Most people dream of retirement long before they get there. Perhaps you imagine hours spent on the golf course, taking a class on a subject that has always intrigued you or volunteering for your favorite cause. Of course, that's the idealized version of retirement. And then there's reality.

Kiplinger's asked financial planners from the National Association of Personal Financial Advisors what retirement surprises their clients most often encounter, and queried our Facebook community as well, to come up with this list of five top financial surprises. Preretirees, you are forewarned.

Health care costs. The cost of health care came up most often as a top retirement challenge among retirees on our Facebook page. According to Fidelity Investments, the average 65-year-old couple will spend about $400,000 out-of-pocket throughout retirement until age 92, not including long-term-care costs.

Those new to Medicare may find it's more costly than they bargained for, too. While Part A of traditional Medicare, which covers hospital benefits, is free, you'll pay a premium for Part B to get coverage for outpatient services and a premium for Part D to get prescription-drug coverage. Add in the premium for a private Medigap policy, which helps cover the costs that Medicare doesn't cover, and a couple can end up paying $6,500 a year in Medicare premiums alone.

[More from Kiplinger: Quiz: Are You Saving Enough for Retirement?]

High-income beneficiaries get an extra shock -- they are subject to a premium surcharge. Even if your income isn't always high, you can land yourself in surcharge territory if you spike your income in one year with a Roth conversion, for example, or exercised stock options. The surcharge starts to kick in if your annual adjusted gross income (plus tax-exempt interest income) tops $85,000 if you are single or $170,000 if you are married filing jointly.

Keep in mind that Medicare does not cover long-term-care costs -- an additional expense you must plan for.

Higher spending. You no longer have to budget for work clothes or commuting. But you may have to start paying for some things that you used to receive as perks through work, such as a company car, meals, travel or computers. "Small business owners and professionals who retire are often surprised how many of their expenses were picked up by their company," says Bert Whitehead, president of Cambridge Connection, in Franklin, Mich. "It is a jolt when they discover how much it adds up to."

Many retirees plan to see the world in their first few years of retirement, but traveling is pricey, and the costs of transportation, lodging and entertainment can add up quickly. Retirees' actual "travel budgets tend to be at least 10% to 20% higher than what had been budgeted," says certified financial planner Debra Morrison, of Trovena's Roseland, N.J., office. Even if you stay put, you'll have lots of free time to fill, and activities, such as golf or fixing up the house, cost money, too. "We tell clients that the 'common wisdom' that retirees spend 75% of what working people do is a dangerous thing to believe. We do goal setting to discover how they actually picture their retirement, and then try to place a price tag on it," says certified financial planner Barry Kaplan, of Cambridge Southern Financial Advisors, in Atlanta.

Those first few years in particular may be expensive as you enjoy your freedom from work, so budget accordingly when drawing up your retirement income plan. "Retirees desire to travel and become more active in the lives of their children and grandchildren," says certified financial planner Lazetta Rainey Braxton, of Financial Fountains, in Chicago. "It's hard to plan for activities and 'unassigned gifting' when a retiree has never set aside these 'line items' in their budget."

Social Security taxes. Most people realize that they are paying a tax into the Social Security system during their working years, but did you know that you may also have to pay tax on your benefits once you start receiving them? Up to 85% of Social Security benefits are taxable, and the income thresholds that trigger Social Security income taxation are low -- $32,000 for a married couple, for example. "Retirees have a difficult time adjusting to the taxability of Social Security income and the low income thresholds. Most retirees don't see Social Security as taxable deferred income since they paid into the government fund using after-taxed dollars during their employment years. In their minds, retirement income shouldn't be taxed twice," says Braxton.

[More from Kiplinger: 10 Great U.S. Cities for Retirees]

You'll also forfeit some benefits if you continue to work before you hit full retirement age -- in 2012, you give up $1 in benefits for every $2 you make over the earnings limit of $14,640. The good news is that once you pass full retirement age, your benefit will be adjusted upward to account for the forfeited benefits. To learn more about the ins and outs of Social Security, check out our Special Report: Maximizing Social Security Benefits.

