To spend or not to spend, that is the question
Are we planning to retire and enjoy our remaining time, spending as we go, leaving nothing for our kids? Or are we going to curb spending, eke out our retirement savings and leave them an inheritance?
To spend…
Older people should enjoy their retirement and not worry about leaving an inheritance, according to most respondents in the ANU Ageing and Money Poll. “Quite right” the SKI (Spending the Kids’ Inheritance) brigade say. Indeed, at Heydays we recognise that some of us will use retirement savings to (select those that apply): freshen up the house, get a new car, see more of the world, go to more shows, learn new languages / crafts / skills, pursue hobbies, keep fit, spend time with family and friends and find a way to give back to the community.
We are healthier and living longer, so there’s a whole range of activities that call us and will part us from our hard-earned cash: treks, cycle tours, cruises, cultural tours, beaches holidays, bush and city breaks, gadgets, clothing and of course a myriad of ways to enhance our wellbeing!
Speaking of health, as we age, some of that retirement nest egg may be directed towards health care, supplementing independent living with in-home support, or even paying for more constant medical care. The days of our children being just around the corner, able to pop in and see how the ‘oldies’ are getting on, are long gone. In this shrinking world, the kids could be anywhere! So we are more likely to need to fend for ourselves and one another in our dotage.
Evidently there are many ways that the potential inheritance pot, whatever its size, can and should be used… and that’s OK because most people in the ANU Ageing and Money Poll agreed that retirees should enjoy retirement rather than worry about leaving an inheritance, right?
… Or not to spend
Not so fast! In a seeming contradiction, in the same poll, three in four Australians aged under 65 think it is likely they will receive an inheritance through property or other significant assets. Something does not add up here: whilst the majority of those polled think retirees should enjoy themselves and not worry about leaving an inheritance, when it comes to individual expectations, we expect to get an inheritance. Our kids may well be among those who assume they will receive an inheritance.
The inheritance conversation
As we approach retirement, planning how to manage our money through the next 25+ years will be a real challenge. Given that loved ones may be expecting to receive an inheritance, we need to gauge first up whether there is likely to be anything left in the coffers for them – after we have allowed for all of our other needs. And then we can have the inheritance conversation with them so they know what to expect.
At Heydays we’d love to hear: how are you managing the inheritance conversation? Do you have a plan to leave assets to your children? Has this even entered your thinking?
#inheritanceconversation #babyboomers #nestegg #spendingthekidsinheritance #retire #retiring #superannuation #familywealth #ageing #retirementincome #retirementsaving #super #pension
Loss and letting go – a personal story
As well as writing about the issues that face us as we get close to retirement, I’d like to share with you some personal reflections about aspects of this stage of life that I’ve experienced. I’m re-publishing an article I first shared in 2016.
In the midst of planning a retirement lifestyle and how best to enjoy all that life has to offer, there is often loss. Not just loss of work, of a role, even an identity and connections with colleagues, but also the loss associated with parents aging and, yes, dying. So preparing for retirement can be tempered by experiences of loss and letting go.
Alzheimer’s – a thief
My Dad was 85 when Mum, his partner for nearly 70 years, died. Actually, it felt as if she’d left us some time before, as by stealth Alzheimer’s had progressively clouded her memory, stolen her personality and eventually snatched away her joy of life. It took its toll on Dad, who cared for her over 15 inexorable years, until just before her death. He was stoic.
After Mum died Dad was exhausted. He’d cared for her for so long, then coped with the emotional and logistical business of the funeral. He’d read her eulogy and responded with a hand written card to every one of the condolence messages he received. Dad insisted on doing these things as a way of sharing with everyone what Mum was really like. So they would know and remember her as she was before illness gradually erased her character, until she was a mere sketch of the woman she’d been.
I’m relieved that she has been released from the horrible confusion and mental dullness of her last years. But I miss Mum. I miss her great zest for life, her love of a clear blue sky and her ever positive outlook. She was interested in most people she met, was a natural teacher and loved children. Mum liked to be outdoors and active, swimming and walking in most weathers. She read and recited poetry, enjoyed word games. She had a tenacious strength that saw her sailing with Dad even when she disliked being cooped up. And Mum was a defender, a tigress when it came to all matters concerning our family.
