Texas Talks - Retirement & Financial Planning - Retirement & Financial Planning

Texas Talks –
                             Retirement & Financial
                             Planning

Retirement from the workforce often provides new opportunities like more
time to spend with loved ones, to volunteer or develop new hobbies. This life
stage can also be associated with a decrease in financial resources because
of a variety of reasons including: loss of a spouse and their income, inability
to save for later life, and/or retirement on a fixed income. Experts suggest a
mix of employer-supported retirement savings, social security benefits and
personal savings can provide a good financial foundation for retirement.
However, in 2017, 38 percent of older adult households (60 and older) in
Texas reported retirement income from sources other than Social Security,
such as pensions or retirement accounts. According to U.S. Census Bureau,
2013-2017 American Community Survey 5-Year Estimates, the majority of
older adult households reported Social Security benefits as their primary
income.

There is no "right" age or time to begin thinking about and planning for later
in life, though experts emphasize the earlier, the better. Advisers
recommend having a conversation about long-term care and finances with
older loved ones before a crisis to alleviate stress and lead to better
decision-making should an emergency happen.

Talking about finances can be uncomfortable, especially if it is a topic you
and your loved one have not discussed before. Make sure your loved one
knows you are asking about their financial situation because you care. If a
friend or family member has recently experienced a crisis, use that as an
example to discuss with your loved one how both of you can prepare for a
situation like that ahead of time. Take time to examine your own plans for
retirement and ask if your loved one has any planning tips for you.

There are a variety of ways to prepare for retirement. Below are resources
for retirement, financial planning, benefits assistance and saving on a
budget.

                                                                     10/6/2021
                 Texas Health and Human Services ● hhs.texas.gov

Retirement planning resources
If your loved one is still working, the first resources to explore are their
employment-based benefits. Their human resources department and/or
employee benefits center can explain the retirement benefits they are
currently receiving and what their organization offers. Newer investment
models such as target date funds can help simplify retirement saving for
those with several years of work still ahead of them. Target date funds
gradually reduce risk as you approach retirement, so you can essentially set
it and forget it.

Helpful information about financial planning:
   • Find out more about financial planners from the U.S. Securities and
      Exchange Commission.
   • Free financial planning tools from the U.S. Securities and Exchange
      Commission.

Benefits
To check if your loved one is eligible for benefits like Medicaid and SNAP,
visit Your Texas Benefits — an HHS website. To learn more about local
financial assistance in your community and apply for benefits, call 2-1-1 — a
free information and referral hotline, or visit 2-1-1 Texas.

Learn More
Start the conversation. Use the financial planning worksheet to help guide
your conversation with your loved one.

                                                                   10/6/2021
                Texas Health and Human Services ● hhs.texas.gov

Retirement and Financial Planning Worksheet
Retirement from the workforce often provides new opportunities like volunteering,
developing new hobbies and spending time with loved ones. This life stage can also
be associated with a decrease in financial resources. Advisers recommend having a
conversation about long-term care and finances with older loved ones before a
crisis to alleviate stress and lead to better decision-making should an emergency
happen.

Use the following questions to help guide the discussion with your loved one.

   1. Do you have a will or any advance directives? These documents have
      explicit instructions regarding your loved one’s end-of-life wishes and how
      any remaining assets are to be handled. A discussion about wills may be
      awkward, and thinking about end-of-life decisions can be sad. It might be
      necessary to take a break and revisit these questions later.

   2. Do you have a durable power of attorney agreement? This is a legal
      tool allowing someone to help their loved one perform their affairs, including
      financial matters. These are typically used when someone is no longer able to
      make decisions because of cognitive decline or other serious health concerns.
      This might not be something your loved has or needs now, but it might be
      needed later.

3. Do you have health insurance or other insurance? Depending on your
   loved one’s age, they might receive Medicare. However, Medicare does not
   cover long-term care, vision, or dental services unless they have separately
   purchased supplemental coverage. Additional questions to consider:
   • Do you have long-term care insurance, or any assets saved for in-
      home care or other long-term care services?
   • Are you currently being treated for conditions that might require
      long-term care?
   • Who do you want to make medical decisions if you become unable
      to make your own medical decisions in the future?

4. What type(s) of income do you have coming in each month and what
   are your expenses? If they don’t already have one, suggest creating a
   budget with them, noting any debts they might still be paying off. Additional
   items to consider include:
   • Location of tax returns, records of assets/bank accounts, other financial
      records.
   • Location of usernames and passwords, if they use online banking.
   • Additional questions to consider:
      Do you have an accountant or financial adviser? Who has
      permission to speak with this person in case of an emergency?

