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TWISTS & TURNS OF POST-WORK LIFE By Chad Lawhorn lll
clawhorn@ljworld.com Your retirement era has finally begun. It is a new chapter in life that you have thought about a lot, even planned for, you’d say. There’s been pencil to paper and conversations with advisers. But then one day, something you hadn’t planned for happened. You reached the end of your “to-do list.” It is a fairly common retirement surprise, but in Lawrence and Douglas County, there can be a fairly straightforward solution: Go talk to Roger Hill. Retirement surprise No. 2 is that you won’t actually be talking to someone named Roger Hill. Rather, the advice refers to the Roger Hill Volunteer Center. Founded in 1990 and affiliated with the local United Way, the center aims to be the “nexus for volunteer recruitment, coordination We have a lot and engagement,” in Lawrence and of retirees who Douglas County. Or, put more simply, they can start are busier than filling up your to-do list — but probever because ably in ways that you will like. they are doing “We have a lot of retirees who are busier than ever because they are volunteer work doing volunteer work and they are and they are doing doing something they are passionate about versus something they feel something they like they need to show up for a payare passionate check,” said KJ Abel Ruch, director about versus of the Roger Hill Volunteer Center. People can reach out to the center something they at volunteer@unitedwaydgco.org to feel like they need set up a time to talk to Ruch or anto show up for a other staff member about volunteer opportunities in the area. Ruch said paycheck.” it can be fairly easy to find something a retiree is interested in and — KJ Abel Ruch, director of match it to a volunteer need in the the Roger Hill area. Volunteer Center A retiree’s interest can be related to the work from their past career, but it definitely doesn’t have to be, Ruch said. “If they were an accountant and want nothing to do with accounting anymore, they can reach out to an organization they have a passion for,” Ruch said. Ruch and the center can facilitate that outreach, but the internet also can speed the process up. The center operates a website — volunteerdouglascounty.org — that lists a multitude of agencies that currently are seeking volunteers. Sometimes the events are one-time engagements. Currently, the Busker Festival is looking for volunteers for its downtown event in May. (No word on if being a retired firefighter puts you at the top of the list to light the torches for the fire-eater.) Many other events are ongoing.
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THE SENIOR RESOURCE CENTER FOR DOUGLAS COUNTY is located at 745 Vermont St. in Lawrence. IT OFFERS INFORMATION ON a variety of issues impacting retirees and hosts plenty of SOCIAL ACTIVITIES, including quilting, music and games. ABOVE: Sharon Mayer pauses from her drawing at an art session at the Senior Resource Center for Douglas County on Feb. 21.
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What’s new for Medicare in 2023? have been subject to deductibles and cost sharing.
By Kate Ashford lll
Nerdwallet via AP A new year means changes to Medicare, including updated premiums and deductibles and sometimes big policy moves. In 2023, there’s a little of everything: Some costs have gone down, others have increased, and there are some notable tweaks to how Medicare works. Understanding what’s new can help you get the most from your Medicare benefits. Here are some key 2023 updates, according to the Centers for Medicare & Medicaid Services. Shutterstock Photo
PART B COSTS HAVE GONE DOWN Medicare Part B is medical insurance that covers needs like doctor visits and durable medical equipment, such as wheelchairs and walkers. Everyone pays a Part B monthly premium, even people with Medicare Advantage plans. In 2023, the Part B standard premium is $164.90 per month, down from $170.10 per month in 2022. If you have a higher income, you may pay more . The Part B deductible dropped to $226 in 2023, down from $233 in 2022. PART A COSTS HAVE GONE UP Medicare Part A is hospital insurance that covers inpatient stays in a hospital or skilled nursing facility. Most people don’t pay a premium for Part A, but for those who do, those premiums increased to $506 per month, up from $499 in 2022. And the deductible for a hospital stay is $1,600 in 2023 for each benefit period, up from $1,556 in 2022.
