Stuff Parents Need

Easing the chaos in the nest, one find at a time.

Women and Retirement: 2 Things to Keep in Mind

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This post on life insurance is brought to you by Genworth and Brandfluential. All thoughts and opinions expressed here are strictly my own. 

I think about retirement quite often. Even though I don’t have a traditional 9-5 job, I’m still a working parent. And in my case, I have to work really tough hours (my “day” started at 2:15am today). I have to create those pockets of time when my kids are asleep or away from home to get my writing done.

Make no mistake, I LOVE my job. But yes, I do think about the day when I’m no longer working to have to pay for my day-to-day needs. Perhaps that will come before age 65, but most likely not (just being realistic!).

My time as a Genworth Ambassador has been really eye-opening and given me a lot to think about, especially as a woman thinking about retirement.Women have some unique realities that should have an impact on how we make our plans for retirement.

Women and Retirement

1. Retired and single.There is a greater than 50% chance that by the time a woman gets to age 65, she will not be married. This is due to being widowed, divorced, or never married at all. While I hope and pray with all of my heart that Tim will still be with me to enjoy retirement, the fact is that he might not. And even if he is, I’m statistically likely to outlive him, by a few years or even by several decades, just depending on the cards we are dealt. That is why it is SO important for me to have a clear understanding of our retirement plans and to be actively involved in managing our retirement contributions to ensure a robust nest egg.

2. Preparing for long-term care. A familiar scenario is that a wife is able to care for her husband as his health declines, sometimes delaying or altogether eliminating the need for time in the nursing home for the husband. But that leaves no care provider for the wife, and the need for long-term care arises. Did you know that the median cost of a private room in a nursing home is $81,000/year? Planning for that possible scenario takes some forethought, to be sure, but it is important for women to have a plan in place for how to pay for such needs, should they arise. Nursing homes have, by some accounts, 80% female patients. Nobody dreams of the day when they move to a nursing home, but the reality is, it happens. And it happens to women in much greater numbers than it happens to men.

While there are some scenarios and situations that make me feel nervous about retirement (such as facing it without Tim, or ending my days in a nursing home), the reality is that it could happen, and the better prepared I am for the financial piece of retirement to be in good shape, the easier it will be to handle other aspects. Money definitely doesn’t buy happiness, but having “enough” money to know your future is secure is a game changer.

 

Reaching retirement age (62) entitles you to many new perks. One is potential eligibility for a reverse mortgage. Unlike a regular one, a reverse home loan provides less stress in the here and now. You and your lender can look at a reverse mortgage calculator online tool to determine the borrowing amount. After you use reverse-loan calculators online, you simply spend that amount the way you want when you receive it. It is not owed back for years. However, the amount the reverse mortgage calculator comes up with is not what you eventually repay. You have to also pay a lot of interest when the time comes. Nevertheless, it may be the ideal choice for you, if you are most concerned about being comfortable in the present and near future.

Thinking About My Aging Parents and How to Pay for Caregiving

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This post on caregiving is brought to you by Genworth and Brandfluential. All thoughts and opinions expressed here are strictly my own. 

I’m one of 4 kids in my family. My brother and I are much older than our two younger siblings (who are 23 and 17, respectively). I have a lot of guilt thinking about the younger set having to give this issue such serious thought, already. I wish they had more time to just be young before having to worry about it. My older brother and I have already been worrying about how we are all going to care for our parents as they age for several years, now. My father has suffered more than one stroke, already, and my mother has health problems that cause her to need expensive medication, as well. They do not have anywhere close to enough money set aside for their retirement, and this problem is compounded by the fact that we anticipate that they will likely need more hands-on caregiving as they age.

Fortunately, our parents live in Alabama, which has a relatively low cost of caregiving as compared to many other states (click on the map below to find out the average cost of care in your state).

Unfortunately, those costs still equal MUCH more than my siblings and I could pay in the forseeable future. My brother has a son, and I have two daughters. We both have our own families that we need to care for, not to mention our own retirements that we need to save for so that we aren’t a burden on our own kids later in life. Neither one of us live near our parents, either, so being able to provide some of that care that they might need on our own wouldn’t work unless one of us moved back home (a prospect that is extremely unappealing to both of us!). Additionally, my younger siblings will also one day have families of their own, and I don’t want them to feel as though they have to live nearby, even if that isn’t what is in their own best interest.

Caregiving Support

caregiving

 photo credit: sashamd via photopin cc

To be perfectly honest, it sort of feels like we are waiting for a train wreck. One that we can see coming, but that we don’t know how to stop. Articles like this one on the cost of caregiving to adult children show that we aren’t alone with our fears, or with the reality of how caring for aging parents (and/or paying for that care) can be devastating to your finances. It can even set you up to repeat the cycle with your own children when it is time for you to get some long-term care or daily living assistance.

Genworth is actually a great resource for information on caregiving and caregiver support. They offer resources to help you develop a suggested care plan with your parents (such a great idea to do BEFORE the need arises). They also offer information on local care providers, public resources to help with the costs, and tips on negotiating for discounts. I know my brother and I are going to need all the help we can get to put together a plan that makes sense for our parents, and that doesn’t leave us financially strapped, ourselves.

Readers, have any of you either had to deal with caregiving issues for your aging parents, or have you already developed a plan for when the time comes? How do you help loved ones who lack the resources to cover long term care costs without sacrificing your own plans to save for your later years?