Taxes on nest-egg withdrawals. Uncle Sam not only wants a piece of your Social Security benefits, but he's ready for his slice of your pretax retirement savings. When you withdraw money from a traditional IRA or 401(k), those dollars stashed away pretax have a tax bill attached to them when they come out of the account, says certified financial planner Burt Hutchinson, of Fisher & Hutchinson Wealth Advisors, which has offices in Wilmington and Lewes, Delaware. Money you pull from tax-deferred retirement accounts is taxed at your top ordinary-income tax rate, which can be as high as 35%. So if you need $30,000 to buy a new car and you are in the 25% tax bracket, you'll need to withdraw $40,000 from your IRA to cover the cost of the car and the $10,000 tax bill on the withdrawal.

You can leave the money in tax-deferred retirement accounts until you hit 70 1/2. Starting at that age, seniors are required to take minimum withdrawals from IRAs and 401(k)s. If you have a large amount of money in those accounts, a sizable RMD may push you into a higher tax bracket than you thought you'd end up in upon retirement. To mitigate the tax hit, it could be advantageous to tap those accounts sooner than later. Another smart strategy: Start stashing money in a Roth IRA, which has no RMDs for account owners and can be tapped tax-free. Learn more about the retirement tax trap by reading Prepare for the Retirement Tax Bite.

Loss of income for a surviving spouse. Estate planning is critical to make sure your assets are passed down as you wish. But another critical component of estate planning for couples is making sure that the surviving spouse will have enough money to live on. "One thing people don't plan for is the reduction of income if a spouse or partner dies -- without corresponding reduction in expenses," says certified financial planner Kathy Hankard, of Fiscal Fitness, in Verona, Wis. For example, if both spouses are both receiving Social Security benefits, a significant chunk of that income stream will disappear.

[More from Kiplinger: 10 Tax-Friendly States for Retirees]

The surviving spouse can switch to a survivor benefit if that is higher than her own, but the survivor benefit will not necessarily make up for the lost income of going from two benefits down to one. This is one reason why boosting the potential survivor benefit through delayed retirement credits is a smart strategy for couples. The higher-earning spouse can wait to take his benefit, which can earn up to 8% a year in delayed credits up to age 70, and at that spouse's death, the survivor can switch to a benefit worth 100% of the deceased spouse's benefit, including the delayed credits.

The same income reduction can happen if a spouse who receives a pension hasn't signed up for a joint-and-survivor annuity. If the annuity is only based on his life expectancy, at his death, that income source will dry up with no payments for the surviving wife. Choosing the joint-and-survivor option may result in less money monthly, but it will provide income for the surviving spouse if the pensioner dies first. Learn more about pension payout options by reading Pension Quandary: Lump Sum or Annuity?.

Hankard says one client's income dropped about 35% as a result of lost Social Security income and a drop in pension income from his spouse's death, while expenses decreased only about 10%. A big change in cash flow thus may require a change in lifestyle. Plan ahead to ensure that your spouse will have enough money to maintain his or her standard of living.

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5 Costly Retirement Surprises

As of last year, the first of the baby boomers became the most recent batch of Americans to enter their golden years. Senior citizenship, for these newly minted members of the U.S. retired segment, shouldn't come as a challenge to a generation accustomed more than any other to changing times. From childhoods spent growing up in an optimistic Post-World War II climate to the tumultuous social and political upheavals of the 60s, facing the end of one's career may seem like a simple afterthought, all things considered.

 [In Pictures: The 10 Best Places to Retire in 2012.]

But times have changed once again, and boomers are among the first to face retirement amidst an economy wounded by the recession, a slumped housing market, and insecurities over the future of Social Security benefits. More than ever before, retirees are concerned about saving money and making the most out of their dollars after age 65.

It is possible, however, to live on less without sacrificing all of the good things that make for an enjoyable retirement. With a bit of careful budgeting and some common-sense spending, scaling back your expenses doesn't have to mean diminishing your quality of life.

