Tag Archives: Time Of Life

It’s More Than Just Finances: The Psychology Of Retirement

It’s More Than Just Finances: The Psychology Of Retirement

There are certain phases of life that most of us just naturally fall into with little to no psychological effort. Retirement, however, isn’t one of those phases. It’s a time of life that requires both careful forethought and changes to mindset.

Many think of retirement purely on a monetary level, particularly how their finances will change. Indeed, just managing current and future finances can be a full-time job during retirement. However, retirement also involves many psychological aspects.

For the last forty or more years, your career has been one of the main things that defined your life. Just think about how many times you’ve used your occupation to partly introduce yourself, give meaning to your life, or describe who you are. There’s often an initial feeling of overwhelming identity loss when retiring. If you’re not defined by the career you’ve spent the majority of your life building anymore, then you’re going to need to reinvent who you are now and who you plan to become in the future.

Start out by composing a list of what you’ve always wanted to do, but have never had the money or time to get done. Maybe you want to be a world traveler or volunteer for a cause close to your heart. Maybe you want to complete your education for personal satisfaction, start an entirely new career, or try your hand at being a business owner. Whatever is going to help you define the new you, it should be something that’s feasible and practical to accomplish.

Be careful about thinking that retirement is the end of monotonous work and the beginning of fun and exciting activity. Research has shown that there are potentially very serious consequences (such as boredom, depression, and feelings of being nonproductive) for many that don’t work after they retire.

Many retirees mistakenly think that a certain leisure activity that they’ve always loved or wanted to try will keep them interested and occupied. But, after just a few months, most usually find that monotony isn’t something unique to work activities. One way to avoid the pitfall of boredom during retirement is to test-drive various activities while you’re still working. It makes sense that if you get tired of playing golf every weekend for a year, then it certainly isn’t going to hold your interest during retirement. Likewise, if you plan on opening a business or starting a new career, then you can test-drive your new identity by taking night classes or working weekends in a business like the one you plan to open. Finding a new you will also help you to stay happy and productive, which will be essential considering you will now most likely be spending more time than ever with your significant other and family.

Should I Be Thinking About Long-Term Care Insurance?

Should I Be Thinking About Long-Term Care Insurance?

Chances are, you are like the majority of individuals who have reached middle age. The primary concerns in your life are paying your monthly bills, making sure your children receive a good education, as well as the all-important goal of saving some money every month for retirement. At this point, it seems a long way off, but do not be deceived; it will be here sooner than you think. You may have heard about long-term care insurance, but you probably dismissed it with questions such as “What is it?” or “Who needs it?”.

The answer is that you do, and so does everyone else. You may reply that you already have health insurance. If you do, congratulations; it is hard to get in today’s political climate. The problem with most health insurance is that it does not cover what are known as custodial expenses. These expenses arise from custodial care, which is defined as the care needed as a result of the inability to carry out tasks relating to the following daily activities: bathing, dressing, eating, continence, toileting and transferring.

As people age, many of them find these basic tasks harder and harder to do without some form of help. The need for this type of care necessitates having long-term care insurance, which can provide the monies necessary in order to hire and maintain the proper care needed. This is made even more necessary by the fact that people are living much longer, sometimes twenty or thirty years longer past retirement. Oddly, the fondest wish of these people is to remain independent. Fortunately, they can do so if they obtain long-term care insurance.

The best time to do this is when someone is in their mid-forties, because that time of life is when insurance companies offer the lowest rates and premiums for their policies. Children can also purchase it for their aging parents. If they do not, there are two options left if something goes wrong, both of which are very unattractive. They either have to pay for the cost of their own income, or their parents have to pay for it out of their assets.

When you take into consideration the fact that this care routinely costs $75,000 and up annually, this is a tremendous burden to take on for either the children or the parents. Statistical research reveals that the average retired couple exhausts their savings in a matter of months when paying for care themselves. Even wealthy retirees find their money severely shrunk, which lives little for their children or grandchildren.

Long-term care insurance from a reputable and trustworthy insurance company can help retirees receive the care they need at a price they can afford both now and twenty or thirty years from now. Buyers must exercise the virtue of prudence when choosing a policy; each one comes with a set of circumstances and options to consider. After taking care of these, they are then free to enjoy the peace of mind that results from an effective long-term care policy.