Retirement is a Family Affair [On-Demand Webinar]

Retirement is a Family Affair

Presented by Anne Mank, Savant’s director of financial planning, and Lois Basil, Financial Advisor

Welcome to Savant’s live seminar! I’m Anne Mank, Director of Financial Planning, joined by financial advisor Lois Basil. We’re excited to discuss why retirement truly is a family affair.

Today’s Agenda: Planning Your Future

We’ll keep our discussion high-level, offering valuable insights you can take away. Here’s what we’ll cover:

• Why is this important? We’ll explore various situations and considerations you might not have thought about.
• Retirement Lifestyle and Personal Goals: We’ll help you pinpoint your desires so we can build a plan around them.
• Living Arrangements and Housing: This crucial factor determines where you’ll spend your retirement.
• Healthcare Considerations: A top-of-mind topic, we’ll discuss what healthcare looks like and how to pay for it.
• Estate Planning and Legal Considerations: We’ll provide essential points to consider for your next steps, without getting bogged down in legal complexities.
• Next Steps: Actionable insights you can implement right away.

Why Retirement Planning Is Crucial

As Lois highlights, taking the time to plan for retirement now can make all the difference between a satisfying, well-aligned retirement and one that leaves you feeling unfulfilled or unprepared. At Savant, we help clients take a proactive approach, and this webinar aims to empower you to do just that.

Retirement doesn’t happen in a vacuum. Your choices, goals, and even your ability to enjoy this next stage of life are often shaped by the people around you—spouses, partners, adult children, grandchildren, siblings, and close friends. When we say “family,” we mean anyone you rely on emotionally, practically, or legally to help make good decisions and be part of your support system.

Retirement planning goes beyond just income, investments, or tax savings. It’s about relationships, routines, purpose, and your evolving role in your family and community.

Envisioning Your Retirement Lifestyle and Goals

Your vision for retirement is less about a number and more about your lifestyle. Ask yourself:

• What does your ideal day look like?
• What excites you to start the day?
• How do you want to spend your time?
• Are there hobbies you’ve postponed, causes you’d like to support, or places you want to explore?

A helpful strategy is to observe those five, 10, or 15 years ahead of you in retirement. Who do you admire in how they’ve navigated this phase? What have they done well? Have they moved, found new interests, or discovered meaningful ways to stay engaged? Conversely, have you noticed anyone who seems stuck, isolated, or regretful? What can you learn from their experiences? The goal is to shape a vision of your ideal retirement and then consider the actions you can take today to make it a reality.

For me, travel is a passion, and I want to ensure I always have the strength to lift my carry-on into an overhead compartment. I also love spending time with my grandchildren and playing on the floor, so staying agile enough to get up and down easily is important. Small goals now can significantly impact your quality of life later.

Once you clarify what’s important to you—whether it’s staying healthy, traveling, volunteering, moving closer to family, or simply having unstructured time—you can start building an action plan. Consider what habits you can build now and what conversations you need to have with your loved ones. This isn’t about a rigid checklist; it’s about aligning your present with the future you want to build, recognizing that your goals, values, and relationships are all part of that equation.

I encourage you to take some time this week to reflect on one simple question: What does a meaningful, energizing retirement look like for you, and who do you want to share it with?

It’s tempting to put off doing things until retirement, but as Lois and I have discussed, we aren’t guaranteed tomorrow. What’s on your bucket list that you could start planning for today? Perhaps a partial retirement could allow you to pursue some of those goals sooner. Flexibility is key; it’s not an “all or nothing” proposition once you hit retirement. The more conversations you have now, the better equipped you’ll be to build both your present and your retirement.

Living Arrangements and Housing

This is a complex yet crucial conversation, extending beyond just next year. A robust plan integrates housing decisions throughout your retirement journey, with checkpoints to consider the next stage of your housing adventure. Let’s explore some options and their pros and cons.