Copays for inpatient stays in hospitals and skilled nursing facilities are also up. These are costs per benefit period: l $400 per day for days 61 to 90 in a hospital (up from $389). l $800 per “lifetime reserve day” after day 90 in a hospital, up to a limit of 60 days in your lifetime (up from $778). l $200 per day for days 21 to 100 in a skilled nursing facility (up from $194.50).
MEDICARE START DATES HAVE SHIFTED It used to be that for certain Medicare sign-up times, your coverage started two to three months later, which could cause gaps in health care. Starting this year, those dates have changed. If you sign up for Medicare the month of your 65th birthday or during the three months after, your coverage now starts the month after you sign up. Similarly, if you sign up for Medicare during the general enrollment INSULIN COSTS ARE CAPPED period from Jan. 1 to March 31 New this year, insulin costs each year, your coverage starts are limited to $35 a month for the next month. (It used to start Medicare beneficiaries, and July 1.) there is no deductible. Although the change went into effect Jan. SHINGLES VACCINES ARE 1, plans have a deadline of March COVERED to put this system in place. If All adult vaccines covered you pay more than $35 a month under Medicare Part D and for insulin in January and/or recommended by the Advisory February, ask your plan about Committee on Immunization reimbursement for the overage. Practices are now covered in Starting in July, insulin used full. This includes the shingles with a traditional pump covered vaccine and the tetanus-diphby Medicare will also be capped theria-whooping cough vaccine. at $35 for a month’s supply. Previously, these vaccines may
MEDICARE ADVANTAGE PLAN RATINGS ARE LOWER Each year, the Centers for Medicare & Medicaid Services gives every Medicare Advantage plan a star rating ranging from 1 to 5, with 5 being excellent. Overall, the average star rating for Medicare Advantage plans, weighted by enrollment, is 4.15 in 2023, down from 4.37 in 2022. This change doesn’t mean quality has dropped. In fact, last year’s plan ratings were unusually high because of a pandemic policy that applied a natural disaster exception to all Medicare Advantage plans — instead of just the ones in areas affected by something like a hurricane or flood. As a result, plan ratings in 2022 were higher than usual, and this year’s correction likely represents a truer rating of plans. PEOPLE WITH END-STAGE RENAL DISEASE CAN GET MORE DRUG COVERAGE Medicare beneficiaries with end-stage renal disease used to lose their benefits 36 months after a kidney transplant, unless they were otherwise eligible for Medicare. But starting in October, they could apply for immunosuppressive drug coverage through a new benefit called Medicare Part B Immunosuppressive Drug, or Part B-ID, which started Jan. 1. The premium for this benefit is $97.10 per month in 2023. This benefit covers only continuous immunosuppressive drugs, and these beneficiaries cannot have other health coverage.
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Get your retirement savings on track for 2023 By Josh Dudick lll
Wealth of Geeks via AP Last year saw millions delay retirement, and this year could get worse. There is uncertainty shrouding the economic outlook for 2023, with investment bank JP Morgan predicting decelerating economy and a mild recession. Amid the current volatility, being proactive is essential to keep your financial goals on track. The current inflationary environment is causing considerable uncertainty around retirement. A study done in September last year found
almost three-quarters of Americans said the rising cost of living was causing them to change their retirement plans in one way or another. One in five people aged between 55 and 64 said they had delayed their timeline for retirement in response. In truth, many Americans are woefully underprepared for their post-paycheck future. According to Federal Reserve data, the average American has less than $207,000 saved for their post-work life by the time they reach retirement age (65 to 69). That is a relatively small sum, especially considering the median income for workers in their late sixties is about $52,000 a year.
Despite the doom and gloom about the current state of the economy, 2023 doesn’t have to bring a financial setback. You can get your funds in order with careful foreplanning and financial discipline. Consider how you could take action on the following retirement strategies.
