Wednesday, February 26, 2020

The 3 Stages of Retirement

When we think of retirement planning, we usually think of travelling, visiting the grandchildren or working in our garden.  Looking forward to age 65 is a milestone for a large number of us, but the reality can be quite different.

Did you know that only about 15% of Americans fully retire at 65? Most will just continue working or cut back on the hours they work. And self-employed people, such as business owners or 1099 employees just keep working as well because they know the boredom will set in and want to stay active.

When I talk to groups about retirement years, I go over the three stages of retirement:

  • The Go Go Years - Travelling and having a good time
  • The Slow Go Years - As the name implies, maybe we need to take it a bit easier. "Piddling" in the garden and staying closer to home
  • The No Go Years - Health problems and aging keeps us in home or a facility. 
Unfortunately, when planning for those retirement years, we fail to plan for the No Go years. Some have their heads in the sand, not thinking it will happen to them. According to the Motley Fool, 69% of people will need long term care insurance. And you're likely to need it from 1 to 3 years. Given that care in a facility isn't cheap, and in-home care is even more expensive, why not shift the burden of the costs to an insurance carrier instead of wiping out everything you've worked your whole life for? (Myth: The government will take care of you.)

There are options and depending on your age and health, you can find something in your budget. Stand alone long term care, short term care and hybrid life policies are all products to be considered.

Don't wait too long to consult with an insurance professional, and remember that a little bit of protection is better than no protection at all.


Chris Castanes is the president of Surf Financial Brokers, as well as a professional speaker helping sales people be more productive and efficient. 

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