5 ways to salvage retirement
It’s a scary season, what with Halloween just around the corner, and some of the fears looming large in people’s minds focus on retirement. So it’s probably pretty appropriate that we tackle some of those fears head on, so to speak.
The Huffington Post addressed just that topic, pointing out five things people who are not yet retired can do to ward off at least some of the effects of what experts predict: that people’s standard of living will fall during retirement, thanks to low savings levels and poor planning for the last stages of life.
We scouted around the web to find some additional data on why, and how, retirement is expected to fall so short of people’s anticipation, and what they might be able to do to forestall that drop in expectations. Here’s what we found:
5. Figure out where you’ll live
A person’s home might be his castle, but whether it will be a fortress surrounded by a moat or a gracious palace can depend a lot on that old real estate saw, location, location, location.
The cost of your retirement home, how much you’ll pay in property taxes, the cost of living in the area and many other factors determine whether that retirement Shangri-La will be a cozy cottage for two in a university town, a bungalow on the beach or a penthouse apartment overlooking sparkling city lights, with museums, restaurants and theaters within an easy stroll — maybe even in another country altogether.
But there are other intangibles to consider, too — such as whether you’ll be so forlorn at leaving family behind that you’ll either be miserable in situ or spend half your retirement budget traveling back to see the grandkids. And how good the health care facilities are in your new location — that can make a big difference not just in your budget, but maybe even in how long you survive to enjoy those golden years. Not to mention the crime rate and whether you’ll have a social support system in place.
Check out any prospective homes thoroughly before you make the big move, and make sure they have what you need to help you thrive during retirement.
4. Start saving more
While economizing might not be — or feel — glamorous, watching that 401(k) or IRA balance climb can certainly make you feel like a million bucks. Keep that in mind as you’re browsing for a new set of golf clubs or that perfect dress for a special evening out — especially if you don’t plan on playing golf in retirement or dining out on the town, because spending now could cost you big-time later on.
According to AARP data, 3 out of 5 — that’s more than half, folks — of the households headed by someone 65 years old or older have zero money in retirement accounts. That’s zero, as in zip, nada, nothing. How far into retirement will that get you? Into a job, most likely, working during the time that’s supposed to be your well-earned rest after a lifetime of supporting yourself and your family — if you can get one, that is.
Look for ways to cut your spending so that you can turn that money right around and put it to work for you in retirement. Whether it’s making coffee and lunches at home to bring to work or switching nights out with friends at a restaurant to entertaining at home, find ways to sock more away for the future — your future — when you’ll be glad you did.
3. Learn to live on a budget
You may already be doing this, but if you’re not, it’s probably time to start. While you may be planning to work in retirement, the job market may have other ideas — and if you’re dependent on a combination of Social Security and 401(k) or IRA money, that will limit your options. For one thing, seniors have to deal with a job market that’s prejudiced against them — and that’s stacked against them in other ways, too.
Not only that, but depending on who wins the election, your Social Security benefit may not be as predictable as you’d counted on — and then there’s the question of cost-of-living increases. After no increase at all for 2016, seniors will see a paltry average increase of $3.92, according to CNN. That’s a skinny 0.3 percent increase — hardly enough to notice.
And considering how health care costs are rising, women in particular need to be wary of stepping outside of a budget’s constraints; a Nationwide Retirement Institute study found that women could end up spending 70 percent of their Social Security benefits just paying for health care. Considering that women not only overwhelmingly (80 percent!) claim Social Security benefits early, thus locking in a lower benefit rate for their lifetimes, they depend on it to pay for 56 percent of their expenses in retirement.
That said, get used to living on less — you’re going to be doing so for a long, long time.
2. Prepare your home for the long run
If you’re planning on staying put in the house you’re currently living in, make sure it’s prepared for potential changes in your health and/or mobility — particularly if you don’t have coverage for nursing home care. While many people believe that Medicare will pay for a nursing home, should they become disabled, that’s not the case unless their assets are pretty much exhausted. Of course, that won’t take long when paying for the cost of care at a nursing facility.
In addition to stairs, reachable cabinets and accessible bathrooms, there’s the question of how affordable your home is. Can you refinance your mortgage at a cheaper rate? Rent out a room? Pay the property taxes? Maybe you should consider downsizing to a more affordable house, perhaps in the same neighborhood, if your network of friends and family is local. That can save you not just on taxes, but on heating and cooling bills.
It may not be what you had in mind, so it's smart to start setting realistic expectations of what your future retirement might look like.
1. Lower your expectations
Do you somehow expect that when you retire you’ll be traveling the world, dining at fine restaurants and going to the theater for every new production? Unless you have Warren Buffett’s budget, get real.
Most seniors have to cut back substantially when they leave the workforce. You will likely be no different. It’s easier to deal with that reality if you prepare for it mentally in advance, and realize that you’ll have to plan your excursions carefully and budget for them in advance.
The market was brutal to retirement plans during the Great Recession, and unless you were uncommonly fortunate, the money you saved for retirement throughout your career has not regained all lost ground. That said, depending on what you plan to do during your retirement years, you may still find it’s the most rewarding time of your life — particularly if those plans don’t depend on money.
See the original article Here.
Source:
Satter, M. Y. (2016 October 24). 5 ways to salvage retirement. [Web blog post]. Retrieved from address https://www.benefitspro.com/2016/10/24/5-ways-to-salvage-retirement?kw=5+ways+to+salvage+retirement&et=editorial&bu=BenefitsPRO&cn=20161025&src=EMC-Email_editorial&pt=Daily&page_all=1
A Good Place to Promote Workplace Wellness
Source: Safety Daily Advisor
If you've been thinking about holding a health fair to promote workplace wellness, here's some information that can help you get started.