[See The Growing Challenge of Funding Retirement.]

1. Move wisely, buy smaller, save bigger. If you and your spouse are empty nesters and your children grown and moved away, all those extra rooms in your house may lose their necessity. But downsizing doesn't mean less. Many newer homes and condominiums can be had for cheaper, with more modern amenities than their older, more expensive and high-maintenance counterparts. If health and mobility are an issue during retirement, opting for a one-level, ranch-style dwelling reduces the need for stairs, levels, and the overall real estate price. (In the best-case scenario, you may walk away with a profit after the sale of one house for the purchase of another.)

Depending on the location, your savings can be compounded further. Warm climate, access to water, and affordable recreation were a few of the priorities boomers placed on their retirement wish lists, according to a recent Huffington Post survey. Choose wisely where you hang your hat, so your overall cost of living is cheaper. Areas in Texas, Georgia, Idaho, and Nevada have still been untapped by the growing retirement market and are more affordable than California or New York.

[See 10 Places to Retire on Social Security Alone.]

Residing in a temperate climate without the seasonal ups and downs of frigid winters and humid summers cuts down on monthly utility costs. Retiring to a more affordable region makes a world of difference in property taxes as well--think $3,600 per year in Florida versus $10,000 annually in the New York City metro area.

2. Two people to one car. Carpooling doesn't have to be just for the working class anymore. With gas approaching the $5 mark in some states this week, choosing to cut back on driving is an economical choice for motorists of any age.

For retirees, keeping a single car to share between both spouses reduces both your fuel and insurance costs, and helps the environment at the same time. Plus, it gives the perfect opportunity to get out of your car, reduce your carbon footprint, and stay healthy simultaneously. If you live close to a downtown or local shops, get in some exercise, and take the time to walk or bike where you can.

[See 10 New Retirement Hot Spots.]

3. DIY. Were you always handy around the house or skilled with your hands? Many retirees discover their hidden artistic talents. Learn to paint or sculpt, and display your wares at the weekly downtown art walk. There's a great chance that the sale of your work could net some extra income while doing what you love.

Did your career and raising a family set back your dream of becoming a master gardener? Retirement and the free time it offers now gives you that chance to put your green thumb to the test and hone your landscaping skills. Planting the vegetable garden you always wanted and seeing it thrive is not only personally gratifying, but sustainable, and a healthy and affordable option to avoiding overpriced groceries.

4. Long live learning. Don't fight the urge to cancel that cable TV subscription if you don't think it's a needed household staple. Save money from one less bill to pay, and opt for other, free-of-charge information centers, like our old friend, the local library. If movies and TV are a given for you and your spouse, the library offers a wide selection of movies for rent, and outlets like Netflix, Amazon, or Hulu provide video on demand at affordable prices. Knowledge knows no age. Discover the eternal student in you. Local colleges and universities may offer a senior discount in their tuition plans, and many permit retirees to attend classes for free as a non-matriculating student.

[See 20 Ways to Stay Busy in Retirement.]

5. Keep it simple. What should be a lifetime practice applies best in retirement. Don't buy more than you need in groceries, clothing, or household goods. If you've planted that garden filled with lush vegetables, save money by supplementing with frozen greens in bulk. Freeze leftovers to reduce waste and cooking time. Become a coupon maven when shopping. And remember, with material belongings and everything else, that less really is more.

Retirement is your time to relax, slow down, and enjoy life. By creating a few smart ways to cut back and spend less, living on less can mean living bigger than ever before, with a lifetime of years ahead of you.

Paul Sisolak writes for http://www.GoBankingRates.com, which provides readers informative personal finance and investing content, as well as the best interest rates on financial services nationwide.

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5 Ways to Live Large During Retirement

TORONTO, ONTARIO--(Marketwire -02/27/12)- Last year, the first of Canada's nine million Baby Boomers became eligible for retirement. Over the next several years, many will find themselves deciding whether to stay in their homes, transition to a smaller place of residence or relocate to another city or country.

