These 15 Reasons Can Get You Broke During Retirement

You Get Scammed

Retirees are particularly vulnerable to scams. The FBI notes that older adults are prime targets for criminals because of their presumed wealth, relatively trusting nature and typical unwillingness to report these crimes. “People who grew up in the 1930s, 1940s, and 1950s were generally raised to be polite and trusting,” according to an FBI report. “Con artists exploit these traits, knowing that it is difficult or impossible for these individuals to say ‘no’ or just hang up the telephone.”

Even worse, the perpetrators may be closer than you think. According to a study from MetLife and the National Committee for the Prevention of Elder Abuse, an estimated one million seniors lose $2.6 billion a year due to financial abuse—and family members and caregivers are the perpetrators 55% of the time.

Common retirement scams to watch out for often involve impostors pretending to be Social Security, Medicare or IRS officials. The absolute best way to deal with fraudsters who call you out of the blue demanding personal information or immediate payment? Hang up. “Medicare is not going to call you. Social Security is not going to call you,” says Kathy Stokes, a fraud expert at AARP. “The IRS will reach out to you many times by mail if you have back taxes as an issue before you would get a phone call.”