Businesses across the country and across industries are embracing the idea that a healthier workforce is more productive and more profitable. They are also taking diverse pathways to encourage their workers to become more aware and more active in their own health.
On-site health fairs can be an excellent way to raise awareness about job-based risks and individual health status. Increasingly, fairs are seen as part of a larger effort to get employees to take responsibility for their own health.
Start with a Theme
Consider building your event around a theme, suggests Dr. Carol Rice, author ofWellness and Health Fair Planning (Texas AgriLife Extension Service, Texas A&M University). "Review your organization's goals, corporate philosophy, and culture to determine an appropriate theme for your health fair. Is your organization competitive, conservative, formal, or fun? What are your organizational demographics?" The answers can help lead to a theme and tone for the event.
Another consideration is time of year and other concurrent events. You may choose to piggyback on a holiday, season, or national observance like American Heart Month in February or Employee Health and Fitness Month in May.
Choice of Content
Options for booths, demonstrations, and information sharing are vast. Possibilities include:
· Self-care
· Back care
· Office safety
· Family fitness
· Using social media to improve health
· Ergonomics
· Alternative treatments (chiropractic, massage, acupuncture)
· Healthy eating and healthy weight loss
· Healthy aging
· Cancer prevention
· Women's/men's health issues
· Substance abuse
· First aid and emergency preparedness
· Stress reduction
· Screenings for blood pressure, blood glucose, cholesterol, etc.
You can also use a health fair to showcase in-house resources and opportunities as well as those provided by outside vendors. Examples of in-house programs include your EAP, safety and health department and committee, workplace wellness program, health insurance plans and related offerings, and recreational activities sponsored by your company.
Other Considerations
"Raffles, prizes, and giveaways can be fun at a health fair," says Rice. "They help build anticipation, participation, and excitement."
Another traditional incentive is a "wellness passport," which gets stamped at each booth or display an employee visits. Participants who collect a certain number of stamps receive a prize.
Other options include tokens, cash incentives, and time off for employees participating in a screening. Some employers whose health fairs are part of a workplace wellness program offer discounts on insurance premiums for completing a health risk assessment. Based on the results of the assessment, employees may be recommended for additional testing, disease management programs, and/or health coaching.
Fitness in Middle Age Lowers Medical Costs Later: Study
By Ellin Holohan
HealthDay Reporter
THURSDAY, May 10 (HealthDay News) -- Subsidizing exercise and fitness-related lifestyles in middle age could significantly reduce the ballooning cost of health care in later years, a new study of more than 20,000 people suggests.
The study, slated for Thursday presentation at an American Heart Association meeting in Atlanta, found that fit middle-aged men and women had significantly lower medical expenses later in life compared to people who failed to stay in shape.
The more-fit study participants had 38 percent lower medical costs many years later, measured by Medicare and other insurance claims from 1999 through 2009.
"We wanted to determine if higher levels of physical fitness in middle age are associated with lower costs later in life," said study author Dr. Justin Bachmann. "We found that fitness confers dividends later in life even when other risk factors such as smoking, high blood pressure and obesity are controlled for."
The implications of the findings give "credence to efforts like Michelle Obama's 'Let's Move' campaign," he said. The First Lady has initiated a project aimed at reducing childhood obesity through exercise and proper nutrition.
Levels of fitness were determined by a treadmill test measuring metabolic equivalents (METs), Bachmann said. The higher the METs, the more fit a person is. People who exercise regularly perform better on the test because they have greater aerobic capacity, which translates into better cardiorespiratory health and lower costs later in life, he said.
The study was a collaboration between the University of Texas-Southwestern Medical Center and the Cooper Institute, both in Dallas.
Researchers screened participants for previous heart attacks, strokes and cancer. Of the 20,489 given a "healthy" designation, 16,186 were men and 4,303 were women, with an average age of 51. When Medicare costs and other insurance payments were compared, the average age was about 72, Bachmann said. The study participants were drawn from the Cooper Center Longitudinal Study, a repository of health-related data from close to 100,000 patients collected over the past four decades.
Many of the study participants were business executives who went to the center for physicals and represent "an unusually healthy cohort," reducing the effect of confounding factors, Bachmann said.
The analysis controlled for health risks, such as smoking, diabetes, high blood pressure, cholesterol levels and body-mass index (BMI). Body-mass index, used to measure the impact of obesity, is based on a combination of height and weight in adults.
Even in the presence of risk factors, better fitness in middle age predicted lower medical costs later.
The least-fit group at the study's onset had higher risk factors across the board. For example, 31 percent of the most out-of-shape men smoked, compared with 9 percent of the most-fit men. About 5 percent of the least fit men had diabetes, vs. less than 2 percent of men in the best condition. A similar pattern existed for women in the study.
Average annual claims for medical costs for the least-fit men, at $5,134, were about 36 percent higher than the average of $3,277 a year for the most-fit men. The average medical claims of $4,565 for the least-fit women were about 40 percent higher than the $2,755 average for the most fit.
Another expert called the study "quite compelling" and connected the results of the treadmill tests to regular exercise, promoting it as a path toward fitness.
"Exercise is the best medicine we have," said Dr. Suzanne Steinbaum, a preventive cardiologist at Lenox Hill Hospital in New York City. Noting that exercise has an impact on blood pressure, diabetes and even mood, she said "the positive effect of exercise on the body is powerful and it's empowering."
Exercise affects "so many chronic conditions leading to major health care costs," said Steinbaum, who also is the hospital's director of women and heart disease. "We should have financial support for people to go to gym facilities."
People who are more fit should "get some benefit" from insurers, Steinbaum said. Society should "give them the ability to become fit," and then "give people a reward when they demonstrate" fitness, she added.
Because the new study was presented at a medical meeting, the data and conclusions should be viewed as preliminary until published in a peer-reviewed journal.