5. Do you have concerns about making ends meet each month?
   Remember, it can be difficult to ask for help. This could be a good time to
   review their budget and see if there are any cost-saving strategies that can
   be used (like combining phone and cable bills or cutting a non-essential
   service). To check if your loved one is eligible for benefits like SNAP or other
   financial resources, call 2-1-1, a free information and referral hotline, or visit
   2-1-1 Texas.

Hoja de ejercicios. Jubilación y planeación
financiera
La jubilación suele ofrecer nuevas oportunidades, como el trabajo voluntario, la
práctica de nuevos pasatiempos y vivir muchos y buenos momentos junto con
nuestros seres queridos. Esta etapa de la vida también puede estar ligada a una
disminución de los recursos financieros. En situaciones como estas, los asesores
recomiendan que, antes de que nos sorprenda una crisis, platiquemos con nuestros
seres queridos mayores acerca de la atención a largo plazo y las finanzas, lo cual
ayudará a aliviar el estrés y a tomar mejores decisiones en caso de que se presente
una emergencia.

Use las siguientes preguntas como guía para una conversación con su ser querido.

   1. ¿Has hecho ya un testamento o has dejado dispuesto por escrito
      cuáles son tus últimos deseos? Estos documentos contienen instrucciones
      explícitas sobre la última voluntad de su ser querido y sobre qué deberá
      hacerse con los bienes que deje. Tener una conversación sobre el testamento
      puede ser incómodo, y pensar en las decisiones que hay que tomar sobre los
      últimos deseos de una persona suele ser triste. Quizá necesiten dejar de
      hablar de estas cuestiones por un tiempo y retomarlas en otro momento.

   2. ¿Has hecho un poder notarial permanente? Esta es una herramienta
      legal que permite que alguien ayude a su ser querido a encargarse de sus
      asuntos, incluidos los financieros. Este tipo de poder se suele utilizar cuando
      alguien ya no es capaz de tomar decisiones debido a un deterioro cognitivo u
      otras situaciones graves de salud. Es probable que su ser querido no tenga
      aún un poder notarial ni lo necesite por ahora, pero tome en cuenta que
      podría ser necesario en el futuro.

3. ¿Tienes seguro médico u otro tipo de seguro? Dependiendo de la edad
   de su ser querido, podría recibir Medicare. Sin embargo, Medicare no cubre la
   atención a largo plazo, ni atención del oculista o el dentista, a menos que
   haya pagado por una cobertura suplementaria. Otras preguntas que deben
   considerarse son:
   • ¿Tienes seguro de atención a largo plazo, o algún dinero ahorrado
      para servicios de cuidados en casa u otros servicios de atención a
      largo plazo?
   • ¿Estás recibiendo tratamiento por algún problema que podría
      requerir atención a largo plazo?
   • ¿Quién quieres que tome las decisiones médicas por ti, si no
      puedes tomarlas tú mismo en el futuro?

4. ¿Qué tipo de ingresos recibes cada mes y cuáles son tus gastos?
   Sugiérale preparar juntos un presupuesto si no lo han hecho aún, incluyendo
   en él cualquier deuda que todavía pueda estar pagando. Otros puntos que
   deben tenerse en cuenta son:
   • Dónde encontrar las declaraciones de impuestos, los registros de bienes o
      de cuentas bancarias y otros registros financieros
   • Dónde encontrar sus nombres de usuario y contraseñas, si utiliza la
      cuenta en línea
   • Otras preguntas que deben considerarse:
      ¿Tienes un contador o asesor financiero? ¿Quién tiene permiso
      para hablar con ese contador o asesor en caso de emergencia?

5. ¿Te preocupa no poder llegar a fin de mes?
   Recuerde que, para una persona mayor, puede ser difícil pedir ayuda. Ahora
   podría ser un buen momento para revisar su presupuesto y ver si sería
   posible ahorrar algún dinero mediante alguna estrategia (como combinar en
   una sola las facturas del teléfono y de cable, o cancelar un servicio no
   esencial). Para verificar si su ser querido cumple los requisitos para recibir
   beneficios como SNAP u otros recursos financieros, llame al número gratuito
   2-1-1, donde obtendrá información y remisiones, o visite la página web 2-1-1
   Texas.