According to a report from the BMO Retirement Institute, the top factors that Boomers stated as reasons to relocate upon retirement included: weather (57 per cent), financial reasons (54 per cent), proximity to family and friends (45 per cent) and better access to healthcare/support services (35 per cent).

Although downsizing may seem like a straightforward move, there are several factors to consider before making the decision.

"Even if downsizing may be years away, it's important not only to think about all of the factors that can affect your decision, but to maintain an open dialogue with your loved ones," said Dr. Amy D'Aprix, BMO Life Transition Expert. "Being proactive will help you remain in control, rather than having to deal with an unexpected move when you're not prepared."

There are several factors to consider when making the decision to downsize or not, including:

Your Health

Although health matters may be hard to predict, it is important to think about what you might need to do if your health status changes in the upcoming years. A good place to start is to ask yourself the question, "If there were a shift in my healthy or mobility..."

-- Could you retrofit your current home?
-- Where might you consider living if your current home no longer makes
sense?
-- Would you feel comfortable receiving professional assistance in your
home?

A Change in Location

A change in location can greatly impact your day-to-day activities and social interactions, and will often determine the lifestyle you lead. Some retirees would prefer to live in a group setting, while others would like to live in a more urban area with easier transport. Consider the following if you are thinking of moving:

-- Will you still be close to family and friends and have adequate social
support?
-- Do you want to be responsible for the upkeep and maintenance of your
property?
-- If you become ill or start having mobility issues, will you be isolated
in your current or new location? Will you be too far away to receive
timely assistance?
-- Where are your main service providers located (bank, doctor,
hairdresser)? Will a change in location provide any inconvenience?

Financial Considerations

Laura Parsons, Mortgage Expert, BMO Bank of Montreal, notes that, for those considering downsizing, many financial factors need to be considered, including costs related to property maintenance and the possibility of renovations to adapt to changes in lifestyle.

"Many Boomers heading into their retirement years may be looking for the lock-and-leave lifestyle. But with convenience comes significant cost considerations, including maintenance, general upkeep and repairs: important factors for preparing yourself financially."

Ms. Parsons added that some may also be weighing their options for adapting or renovating their current home to support them in their retirement years; she suggested that Boomers speak to a financial expert about the programs and options available early in the process.

Thinking of downsizing? BMO provides the following advice:

Make a list - List the items you consider to be important in your current and future lifestyle. Include the factors you want to maintain.

Social network - Assess where your social support network is, both for emotional and practical support. Will your move affect your access to them?

Financial considerations - Examine your financial situation and be sure to explore the costs involved in moving or staying put.

Think ahead - Always think about possible next steps involved and how each step will affect you: 'If this changes, what then?'

Communication - Keep the lines of communication open with loved ones. Share your wishes and desires, so there are no surprises when the time comes to make your move.

Leaving a Legacy- Determine how important is it for you that the home remains in the family. Will a move mean that you will have to sell? If so, find out if anyone in your family is interested in purchasing it.

For more information on planning for retirement, please visit http://www.bmo.com/retirement.

For more information on BMO's home financing solutions, please visit http://www.bmo.com/mortgages.

Get the latest BMO press releases via Twitter by following @BMOmedia.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $477 billion as at October 31, 2011, and more than 47,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.

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Retirement & Downsizing: BMO Advises on How to Determine Whether or Not to Make the Move

TORONTO, ONTARIO--(Marketwire -02/27/12)- As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito's new book 52 Ways To Wreck Your Retirement...And How To Rescue It.

Tip Number 50:

Make the most of any available lump sums of cash

If you are fortunate enough to have a lump sum of cash available, there are a few good ways it can be used to help build your retirement nest egg. These include:

1. The RRSP option - An RRSP contribution increases your net worth
because of the tax refund you receive. For example, a $10,000 RRSP
contribution could mean a $4,000 refund if you are in a 40 per cent
tax bracket. This refund could be used by putting it towards your RRSP
for next year, or to pay down your mortgage.
- If you only have limited room left in your RRSP to contribute, you
could top up the RRSP to your limit and invest the balance in a
TFSA.
2. The TFSA option - If you do not need to pay down your mortgage and
have already maximized your RRSP contribution, a TFSA is a great
option.
- If you are in a low tax bracket, contributing to a TFSA might be
the best option; you would not benefit greatly from an RRSP tax
refund, and you have more flexibility and no tax impact should you
need to access the funds in your TFSA.

