Retirement is a time of joy and relaxation, a time when you can finally enjoy the fruits of your labor. For many people, retirement planning means saving as much money as possible, but is money really the most important factor for a happy retirement? The truth is, advanced life planning should be a top priority for pre-retirement adults aged 55-70. In this post, we’ll explore the importance of advanced life planning and why it’s crucial for a happy retirement.
As we approach the final stretch of our working years, many of us start to think about our retirement and what life will look like once we’re no longer punching the clock. While planning for retirement is essential, it’s equally important to prepare for the unexpected. This is where advanced life planning comes in. In this blog post, we’ll discuss why advanced life planning is crucial for pre-retirement adults, including what it is, what it entails, and the benefits of having a plan in place.
Without proper planning retirement can also be difficult and stressful. As a pre-retirement adult, it’s important to start thinking about advanced life planning. None of us want to be a burden to our adult children as we age. Participating in advanced life planning can have all your affairs and healthcare wishes in order and take away the responsibility of your children to make decisions that they are unsure you would or would not want them to make. Each one of your children may have a different opinion on how things should go as you age and your needs change. Advanced Life Planning ensures that your golden years and healthcare needs will go according to the way you want them to go.
1. Advanced Life Planning Is About More Than Just Money
While financial planning is important, it’s not the only factor that affects your quality of life in retirement. Advanced life planning involves making decisions about your healthcare, your living arrangements, and your legacy. By taking the time to consider these important factors, you can create a roadmap that will allow you to enjoy your golden years to the fullest. A road map available to your family and take the guess work out of how you want decisions to be made.
The first thing to know about advanced life planning is that it’s more than just planning for retirement. Advanced life planning includes preparing for unexpected events that may arise in the latter stages of our lives, such as a decline in health or incapacity. It involves creating a comprehensive plan that addresses both our medical needs and financial well-being. This may include things like creating a living will, power of attorney, and a health care proxy. A patient advocate can come along side you and help guide you through the planning process and assist you in navigating the healthcare system to ensure your wishes are expressed.
2. Advanced Life Planning Gives You Peace of Mind
One of the biggest benefits of advanced life planning is the peace of mind it brings. Knowing that you have a plan in place for your healthcare, living arrangements, and legacy can help you feel more secure about your future. You’ll be able to enjoy your retirement without worrying about what will happen if your health takes a turn for the worse or if you pass away unexpectedly.
One of the biggest benefits of advanced life planning is the peace of mind it provides. Knowing that you have a plan in place to protect your future and the future of your loved ones can alleviate a lot of stress and anxiety. Additionally, having a plan in place allows you to take control of your future and ensure that your wishes are met.
Without a plan, decisions about your care and finances may be left up to others, which could result in outcomes that are not aligned with your desires. As nurses and patient advocates, we have witnessed many families torn apart from a healthcare emergency that left their parent unable to make their healthcare decisions known. Without the proper documents in place decision making may be taken away from the family entirely. In some cases when families cannot agree on how to manage their parent’s care, the court system has to get involved and may need to have a court hearing to appointment a guardian for your parent to make their decisions. Depending on how the family is getting along and whether the court feels a family member would not be the best guardian, they will appoint a corporate guardian most likely from a guardianship firm. A stranger will now get to make the decisions regarding your parent.
3. Advanced Life Planning Helps You Avoid Family Disputes
Without a clear plan in place, family members may disagree about your healthcare, living arrangements, and legacy. By having a plan in place, you can avoid disputes and ensure that your wishes are carried out. This can help prevent unnecessary stress and conflict for your loved ones during an already difficult time.
Another important aspect of advanced life planning is ensuring that your estate is in order. This includes putting together an estate plan that outlines how your assets will be distributed after you’re gone. Without an estate plan, your assets may be left to the mercy of state law, which may not result in the outcome you desire. It’s also important to have a plan in place for long-term care expenses, as these can be significant and can quickly drain your retirement savings. Your estate gets held up in probate and your family begins the long waiting period to get your affairs sorted out.
4. Advanced Life Planning Allows You to Live Life on Your Own Terms
Ultimately, advanced life planning allows you to live life on your own terms. By making decisions about your healthcare, living arrangements, and legacy, you can create a retirement that is tailored to your specific needs and desires. You’ll be able to enjoy your retirement to the fullest, knowing that you have a plan in place for the future.
To get started with advanced life planning, it’s a good idea to work with an experienced attorney or financial planner who specializes in this area. They can help you create a comprehensive plan that addresses all aspects of your future, including your health care, finances, and estate planning. They can also provide guidance and support as you navigate the various options available to you. We have a free checklist that outlines the decisions and the documents that are needed for advance life planning. This will help you prepare to meet with your estate planning attorney and your financial planner.
5. Advanced Life Planning Is Not Just for the Elderly
Terms to Understand:
Living Will:
Outlines your wishes when it comes to a healthcare emergency. Appoints 2-3 people that you would like to make your decisions on your behalf if you are not able. It also outlines your wishes regarding life sustaining measures. Things you would like or not want to be done to save your life. For example, do you want a breathing tube if you cannot breathe on your own. Do you want CPR started if your heart stops. Your advocate can assist in helping you understand your options that allows you to make an informed decision. In some states these decisions are separated into 2 documents.
