Joe Lucey

You may not have thought of this until day three of your retirement, but a change in lifestyle usually means a change in wardrobe. Even if you didn’t wear a suit to work, whatever you did wear may not be the most comfortable option for reading, fitness, yard work and romping around with the grandchildren.

While you no longer have to dress to impress at work, bear in mind that perception is still important in the real world. You don’t want to be perceived as really old or as trying to act too young. Dress your age with a focus on comfort, fit and quality materials.

If you start a regular exercise regimen in retirement, you may even lose weight — so don’t go out and buy too much at first. But do consider buying some good-quality, comfortable workout clothes that reflect your style.

 

One way to deal with the issues some men face in retirement is to keep working. A recent study from Oregon State University found that people who retired at age 66 were 11 percent less likely to die from any cause than those who retired just one year earlier. It turns out that the daily grind of work and responsibility that some men feel throughout their careers actually works to their advantage as they get older.

Researchers believe that the cognitive and social stimulation that work provides can help lower stress levels and make you more attuned to your body’s needs. This, in turn, can lead to eating healthier, engaging in regular exercise, taking any prescribed medications and making regular doctor’s visits. You could say that work gives you a sense of purpose — to live longer, to provide and to be responsible for loved ones.

Studies have confirmed that retirees who stay active and involved tend to avoid or better cope with common retirement concerns. If you need more to do with all that spare time, consider pursuing a hobby you enjoy or starting a new one. You want to find some type of exercise that you enjoy and can stick with for the long term. That may include playing tennis or golf, but consider adding another activity that will be there for you once your body says it’s time to slow down. The earlier you make regular fitness a common, everyday routine, the more likely you are to continue it when you’re much older — and need it more to help maintain mobility.

Think about ways you can give back, because this will help restore some of those feelings of responsibility and being a provider that you might miss during retirement. How about volunteering with a charity or church group? Another way to stay intellectually engaged is taking up studying a subject that interests you. Take an online course or go back to school, even just to audit classes at your local college. This will give you a place to go, a time to be there, people to engage with, opportunities to think creatively and intellectually, and the opportunity to walk around campus for daily exercise.

The important thing is, don’t get set in your ways with static days that do not include exercise, social and intellectual engagement. Get out there and engage with the world — the energy you invest in these pursuits can provide strong returns in retirement.

We frequently read about the challenges retiring women may face — less income, higher health care costs and outliving their spouse. But what about men? It can be difficult for some men to retire after a lifetime of working outside the home. Not only do they miss the intellectual stimulation and daily camaraderie of colleagues, but they may have a sense of loss in not receiving a regular paycheck.

Suddenly, there is money coming in, but because they didn’t spend the two weeks prior working for it, it can create an odd feeling. Then there’s the issue of how to spend their time now that they have all day, every day, free and clear. Men have to familiarize themselves with the daily rhythms of the household, settle into longer and closer proximity with their spouse, and figure out the delicate balance of spending more time together without stepping on each other’s toes.

Just like every stage of life, retirement takes a bit of work. If you’re not aware of and proactively working to counter potential retirement-related issues, you could be in for a rough patch. According to a recent study, the following are some of the most common problems men face when they retire:

• Identity disruption since who they thought they were revolved around their job
• Decision paralysis
• Diminished self-trust
• An inability to form new relationships
• An inability to find a purpose for continued living
• Death anxiety

The important thing to realize is that you’re not alone; even if you live alone. There are other men just like you who are facing the same issues, feelings and concerns of adjusting to retirement. Go forth, see old friends and make new ones.

Today, only about one-third of America’s retirees have a pension plan, which is quite different from the reliability of employer-sponsored retirement income of the past. In fact, pensions used to represent one-third of the three-legged stool that represented a confident retirement, in combination with Social Security benefits and personal savings and investments.

Employees who don’t have a pension plan may have a defined contribution plan through work, such as a 401(k), 457 or 403(b) plan. Employers gradually have been transitioning their retirement plans from defined benefit to defined contribution as a cost-cutting measure. Yet according to research conducted by the Center for Retirement Research at Boston College, today’s employer-sponsored retirement plans are not providing as much income as in the past. Moreover, the transition from defined benefit to defined contribution plans appears to offer more advantages to employees who have a higher education and higher earnings.

The reason traditional pensions offer better retirement income protection is that they typically are guaranteed to last for life. However, providing guaranteed lifelong income is an expensive benefit for companies to provide, particularly now that retirees are living longer. But without a pension, the responsibility of providing for retirement income falls more to the individual.

One way for individuals to create steady and reliable retirement income is to use a portion of their accumulated 401(k) or other retirement plan assets to purchase an annuity, which also offers income for life guaranteed by the issuing insurance company. A second form of retirement income comes in Social Security benefits.

Combining an annuity with the rest of their retirement savings and investments, as well as Social Security benefits, can help individuals work toward their retirement income goals. We are happy to discuss your options for guaranteed income in retirement. Give us a call, and we can talk about whether an annuity may be appropriate for you.

 

The content provided here is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice.  Contact us at info@securedretirements.com or call us at (952) 460­-3260 to schedule a time to discuss your financial situation and the potential role of investments in your financial strategy.

Independence is something we have to work for throughout our lifetimes, whether we want to or not. As babies, we push our way up from four limbs to two and start walking our way into messes. As toddlers, we profess “No!” and “Mine!” to make our point. In the teenage years, we rebel against parents in an effort to earn independence.

The fight for independence doesn’t end in adulthood, as we manage relationships with significant others and bosses throughout our careers. And finally, we grow older and retire. While many of us would love to have millions of dollars so we could avoid any dependence on government entitlement programs, most retirees rely on Social Security and Medicare benefits to supplement their income and take care of a large portion of their medical expenses.

While the word “entitlement” often receives a bad rap, its true meaning is appropriate. Workers contribute 6.2 percent (on wages up to $127,200 per year) for Social Security old age, survivor and disability insurance and 1.45 percent of their earnings for Medicare throughout their working lives as a FICA tax, which stands for the Federal Insurance Contributions Act. In other words, it’s like deferring part of your pay toward a pension in retirement, which you are most certainly “entitled” to.

However, entitlement benefits are limited. As the quest for independence continues, it’s important to accumulate income for retirement through other sources, such as a pension or 401(k) plan and personal savings. The quality of our retirement lifestyle may well be defined by how much each of us saves and how we manage our finances. And fortunately, that’s one of the most satisfying measures of independence.

 

The content provided here is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice.  Contact us at info@securedretirements.com or call us at (952) 460­-3260 to schedule a time to discuss your financial situation and the potential role of investments in your financial strategy.