Longevity in Retirement
“In the end, it’s not the years in your life that count. It’s the life in your years.”
“Grandpa, he didn’t take your cigarettes! He’s 11!!” My mom was yelling at my 97 year old great grandfather who thought I had stolen a few cigarettes from his pocket. He was adamant that I had taken them, since they were missing from his pack.
But my great grandfather wasn’t aware of the fact that my grandfather was taking a few cigarettes out of his pack every day, so that he would smoke less. Not sure what they were trying to accomplish. Were they hoping he would quit at that age??
This scene took place at my grandparent’s middle eastern restaurant. The family would often gather there for holidays, anniversaries and birthday celebrations.
Celebrating one of my many birthdays at my grandparents restaurant. That’s me in the middle opening gifts.
My great grandfather, who was known to be a carefree man, would never want to stay home and often came to the restaurant. He had his own booth, where he would smoke his cigarettes and drink whisky.
On the weekends, when there was live entertainment and a belly dancer performing at the restaurant, he would often get up and dance. Cigarette in one hand and a glass of whiskey in the other.
The man never showed any signs of stress till the day that he died. He lived till 104. My great grandmother was also full of life, but she preferred staying home. She lived till she was 98.
It wasn’t till I was a bit older that I realized how astonishing it was to live that long. I assumed everyone had great grandparents around, but I was wrong. My great grandmother lived 20 years longer than was expected and my great grandfather lived 30 years longer than his life expectancy.
That was back in 1987. Now the life expectancy numbers for both men and women living in the US, have risen dramatically. If you were to stop working at age 60, there’s a good chance that your retirement can last 25 to 30 years.
And if you're still working for another 20 years or longer, you could be possibly looking at 30 or even 40 years in retirement. That’s basically an entirely new life!
Action Items
The gift of having more time on this planet is undoubtedly precious and valuable. However, along with this gift come certain obstacles and challenges. If these obstacles are not confronted directly in your retirement planning, they have the potential to hinder you from fully enjoying the well-deserved post-work bliss that you have been looking forward to.
Here are 6 things to consider when factoring longevity into your retirement:
Your Back-Up Plan: What kind of financial safety nets do you have? Asking this can show how much you need to save, resources you may need, and how to improve your financial position. Understand your Social Security and other guaranteed income to strengthen your retirement plan.
Your Time: Having too much free time in retirement can lead to stress, sadness, and health issues. Plan how you'll spend your time before retiring. Try learning new things, doing hobbies, helping others, and traveling. Stay flexible and willing to change your plans if needed.
Your Health & Wellness: Take care of yourself to enjoy more time with loved ones. Prioritize your health for a better life and lower healthcare expenses. Stay healthy by eating well, staying active, and seeing your doctor regularly.
Your Long-Term Care Plan: By age 65, you might need long-term care with a high likelihood. This care could be adult day care, care at home, or a room in a nursing home. Costs could range from $1,600 to over $8,500 monthly. You may have to pay for this for 20 to 25 years. Even if you're healthy, it's wise to plan now and consider inflation into your calculations.
Your Relationships: Many people overlook the importance of social connections when they retire. It's not just about missing the feeling of accomplishment from work, but also the relationships they had. Retirement can change how you interact with yourself and others, leading to communication challenges. Take time to discover who you are in this new phase of life and focus on nurturing important relationships. Schedule regular social activities like joining a class, walking with neighbors, date nights, or family dinners to stay connected.
Your Support System: Besides friends and family, where else can you seek advice or guidance during challenging times? Who do you talk to when making tough decisions? Who can assist you in identifying potential issues you may not see? Having one trusted financial expert can greatly support you, especially during changing market conditions or unexpected plan deviations. Regularly consult with a financial professional before and after retirement for a financial well-being assessment to secure a fulfilling retirement.
Can you live well in retirement for over 30+ years with your current plan? Answering this question is essential, as the markets, economy, and your life will continue to shift throughout the future. And when they do, your retirement strategy will need to evolve.
Have any questions, concerns or just want to share your favorite grandparents’ or great grandparents’ story? Just send me a message! 🙂
~Alex
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