Fraudsters target folks of all ages, but older adults with pension savings are profitable focuses on especially. And the consequences of fraud and exploitation can have a devastating impact on older adults who depend on the retirement savings after they leave the workforce. Marti DeLiema, a post-doctoral fellow at the Stanford Center on Longevity. 0027s leading experts on financial exploitation and fraud of older people.

0027t befitting retirees. Why do they focus on older Americans? Fraudsters know old Americans frequently have more wealth than more youthful people. DeLiema recommends six steps to safeguard yourself as well as your family members from either type of exploitation. Most employers allow retired employees to keep their money committed to an employer-sponsored 401(k) or 403(b) plans. They try to find the best-performing funds for their employees as well. 0027re legally required to act in the best interest of their plan participants and their beneficiaries.

0027 best interests in mind, some high-priced, predatory brokers encourage retirees to move over their 401(k) or 403(b) money into a higher-cost account that they control. 0027t trust overblown claims from advisers who say they can outperform effectively handled employer-sponsored plans. Such statements are too good to be true typically.

00a0Electing the monthly paycheck option rather than the lump sum can also protect financial resources by reducing liquidity (see Step 3 3 below). DeLiema suggests activating the security features on your financial accounts. Elect to get fraud alerts and use two-step authentication to access the accounts online. 0027 money from identity and hackers thieves. Turning on notifications that send a text any time withdrawals exceed a quantity can keep accountholders informed and ready to run interference if fraud occurs. Individuals looking to invest in a new plan or open a new account should look for firms that provide these added security features.

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They also need to opt out of getting paper statements in the mail because identity thieves can intercept these materials. Financial exploiters — including greedy friends, family members, and employed caregivers — look for easy opportunities to take money from vulnerable elders. 0027s easier to access these liquid funds. DeLiema shows that reducing asset liquidity is one way to keep your cash safely invested.

0027’s pension plan instead of a lump amount. 0027s less able to monitor and manage her investments independently. 0027t want to get the majority of their savings within an annuity. 0027’s retirement plan or other effective investment accounts. 0027s important to keep some cash available in a savings or checking account to use for unforeseen costs like negative health events or home fixes.

Disbursements from annuities and other pension accounts, including employer-sponsored retirement plans, should be achieved via electronic transfer into a bank account rather than deposited as the. This prevents checks from being stolen out of the mail. 0027s why DeLiema recommends that retirees diversify where their accounts are held, in the same way they might diversify their investment portfolios. That way, if one account or institution is compromised even, the money held in other accounts is safe.