After retirement, older Americans are dying nearly broke

After retirement, older Americans are dying nearly brokeAfter retirement, older Americans are dying nearly brokeThe thinking goes that we work hard now so that we canone day enjoy the fruit of our labors in retirement. But too many Americans are living their final years without a financial safety net.A 2012 National Bureau of Economic Research study found that about 46% of U.S. senior citizens have $10,000 or less in financial assets when they die. That percentage rises to 57% if the seniors live alone.As Washington Post critic William McPherson wrote about his own descent into poverty in his retirement, If youre poor, what might have been a minor annoyance, or even a major inconvenience, becomes something of a disaster. Your hard drive crashes? Whos going to pay for the recovery of its data, not to mention the new computer?For McPherson, he became poor through health problems and by acting like one of those people who win the lottery and squander it on houses, cars, family, and Cari bbean cruises. But I hadnt won the lottery Id fallen under the spell of magical thinking. Like for many Americans, his magical thinking caught up with him in his retirement in his essay, McPherson described the everyday humiliations of being broke and elderly I am glad that none of my friends has ever found himself sitting on a bench in a park with a quarter in his pocket, as I once did, and nothing in the bank. McPherson died this past March at age 84.Two major reasons senior citizens are dying brokeThere are two dovetailing factors keeping older Americans from financial security they arent saving money, and they have high debt.These two are relatedbut when youre no longer part of the full-time workforce, money becomes scarce. Social Security and part-time jobs rarely fill the hole for living expenses, so the margin for financial error gets razor-thin. Even with Medicare, just one unexpected medical bill can throw a senior citizens whole world into crisis.Adults are already bad at saving- 69% of adults reported in 2016 that they had less than $1,000 in savings.Seniors are not only broke, theyre in debt. Accumulating credit card debt is one of the all-too-easy ways seniorsfall into a financial hole they cant get out of.Seniors aged 65 to 69 have $6,876 in credit card debt on average. Even the American demographic group with the least debt, seniors aged 75 and above, mucksmuschenstill have$5,638 in credit card debt.For vulnerable Americans like senior citizens who may not have the physical capacity to take on side jobs or other work,these debts can landseem unsurmountable. In these cases, the so-called golden days of U.S. citizens lives are filled with financial stress and dread.3 ways to avoid dying brokeWhile the situation is unlikely to improve for current senior citizens, those still in the workforce have time to plan ahead.It may seem like a while away, but its important to build an emergency fund now for rainy days in the future. The sooner, the better. T hat means taking a hard look at your finances, so you can see where the money is pouring in and slipping out of.Look at your finances realistically The Penny Hoarder recommends making an income and expense report after you subtract your fixed expenses like rent, see what remains.Examine what you really want to spend your money on Its easy for money to just flow out of our pockets (and bank accounts) without vigilance. We can get caught up in luxury spending even if were not making luxury money. To avoid this, bring intention to your financial plan. Figure out your personal goals for your budget Do you want to retire early? Do you want to travel? Do you want to pay off your student loans before you hit 50? Its well-known that experiences (and freedom) are what give us lasting memories and feel like the best use of our money. Put as much money as you can towards those, and cut the amount youre spending on things that give you only fleeting happiness. Every dollar you spend is a vote f or the life you want if you spend $5 on your coffee or $10 on your lunch every day, thats fine as long as you see it as 5 votes towards caffeine, or 10 votes toward food that you will forget about in a few hours. Imagine if those votes went to your vacation fund instead. As The Penny Hoarder notes, if you align your spending and saving to your own goals, then you will live your ideal life (at least financially).Make lifestyle changes to match your spending to your goals As part of your financial plan,USA Today recommends making small lifestyle adjustments like scaling back on eating out - and if those dont work, youll need to consider bigger adjustments like moving to a less expensive city orselling your car. And dont be tempted with not paying off credit cards- their interest charges can be just as terrible as the interest on your loans.This is hard, unsexy work, but its better to do this now when youre a working adult who can handle extra shifts and physical and personal sacrifice s. Once youre in retirement, the chances of you building up a financial cushion are slim to none.