Aging in Place

Many people prefer to age in place in their familiar home and community. Modifications like ramps or elevators can make this comfortable, but they can be costly. The downside is that aging in place might not always be feasible, even with modifications. You might need in-home care, which can be challenging to find trustworthy providers for.

Retirement Communities

For some, a retirement community is an exciting prospect, offering independence with a built-in social environment, activities, and communal dining. However, these communities can be more expensive than living at home and require adjusting to a new environment, new facility, and new friends. You’ll also have less control over modifications or improvements to your living space.

Assisted Living

Assisted living is an option when you need more support than you or your family can provide. These facilities offer medical care, monitoring, and security. While they provide a safe environment and essential assistance with daily living skills, you might experience a sense of lost independence. You’ll still have a say in your care, but daily activities might be more structured.

Living with Family

Living with family can offer proximity and help, perhaps with an in-law suite providing a sense of independence. However, this arrangement can cause stress, especially if one sibling shoulders most of the responsibility or if financial strains arise from home modifications or a family member reducing work hours to provide care.

All these options should be important discussion points with your family, as they can all be part of your retirement plan. Housing decisions are often where conflicts arise, especially between spouses with differing needs or desires for their retirement living. It’s crucial to have these conversations before the heat of the moment, when emotions aren’t running high, allowing for thoughtful and peaceful decision-making.

Lois shared a great example: she and her husband are making a list of triggers that would indicate it’s time to leave their home, creating a rubric to guide decisions when stress is high.

Transportation in Retirement

Once living arrangements are considered, transportation becomes the next logical step. If you’re in a city, walking might be an option. If you’re in a rural area, you’ll need a transportation plan. This also includes the difficult but necessary conversation about when to stop driving. It’s best to have this discussion proactively, as the transition is often gradual (e.g., no longer driving at night or on interstates). Having a plan reduces stress and increases safety.

Options to consider include public transportation, ride-sharing services (some specifically for older adults), and family assistance. Many retirement facilities also offer transportation services. Think about your desired mobility and independence in retirement—do you want to stay local, or explore widely? These conversations now will help you figure out what that looks like.

Lois emphasizes the importance of identifying someone who can alert you when it’s time to give up the keys, as stubbornness can arise with age. Giving that person permission beforehand can make these sensitive conversations easier.

Social Connection

Social connection goes beyond just attending community events. It’s about identifying what truly nurtures you socially. For some, it might be quiet shared activities; for others, lively group discussions or outdoor hobbies like golf. Communicating what’s most important to you socially ensures you can continue to engage in those activities.

Research suggests that strong social connections contribute to a longer and better quality of life. It’s not about being constantly busy, but having people you can call upon to do something with. This helps you live life more fully and eases the fear of living a long time without the ability to engage. Including social connection in your plan with loved ones and friends is vital. An interesting emerging trend is groups of friends building multi-generational communities with shared spaces, allowing for both connection and independence.

Don’t Wait Too Long

A critical point we’ve hinted at throughout this conversation is the danger of waiting too long. Delaying these discussions can lead to a loss of control, freedom, and choices. I often tell loved ones: at some point, a transition will happen. Do you want to choose where you go? Do you want to be the one deciding what to keep, donate, or give away? Or do you want those choices made for you because you’re no longer able? For example, if a stroke leaves you unable to return home, many decisions will be made without your input unless you’ve expressed your wishes beforehand. Having these conversations ensures your preferences are known.

These aren’t easy conversations, but they’re essential life transitions. Just as I discuss housing and activity preferences with my kids transitioning to college, major life events warrant re-evaluating and communicating your hopes for that new chapter.

Healthcare Planning and End-of-Life Considerations

Healthcare Planning

Let’s move into healthcare, another topic that can be uncomfortable but is incredibly important.

The first step is understanding your current healthcare expenses. Many of us don’t track how much we spend annually on health. Establishing a baseline is crucial. As you age, large expenses like hearing aids, eye care (contacts, glasses), dental work (dentures), and wheelchairs can arise and may not be fully covered by insurance. It’s important to have resources for these potential costs.

