Questions to Answer about the Retirement Phase of Your Life
By Shane Flait © 2000

Retirement brings a whole new set of considerations to our lives. It’s our third – and last – phase of life. In this article I’ll outline the sequential stages of our retirement years and the issues you should address – ideally, early in the first stage.

Though everyone is different, statistically we’ll go through three stages before we die. Here’s a synopsis of each stage:

Stage 1 – the healthy independent stage:

Typically, you’ll begin retirement in good health. You’re active, doing what you want. You may travel, develop hobbies, start some part-time business or just enjoy yourself.  It’s wishful to think this stage will last until the end. But, hopefully you’ll maintain it into your mid 70s.

 

Stage 2 – the slowing down and mostly independent stage:

Here, you may be still living independently but minor health problems begin. You’re getting tired and want to slow down and drop so much activity. The effects of ‘Old Age’ are setting in. Genetics determine how long this stage lasts.

 

Stage 3 - the dependent and infirmed stage:

The full effects of ‘old age’ will eventually infirm most retirees. Three of four will require long term care in their homes and nursing homes. Costs for care can rise to as much as $90,000 per year for nursing home care.

 

That’s the scenario. Just how long each stage will be for you is anyone’s guess. But our last phase presents us with several basic concerns. Those are:

·         managing income while you’re living – through stage 1 and 2;

·         getting the long term care assistance for stage 3;

·         arranging your affairs when you’re mentally disabled and arranging transfer of your assets to your loved ones

 

To take control of all this can seem overwhelming. But doing so will make you feel comfortable and assure your wishes for your loved ones.

 

So as your approach and begin your retirement –and put yourself in control - search out constructive answers to the questions I’ve listed below. I’ve grouped them under six basic retirement planning areas:

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Know your company’s retirement plan options:

·         What are your payout options for your defined benefit plan?

·         How will you take your defined contribution plans?

Arrange your retirement income:

• Did you contact Social Security for your benefit statement?
• What's your Company Pension income?

·         What withdrawal rate should you use to preserve your income for 30 years?

• How will you allocate your investments for retirement

·         What specific investments will you choose

Arrange for your healthcare

·         When should you sign up for Medicare?

·         What are your health insurance options?

·         What's the best plan for your situation?

Prepare for the possibility of long-term care

• Have you considered purchasing LTC insurance?

·         Have you worked out the possibility of paying LTC costs directly?

Arrange for your wishes at incapacity and death

·         Have you arranged for someone to take over when you are incapacitated?

·         How will someone know your wishes when you're incapacitated or die

Arrange for gifting and legacy plans for your beneficiaries

• Have you chosen and updated your beneficiaries on all insurance, qualified plans, will and trusts?

·         Have you considered the most tax-efficient way to gift your money or leave it as a legacy?

 

 

It’s probably best to make a notebook covering these areas and begin finding answers to each question that suit your situation.

 

Since you never know when disability or death can occur, it’s better to get everything arrange as soon as possible. That way your wishes will be in effect. You can always change things later.

 

 

Shane Flait is a writer and educator. See more at www.EasyRetirementKnowHow.com