401(K) ALL THE WAY For many American workers, 401(k) contributions make up the financial foundation of retirement. 401(k) plans are employer-sponsored retirement plans that allow employees to contribute a portion of their salary on a tax-deferred basis. A 401(k) provides an ideal vehicle
to ‘set and forget’ retirement savings and allow your nest egg to compound with interest over time. Many workers find it easier to have a portion of their salary automatically sent into a retirement account rather than having to consciously save it themselves. In addition, many employers offer to match whatever amount their employees contribute to the plan. Depending on the plan’s details, this can potentially double the sum going into your account each month. Taking advantage of this ‘free money’ is an excellent way to boost your retirement savings and get a return on your contributions.
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Answers to Some of Your Most Fundamental Retirement Questions Most hardworking Americans dream about retirement, but the path to get there can be less than clear. For those relatively new to the workforce, the idea of retiring may feel distant and abstract. And they’re not the only ones with questions. Even people who are only a few years from retirement are often perplexed by the decisions they face. While everyone’s journey is different, I know from my years of experience as a financial advisor that there are common themes when it comes to questions about retirement. For example, those who just started their careers and have decades before retirement may wonder:
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“With all my current financial priorities, why should I worry about saving money for retirement?” The sooner you start saving for retirement, the greater the opportunity for your money to grow. If you are in your twenties or thirties, you may not have as many assets as those who have been in the workforce for decades. What you do have is time, and that can be a powerful ally. Time allows you to take full advantage of the opportunity to compound growth in your investments. Even modest investment amounts that have years to potentially grow can make a significant difference in your retirement savings.
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“How much of my paycheck should I save for retirement?” A reasonable goal is to save 10 percent of your pre-tax income in retirement savings vehicles. If you have the option, strongly consider directing a portion from your paycheck to a 401(k) or another workplace savings plan. If your employer offers a matching contribution, even better. That’s essentially “free money” that you don’t want to miss out on. If you have additional discretionary income beyond that, you may want to save it in a Roth IRA, which could help you build retirement savings with after-tax dollars and create potentially tax-free income in the future. On the other hand, if retirement is in your near future, you may be pondering these questions:
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Paying off your mortgage may seem like a great idea, and if you’re like a lot of near retirees, the prospect of eliminating debt and reducing your monthly expenses may be appealing. That said, there are a variety of factors to consider. One of the biggest is the cost and potential tax consequences of moving a large sum of money out of an existing investment in order to pay off the balance of your mortgage. If the interest rate you pay on your mortgage is low, you may want to keep that money invested and continue making mortgage payments.
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Also, holding a mortgage is key to many Americans’ tax strategy because the interest paid could potentially be tax deductible. If mortgage interest is part of your tax strategy, consult with your tax professional before making the decision to own your home outright.
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“How will I know if I saved enough money to last?” The answer to this question will depend on your retirement dreams and current financial situation. The variables that come into play include the amount of money you’ll need to pay to cover your expenses each year and other sources of income you have (such as a pension or Social Security). The biggest unknown is how long your retirement will last, but most people should be prepared to spend several decades in retirement. A financial plan can help you test different assumptions based on an appropriate retirement date.
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“Will Medicare cover my health care costs in retirement?” Health care is one of the largest expenses most retirees incur in their later years, and Medicare only covers a portion of heath care expenses. It is broken up into different parts. Part A is offered at no cost, but mainly covers only expenses related to hospitalization. Part B requires a monthly premium but makes medical services such as care from a doctor or tests more affordable. Part C is an alternative type of Medicare coverage provided through private insurers, at a cost. Part D is a prescription program that helps reduce the price of drugs. Medicare Supplement coverage is another form of coverage that charges a premium but helps reduce out-of-pocket medical expenses.
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“Should I pay off my home mortgage early?”
“At what age should I begin to collect Social Security?” This varies by person. The earliest you can qualify to begin collecting Social Security retirement benefits is age 62. The longer you wait, the larger your benefit will be. The highest monthly benefit you can earn occurs when you reach age 70. If you continue to work, it may make sense to delay taking Social Security. When you retire, you’ll need to weigh the value of delaying Social Security against the cost of taking money out of your personal savings to make up the difference.
