KATHY MITCHELL AND MARCY SUGAR | Annie's Mailbox Elderly can avoid financial difficulties by planning

Dear Annie: It was heartbreaking to read about "Jean in the Southwest," the 68-year-old widow whose money has run out due to medical expenses and embezzled pension funds. There are ways we can protect ourselves against these problems.
First, it is important to supplement Social Security and company pensions with personal retirement accounts, such as IRAs. Second, when Jean's husband became ill, she should have looked into Medicaid (Medical in California), which could have paid for medical expenses, while allowing Jean to keep the house, furnishings and car. Third, Jean should have developed a skill so she could work part time. Finally, Jean's husband should have carried sufficient life insurance to provide for her.
We all hope Jean is able to make ends meet. Meanwhile, the rest of us can learn how to avoid her predicament. Retired Financial Planner in Temecula, Calif.
Dear Calif.: Thank you for your excellent advice. Our readers were very concerned about Jean and offered myriad suggestions. Here's more:
From California: I was left a widow at 48, after giving up my job to take care of my husband when he became ill. Left with heavy doctor bills and no pension, I began a new career. I am now the director of a senior center and an advocate for seniors' issues. Millions of seniors are working into their 80s, and believe it or not, one's health gets better simply by having a job.
New York: Has Jean called the Social Security office to see if she can draw based on her husband's salary, rather than her own? She should also ask about Supplemental Social Security, which is for those at the lowest end of the scale.
Atlanta: I was surprised you did not encourage Jean to seek help for her depression. She can call United Way Information and Referral Service to find agencies that can help her for free or at reduced cost.
Michigan: Your advice about getting a part-time job was excellent. When my father retired, he went to work at a local gas station to supplement his income. He worked three days a week, and the place was happy to have him.
Youngstown: Many private employer pension plans are insured by the Pension Benefit Guaranty Corporation. The PBGC covers traditional, Defined Benefit annuity-type pensions in the event the plan sponsor fails to adequately fund the benefits. Jean should contact the PBGC at www.pbgc.gov.
Michigan: Jean should try living in a fraternity or sorority home as a housemother. Where I live, the salary is $15,000 a year, plus housing and meals.
Indianapolis: So many families are looking for good, responsible baby sitters. Vacation sitters earn as much as $100 a day. Jean should consider it.
Casselton, N.D.: There are housing programs available for the elderly where Jean can meet people her age, participate in scheduled activities, and most important, have privacy. She should sell the car, leave the past behind and decide to live.
Wyoming: I am an employment specialist/case worker for the Senior Community Service Employment Program. I look for jobs for seniors over 55. They make minimum wage, but the extra money helps a great deal. Tell Jean about us.
Denver: I can understand Jean's pain at not being able to buy gifts for her grandchildren, but the most precious gift we can give is our time. She can read to them, teach them to cook or bake, take them to the park or library, volunteer at the school, or baby-sit so the parents can have an evening to themselves. All of these activities will give the grandchildren something to remember for years to come.
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