Preparing for Old Age

Between this post over on reddit and a conversation we had at our pre-Christmas barbecue get together yesterday evening, it's pretty obvious that preparing for old age should be part of everyone's overall preps.  Some of the preps people thought were important as they aged:

• Adequate medical insurance and prescription coverage.  For the guys who were retired military this is a non-issue, for other folks, even with Medicare, this was a pretty big issue (prescription costs seem to be astronomical these days).
• Dental coverage is often overlooked.  Both regular dental services as well as dentures can be very costly so having good dental insurance (is there such thing?) or a plan (dental tourism, which I know is a thing) may need to be looked at.
• A one-story home.  A couple of folks have decided to move out of homes they have lived in for decades simply because they can't manage stairs any more.  Another is converting their formal dining room into a master suite so they no longer have to go upstairs.
• Driving options.  Or better yet, the option not to drive.  When age and vision problems and medical problems converge, driving can become dangerous (so can taking the keys away from a loved one who intends to keep driving until someone pulls the keys out of their cold, dead fingers).  Living in an area with many transportation options becomes a good idea when you are older.
• A very robust emergency fund/savings account.  Things break (like appliances and furnaces and things like that) and they need to be replaced.  The HOA may say you need to repaint your entire house (a major expense), your vehicle may need major repairs...over the course of a decade or so, there are many extra expenses that may not be covered by a regular fixed income.
• Also, regular bills always seem to increase and never seem to decrease.  Water, sewer, garbage, HOA fees, electricity, gas, etc.  All of these bills will keep increasing over the years but your income probably won't.
• The weather is a big deal when you get old.  Old bones generally like warm weather.  Old bodies are not fond of slipping on snow and ice and breaking a hip.  Moving to a warmer locale may need to be in your plans.
• Taxes are also an issue.  Some places have tax abatement programs for the elderly so they aren't priced out of their paid-for houses due to hot housing market-induced high property taxes.  Some places don't so moving to a low tax area may be another part of a person's planning.
• Avoiding scams.  Did you know that the elderly lose $37 BILLION dollars a year to scams?  I didn't either until I came across this article but there are literally thousands of ways people scam the elderly and avoiding this issue can sometimes be difficult for the aged.
• Doing all of the things "you used to do" can become difficult or impossible.  Everything from home repairs and climbing ladders to affording birthday gifts for all of the kids and grandkids can become a challenge--both physically and financially.  Traveling, which you planned to do in your Golden Years can also be difficult or impossible due to health or mobility reasons.
• Long-term care can also become an issue.  Especially for people who aren't so bad off they need a nursing home but they also can't be at home on their own for long.  Nursing care, whether in a nursing home or having someone drop in on a daily basis, can be extremely expensive.  And relying on family can be extremely iffy.

These are just some of the issues that were touched on in both the reddit post and in our general conversation last evening.  Plus old age does seem to sneak up on you so planning ahead for these and other issues is a good idea.

10 Concerns for Retirees

Whether you have been retired for a while or planning on retiring soon, here are several things to be concerned about/prepare for:

1. Failing pensions as discussed in previous posts.
2. Paying for medical care.
3. Skyrocketing property tax.
4. The skyrocketing cost of housing.
5. Working...forever.
6. Working forever for low pay.
7. Age discrimination.
8. Relocating to other areas, particularly for tax reasons.
9. Concerns about assisted living and long term care.
10. And several other things.

10 Things to Do When You Retire

It's been a busy month as you can probably tell by the dearth of posts last month (one? really?  I will try not to let that happen again).  In fact, it seems like I have been busier since I retired than I was when I had three companies running at once.  Here's some things you should consider upon retirement:

1. Move.  I've seen many elderly people continue to hold down the farm long past the time that such a thing was feasible.  I figured I would probably be one of those people but then circumstances collided and we ended up selling nearly everything we owned, traveling for a while, then ultimately settling into an area that happens to be popular with retirees (and poker players).  This worked out well in a number of ways, namely it offered a much lower cost of living, many more things to do as a retiree, and much better weather (for most of the year) than where we had previously lived.
2. Stay active.  You can sit on your ass and play bingo all day, everyday, but that will fast track you to #1 death (due to a number of lifestyle diseases that come with a sedentary lifestyle) and #2 bankruptcy (we'll discuss that later).  Basically walk, swim, ride your bike, dance...do things to keep active and healthy.
3. Pick up some hobbies.  You now have all the time in the world to do fun things.  Of course money comes into play here (we'll discuss later why picking a palate of hobbies that include golf, polo, world travel, and other expensive hobbies could torpedo your budget), but there are many hobbies that are both low-cost and enjoyable.
4. Volunteer.  The thing that happens when you retire is that you suddenly have 10+ hours in your day to fill up and with no job to fill up the time, you will often end up bored silly.  Volunteering can prove an enjoyable, interesting, informative, and useful way to fill up your extra hours.  You can also reap the benefits if you pick your volunteer gigs well (like a free place to park your RV if you volunteer at a National Park, the opportunity to learn more survival skills if you volunteer with your local Search and Rescue, meeting great people when you volunteer with the USO, or watching cool shows when you volunteer at a local theater).
5. Dedicate time to your money.  Money can be either a minor or a major part of your retirement.  Too little and you will barely eek by, too much and, well, too much would be a good thing.  Most people are somewhere in the middle and this means you do need to pay some attention to your money.  Develop a budget, live within your means, plan for a longer future than death statistics would have you believe, pay attention to your retirement funds (pension, investments, etc), and put a plan together to keep yourself fiscally sound for the rest of your life.
6. Work.  Of course this may impact your taxes/Social Security/etc so check with your CPA first, but picking up a side job can be necessary (for extra income), enlightening (do a type of work you've never done before), fun (pick a fun job to do), and/or a grand opportunity (do work you've always wanted to do but couldn't fit into your life plan earlier).
7. Take up a big challenge.  When you retire, as stated above, you will have a lot of time to fill up.  Many retirees take this opportunity to do something they would never have had time to do when they were working.  One friend thru-hiked the AT, another friend went on a 90-day around the world cruise, and another friend moved in with the grandkids in order to care for them while their parents work and build stronger bonds with them than would have been possible with family members scattered all over the country.
8. Take advantage of senior only stuff.  Many universities allow seniors to partake in university courses for free or cheap.  Travel with ElderHostel, RoadScholar, Servas, etc.  Ask for senior discounts for everything from shopping and restaurants to museums and popular tourist attractions.
9. Have a plan for your aging and death.  Sounds like a grim topic but ensuring that your kids/relatives/friends aren't stuck with probate problems, cleaning out your hoarder home, wondering if you wanted to be buried or cremated, etc. is a very gracious gift to give your loved ones.  Get your ducks (Will, Living Will, Power of Attorney, funeral planned and paid for, long term care planned, etc) in order.
10. Build relationships.  Once you get old you realize that all of the material goods in the world aren't nearly what they are cracked up to be.  Building relationships however, with the grandkids, the neighbors, long-time friends, relatives, etc. is well worth the time and effort invested.