Whether retirement is a year or decades away, it’s important to craft a plan for how you will build your nest egg and fund your retirement dreams. If you have questions or want to discuss your personal situation, consult your financial advisor, estate planner and tax professional for guidance. Dan Cary is a Private Wealth Advisor and Certified Financial Planner with Dan Cary and Associates, a private wealth advisory practice of Ameriprise Financial Services, LLC. in Lawrence, KS. He specializes in fee-based financial planning and asset management strategies and has been in practice for 28 years - To contact him, 785-856-7111, 1319 Wakarusa Drive, Suite B, Lawrence KS 66049 Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Ameriprise Financial Services, LLC. Member FINRA and SIPC. © 2022 Ameriprise Financial, Inc. All rights reserved.
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‘Bridge’ your way to Social Security? Patrick Semansky/ AP File Photo
By Liz Weston lll
THE SOCIAL SECURITY ADMINISTRATION’S main campus is seen in Woodlawn, Md., in 2013.
Nerdwallet via AP Delaying the start of Social Security benefits is a powerful way for retirees to cope with inflation, survive bad investment markets and reduce the risk they’ll run short of money. The advantages of waiting are so great that financial planners often recommend their clients tap other savings, such as retirement funds, to help them delay claiming. Employers could increase their workers’ financial security by offering a similar “bridge” strategy as part of 401(k)s and other workplace retirement plans, according to a study by the Center for Retirement Research at Boston College. The bridge strategy would tap a worker’s retirement account to pay amounts roughly equal to the foregone Social Security checks. People can create such bridges on their own, of course. If Social Security projects your benefit at age 62 will be $1,500 a month, for example, you could set up automatic monthly withdrawals of that amount from your 401(k) at retirement. But having an employer offer the option could make the process easier and encourage more people to delay, says Gal Wettstein, the center’s senior research economist and co-author of the study.
BENEFITS OF WAITING ARE HUGE Social Security benefits are incredibly valuable to retirees. Benefits are adjusted annually for inflation and, unlike retirement savings, can’t be depleted by bad markets, bad investing decisions or bad luck. People can claim Social Security retirement benefits at any time from
ages 62 to 70. Starting before your full retirement age, which is currently between 66 and 67, typically means settling for a permanently reduced benefit. Delaying beyond full retirement age, by contrast, increases retirement benefits by 8% each year until your benefit maxes out at age 70. Waiting until age 70 can increase your Social Security checks by at least 76% compared to starting at 62, Wettstein says. “The higher monthly benefit means you have more guaranteed income, which will last you for the rest of your life,” Wettstein says. (By the way: Your Social Security benefits begin earning inflation adjustments starting at age 62, whether you’ve started receiving them or not, according to the Social Security Administration. So next year’s 8.7% cost of living increase is no reason to speed up your application if you’re able to hold off.)
MOST PEOPLE ARE STILL CLAIMING TOO EARLY Copious research has shown that most people are better off waiting to claim Social Security. It’s particularly important for the higher earner in a married couple to delay, since that
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benefit determines what the survivor gets after the first spouse dies. A study by economists from the Federal Reserve and Boston University found that “virtually all” U.S. workers ages 45 to 62 should wait beyond age 65 to claim, and 90% should wait until age 70, although only about 10% currently do. Claiming too early will cost the typical worker over $182,000 in lifetime discretionary spending, the economists found. The average claiming age inched up between 2008 and 2018, from 63.6 to 64.7 for men and from 63.6 to 64.6 for women, according to the Social Security Administration. Most people still claim their benefits before reaching their full retirement age, which means their benefits are permanently reduced.
FEW RETIREMENT PLANS HELP WITH PAYOUT STRATEGIES Many employers provide matches to encourage people to accumulate money for retirement, but few help with payout strategies when it’s time to retire, Wettstein says. A few offer the option to annuitize, which means turning some or all of the balance over to an insurer in exchange for a guaranteed stream of payments.
