HealthyLife Articles

Tag: retirement

  • Resolve To Get Ready For Retirement

    Financial Health

    It’s never too early or too late.

    Whether you are in your 30s, 40s, 50s, or even your 60s, plan for your retirement. Research shows that people who think about and plan for retirement save more than those who don’t.

    Add up all sources of monthly income.

    *  Social Security. Find out how much you will get, monthly, from the Social Security. This depends on your work history and if you choose to start getting benefits at age 62 or your full retirement age (65, 66, or 67) or wait until age 70. A yearly statement mailed to you gives this information. Or, find out from Social Security benefit calculators atwww.socialsecurity.gov/retire2/index.htmandwww.socialsecurity.gov/planners/index.htm#a0=1. Do the same for a partner who will also receive Social Security benefits. In general, the amount you receive for Social Security retirement accounts for about 40 percent of your pre-retirement earnings.  $____

    *  Private pensions from all employers  $____

    *  Personal savings. This includes money you have  in the bank and earnings on 401(k)s, 403(b)s,  traditional and Roth IRAs, and other investments:  $____

    *  Cash value life insurance. These are whole life or variable life policies.  $____

    *  Part-time income you and/or your partner expect to make.   $____

    Total monthly sources of income:   $____

    You do the math:

    Total monthly income needed:  $______

    Subtract total monthly sources of income:  – $______

    How much you’ll need to make up for each retirement month:  = $______

    Plan, now, ways to earn and/or save more for retirement.

    Figure out how much you’ll need.

    According to the Employee Benefit Research Institute, 56 percent of workers have no idea how much they need to save for retirement. On average, people need at least 70 percent of their yearly pre-retirement income. This can vary, depending on your age and needs. You will need more if you need to pay for your medical care. To estimate how much you might need, use a tool atwww.choosetosave.org/ballpark. Other calculators to help you plan can be found atwww.choosetosave.org/calculators. Include estimates for health care and other costs, such as a new car and home repairs. {Note: It will be easier to get a car loan if you buy the car while you are still employed.}

    Total monthly income needed:  $____

    Action Step

    Make an appointment with a financial planner at work or on your own to discuss retirement saving options that best meet your needs.

    Ways to Well-Being book by the American Institute for Preventive Medicine. www.HealthyLife.com. All rights reserved.

    © American Institute for Preventive Medicine

  • Four Ingredients For A Happy Retirement

    Mature Health: Over Age 50

    Image of retired man gardening.

    Retirement involves major changes in your income, lifestyle, social life, and self-image. Not surprisingly, retirement can be very stressful-or blissful. Advance planning is a key ingredient for a happy retirement. A survey conducted by researchers at the University of Michigan found that 75 percent of those who had planned for retirement enjoyed it. Here are some specific ways you can make retirement less stressful and more satisfying.

    Get a part-time job.

    For some people, gradual retirement is easier to handle than being employed one day and unemployed the next. To smooth the transition, you may want to either work part-time at your present job for a few months or get a part-time job at another firm when you leave.

    Practice living on a retirement budget before you retire.

    And start saving for retirement as far ahead of time as possible. Don’t expect Social Security to cover all your expenses.

    Take care of yourself while you’re young.

    You can help to preserve your health by eating a low-fat diet, not smoking, drinking moderately (if at all), learning to manage stress, getting regular checkups, and being physically active.

    Cultivate hobbies and other outside interests.

    Fitness activities, community work, or academic studies can fill the void left by not having to report to work every day. To prevent boredom, consider a variety of activities-indoor and outdoor, mental and physical, group and individually oriented. And start thinking about projects you’d like to work on well before retirement, so you don’t stall out when the time comes.

    A Year of Health Hints book by the American Institute for Preventive Medicine. www.HealthyLife.com. All rights reserved.

    © American Institute for Preventive Medicine

  • Retirement: How Are You Going To Do That?

    FINANCIAL HEALTH

    Image of middle-aged women.

    A secure and worry-free retirement is a cherished dream for millions of us. What will it take for you to achieve that dream? The experts say –

    Save more than you think.Most people have not tried to estimate how much money they will need for retirement. And those who have, usually underestimate the amount they need.

    Know when you will retire.Many working Americans will retire before they expect to, and before they’re ready.

    Plan to live a long life and spend accordingly.Some retirees will live well beyond their life expectancy, with a great risk of outliving their savings.

    Face facts about long-term care.Many people underestimate their chances of needing long-term care. Explore lower-cost plans now.

    Understand your options.Should you take a pension in a lump sum or as a lifetime annuity? Talk with a financial planner (and your doctor) to decide the best option for you.

    Understand your investments.Due to the growth of workplace retirement savings plans, employees are now managing investments for retirement. Need help? Get it from a trusted financial adviser.

    Seek sound advice.Many retirees and pre-retirees do not seek the help of a “qualified professional.” Yet they indicate a strong desire to work with one.

    Know where your retirement income is coming from.You may be disappointed in retirement if you try to live on the income that’s available.

    Deal with inflation.Inflation is a fact of life. After retirement, you won’t be getting pay increases.

    Provide for a surviving spouse.Many married couples fail to plan for the eventual death of one spouse before the other. This can have serious consequences, especially when the survivor is the wife.

    Source: Report from LIMRA International, the Society of Actuaries and Matthew Greenwald & Associates, with research sponsored by the Society of Actuaries Committee on Post-Retirement Needs and Risks

    © American Institute for Preventive Medicine