Retirement payout choices

by Finn

You’re approaching retirement. You are vested in a retirement plan from an employer, either your current or previous employer. You have the option to take the retirement payout as a single or joint and survivor annuity, or as a lump sum.

Which would you choose? What factors would affect your decision?

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Early retirement? Cognitive decline?

by Finn

We’ve had a number of discussions here of what we’ll do, or are doing, in retirement, but among those of us not yet retired, we haven’t discussed much when we’ll retire (Milo and Fred are among the few who have).

This article raises another possible factor to consider, both in the timing of retirement and what to do in retirement:

Why Early Retirement Isn’t as Awesome as It Sounds

Do you have a target retirement date yet? Will the possibility of being affected by mental retirement and cognitive decline affect that date? Do you have plans for any activities in retirement to maintain cognitive abilities?

Your retirement location and home

by S&M

The Wealth Report

Some people here are planning their retirement, while for others it is dreamily far off. What are your criteria for your retirement home? Can you picture yourself living outside the US? This chart shows how much floorspace can be purchased for $1 million in various cities around the world. (1 sq m=10.76 sq ft) Pages 20, 21, 25, & 26 at the link give thumbnail descriptions of neighborhoods ready to grow in transportation & infrastructure, tech & creative industries, and for bargain hunters, as well as neighborhoods feeling the aftermath of gentrification and “hot spots” around the world. Do any of them look like “home” to you?

 

Is The Villages for you?

by MBT

My parents are in the process of visiting their local versions of The Villages. Because I would love for them to be near me, I am visiting a few in Houston in the hopes of offering them a comparable choice, both in amenities and cost. From what I’ve learned, it is a pretty darn appealing lifestyle. The ones they are interested in are referred to as Continuous Care Retirement Centers, and offer a range of completely independent living, assisted living, skilled nursing/rehabilitation services, and memory care.

Their first choice is essentially like living on a cruise ship. You buy in to your unit, and they have 21 floor plans to choose from of various sizes. There is weekly housekeeping, including changing linens, and some sort of call button if you have a problem. The Villages takes care of all repairs and maintenance, replaces your appliances (and makes your lightbulb selections!) when they need to be replaced, covers all utilities other than cable, and includes a choice of several restaurants and a bar that has “social hours”. On the day they visited, lunch in the fancier restaurant included salmon, asparagus, garlic mashed potatoes, and a slice of hot apple pie with ice cream for dessert. (No cooking or dishes, and hot apple pie – I think my mom was sold at that point!) In addition, you have no lawn maintenance, etc.

All at no additional cost, they have a fitness room, with personal trainers who come in at appointed times, offering yoga and other classes, a pool for swimming laps, and various healthy living courses. They also offer technology courses such as how to use your iPhone and iPad, they have an art studio, pool tables,putting green, poker tournaments, two libraries, and have outings such as architectural tours, trips to the movies, happy hours, parties, and other things. They will take you to appointments, haircuts, or wherever else you need to go. They also have a private dining room you can reserve if you want to have guests, and have a guest suite available for visiting friends and family. Again – my mom is pretty enticed by the fact that you don’t have to do all the work to get your house ready for guests.

When they were visiting, they saw friends my dad had retired with, former neighbors, and ran into people from church. It is clearly a pretty social place. Some friends told them they like to come down for lunch, order two lunches but split one and bring the other back to their room. Then they stay in for dinner and just reheat the leftovers. I’m sure you could get take-out or a meal sent up from the restaurants as well if you didn’t feel like a shared dining environment.

I had never given much thought to where we’ll live when we’re older, but I have to say The Villages is now a contender. I like my independence and a fair amount of quiet time, but it seems that you could have whatever blend of social and private that you would like. It seems like an excellent way to extend the amount of time you are able to live independently, albeit at a cost. It appears that the buy-in will be about $150-$200K more than my parents will sell their house for, and the monthly fee will be somewhere between $5500-$6000. The pricing is all very sketchy and non-transparent, with the whole “if you are willing to sign the contract today, I can give you a discount of x” pressure. So far, the ones I have seen a reasonable distance from me are nice, but are smaller so they do not offer as many amenities, or three meals a day, and in some cases, no bar and no wine or spirits available with meals.

Do you have any experience with any version of retirement living? Have you given any thought to where you’d like to live when you hit your golden years?

Post-Retirement Aged Workers In the Workplace

by Honolulu Mother

This Pacific Standard article on a 91 year old working as a designer was interesting, both because the woman herself sounds like an interesting and impressive person and also for the points it raised about whether our culture drives post-retirement-aged people away from potentially continuing to work and the effect on our workplaces:

We’ve marginalized a lot of populations based on blanket prejudices, and our attitude toward old people is no different, Irving says. “The ironic thing is that aging is the one thing we have in common, if we’re lucky.” All generations have to think about aging, since we’ll all be affected. The mixed workplace may help reduce these prejudices. By keeping older adults active and integrated in our communities—and by thinking about our communities as wholes, instead of as isolated pockets—we will all benefit from the knowledge and expertise that comes from lives lived with purpose and vigor.

Do you have co-workers who are post-retirement age? Would you like to keep working after normal retirement age?