The Society of Actuaries published a study (December 2010) The Impact of Retirement Risk on Women. There is much work to be done preparing both men and women who live longer but especially women because of the longer life expectancy.
One of the problems, not surprisingly, is our ability to look long term. According to the study, the median time horizon for planning the future is five years – way too short a time when decisions made in your 60s impact you in your 90s. Also, many do not understand the financial consequences (especially expenses) of living into “extreme” old age.
One of the major decisions that impact financial security in later life is to retire later. Yet, in our current environment, people may lose that option. According to the study, almost four out of 10 people retire earlier than planned due to layoffs, health issues or other family members requiring assistance.
If you’d like to read the report, you can find it on http://www.soa.org
I recently attended seminar conducted by a firm that helps Medicare recepients with claims. The fole of a Claims Assistant Professional is:
- Track all claims
- Avoid paying more than you owe
- Handle refunds due
- Consolidate medical expenses in one place
Unfortunately, there isn’t a section in the phone book to seek a professional. However, they do have an association. www.claims.org.
Clients of Financial Connections Group, Inc. can contact me for the presenter’s information.
We frequently hear that 60 is the new 40. That may be true but transitioning from a career that spans most of our adult life to something else is a major life change. Our discussions with clients are more about the life change and less about the numbers.
For many of us, working is how we gain self esteem. It is a place we socialize and interact with others whether it is going out to lunch or just talking with clients or co-workers.
Work frequently offers challenges we rise to. We often feel a sense of accomplishment for a job well done.
When we leave our career or job, we gain over 2,000+ hours in our life. What do you plan to do with all this new available time? How will your relationship with a spouse or partner change now that you don’t go to the office?
Real Life Examples
A client’s husband retired but she still worked part time. She came home one day to find he had re-organized her kitchen so it was more “efficient.” My client finally said “if you don’t find a job doing something, this marriage isn’t going to last. Oh yes, and stay out of the kitchen.”
I shared an office with a man who was self-employed and planned to retire. His wife wanted a list of activities he would pursue each day of the week!
So while many view “retirement” as nirvana, the truth is it is a major life change that also impacts those around you. It requires thought and planning. Will we have enough money to support the activities that fill up the 2,000+ hours?
We all need a purpose when we get up in the morning. The fun part is finding that new purpose be it volunteering, working for a non-profit or pursuing a hobby. It’s fun to get up and live our passions.