Storm clouds ahead for many retirees
The county is full of happy retirees.
We know that.
This is a fantastic place to enjoy life — friendly neighbors and the great outdoors — after years of hearing the boss holler at you.
It’s great to be in North Idaho at this stage of your journey.
The problem is …
Many of these leisure-time folks came from California.
Statistics from the Idaho Department of Labor show that 57 percent of newcomers to Kootenai County are age 55 and above.
This rush of older newcomers, the bulk from California, is not really a problem.
They bring money and spending power to an area that depends heavily on retail sales.
That part of the equation is just fine.
IT’S THE other side of the coin that doesn’t look so good.
Longtime Idahoans are struggling to retire here, either through neglect during their working years or because of a systemic problem common to most residents in the state.
Many of these Californians among us were middle-class people who were lucky enough to see their homes skyrocket in value.
If you bought a house for $60,000 almost anywhere in California and paid it off over 30 years, you’ve retired as a millionaire.
Perhaps a multi-millionaire.
That makes a move to the beautiful Inland Northwest a breeze. You purchase a great place and sit back to watch your investment grow again.
Unfortunately …
Idahoans do not have that luxury.
Until fairly recently, home prices in the state have generally been low, which is great if you’re starting out — but not so good at retirement time.
WE CAN’T blame the real estate market entirely, though.
Ubiquity Retirement and Savings, the nation’s leading small business 401(k) retirement plan provider, publishes an index of states whose residents are most active at planning for their golden years.
A survey tabulates the percentage of working adults whose actions and attitudes suggest they’re thinking of retirement years.
Idaho ranks a dismal 49th, with only 50.2 percent seriously planning for retirement — or even concerned about it.
Why are we so blasé about retirement — especially when that same Ubiquity survey shows that two-thirds of workers nationwide are worried about security in retirement?
The same chart that leaves Idaho lagging at 49th (ahead of only South Dakota) shows that no less than 80 percent of working-age residents in Colorado are planning and thinking about what happens when they retire.
SO WHAT’S going on here?
You know you’re not likely to grab a huge stash of money by selling the family home, which suggests other financial plans.
And yet …
The No. 1 retirement strategy in Idaho seems to be heading out of state to live with family members.
I’m not trying to be mean.
It’s just a fact that generally low wages in Idaho mean that plenty of families in the state must prioritize — using their paychecks for the basics of everyday life instead of thinking years down the road.
Hey, you have to make the car payment.
But one suggestion I’ve heard from countless financial planners is darn good advice for Idahoans who aren’t earning tons of money.
Take every opportunity when employers offer retirement plans, 401(k) matching funds, anything available.
It will cut your take-home pay a teeny bit, but it’s a winner in the long run.
Look, you won’t get lucky like those Californians who cashed in on valuable real estate.
So in Idaho, we need to be a little smarter.
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Steve Cameron is a columnist for The Press.
A Brand New Day appears from Wednesday through Saturday each week.
Steve’s sports column runs on Tuesday.
Email: scameron@cdapress.com
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