Taking the leap into retirement is not all about financial planning. With so much of the planning focused on how to raise funds before and spend it during retirement, other important considerations are often overlooked.
I recently gave a talk to retirees in our community and shared with them other non-financial considerations they should take into account during their retirement life.
According to the World Health Organization, people’s lifespan has increased over time, and is still expected to increase.
For a retiree, this means a longer retirement life – perhaps 30 or 40 years from retirement date. This also means higher expenses and more time to fund future needs.
Long-term health care
I have written about hospital stocks a few months ago and the benefits of being a stockholder. Retirement is when people would need healthcare the most. Preparing for it will yield cost-effective solutions and bring greater ease of life for retirees.
An article by Financial-Planning.com said that the durable power of attorney (DPA) is an important estate planning document retirees must have. A DPA, according to the website, “authorizes someone to act in financial and personal and business tax affairs in the event that a client is incapacitated and not able to make decisions for him/herself.”
In case a retiree becomes mentally or physically incapacitated and unable to manage finances, a DPA will be of big help.
Advanced medical directives
There will come a time when deciding on a person’s health is left to the closest relative. Living wills or advanced medical directives will solve that.
Advanced medical directives document what retirees want to do with their body in case of a terminal condition. In case a retiree’s life is being continued through life support, the burden of deciding for his or her health can be handled through advanced medical directives.
Having important documents like insurance policies and land titles should be secured in one storage. Retirees should scan or store documents in secure cloud services for back-up purposes.
For the travel junkies, they can consider going on group travels and budget tours to lessen their expenses. Retirees can look for others who want to go to the same destination and book together to get a much lower price.
Some retirees still live in a big house even if their family members have moved out. Downsizing their home by just buying or renting a smaller abode would mean cheaper maintenance costs and additional retirement savings.
Just a few days ago, I was listening to a radio station and the topic was diseases covered by Philhealth. I found out that Philhealth covers a range of conditions that are supported by their benefits. Go to http://www.philhealth.gov.ph/ to find out what illnesses PhilHealth covers.
Retirees’ lifestyle should not be sedentary. Maintaining an active lifestyle is a must. Retirees must have a healthier body to avoid getting sick. This would also mean lesser expenses for health and medicine. — Rappler.com
Rienzie is also an accredited investment fiduciary of Pennsylvania-based fi360 and an international member of the Financial Planning Association, the largest association of financial planners in the US. You may reach Rienzie at email@example.com, his Facebook account or Twitter @rbiolena.