Living and grieving
Dad grieved quietly. He talked about her sometimes and got teary. He found it difficult to sleep without her and the house has a different energy these days. Dad dealt with cleaning out Mum’s clothes, handing on her jewellery and the practicalities of her will. He visited her lawn grave, putting fresh flowers there and sitting quietly for a while in the peace of the cemetery, surrounded by trees, before walking home.
Nearly a year on, Dad asked my brother, Martin, and I for help with a headstone. Apparently, after a burial in this part of the world it can take up to a year for the earth to settle enough for a headstone to be set and grass seed sown around. We met at the front of the stone masons where there were around 100 old, mossy and water poked headstones lined up ready to have another name added, representing 100 recent deaths. It was quite shocking when your see death represented like that.
We agree on simple wording, name dates, and “Rest in peace” and also to leave a space for Dad’s name and dates with “Reunited” underneath. Martin and I are teary. I watched Dad and he seemed fine, even as he made provision for his own demise.
A year after Mum died, Dad took down the mementos he’d kept of the funeral and put them in the box where they kept all their cards and letters. Looking at them you can chart their relationship, from the poetry Dad wrote before they married (quite a feat as he’s more the engineering type) until right up to Mum’s death. But Mum stopped writing cards as she got worse, so towards the end it was a bit lopsided.
After that Dad wanted a quiet time, watching sport on TV, spending time with family and catching up with friends. It was time for him to look after himself and once again take enjoyment in simple pleasures: connections with loved ones, sitting in the sun, walking by the sea and keeping the house in order. Time to redress the balance of all that caring as he gently celebrated the life he still grasped with both hands.
#healthyageing #healthspan #lifespan#ageing #ageingparents #grief #Alzheimer’s #dementia #babyboomers #fiftyplus #retirement
First published in 2016.
Retiring early – Scott’s story
Meet Scott, our switched on Uber driver on a recent trip to the Gold Coast. Here he is with his family enjoying a cruise. He retired early but it’s not always what it seems.
Entrepreneur – take 1
By November 2016 Scott had been running his manufacturing business for over 25 years, employing up to 15 staff at times. He and his wife were living in Melbourne, bringing up 2 young children. They felt comfortable financially – they had security.
However, Scott was working six and half days a week and this took a heavy toll on his physical and mental health. When Scott was just 41, his doctor told him his work rate and lifestyle were potentially a deadly mix – his was at risk of a heart attack or a stroke.
Scott and his wife knew financial security was of little use to the family if Scott wasn’t around to enjoy it with them. They decided to downshift – swapping the good income and frenetic lifestyle with lower overheads and a slower pace of life.
Entrepreneur – take 2
Although they didn’t have a clear plan, Scott and family sold up and moved to the Gold Coast. Now Scott supports his family through a mix of Uber and Private Transfer driving along with Private Tours of the Gold Coast and the surrounding areas. Scott says that while there is less money coming in, their overheads have also reduced so he stresses less about making ends meet. He’s learnt not to worry about things he cannot control – now he just lets them happen.
Balance
Scott’s learnt a few things from downshifting: he knows he’s more relaxed and happier when he slows down and enjoys what’s going on around him and that he doesn’t need to earn thousands of dollars to have a happy life.
Scott’s advice for people thinking of retiring or downshifting is to embrace it and enjoy it. “I’m currently on ‘Pause’ as I like to say. I have taken some time to recharge and realise what’s important. I ‘m really enjoying this phase with Work / Life Balance and will try to continue having it”
Going to the Gold Coast? You can book Scott to drive you or take you on a tour, through Scott Edwards My Driver Direct on Facebook
#downshift #retireearly #refire #encorecareer #heydays #worklifebalance #babyboomer #recharge #lifestyle
It’s ok to fear retirement
Many of us have been working, full time or part time, for 25 to 40 years – even with a break to raise children or travel. So approaching retirement can generate feelings of excitement and relief, and, for some, trepidation. Retiring is a large life change so it’s not surprising that some of us are actually afraid of retiring.
So much freedom
Planning retirement, at first glance, offers us great freedom. Liberation from the ‘have tos’ and schedules of a working day, week, month and year. Freedom to do our own thing and march to the beat of our own drum.
So why does the prospect of leaving work for the freedom of retirement generate feelings of anxiety? Work is usually known and predictable – there are rules to be followed; there are accepted behaviours, a physical location, a schedule, procedures and priorities. After a while in a job, parts of it can be done effortlessly, even unconsciously. Whether we like our work or not, it becomes known, predictable and even comfortable.