Ask your financial planner or investment advisor to help you make the best choices.

For more information on retirement: http://www.bmo.com/retirement.

Get the latest BMO press releases via Twitter by following @BMOmedia.

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BMO Retirement Tip of the Day: Use a Cash Windfall Wisely

Sometimes retirement planning and estate planning go hand in hand. This is especially true when it comes to naming or changing beneficiaries for your retirement plan. It is important to know the rules surrounding plan beneficiaries, as decisions you make can have a big impact on your family.

[See top-ranked ETFs by category ranked by U.S. News Best ETFs.]

You generally can name anyone as your beneficiary: your children, your grandchildren, even your next-door neighbor. You can also name a trust. But if you are married, the law requires that your spouse be the main, or primary, beneficiary of your company-sponsored retirement plan unless he or she waives that right in writing. This point can be especially important in the case of second marriages. A waiver may make sense if your new spouse is already set financially or if children from a previous marriage are more likely to need the money.

Keep in mind that only spouses can roll over assets to a tax-deferred individual retirement account (IRA). Non-spouse beneficiaries are not eligible for a tax-deferred transfer to an IRA, which means they will be subject to income taxes on any distribution they receive (as will spouses who do not roll over the assets).

You can name more than one beneficiary, but you will need to specify how much each person will receive in percentage terms. Otherwise, the distribution will be divided equally. Changes in your life, such as the birth of a child, can affect how many beneficiaries you may have. Again, with company-sponsored plans, spouses must waive their right to receive 100 percent of the assets if they are distributed to multiple beneficiaries.

Your beneficiary designation can also affect your own distributions during retirement. The distribution amounts you receive may depend largely on the age and relationship of your named primary beneficiary.

When reviewing your overall estate plan, make sure to include your retirement plan and update your beneficiary designations if necessary. This will help ensure that the entire estate plan flows smoothly and that changes in your family structure are addressed. Also keep in mind that beneficiaries are paid directly as named. Wills generally do not override the directions given on your beneficiary designation form, so do not assume that changing your will is enough to make sure your wishes for your retirement plan are carried out.

[See Questions to Ask When Drafting an Estate Plan]

Consider all consequences, financial and emotional, when naming or changing beneficiaries for your retirement plan. You may want to seek the advice of a tax adviser or an estate planning attorney, as well as a qualified financial professional.

Kenneth Roberts, CFP® CLU, is a Partner at Harbor Lights Financial Group, a full service wealth-management team that has been dedicated to assisting clients in the accumulation and preservation of their wealth for over 25 years. For more information, go to http://www.hlfg.com.

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Selecting Your Retirement Plan Beneficiaries

Some are old enough to recall pioneering aviator Charles Lindbergh's tickertape parade. Others can share vivid memories of World War II or the Great Depression.

But unlike most people their age, New York City's federal judges prefer to strike one topic from the record: retirement.

"We don't talk about when anybody's going to quit or retire," says John F. Keenan, an 82-year-old Manhattan judge. "Some of the best judges we ever had ... they worked right up until they died."

The federal judicial system has become a case study in how the country will cope with a graying America, where each economic crisis forces more people to work beyond 65.

Recent interviews with several lifetime tenured judges and experts suggest people often can thrive when challenged to work into their 70s, 80s and even 90s. Nearly all the judges have one thing in common: no plans to drop the gavel on their careers. The trend caused the government in December to adjust its projection for planning purposes that federal judges retire by age 85. For New York, the expectation is now that only half will retire by then.

"Everybody kind of goes on the assumption that you're going to crap out. Maybe you don't have to," says Robert Sweet, another Manhattan judge.

Sweet is preparing for his 90th birthday. He skis two to three days a week when he's at his Idaho getaway. He also ice skates and plays tennis.

