02-24-2021 Primetime Living - Flipbook - Page 27
A SPECIAL ADVERTISING SECTION OF BALTIMORE SUN MEDIA • WEDNESDAY, FEBRUARY 24, 2021
at work; they must figure it out on
their own. Another question we should
examine is for that large segment of the
population, how do we get them to save
or provide access to a workplace savings plan.”
So, coupled with the money you’ll get
from Social Security, how much should
you sock away in a retirement account?
There are so many variables that should
be taken into account. At what age do
you want to retire? How long will you
live? How much will you earn on your
savings? Many advisors suggest you’ll
need about 80% of your pre-retirement
income to maintain your lifestyle. But
even that’s an estimate.
Dietch explains, “These are only helpful starting points, not the end of the
discussion but the beginning. All these
numbers about spending and retirement
are outdated. Spending usually goes
down during retirement. By the time
you’re 85, you’re not going on cruises
or buying lots of stuff. When you think
about the future, you will also need to
ask, ‘What happens when I retire?’ and
‘Can I retire on my own terms?’”
Most of us will have to pivot. Maybe
you’re not ready to retire for both good
and bad reasons, such as your health.
Contingencies need to be considered.
Have you really thought about what your
retirement will look like? Says Dietch,
“We tend to think of retirement as a
strictly financial problem. It’s so much
more than that. It’s really all the other
stuff which is almost more important. It’s
the psychological side of planning.”
More and more, people are choosing to continue working. Sometimes it’s
because they don’t have enough saved,
but just as often they like what they do
or know they’d be bored. It’s dependent
on how you earned your money. If your
work involved physical labor, you probably can’t keep going. Those whose
work is reliant upon fluid cognitive skills
as opposed to rigorous physical labor
can often keep working for a much longer time. Eventually, though, you have to
stop. That’s when it’s important to know
what you can afford and for how long.
“What we found,” Dietch continues,
“is when people save, they save to
achieve a goal based on level of wealth,
A luxurious waterfront
like no other
but, when they retire, they spend based
on what they have. For many that means
adjusting their spending. The challenge
is for those who don’t have the means
for discretionary spending and are also
unable to reduce their fixed costs. Fixed
costs are exactly that, a specific amount,
but if your income doesn’t cover it, that’s
where you have societal problems.”
Another problem many retirees are
facing is taking their debt with them.
Because mortgages are so inexpensive,
they want to stay in their homes. It’s
caused the rise in reverse mortgages,
using the equity in their homes to fund
their future. And once you start spending, everything shifts. How are you going
to live? Where will you live? Are you
healthy or not? How mobile are you?
Can you get to services you need – grocery stores, pharmacies, doctors, all the
little facets of daily living? Unlike the
planning aspects that are money-related,
these are the areas that are infinitely personal, specific to each individual. That’s
why it’s a puzzle.
“There’s been a huge boom in
research related to aging and your
relative well-being in retirement,” says
Dietch. “If you retire with your partner,
that’s one situation, but the minute your
partner goes away, you need to revisit
all these questions again, you reshuffle
One frequently updated and detailed
data set Dietch shared for estimating retirement costs is the Elder Index
(https://elderindex.org/). The Elder
Economic Security Standard Index
(Elder Index), was developed by the
Gerontology Institute at the University of
Massachusetts Boston. The Elder Index
is a measure of the income older adults
need in order to meet their basic needs
and age in place with dignity. The Elder
Index is specific to household size, location, housing tenure and health status.
When you visit the site, you can enter
your personal details and get a solid
estimate of what your costs would be if
you retired today.
As with other aspects of our lives,
there are different phases to our aging
and retirement, just as there are when
Retirement track, continued on page 29
The top three criteria for
choosing a Continuing Care
First and foremost, location is everything. Choose
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Choose a community that provides a good return on your
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onsite? Tour the campus, meet the residents and ask direct
questions of them.
See our website for available listings including our popular
Please call Jim Harrington to schedule a tour.
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7101 Bay Front Drive, Annapolis, Maryland 21403