Most people don’t much like the idea of giving up big chunks of their savings, Wettstein says. His study presented an alternative — the employer-provided bridge — to a nationally representative sample of 1,349 people ages 50 to 65 who had not retired and who had at least $25,000 in their 401(k). The strategy would allow participants to use up to half of their retirement account balances to replace Social Security checks while they delayed claiming. A “substantial minority” said they would use the strategy if offered, the researchers found. About 27% of those who were given a brief description of how it worked said they would use it. The percentage willing to use the strategy rose as participants were given more information, with 35% of those given the most complete explanation saying they would use it. In addition, 31% said they wouldn’t opt out if their employer made the bridge strategy the default option. Wettstein says to his knowledge no employers are currently offering a bridge strategy, but he hopes the research will spur some to consider it. Figuring out when to claim Social Security is daunting enough for the average worker, let alone deciding how and when to tap retirement funds, he says. An employer-provided bridge strategy could make waiting easier for many. “If it’s all set out for you in a way that is effortless, that is definitely attractive,” Wettstein says. The nationally representative survey of 1,349 respondents was conducted online in July 2021 by the NORC at the University of Chicago. Participants were ages 50-65, not retired, and had balances of at least $25,000 in their 401(k).
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Why do so many choose Medicare Advantage? gym membership is missing the point of insurance. “It’s not about paying for the little piddly expenses that you have,” Beck says. “It’s paying for the catastrophic expenses.”
By Kate Ashford lll
Nerdwallet via AP In 2022, 48% of Medicare beneficiaries were enrolled in Medicare Advantage plans instead of original Medicare, and experts predict that number will be higher in 2023. Medicare Advantage plans are offered by private insurers and bundle Medicare benefits in a way many people find appealing — but they also limit care to network providers, often require preapproval to see specialists and can saddle beneficiaries with high out-of-pocket costs for serious conditions. The number of older adults in Medicare Advantage is also notable because financial experts tend to recommend original Medicare with a “medigap” supplement. “I help my clients with Medicare choices, and what I tell them all is that if you can afford it, you should sign up for traditional Medicare with a Medicare supplement plan,” says David Haas, a certified financial planner in Franklin Lakes, New Jersey. So why do so many people turn to Medicare Advantage for their health care in retirement? Here are the main factors.
MEDICARE ADVANTAGE IS OFTEN FREE In 2023, 66% of Medicare Advantage plans with prescription drug coverage have no premium — versus medigap, which has a monthly premium. If you have no health issues, the choice can seem like a no-brainer. “Medicare Advantage is extremely attractive when you’re healthy,” says Leslie T. Beck, a
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To get the most benefit, employees should review their company-sponsored 401(k) guidelines to ensure they are maximizing contributions and company match. The best strategy is to not only max out your 401(k) contribution limit but also to find an employer that offers dollar-for-dollar matching contributions in addition to non-matching contributions. This way, you can get the company as close to maximizing the employer’s total allowable contribution as possible.
THAT EXTRA SOMETHING Beyond the 401(k) plan, consider additional retirement contributions using Roth IRA contributions to grow your retirement nest egg further. With a Roth IRA, your
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certified financial planner in Rutherford, New Jersey. “But when something happens — and something always happens — and you’re in a Medicare Advantage plan, you can’t switch back. You can switch into regular Medicare, but you’ll never get a medigap policy.”
PLANS ARE BUNDLED With original Medicare, people must juggle individual pieces of coverage — Part A, Part B, Part D, medigap — but Medicare Advantage offers one-and-done simplicity: There’s one premium for everything. Although choosing a Medicare Advantage plan feels simpler, it means you must shop again for coverage every open enrollment. “You have to include the prescription drug coverage and the doctor coverage, and you have to make this choice every year,” Haas says. With original Medicare, Haas says, “(Y)ou do need to choose a new Part D plan, but you don’t need to reopen your entire medical equation every year
contributions can only be made with after-tax dollars. However, any earnings on your contributions grow tax-free, so you don’t have to pay taxes on them when you withdraw them in retirement. Another benefit is their limitless lifespan. Unlike traditional IRAs, Roth IRAs don’t require you to take required minimum distributions (RMDs) from age 72. In other words, you can leave your money to keep growing in the account for as long as you want.
