The Big Picture - Retirement

So, you are looking forward to retirement. “Roll on 65,” you say. Last month we introduced the topic of preparation for the “third age,” and over the next five issues we will expand on what can be a scary season of life for many men and women. As with any season of life, you need a life plan, and the third age is no different. This season of life is, potentially, the most influential and rewarding.
 
As I moved into this season of life, one question that I had to answer is “how much is enough?” I first pondered this question at age 57, over dinner with friends. Upon analysis, often it’s a lot less than some people imagine, but until you do a plan and look at your choices, you will not know.
 
So, the BIG PICTURE is;

1. LIFE PLAN. Make a life plan with your spouse/partner. This is a season to consider at 50, but plan for two or three years before entering the third age.
   
2. FREE TIME. A big change that you must plan for is the huge increase in free time that you will have available to you. One question that I was told I had to answer is “what will I do on Tuesday?” So, what will you do on Tuesday?
   
3. REDUCED INCOME. The other big issue that needs to be addressed in your plan, is that this season is usually associated with reduced income. However, with good preparation and planning this is not insurmountable. Remember, you are unlikely to be as wealthy as you are on the day you retire! Accept this reality. You can cushion this life change by moving from full time employment to part-time, which you continue to reduce over 1-5 years.
   
4. ISOLATION. The third age is often the beginning of massive changes in contact with people. You no longer have work comrades. Sometimes friends move to a new location or city as part of their third age planning. You may choose to relocate as part of your planning. This may distance you from family and established friendships, and other networks. Reduced income may affect social and sporting activities, which may also affect friendship contact. Physical limitations can also reduce people contact. Be aware that isolation often leads into loneliness and depression.
   
5. HEALTH. You are unlikely to be as healthy as the day you retire and enter the third age. At some stage, health and energy limitations will impact your freedom to do things.
   
6. LEISURE CHANGES. Be prepared in your plan to review current and increased leisure activities, according to the financial choices you have made.
   
7. IDENTITY. Who am I, now that I am not working? Can I have a good self-image, concept of worth and identity as I transition from a position of authority or skill to no employment or a position of no responsibility or skill?
   
8. PROTECTION. Your plan needs to activate a person or persons who you nominate to look after you in case you have capacity issues. Be wise in this!  Unfortunately, there are too many instances of elder abuse in our society by family caregivers.
   

Questions to ponder:

• Am I ready to plan for the third age?
• Do I need to process these decisions with some others?

Make sure you join us in February when Peter discusses health factors to consider in the third age. Ed.