD News Talk Radio AM 750 and FM 103.7. Frontier Retirement, 10928 Eagle River Road; Eagle River, AK 99577, (907) 795-7452.