Once you have made a decision on your choices, a social worker at the hospital or your clinic can assist in preparing these documents and may be at no charge. Another resource to assist would be your local Aging and Disability Resource Center or Center for the Aging in your county. Every county has one and this is a great agency to identify resources in your local community. If you are a Veteran, make sure you reach out to your local VA to inquire about advance directives and advance life planning options.
Durable Healthcare Power of Attorney
This is a separate document that outlines your appointed decision makers in case you cannot make your own healthcare decisions. Many people do not understand that when you have a diagnosis of dementia such as Alzheimer’s at some point you may not be able to make your own decisions. If you wait until this has been determined, you will not have the opportunity to appoint your decision makers. The decisions will now be up to a court appointed guardian which may or may not be a family member. What is for sure is that you will no longer have a “say so” in making that decision.
Financial Power of Attorney
A legal document appointing someone to oversee your financial affairs in the instance you can no longer manage on your own.
Executor of the Will
A person appointed by you to make sure your will is carried out by your wishes. This person will work with your estate planning professionals to make sure all your affairs are managed properly after you are gone.
Finally, it’s worth noting that advanced life planning is not just for the elderly. Anyone can benefit from making decisions about their healthcare, living arrangements, and legacy. By taking the time to plan for the future, you can live with peace of mind and enjoy your golden years to the fullest.
Let’s outline some of the specifics and what advance life planning entails.
Estate planning:
As a pre-retirement adult, it’s important to start thinking about estate planning. This includes deciding who will receive what assets after you pass away, as well as setting up a will, trust, or estate plan. It’s important to work with a professional who can guide you through the process and explain the legal and financial implications of each decision. By planning ahead, you can help ensure that your loved ones are taken care of and that your final wishes are respected.
- Long-term care planning:
As you age, your health needs may change. It’s important to plan for long-term care and how you will pay for it. This can involve setting aside money in savings, purchasing long-term care insurance, or making arrangements for in-home care or assisted living. Planning ahead can help ensure that you have access to the care you need, while also protecting your assets and financial well-being.
This is where a nurse advocate can help put a plan in place regarding your healthcare needs. We will work with you to address where you would be willing to go in case you were no longer safe at home. We can help you look at options such as in home care, assisted living, and as a last resort under what conditions you would be willing to go to a nursing home. We can help you understand your decision-making process for advanced directives such as whether or not you want life sustaining measures done in case of an emergency. Your advocate can help you understanding your healthcare options and help put a plan in place for your changing healthcare needs.
- Retirement income planning:
It’s important to have a plan for how you will generate income during retirement. This can involve setting up a retirement account, such as an IRA or 401(k), as well as planning for Social Security benefits. It’s important to consider your individual needs and goals, as well as any potential tax implications or market downturns. By planning ahead, you can help ensure that you have a stable and reliable source of income during retirement. This would be best handled by your tax accountant, financial planner, and estate attorney.
- Legacy planning:
Finally, it’s important to consider what kind of legacy you want to leave behind. This can involve setting up charitable donations, creating a family foundation, a living trust, or other charitable giving options. It’s important to work with a professional who can help you navigate the legal and financial implications of each decision. By planning ahead, you can help ensure that your values and priorities are reflected in your legacy, while also providing support for causes that are important to you.
Conclusion:
In conclusion, advanced life planning is crucial for a happy retirement. By taking the time to make decisions about your healthcare, living arrangements, and legacy, you can live life on your own terms and enjoy your golden years to the fullest. Whether you’re 55 or 70, it’s never too early (or too late) to start planning for your future. So why wait? Start planning today and enjoy the peace of mind that comes with knowing that you have a plan in place for the future.
It is important to make sure you are very clear in what you want or don’t want. If your decisions are unclear, then your healthcare provider may not be able to make all the decisions needed to manage your care and may still end up in the courts hands. Your advocate can help make sure all the necessary decisions are considered and you have all your wishes in writing.
Preparing for retirement is an important part of life, but it’s equally important to plan for the unexpected. Advanced life planning is crucial for pre-retirement adults because it ensures that their future is protected, and their wishes are met. By creating a comprehensive plan that addresses all aspects of your future, you can take control of your future and alleviate stress and anxiety. You also eliminate the burden of decision making by your adult children. So, if you haven’t started advanced life planning yet, now is the time to do so! Reach out to an experienced attorney.
For questions or a free 30-minute consultation to discuss your particular situation, reach out and schedule a call to learn more
Take care and we will see you back here soon!
Pam and Linda
Your Nurse Advocates
Resources
Your Nurse Advocate Consulting
https://www.nia.nih.gov/health/advance-care-planning-advance-directives-health-care
https://www.mayoclinic.org/healthy-lifestyle/consumer-health/in-depth/living-wills/art-20046303