AP

FILE- In this March 4, 2011, file photo, Judge Jack Weinstein speaks with reporters after visiting the Louis Armstrong housing projects in Bedford-Stuyvesant section of the Brooklyn borough of New York. Weinstein, 90, is a World War II veteran appointed by President Lyndon Johnson to the bench in Brooklyn more than four decades ago. Unlike most people their age, New York City’s federal judges prefer to strike one topic from the record: retirement. The federal judicial system has become a case study in how the country will cope in coming decades with a graying America, where each economic crisis increases the likelihood that more people must work beyond 65. (AP Photo/Bebeto Matthews, File) Close

"The arbitrary idea of 65 now is insane, in terms of capacity," said Sweet, who's had knee replacement and wears a hearing aid. "There are now increasing numbers of ways when things begin to poop out, there are curative things that make things better."

The federal courts from coast to coast are places where age is valued like nowhere else. Thanks to the founding fathers, the Constitution guarantees judges jobs for life with full pay — whether they work or not. Many state judges must retire at age 70.

"It's extraordinary," Sweet said. "Just the idea you can keep going if you wish until A, you croak, or B, you or somebody else comes to the realization that you can't go on."

He added: "Don't you think societally, it's important to have the seniors not sitting on the porch, rocking and thinking about how things used to be? But thinking about tomorrow, how things are and how they're going to be?"

Experts on the aging workforce agree.

"There's no question that people who keep on working are happier and healthier," said George Valliant, professor of psychiatry at Harvard Medical School and the former director of the Harvard "Grant Study of Adult Development."

Valliant calls mandatory retirement in many professions "really dumb," given the steady rise in mortality rates. The judges' performance is proof that wisdom and the ability to see irony and paradoxes frequently improves with age, he said.

"They've got what's called compensatory or reserve intelligence," he said.

With aging, "You sometimes lose names," said 90-year-old Jack Weinstein. "You don't lose the capacity for decision making and the capacity for analysis."

Older judges benefit from having nothing to prove, added Weinstein, a World War II veteran appointed by President Lyndon Johnson to the bench in Brooklyn more than four decades ago.

"You don't care really what people think of you," he said. "You're not going anyplace. You're doing it for the joy. And as a public service."

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'Retirement' Missing From Vocabulary of NY Judges

But those not quite willing to give up on the dream might consider an alternative approach. Christine Fahlund, a senior financial planner for T. Rowe Price, suggests people consider using their 60s as a “practice retirement,’’ where they keep working, but stop funding retirement plans and use the money to have fun.

What does “practice retirement’’ look like? Instead of retiring and sailing around the world, you might keep working and simply buy a boat; rather than spending the winter on a Florida golf course, take a deluxe golf vacation. Spend a week at cooking classes in Paris, on a bike trip, or seeing Broadway shows in New York.

“The idea is to have your employer fund the fun,’’ Fahlund said.

Moreover, diverting those 10 years of retirement savings to discretionary income has a much smaller impact on retirement than one might expect. By continuing to work, you keep both your salary and your workplace benefits intact. Moreover, each year you delay retirement eliminates a year that has to be financed with savings.

Given today’s life expectancies, that can have a big impact on the numbers. According to the Society of Actuaries, some 13 percent of men and 20 percent of women now aged 65 will still be alive at age 95. Retiring early for them would mean funding more than three decades of retirement with assets accumulated during roughly four decades of work. Simply staying in the workforce a few more years makes that equation easier to balance.

Then, too, there’s the fact that delaying Social Security greatly increases your benefits. Waiting to age 70 almost doubles the annual purchasing power compared with starting benefits at age 62, Fahlund said. And those higher benefits are not only indexed to inflation, but will continue for the rest of their lives.

Consider the example of a couple, each age 60, with a combined salary of $100,000 and a $500,000 nest egg. They’ve been tucking away 15 percent of their annual salary in their retirement plans. If they retire at 62 and start taking Social Security, they end up with an annual retirement income of $51,974 and about $526,000 in retirement savings when they hit age 70.