Retiring releases us from those work imposed expectations, structures, imperatives and boundaries. Retired life doesn’t have any rules, there’s no schedule to adhere to and no expectations about what we’ll get done in a day, apart from our own. Now its our turn to shape up the activities of our day, we can determine when in the year key events will occur and we can decide what’s important.
A leap into the unknown
Starting to shape up our retirement days and weeks can feel like a leap into the unknown. It’s not surprising it makes some of us feel apprehensive, even anxious. Concerns and questions bubble up. What will I do with all the hours in the day? Will I be bored? How will I stay current and relevant? Will I start to loose my marbles? How will I deal with being with my partner 24/7? Who will I hang out with? How will I get a sense of accomplishment? Will my health hold up?
Retirement planning – on your terms
Its tempting to ignore these concerns, to turn away from them and hope they resolve themselves. In fact, the opposite is needed – to turn around and face our concerns head on, for they hold the seeds of the solution. By thinking through our questions and envisaging various retirement scenarios we can start to find our own unique retirement direction and design a future lifestyle that suits us.
For instance, if we think we’ll miss the friendships and interactions at work, can we catch up with those people over lunch? Can we join an interest group and start new friendships? Thinking through how to address concerns now, before we retire, will give us a chance to shape up our individual retirement and make sure we are doing what is important to us, with the people we want to be with, at times that suit us.
By planning retirement, shaping our own lifestyle, rather than avoiding concerns about retirement that are bubbling up, we can contemplate what we really want and make well-informed decisions in our own time. And then leap into retirement and have the time of our lives!
Download my free Heydays Roadmap to Retirement where I share my ‘must do’ preparation steps. Soon you’ll be closer to the retirement of your dreams.
Retirement by design
There’s a quiet movement afoot to recreate what it means to be ‘retired’. We have more time to play with than previous generations since we are (on average) living longer. A lot more time. At 60-65 some of us have another third of our lives to come. So what are we going to call it and what are we going to do with it?
Retirement – the third act
Reshaping our thinking about what’s to come is essential – now we have the possibility of 30+ years ahead. It’s useful to think of this time like the third act of a play. This is when we can resolve the loose ends and the tensions of the first two acts – and answer the riddles of life. We went to school, grew up, and established ourselves as adults – act one. We grew our friendships and intimate relationships, some had families. We worked, had careers. We gathered possessions and created a home – act two. The third act (retirement) then, offers time to complete things. Time to re-assess what’s important. To re-balance: have more time, give back in some way, and return to our personal interests.
Re-wire, re-fire
Fewer obligations provides the opportunity to ‘re-wire’. To rebalance priorities and re-shape the mix of daily activities. There’s more time for relationships. There’s space to explore interests, take up new opportunities. There’s time to allow a new sense of purpose to emerge.
For some people this might be intimidating. It’s daunting to think about leaving behind the structured workday. How will we get enough ‘people action’ when the myriad of work interactions has gone?
It can be hard. Some who have not considered their retirement lifestyle feel at a loose end. That they are loosing their mental sharpness. This can create tension in relationships. Rather than address the issue, some even return to work.
To have a plan for the third act, for re-wiring – to sketch out your retirement – offers a fresher way.
Lifters, not leaners
‘So much to do, so little time!’ some retirees say. What are they doing that makes them so busy? Using work experience to mentor students or early career professionals. Supporting a sporting or hobby club. Caring for family members. Starting a second career, sometimes called an encore career. Working in a community group, or a not-for-profit organisation as a volunteer.
Mature aged Australians are ‘lifters not leaners’. We contribute a staggering $65.7 billion per annum to the Australian social and economic fabric. This is through unpaid work: volunteering and caring for family members. (National Seniors Productive Ageing Centre)
New opportunities
There’s also time to pursue interests that have been on the back burner. To become an entrepreneur, to write a book, to tackle an ambitious trek. There’s time to travel.
At the quieter end of the scale, there is more opportunity to reflect on life. To become aware of the preciousness of each day and each moment. To allow a stillness to develop within us, to experience peace and quiet joy.
Your design
Many different names are being used or retirement – “refire”, “rewire” and “third act”. The real question is not what to call it, but what it will look like for each of us.
Taking time to design a lifestyle to suit your needs means you can go into retirement prepared. And possibly recreate yourself.
Start designing your unique retirement lifestyle using the free Heydays Roadmap to Retirement. It provides tips on how to design different lifestyle aspects and indicates what to consider, and when.