Once you have an idea of potential costs, consider your funding sources:

• Current Retirement Assets: Ensure you’re pulling from the right asset types to cover costs efficiently.
• Health Savings Account (HSA): An HSA is a tax-effective way to pay for medical costs. If you anticipate large healthcare expenses before retirement, an HSA might be an area to focus on.
• Long-Term Care Insurance: This can help cover costs for assisted living. The best time to consider this is often 5-10 years before you retire, when you’re still in good health and have an income to pay premiums. It’s a choice you can make proactively.
• Government Benefits: Depending on your income, Medicare or Medicaid might be options. The level of government health insurance can influence your choices for retirement communities or assisted living facilities.

It’s wise to set up some of these options sooner rather than later to maximize your choices. Long-term care insurance is a prime example; waiting until you need a facility is too late.

Finally, consider the level of care you’ll need or want. Do you envision a family member as your caregiver, or would you prefer a third party? I’ve seen spouses who embraced the caregiver role and others who preferred to remain a spouse and have outside help. This choice depends on your personal preferences and the support you anticipate needing.

End-of-Life Planning

Lois beautifully articulates that end-of-life planning is an act of kindness. It ensures your wishes are known, your affairs are in order, and your family isn’t left guessing during an emotional time.

Key considerations include:

• Healthcare Directives: Do your loved ones, doctors, and care providers know your wishes for care if you’re unable to speak for yourself? Have you named someone to act on your behalf? What are your thoughts on life support or hospice care, and have these been documented? Lois shared her mother’s practice of keeping healthcare directives visible in her home for emergency responders.
• Digital Life: Are your passwords, accounts, and subscriptions organized and accessible? Does someone know how to get into your phone for two-factor authentication to access critical information like doctors or credit cards? Thinking through this now can have a significant impact later.
• “Five Wishes” Document: This booklet can be a helpful tool for outlining preferred care in different health stages.
• Regular Check-ins: Encourage someone to check in on you regularly to prevent situations where no one knows your whereabouts for days.
• Legacy Conversations: Beyond documents, consider the legacy you want to leave. Would writing letters or creating a memory book be meaningful? These personal touches are often the most cherished parts of someone’s legacy.

When plans aren’t clearly communicated, even close-knit families can experience confusion, disagreements, and guilt. By having these conversations and putting the right documents in place, you give your family peace of mind and the confidence to carry out your wishes. It’s not easy, but it’s essential for living intentionally and ensuring your retirement years and legacy reflect your values.

It’s worth repeating: retirement truly is a family affair. These conversations strengthen relationships, clarify wishes, and give your family the confidence and clarity they’ll need most.

Estate Planning and Legal Considerations

Building on the previous points, estate planning and legal considerations involve reviewing and having the right legal documents in place. There’s no “golden rule” for when to update these, but generally, every 5 years or after a significant life transition or change is a good guideline.

Here are some key documents and considerations:

• Wills and Trusts: These legal documents dictate how your assets are distributed after you pass away, who helps close your estate, and who makes decisions about your assets. It’s crucial to name a trustee and executor and communicate with them so they know when and how to take over. When updating these, it’s helpful to discuss them with the named individuals.
• Powers of Attorney and Living Will: These documents are vital if you become unable to make decisions for yourself while still alive (e.g., in a coma). They grant someone the legal right to make healthcare and financial choices on your behalf.
• Healthcare Power of Attorney / Living Will: This document specifies who can make healthcare decisions and what their rights are. It’s crucial your healthcare providers have an electronic record of this and that it’s visibly placed in your home. While the document grants the right to make decisions, you must communicate your specific wishes (e.g., about life support, feeding tubes, CPR) to that individual. This isn’t a fun conversation, but it provides immense peace of mind for the person making those difficult decisions, preventing second-guessing and guilt.