Updated
Updated · GOBankingRates · Jun 2
Kevin Lum Urges 7 Steps to Shield Retirement Savings as Scam Losses Hit $4.9 Billion
Updated
Updated · GOBankingRates · Jun 2

Kevin Lum Urges 7 Steps to Shield Retirement Savings as Scam Losses Hit $4.9 Billion

1 articles · Updated · GOBankingRates · Jun 2

Summary

  • Seven steps outlined by certified financial planner Kevin Lum aim to protect retirees’ money before cognitive decline erodes judgment, a risk he says often goes unnoticed by the person affected.
  • Age 53 is when financial decision-making peaks, Lum said, citing research showing mistakes grow costlier afterward and financial literacy falls about 2% a year after 60 while confidence stays high.
  • His playbook starts with reducing decisions: build a guaranteed income floor, consolidate scattered accounts, automate bills and withdrawals, and create a single file listing accounts, bills, policies and advisors.
  • Legal safeguards are another pillar — durable power of attorney, trusted contacts at brokerages and possibly a revocable living trust — because families otherwise may face slow, costly conservatorship proceedings.
  • The urgency is rising as warning signs can appear 5 to 7 years before dementia diagnosis and Americans over 60 reported $4.9 billion in scam losses in 2024.

Insights

Are financial institutions failing to protect their most vulnerable aging clients?
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When does protecting your parents' finances cross the line into taking away their independence?