49% of Americans Retiring Earlier Than Planned

49% of Americans Retiring Earlier Than Planned

The latest U.S. Census reports that there are 44.7 million over the age of 65 in the United States. According to the Department of Health & Human Services, seven out of ten of them will need three or more years of long-term care before they die. Unfortunately, most families are not prepared when they need to step in and help mom, dad in the face of a crisis or medical issue, and the consequences of being unprepared can be severe amongst families – causing chaos, confusion, and loss of money.

What’s more, a 2014 survey by the Employee Benefit Research Institute found that 49 percent of retirees surveyed had retired earlier than they had planned. The survey found that many Americans find themselves retiring unexpectedly, and many retirees cited negative reasons for leaving the workforce, including 61 percent who cited health problems or disability.

Conversation Starters

The earlier you start talking about this the better. If you are having the discussion with a parent, always go in respecting the parent/child dynamic even through you may be 60. Consider this a conversation where you are trying to understand how a good friend, and someone you love is planning on spending the rest of their life. Some ways to do this include:

  • Ask mom and dad how they plan on spending their 60s, 70s, and 80s. Where do they want to live and how do they want to spend their time?
  • Request recommendations on how to approach estate planning. When did they do theirs and how did they decide who should be their advocate if one of them is unable to speak for the other?
  • Share a story of a friend or colleague who faced a difficult family health issue and talk about how your family might have handled the situation differently.

Unfortunately, you may have to wait for a pivotal event to happen before mom or dad are ready to have this discussion with you. Let me know if you have some additional suggestions on how to get this conversation started and I hope you will share which ideas helped your family.

For a free guide on how to organize your documents, accounts, and assets so that you can easily find them, or share them with a loved one should they ever need to help you, visit MemoryBanc.com/save.

The documents you need when a crisis strikes

I was the adult child named on the Durable Power of Attorney (DPOA) that needed to step in and use it. It was VERY difficult to use in several cases. For a more detailed look at my history, you can visit the blog I’ve been writing for three years on caring for two parents. One way to ensure that the individual you have named with this power can help you is to create a roadmap of the documents, accounts, and assets they may need to manage until you are back on your feet, or inevitably, to settle your estate.

My parents did everything that was recommended by their estate lawyer, financial planner and life insurance provider. However, they prepared most of the information to be delivered to me after they were gone. When they were too ill to manage on their own, I needed to know about their medical history, banking accounts, online services, household warranties … the list was daunting.

If you are named, or have named someone as your DPOA in your estate planning, you should sit down with them to review the location of important documents and instructions. After 40, nearly half of all American’s are expected to have a disability event lasting 90 days. It doesn’t need to be gloomy–as I reported on how I  shared my plans with the individual who I would expect to help me as well as with my children who are only 12 and 17 years old.

3DcoverFor an easy to use workbook that will guide you through the collection of your documents, accounts, and assets so that you can easily find the information when it’s needed, or could share it in a crisis, you can order MemoryBanc: Your Workbook for Organizing Life from any of these popular retailers at a pre-release discount today.

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Sharing MY DPOA & Estate Plan Wishes

This past weekend, I sat down with my brother and my kids and walked them through the estate plan my husband and I recently had updated. It wasn’t doomy or gloomy since we are in good health. It just resulted in peace of mind for my kids to know our plans and we made sure that everyone knows where they can find our completed MemoryBanc Register, and the original copies of all of our important documents.

I wanted to share this as a follow-up to last weeks post discussing the importance of having a Durable Power of Attorney (DPOA).

If you don’t already know this, the U.S. Department of Health and Human Services reports that 7 out of 10 of us will need long-term care assistance for at least 3 years. The difficulty a loved one faces when you don’t have a DPOA can be expensive, undignified and lengthy.

I hope you will consider speaking with a lawyer dedicated to the practice of estate law in your area. You should be able to get one for just a few hundred dollars.

Life Preparedness 101

mbicons1.jpgWe all know that we should plan for future life-changing events, but it’s one of the first things we put on the back burner. We have a million excuses, and have learned that procrastination does not work, but there are some things we just never make time to complete.

When it comes to organizing your personal information, doing it later is often too late. The statistics are alarming—some 43 percent of all people age 40 now will have a long-term disability event prior to reaching age 65. And seven out of ten people who turn 65 today will need some type of long-term care services and support lasting three or more years. Could a loved one act as your medical advocate and provide your medical history or list of medications if you were unable to? Could someone else access your bill-paying account to cover basic expenses while you recovered?

Having a system that documents your passcodes, inventories your assets and provides a health biography will not only provide you with quick access to information when you need it, but also can provide a roadmap to the individual that would step in and help you—even if only temporarily—should you need it.

In 70 percent of all households, Consumer Reports found that both spouses were unaware of the major details about family finances and where to find account information. If your partner was suddenly incapacitated, would you be able to step in and manage what your partner was doing? And if you live on your own, it’s doubtful that friends or family would know the details of your life and your wishes if they wanted to help you.

For all these reasons, documenting your life details and putting them in a format that makes it easier for you to retrieve and that someone else can access is important. It matters the most to those people around you whom you love and would be negatively impacted by your failure to simply document basic details.

Click here for a checklist of all of the important documents and details you should have organized.