retirement

Retirement: Ready or not here it comes.

 
man sitting on a bench

My most recent birthday entered me into a new demographic. I am officially a senior. I have started receiving Medicare enrollment notices, and I have noticed over the last several years high school classmates announcing their retirements. A couple of months ago my younger brother asked me when I was going to retire and told me of his plans in the next couple of years. It has really caused me to think about when is the right time for retirement?

Financially ready? The best time to prepare is when you are closer to the beginning of your career, than the end. Compound interest has time as a part of the equation. One financial planner explained it this way. If a 20-year-old puts $100 dollars per month into a retirement program that averages 8% growth at age 60 they will have over $1,000,000 dollars in that account. If the same person starts at age 40 it takes $1000 per month at 8% until age 60 to have the same amount.

Most of us will need about 75 % of current income for retirement, to maintain current lifestyle. The closer to retirement that one gets, the closer they need to look at income, such as Social Security or retirement plans, savings and investments. What age do these plans require? For example, Social Security can start at age 62, however there is a reduced benefit amount and reduction of benefits with other income. An individual needs to look at current expenses and reduce debt, if possible. Medical care, prescription drugs and those related costs are a huge consideration. For some a part time job after retirement helps with finances in addition to reducing isolation. The cost of living can vary greatly depending on location. Most people look deeply at the finances of retirement, fewer look at some of the other considerations.

Emotionally, is it time to go? According to American Association of Retired People (AARP) there are 8 signs that it is time to retire. Five of them have to do with emotions: Becoming uninterested in the job having no sense of purpose, not wanting to go to work; health is suffering due to stress; feeling burned out causing problems with focusing or temper; technology is causing stress (sorry fellow boomers); desire to try something else like own a business or travel. Another group (Retirely.com) talked about not wanting to get out of bed; not feeling valued at work by younger colleagues. Ideally deciding to retire involves much more than having enough money. Understanding what is going on emotionally can help being ready to retire is important. It’s difficult to move to this next phase at times.

What can I expect after retirement? After retirement it is typical for most people to go through the 4 stages of retirement. The first stage is called the honeymoon stage this often a period of travel. I know a couple that soon after their retirement purchased a motor camper and took other family out west to see the many of their ‘bucket list’ sites. They spent several months touring national parks like Yosemite, the Grand Canyon, Mount Rushmore and the Badlands. I don’t think that they have gone anywhere in it for a couple of years now. Like honeymoons this phase ends usually with in the first year or so. The next phase is the disenchantment phase characterized by feels of ‘lack of purpose’, maybe disappointment with thoughts of ‘is this all that there is?’ The connections with others from work are missed as well. The next phase is the reorientation stage, characterized by people finding renewed purpose in art, hobbies, volunteering, business ventures, family time etc. The final phase is the stability stage, this stage is characterized by again finding purpose, enjoyment and a rhythm to life.  For more on this topic watch the Healthy Aging Network Telecast.

The retirement decision is very individualized. The timing will vary from person to person.  

Written by: Ken Stewart, Ohio State University Extension, Family and Consumer Sciences Educator, Monroe County.

Reviewed by: Lisa Barlage, Ohio State University Extension, Family and Consumer Sciences Educator, Ross County.

You’re Ready to Retire-Now What?

You’re Ready to Retire-Now What?

We spend decades working hard and saving, so our retirement years should be what you envision.  However, preparing financially is only one part of the puzzle when it comes to a happy and fulfilling life in retirement. We also need to plan for the emotional aspects of retirement as well. As we make this transition to retired life, there are several stages that we go through to reach harmony in our newly invented life.

Stage 1 is often referred to as the honeymoon stage or vacation stage. You are finally free from all the obligations and pressures that come with being employed. No more alarm clocks, meetings, or deadlines. You get to do whatever you want all day long. For most people, this is what they envision when they think of retired life. However, honeymoons don’t last forever, and many retirees find themselves moving out of this stage.

Stage 2 is often referred to as the disenchantment stage; when we feel lost and feel a deal of loss. In this stage many people report feeling restless, bored, unfulfilled, and even depressed. Studies show that this is due to a lack of purpose and/or the feeling of significant loss. In this stage, people This stage is also a time that people feel a series of losses that include the loss of routine, loss of their identity, loss of work relationships, loss of sense of purpose, and a loss of feelings of power. Recognizing these feelings is the first step to taking steps to move beyond this stage.

