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I N S I D E T H E N OT E B O O K W W W. M A I N E B I Z . B I Z 13 J U LY 1 3 , 2 0 1 5 T he number of Americans age 65 and older will almost double to 88 million by 2050 from the 45 million in 2013, and 2 million baby boomers are still expected to be alive in 2060. ose numbers will weigh heavily on the health, pension and business systems. eir impact will span several generations, including millennials and their children. Demographer Mark Mather says that by 2030, there will be only three working-age adults for every person 65 or older. at compares to 19 per elder in the year 1900 and 4.4 in 2013. By 2050, the elderly will once again outnumber the younger generations, meaning there will not be enough people to support the tax base. In that year, Mather predicts, the cost of Social Security and Medicare com- bined is expected to reach 12% of the U.S. gross domestic product. Mather, associate vice president of U.S. Programs at the Population Reference Bureau, a nonprofi t demo- graphic group based in Washington, D.C., spoke at a recent National Press Foundation fellowship on "reporting retirement" that I attended. He, along with the other speakers, painted a picture of a "silver tsunami" of retirees facing dwindling savings, high health costs and a potential shortage of caregivers, forcing more of the tending to seniors with Alzheimer's, dementia or other conditions to be taken up by younger family members, and causing older workers to delay retirement. For those still working, it's never too soon to save for, and plan for, retirement. at includes a draw- down strategy for 401(k) and other retirement savings. e so-called "4% rule" of taking out 4% or your savings annually implies that you've saved $1 million or more, and only 7% of the population has. at's why it's important to look at a plan that fi ts the individual, says Luke Delorme, research fellow at the American Institute for Economic Research in Great Barrington, Mass. "One of the best deals in retire- ment is waiting to claim your Social Security benefi ts until you are age 70," he says. Every year delayed beyond retirement adds 8% to the monthly Social Security benefi t until age 70. at means those retiring at the full retirement age of 66 (for boom- ers born from 1946-1954) get 100% of their monthly Social Security benefi t, whereas those delaying till age 70 get 132% of their monthly benefi t. "Retirement distribution mis- takes can be very costly," adds Mary Beth Franklin, contributing editor at Crain's Investment News. "It can make a diff erence of tens of thousands of dollars over your lifetime." Another option, known as "fi le and suspend," involves fi ling for spousal benefi ts, but allowing the worker to delay collecting his or her own benefi t. Single people opting to fi le and sus- pend at age 66 can use the saved Social Security money to act like an insur- ance policy. If a person gets hurt two years later and decides to collect Social Security to pay medical costs, he or she would get a lump sum for the two years there was the in collecting it. Seniors can look forward to new living options if they prefer to age in place. One example is the village model of neighbors helping neighbors with transportation and other necessi- ties, which started in Boston's Beacon Hill neighborhood about 10 years ago, notes author Beth Baker. ere's also a push by the World Health Organization and others for age-friendly cities, where food is on lower store shelves and aisles have room for walkers, notes Dr. Robert Burke of George Washington University. With the average life expectancy in the United States rising to 78.8 years in 2012, a record high, and more people living to be centenarians, workers need to plan for expenses at least 13 and possibly 30 years in retirement. John Kalamarides, CEO and president of Prudential Bank & Trust in New York, said he thinks the fi rst person to live to age 150 already has been born. Can you imagine working till 100 or more before you can retire? Retirement: Navigating the 'silver tsunami' L o r i Va l i G r a , Mainebiz senior writer, can be reached at l va l i G r a @ m a i n e B i Z . B i Z and @ LVa l i G r a . " " WGTECH provides advanced IT solutions that help you grow your business. From networking, to data management, security, and managed suppor t, WGTECH delivers industry-leading solutions tailored for you. Call us today for technology solutions that work for you. Colors Pantone 2747 Pantone 1807 www.wgtech.com 207.856.5300 "We call in WGTECH for high-level IT support issues—they can take care of any issue. WGTECH has become a very good partner for us. They come up with ideas to help us grow." 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