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'Practice retirement' an option for those with small nest eggs - The Boston Globe

TORONTO, ONTARIO--(Marketwire -02/26/12)- As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito's new book 52 Ways To Wreck Your Retirement...And How To Rescue It.

Tip Number 49:

Understand the dangers and protect your retirement nest egg against fraud and theft

There are precautions you can take to protect your retirement savings against falling prey to fraudulent activity:

-- Protect your Personal Identification Number (PIN) - Memorize your PIN,
keep it confidential and cover the keypad while punching it in to ensure
no one sees it when you make a credit or debit card transaction. If you
must write it down, never keep it in your purse, wallet or mobile phone
contacts. Keep it somewhere safe and separate from your credit and debit
cards.
-- Do not give out personal information - If you receive an email or call
asking for personal information, be wary. Ask why it is being requested,
how it will be used and how it will be protected. When in doubt, err on
the side of caution and do not provide your information and do your own
research by contacting the company directly to find out whether the
request is valid or not.
-- Always review your statements - One of the easiest ways to spot fraud is
to review your bank and credit card statements every month. If there are
any transactions you do not recognize, contact your financial
institution immediately.
-- Shred it - Rather than put mail with your name, address and any other
personal information straight into the recycling bin, shred it first.

For more information on retirement: http://www.bmo.com/retirement.

Get the latest BMO press releases via Twitter by following @BMOmedia.

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BMO Retirement Tip of the Day: Protect Your Retirement Nest Egg Against Fraudulent Activity

Video Link: https://www.youtube.com/watch?v=qqejoZlpYZs

22-02-2012 17:45 ESPNBoston's Mike Reiss reports on Patriots tackle Matt Light considering retirement and Tom Brady dealing with the passing of his mentor Tom Martinez.

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Light Mulls Retirement - Video

The tsunami of baby boomers rolling into retirement age will continue for the next twenty years, with approximately 10,000 people daily reaching the age of 65. The journey into the retirement years can be surprisingly emotional. Most baby boomers realize they will soon be forced to confront their retirement preparedness. They will also find out if they are mentally ready to retire.

[See 10 Important Ages for Retirement Planning.]

Retirement can generate a variety of conflicting emotions and new challenges to deal with. Here’s a look at some of the emotions that can be part of the retirement mindset:

Anger. Financial losses from the recent recession have taken a bite out of most retirement nest eggs. During the most recent recession, 43 percent of retirees expressed anger at the impact on their retirement plans, and 39 percent remain worried about their financial situation, according to a SunAmerica Financial Group survey. Baby boomers may also experience frustration because they cannot easily make up for lost time and savings. Many people will be forced to continue working and delay retirement beyond their original plans. In addition, many perpetually active baby boomers will need to face their diminishing physical and mental capabilities. It can be frustrating to finally have time to do what you want to do, but not the energy or ability to do it.

[See The 10 Best Places to Retire in 2012.]

Fear. Baby boomers have witnessed their parents aging and know there is no avoiding their own journey down that path. They will be forced to deal with health issues and dependency on others. They may also have to struggle with finding a new purpose in life, avoiding boredom, and staying mentally sharp.

Expectation. Over half of baby boomers (54 percent) view retirement as an opportunity to reinvent themselves, SunAmerica found. Whether experimenting with a new career or pursuing a life-long passion, retirement affords baby boomers the time they need to try something new. Most baby boomers can expect to live long and productive lives. Two-thirds of respondents say their goal is to live a productive life to age 100.

[See 7 Misconceptions About Retired Life.]

Opportunity. Demanding careers prevented many driven baby boomers from spending quality time with family. Although they cannot make up for missed opportunities, seniors now have a second chance to renew family ties and build stronger relationships.

Dave Bernard is not yet retired but has begun his due diligence to plan for a satisfying retirement. With a focus on the non-financial aspects of retiring, he shares his discoveries and insights on his blog Retirement–Only the Beginning.

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Can Baby Boomers Cope with Retirement Realities?