SLOW AND STEADY Long-term passive-style investing is another ideal retirement strategy. Typically this is done through low-cost index funds — the kinds of exchange-traded funds (ETFs) offered by Blackrock, Vanguard, and other prominent investment firms. There are other options, too, such as bonds, mutual funds, or other securities. The most suitable
long-term asset type is that which best matches your risk profile as an individual investor. The key is to start saving as early as possible and consistently set aside money over time. The market is currently still down from its all-time highs at the end of 2021. Yet times like these, when sentiment is low and fears of recession widespread, have historically been a good time to invest in equities. Using dollar-cost averaging and other tactics to invest consistently during a market decline typically pays off over the long run. However, as is often cited when discussing investment returns, past performance is no guarantee of future results. Even for those who do have formal retirement vehicles set up through their employer, having additional investments is certainly beneficial over the long run and gives you more asset options to draw upon in retirement.
the way you do with Medicare Advantage.”
MEDICARE ADVANTAGE OFFERS EXTRAS Many Medicare Advantage plans offer additional benefits, such as money toward dental or vision care, which isn’t covered by original Medicare. About 1 in 4 people say extra benefits pushed them to choose Medicare Advantage, according to a survey by the Commonwealth Fund, a health care think tank. “Medicare Advantage plans are heavily marketed and tout how they include all of the other services not available with medigap — prescription drug plans, subsidized health club dues, dental and vision,” says George Gagliardi, a certified financial planner in Lexington, Massachusetts. “So it seems to many people like too good of a deal to turn down.” But the extra benefits offered by Medicare Advantage are generally pretty limited, and experts say choosing a health plan for the dental coverage and
THEIR FRIENDS CHOSE IT Many older adults choose a Medicare Advantage plan because someone they know chose one. “We tend to get a snowball effect,” says Andrew T. Cook, a certified financial planner in Timonium, Maryland. “One retiree made the decision, they talk to another retiree, who talks to another one, and that groupthink often leads them to conclude that if they all made the decision independently, it must have been the right decision.” But Medicare is an area in which retirees should go beyond friends for advice. If a financial planner isn’t an option, each state has a State Health Insurance Assistance Program, or SHIP, where people can get free, unbiased guidance. Visit shiphelp.org to find a program. ADS ARE EVERYWHERE “When you talk about advice on what’s better for individuals, it’s really whose voice is the loudest and the most persistent,” Beck says. “If you’ve ever watched any late-night TV, it’s just ad after ad for Medicare Advantage.” In addition to being prolific, the ads are increasingly misleading. Growing complaints about Medicare Advantage advertising have led the Centers for Medicare & Medicaid Services to now require that insurers get approval from federal regulators before airing television ads. “I watch those ads very carefully, and they basically conflate Medicare with Medicare Advantage,” Beck says. “It’s rare that they mention ‘Medicare Advantage.’”
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How to create a retirement ‘glide path’ By Liz Weston lll
Nerdwallet via AP In investing terms, a “glide path “ describes how a mix of investments changes over time. Typically, the mix gets more conservative — with fewer stocks and more bonds, for example — as the investor approaches a goal such as retirement. You also can create a glide path into retirement by making gradual changes in your working and personal life in the months or years before you plan to quit work. Retirement can be a jarring transition, especially if you haven’t set up ways to replace the structure, sense of purpose and socializing opportunities that work can bring, says financial coach Saundra Davis, executive director of Sage Financial Solutions, a nonprofit financial education and planning organization in San Francisco. “People are excited to leave (work), but then once they leave, they feel that pressure of ‘How do I define myself?’” Davis says. “‘Am I important now that I’m no longer in the workforce?’”
