BENEATH THE SURFACE Retirement Can Be Scary or Joyful, Your Choice F or some, retirement cannot come a moment too soon. For others, it is a reality that brings with it apprehension and even dread. We all have friends and colleagues who fall across the spectrum of thoughts of what retirement means to them. I know folks who have been thinking about and planning their post-primary vocational life for some time. It is almost as if they are only working to retire. However, my 35 years of experience in the geo-construction industry is quite the contrary. Rarely do I come across folks who are counting the years, months, days, hours and even minutes until they can call it quits. I believe this is a testament to the uniqueness of our industry and to the type of people who populate the ranks thereof. When it comes to thinking about retirement one cannot begin to soon. “Thinking” is not “planning,” and planning is the key. For some, the very thought of not having to go to work every day — no more long commutes, long hours, a good deal of tension, aggravation, serious and not so serious decision-making — is a delightful prospect. For others, it is more of an “oh my gosh, what am I going to do with myself?” There are literally hundreds of books and thousands of articles written on the subject, many of which offer excellent advice, while others may be more a compilation of clichés and even sales pitches to use some retirement planner’s services, attend seminars, or, at least, buy his/her book. While there is much that can be said about how to approach and even think about retirement and what might come “next,” this column does not have that focus, important as those issues are. What I will offer are some statistical realities based on a myriad of studies of what one must consider when one plans for retirement, a bit of advice on how to plan, and what to keep in mind. Statistics that Bite According to a 2017 study by Merrill Lynch, the average cost of retirement is about $700,000. This number is based on actuarial tables that take into consideration post-retirement demographics relat ive to working life cycles and changing life expectancy. This also assumes that the typical age for retirement is 65, which is changing, as people not only live longer but also want to or have to work longer. That $700,000 number is relative, to an extent, as it assumes the continuation of an average lifestyle consistent with the way in which one has conducted one’s life. If one desires more frills in one’s post-work years, the number goes up. This of course is a very personal choice. You can pick the lifestyle and attendant number that fits you. Remember, every decision has a cost. Fidelity Investments estimates that, on average, during your retirement years, health care and medical expenses alone will total about $275,000. This assumes that one retires in 2017 at age 65 and lives until 85 or 90, both of which are within the current “normal life expectancy cycle.” This also assumes that one will not experience catastrophic illness during the retirement time frame. If catastrophe comes your way and you are not properly and financially prepared, the number becomes irrelevant and increases exponentially. Whether one relies solely on Medicare or thinks far enough ahead to plan to carry a Sup- plemental Health Insurance program, the “costs are the costs.” Advice from the experts is to not rely solely on Medicare and to do AUTHOR S. Scot Litke, Hon. D.GE your homework, wi th a professional if possible, to select “How soon should I begin to plan for my retirement?” My answer is “yesterday.” the most appropriate supplemental plan for you and for your family. A corollary issue is considering a long term care insurance plan. My simple advice: GET PROFESSIONAL HELP. Americans, in general, are not known for their prudent saving and/or ret i rement planning habits. A recent Go- Banking Rates survey found that that “55 percent of Americans have put away less than $10,000 for retirement.” Moreover, according to retirement researcher, Nari Rhee, in a report for the National Institute on Retirement, “92 percent of working families have retirement balances that do not meet fundamental savings targets.” Chris Hogan in his book Retire Inspired: It’s Not an Age. It’s a Financial Number states, “People don’t generally enter retirement with no savings because their plan didn’t work; they retire broke because they didn’t have a plan in the first place.” While I earlier eschewed the number of books and articles written on the subject, Hogan has put forth some interesting principles that I think are worth noting. He offers five fundamentals that one should keep at the forefront: 1 Don’t be reluctant to dream. “Dreaming is an action.” 2 Have a plan. “Let the plan be your GPS to get to your retirement dreams.” DEEP FOUNDATIONS • NOV/DEC 2017 • 117