Stage 3 is called the reorientation stage. In this stage, individuals take time to evaluate priorities and work to clarify what can be done to regain a sense of purpose. It is also a time to try new things, find hobbies and rediscover or uncover passions. This stage might include some trial and error, but taking the time to truly evaluate what gives your purpose will allow for the transition into the final stage.

Stage 4 is referred to as the stability stage in retirement. After the initial excitement and the highs and lows of retirement have worn off, people start to find a new normal. This is the time that individuals get to reinvent themselves and settle into new routines that lead to feelings of accomplishment.

Just like planning for financial security in retirement, there should also be retirement for emotional security. The plan should include resources like meaningful activities, social engagements, and a sense of purpose. For more information how to make a smooth transition into retirement, please view our Healthy Aging Network Telecast on this topic.

Written by: Kathy Tutt, Family and Consumer Sciences Educator, Ohio State University Extension, Clark County

Reviewed by: Laura Halladay, Family and Consumer Sciences Educator, Ohio State University Extension, Greene County

References:

Chamberlin, J. (2014), Retiring Minds Want to Know, American Psychological Association, Vol 45, No. 1

Mitchell, T. (2021), The Retirement Process: A Psychological and Emotional Journey, The University of Washington Retirement Association, Retrieved from: https://www.washington.edu/uwra/terry-mitchell/

Moynes, R. (2017) Squeezing All the Juice Out of Retirement

Housing Options for Older Adults

two people

As we age there are many important things to consider. One of those important considerations is living arrangements. With the aging of America, the retirement living industry has grown exponentially over the past decade providing the seniors of today and tomorrow a vast variety of housing and care options. Understanding the housing choices that are offered can make your selection easier.

The first option is continuing to live at home. As with any other critical decision, you should think about the benefits and challenges of living at home. Some benefits may include being surrounded by friends and family in a familiar setting. Some challenges may include needing outside help with everyday tasks and feeling isolated and lonely.

If you choose to stay at home, think about possible modifications that can be done around your house to make your later years of life easier. This concept of making the home more accessible and safer is called Universal Design. The Virtual Universal Design Tour can show you ideas on modifications that can be made to your home.

The next option is to move to an outside facility. There are various types of settings depending on your desires and needs. Understanding the various options is important to help guide your decisions. Here is a brief overview of housing options for older adults:

Active Adult Communities – offer services and amenities aimed at giving residents a more carefree lifestyle, while also providing social engagement opportunities of all kinds.

Independent Living -refers to a way of life in residential communities designed specifically for those who have reached or are nearing retirement age, but want to remain active and independent.

Assisted Living – is a communal way of life designed for seniors who need help with various daily tasks like grooming, bathing, and medication management, but still wish to remain as independent as possible.

Skilled Nursing Care – provide skilled nursing care, a level of care provided by a registered nurse who monitors a patient’s health and administers treatment around-the-clock.

Residential Care Homes – provide individualized service, often in a standard single-family home. These houses have been modified to accommodate the needs of seniors, and are generally licensed by the state for only two to six beds. Similar to assisted living, residents receive 24-hour care and assistance with activities of daily living, including medication management, housekeeping services, transportation to doctor’s appointments as needed, meals, and social programs.

Continuing Care Retirement Community (CCRC) – offers several different senior living options or care levels all on one campus. It provides a peace-of-mind guarantee of care to residents for the rest of their lives.

Long-Term Care – refers to any community that provides 24-hour care on a long-term basis. Assistance generally includes regular supervision, help with activities of daily living as needed, medication reminders, housekeeping, meals, and social activities.

Memory Care – long-term care that helps those with dementia of Alzheimer’s disease. Memory care is either offered at a stand-alone community, or as an add-on service at some assisted living facilities, Continuing Care Retirement Communities, and nursing homes.

Housing decisions are unique to everyone and will depend on personal preferences, financial resources, and care needs. The National Association of Area Agencies on Aging offers A Guide for Making Housing Decisions that provides more detailed information for housing options for older adults.

Written by: Kathy Tutt, Family and Consumer Sciences Educator, Ohio State University Extension, Clark County

Sources:

National Association of Area Agencies on Aging, Housing Options for Older Adults: A Guide for Making Housing Decisions, retrieved from: https://www.usaging.org/files/HousingOptions.pdf

Prosch, T. (2014). The Other Talk: A Guide to Talking with your Adult Children About the Rest of Your Life. United States: McGraw-Hill Education.