WHAT DO YOU WANT YOUR LIFE TO LOOK LIKE? Davis suggests people start by thinking about what they want from retirement. That could
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Both opportunities can be great, but Ruch said she has many retirees who volunteer for an ongoing activity. Many like the idea of committing to a particular day of service each week. She said that makes opportunities like driving for Meals on Wheels, taking a shift at the Habitat for Humanity Re-Store or working at regular food pantries popular options. And then, sometimes, one day leads to another. “I know some volunteers who almost become part of the staff,” Ruch said. “They are there so much and they often get leadership roles in the volunteer program.” That can be a retirement surprise in itself: You’re back at the office, and loving it. lll
Running out of activities is just one of several surprises that can pop up in retirement. Staff at the Senior Resource Center for Douglas County works to help retirees deal with those unexpected twists
mean visualizing your ideal day: where you’re living, what you’re doing, who you’re spending time with. Free tools such as YearCompass and Unravel Your Year can help you identify what “sparks joy” for you and what you want more of in your life, Davis says. These tools allow you to reflect on your recent past and plan for the future. “What are the things that have been calling you? What gives you energy?” Davis asks. Your ideal retirement may well face roadblocks: a lack of money, ill health or the need to provide care for someone else, for example. But understanding what you really want from this phase of your life can help you figure out ways to get what’s most important, she says. “Just because you might have some limitations, either physical or emotional or financial, don’t assume that that counts you out,” Davis says. Discuss your vision of retirement with your spouse or partner to “see if you’re on the same page,” suggests David John, senior strategic policy adviser for the AARP Public Policy Institute in Washington, D.C. Your significant other may have different ideas about when to retire, where to live and what they want to do with their time, and those should be discussed before either of you quits work, John says.
and turns, Executive Director Megan Poindexter said. Here’s a look at some of the more common surprises Poindexter and her staff see. l Financial: Poindexter said everybody’s financial situation is different, and the Senior Resource Center doesn’t present itself as an expert on the subject. In other words, employees there won’t be giving you advice on how to invest your money or protect your assets. But the nonprofit organization does bring in guest speakers, like a seminar on estate planning that is often popular, and they can point you in the right direction. For people who have the means to work with a professional financial planner, the Senior Resource Center encourages that route. But for people who don’t have that ability, the center can point to some of the more helpful online options, or work to connect you with a local nonprofit like Housing and Credit Counseling Inc. l Legal work: One of the more unpleasant surprises is when you learn you have waited too long to create a will, a living will, power of attorney or other such legal instruments.
“Most of us procrastinate on that, but there gets a point where you really do need to get those things done,” Poindexter said. “You don’t want to wait to a point where someone else may have to do that for you.” Entering retirement might be a sign that you are entering that point in life where waiting isn’t advisable. Much like the financial planning topic, the center tries to point people in the right direction rather than doing the actual work of creating the legal documents. For people who may not have the means to work with a traditional attorney in the area, the center has a strong working relationship with the nonprofit Kansas Legal Services. l Medicare: People generally can start receiving benefits under the federal health insurance program when they turn 65 years old. But figuring out when they need to start the process of enrolling in Medicare can be less straightforward. Poindexter said the timing can get tricky. Some people start the process too early, only to learn that changes occur in the program and they may end up filling out the same forms multiple times. Others wait
“We tend to assume that people agree with us, when we haven’t had a formal discussion about something, and that can prove to be a mistake,” John says.
