How to Plan for Changes in Your Health and Lifestyle in Retirement
Excerpt: One year you might change your shower by adding a shower bar and a seat. Then you might adjust the threshold so that you don’t have to step up into it. Then you might install a chairlift to get you upstairs. Then you might move your bedroom downstairs. As I said, we just need more equipment. And the more you are able to adapt your home, the longer you’ll be able to stay in it.
This week on the Women's Wealth Canada Podcast, we are talking about How to Plan for Changes in your Health and Lifestyle in Retirement. As you make plans for retirement, it's important to remember that your health and lifestyle needs may change over time.
Research shows that expenses in our 60s are typically higher than they are in our 80s and beyond. During our 60s and 70s, we may be traveling more, visiting our grandchildren, and ticking things off our bucket list. Travel health insurance premiums typically increase with age, making traveling harder in our 80s and beyond.
Plan for each stage by reading the blog below or visiting the podcast!
What’s Inside?
Prefer to Listen?Here’s the podcast episode!
Rather Read All About It?I was recently honoured to be part of a panel of business women who were speaking to a group about retirement. The discussion centered around how we can plan for financial freedom and what that means to you.
How can we plan for the inevitable changes to our health and lifestyle in retirement?
One of the questions I was asked was: “How can we plan for the inevitable changes to our health and lifestyle in retirement?”
When you sit down with a financial planner, one of the first things they’re going to do is prepare a financial plan that gives you an idea of your cash flow requirements over the years for the rest of your life. How much money is going out every year, how much is coming in, where is that money coming from and do you have enough saved to make it all work?
Everyone is different, but it is helpful to know some averages and basic trends in our society.
Research has found that assuming you retire in your 60s, expenses in our 60s are usually much higher than they are in our 80s. In our 60s and 70s, we are traveling more, visiting grandchildren, and checking off our bucket list as fast as we can. By the time we reach our 80s, most people--not everyone, but most-- have sort of “been there, done that,” and are content to stay at home more often.
Travel health insurance premiums double with every decade and if you have health problems they’re even more expensive. That can be another reason why people tend to stay home and spend less money traveling once they’re in their 80s.
So by then, you’re spending less on travel and entertainment, however, research shows that out-of-pocket healthcare costs go up in our 80s and particularly in our 90s. We need more money for our own comfort. We just need more equipment.
What are the chances of me residing in a care home and how do I plan financially for that?
One of the questions I get often is: “What are the chances of me residing in a care home and how do I plan financially for that?”
A great place to find information about what to expect as a senior living in British Columbia is the Office of the Seniors Advocate of British Columbia. Isobel Mackenzie has held that office since 2014. If you ever have a chance to hear her speak, go, she’s a very engaging speaker and a wealth of information.
Here’s some encouraging information that her office uncovered:
At age 65, 95% of us are completely independent and living at home.
At age 85 and older:
75% are completely independent and living at home
20% are in assisted living
5% are in nursing care
Age 95 and older
50% are still at home
And, as you adapt your home as you age, you tend to live there longer. For example, one year you might change your shower by adding a shower bar and a seat. Then you might adjust the threshold so that you don’t have to step up into it. Then you might install a chairlift to get you upstairs. Then you might move your bedroom downstairs. As I said, we just need more equipment. And the more you are able to adapt your home, the longer you’ll be able to stay in it.
What about Dementia?
Now let’s talk briefly about dementia. I am no expert on this subject, so again I’m getting this information from Isobel Mackenzie’s office.
In BC, of those aged 85 and older, 80% do not have dementia
I was listening to Isobel speak on this subject and she put it this way: “Many older people aren’t demented...they’re just a little dim.” They weren’t rocket scientists at 20, they don’t suddenly become rocket scientists at 80.” Being ditsy may seem cute at 20; at 80 it looks like something else.
I don’t mean to make light of this, but I want you to feel encouraged by these statistics.
Here’s what you can do: Start gathering information about the in-home care that is available near you. Take tours of some of the assisted living facilities.
I was taking a tour of one of these facilities with a client myself and let me tell you, many of them are like being on a cruise ship. I ran into former neighbours of mine while I was touring the facility. They were so happy and active. They were in their 80s at the time and they said they wished they had made the move sooner.
So, it’s a good idea to begin to research these costs, share your wishes with your family, and share them with your Medical Representative.
And also, share them with your financial planner. Work with your financial planner to incorporate it into your financial plan. Have them run some cash flow scenarios for you to figure out that, if you need that extra help in your 80s and 90s, how will that affect your nest egg and what can you do about it.
In retirement, what will you do to maintain your physical, emotional and spiritual health along with your financial freedom?
Now, when I’m meeting with someone who is planning on retiring in the next year or so, one of the questions I ask them is: “In retirement, what will you do to maintain your physical, emotional and spiritual health along with your financial freedom?”
I can’t stress this enough: All the money in the world means nothing if you’re not healthy.
If you are planning on retiring soon, one of the first things I recommend you do is find an activity you enjoy doing, hopefully one that has a social element to it, as social interaction in particular is very important to good health as we age.
The Public Health Agency of Canada recommends those over age 65 take part in at least 2.5 hours of moderate- to vigorous-intensity aerobic activity each week, plus add muscle and bone strengthening activities using major muscle groups at least twice a week to help your posture and balance.
Think about getting functional exercise. If you want to be a competitive athlete, that’s fabulous, but if not, concentrate on functional exercises. These help our bodies get down, get back up again, walk, push and pull. Stretching our achilles tendons to keep them flexible can help with foot pain. Circling and strengthening our ankles to keep them flexible can help so that when we twist them, there’s less chance of us breaking them. Joining a walking or bicycling group can help. A dance class can be great. Even if you’re mobility challenged, there’s more options than ever too. Just get moving and keep moving.
What about your emotional and spiritual well being? And why would I even bring that up in a discussion about retirement? Some may think of retirement as a time to relax and take it easy. But relaxation has its limits. There is ample evidence that having a purpose is a deep driver of well-being. If you are looking for your purpose - a good place to start is knowing what you value. So here’s a little exercise.
First, get a little notebook or use a phone app if you prefer. Take a week or so and write down the answers to these three questions:
What do I need more of in my life?
What are 10 things I am grateful for today?
What are 5 words that describe me best and why?
After you’ve gone through several days of writing answers to questions like these, take a look at what you’ve written. My bet is you’re going to start seeing some patterns. You’re going to start seeing what is important to you. And if you spend your retirement mostly doing things that are important to you, that is a happy retirement.
Your retirement plan, just like your financial plan, should constantly change just as your life is changing.
Your retirement plan, just like your financial plan, should constantly change just as your life is changing. In my experience, most people will find their lives in retirement changing quite a bit every 5 years. Sometimes it’s because there’s been a change in our families, like suddenly your son has triplets and you want to move nearer to your grandchildren. But the main reason I see change every 5 years is for something that we have at least some control over and that is, again, our health.
If you want to explore this topic further, I recorded a webinar with life transition coach, Stefa Katamy, called The Real Questions You Should Ask Yourself Before You Retire. As an extra bonus, you’ll also receive a free workbook to help you answer the questions for yourself.
Even if you are already retired, the webinar can help because sometimes retirement isn't what we expected and we need to tweak things a little.
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