There is a new legal service and awareness program for people planning for retirement. It is called “5@55.” Read that as 5 at 55. 5@55 means there are 5 essential legal documents to complete basic retirement planning. I’ll review those documents in a later post, but for now I wanted to layout the benefits of the campaign. I think you will like it.
The basic concept is that at age 55 the kids are gone and off on their own lives. Most major purchases such as a new home and furnishings are done. School loans are gone. Now at 55 we have 10-12 years to prepare to retire. But, what does “retirement planning” include?
I have problem with the subject “retirement planning.” Too often focuses on two things only: 1) money; 2) activities. I think those are self explanatory, but still let me explain a bit.
The subject of money is clear. It’s all about”Do you have enough money to retire?” There are those “retirement advisers” who claim you will need at least a million dollars to retire. Their not so subtle message is that you need to hire them to get your nest egg to grow to a million. Anybody planning for retirement at 55 can see the futility of that message! If you are not well on your way to a Million Bucks none of these guys can help you!
The “activities” part of standard retirement planning advice is all about “what are you going to do in retirement?” This is important – Where will you live? What will you do in that “leisure time” and so on? But wait!, there’s more to retirement planning.
What is missing in the standard retirement planning conversation? It is about what happens when your retirement plan goes off the track? From the elder law viewpoint it raises the question of “what do you do when your retirement turns into being a caregiver/care manager?”
For too many retirees, retirement simply means time to become a full time care manager for a parent. I’ve written extensively on the subject, just take a look at the articles on my website, www.JimSchuster.com. For some folks, it comes as no surprise and may even be the reason for retirement: Mom or Dad has gotten to the point where they cannot manage their daily affairs anymore.
For a smaller number of retirees life has a cruel twist. Instead of having fun in the sun, a spouse becomes the caregiver for their husband or wife. It is always a medical condition. It might be a heart attack, stroke, early dementia or Parkinson’s Disease. Whatever the condition it is life changing for both spouses.
The 5@55 campaign contemplates these twists in life and prepares you for it.
I think of the 5@55 campaign as the cheapest form of Long Term Care Insurance. Through the basic legal document set, you are ready just in case life throws you the “Retirement Sucker Punch.”
But wait! There’s better news. The 5@55 campaign does not just help you in case of long term care, it also helps you with the “Speed Bumps of Retirement.” What if you “bust” your knee in one of those retirement activities? You are in the emergency room. (“I told you” that zip lines are for young lunatics. But noooo, Mr. Tarzan had to . . . . “) What if you get a touch of the Ol’ Traveling to a Foreign Country Food Poisoning? You will need your spouse to take care of business for you for a bit. He or she will need a healthcare and general business power of attorney to handle the insurance and all other matters that would otherwise need your individual attention.
So, there you have it. With standard “retirement planning” you will not be prepared for the “Retirement Speed Bumps” or the “Retirement Sucker Punch.” But with 5@55 preparedness you will be ready and able for whatever life throws at you.
More later,
Jim