WHAT ROLE WILL WORK PLAY IN YOUR RETIREMENT? Some employers have phased retirement programs that allow people to cut back to part-time work while retaining a paycheck and benefits. Other companies don’t have formal plans but may be willing to accommodate an employee who asks, particularly if the worker is a high performer, says Joe Casey, a retirement and executive coach in Princeton, New Jersey, and the author of “Win the Retirement Game: How to Outsmart the 9 Forces Trying to Steal Your Joy.” Phased plans give employers time to look for a successor while allowing workers to ease into retirement, says Melissa Shaw, a wealth management adviser for financial services firm TIAA in Palo Alto, California. “They still have more freedom to start to enjoy and plan for the next phase,” Shaw says. “It’s a good way to transition.” If phased retirement isn’t an option, a part-time job or consulting work can help people keep a foot in the work world while they shape their post-work life, Shaw adds.
too late and don’t have the insurance in place when they turn 65. The problem is so common that the Senior Resource Center has developed specific materials on this topic. The center has a checklist to help people approaching 65 years old determine what documents they will need, when they should start, and other details they’re going to want to know about the enrollment process. Much of the information is available online at yoursrc.org. “Our website has a fantastic tool for deciding how far out from their 65th birthday they need to get things in place,” Poindexter said. The center also regularly offers a free seminar called “Welcome to Medicare.” l Transportation. If the time comes that you want to give up your vehicle, you may figure the transition will be easy in a place like Lawrence with public transportation. Yes and no, are often what retirees find. The city does have a public, fixed-route bus service, but you may want to plan for a little time to learn its routes and schedules. The city and other organizations also offer point-to-point transportation services,
HOW WILL YOU STAY CONNECTED AND SHARP? Loneliness doesn’t just diminish the quality of your days — it also can diminish the quantity. Social isolation and loneliness significantly increase someone’s odds of premature death and are associated with about a 50% increased risk of dementia as well as higher rates of depression, anxiety and suicide, according to the Centers for Disease Control and Prevention. Many people underestimate the social connections that work provides, Davis says. They also may not anticipate how much their social circles can shrink over time as people move away or die. Davis recommends making friends of different generations to counteract that trend. Hobbies and volunteering are among the ways to find prospective friendships, she says. But it can also help to find friends or mentors among people who have retired, Shaw says. Senior centers, social connection sites like Meetup and the AARP Foundation’s Connect2Affect service are other ways to find potential social contacts. One of Shaw’s clients connected with a group of retirees at a gym before he retired, combining his desire to stay active and healthy with an informal support group, Shaw says. “Having others around you who have experienced retirement and who can provide support and tips and share ideas is extremely valuable,” Shaw says.
where a bus will pick you up at your location and drop you off at your destination. But that’s where retirees may have some misconceptions that lead to surprises. “They are not like Uber,” Poindexter said. “They are not an instant reaction transportation provider.” Oftentimes you have to apply to receive those specialized bus services, which means you need to plan ahead rather than wait for the day that you need to be somewhere. The Resource Center can help people understand the options and what’s needed to apply. l Social. Poindexter said the Resource Center really excels at providing opportunities for retirees and others to get together. The center, 745 Vermont St. in downtown Lawrence, hosts a variety of events and gatherings. Poindexter urges people to expand their boundaries with some of the event offerings because often the atmosphere and the fellowship are the biggest benefits to be gained from participation. “For example, we have a painting group and Scrabble group and a quilting group, and you may think ‘I don’t really paint or quilt,’” Poindexter said.
“You don’t really have to do painting or quilting. Sometimes I walk by and I’m skeptical whether they are getting anything done in there because there is so much laughter coming out of those rooms.” Helping people make those connections with others is one of the primary purposes of the center, she said. “We are so excited when people don’t just make passing connections but rather true friendships,” Poindexter said. “That brings so much happiness to our staff when that happens.” She said that need for human connection sometimes can be a surprise for retirees. Perhaps they have spent their careers in a busy office or have worked at serving other people their whole lives. Perhaps they are looking forward to alone time in their retirement. While that may be understandable, Poindexter said many people come to see what they miss about being around people too. “I’m a firm believer that humans were designed to live in community with each other,” Poindexter said. “It doesn’t matter how introverted you are, we all need other people in our lives.”
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