Let's Rename Retirement

We read daily about this stage of life and the accomplishments of aging Americans.  We can plainly see changing behaviors and what can be accomplished by such experienced people.

I have discovered that most individuals are looking to use their later years to give back what they have learned or financially accumulated to their families, causes and communities to make other people’s lives better. They relish that they have the time and financial resources to accomplish this.

Giving money to causes or family members can be of great benefit and is relatively easy to do. Others, who are less financially fortunate, want to share their time, knowledge and life experiences.

Fulfillment Stage Preparation

The reality of living a very fruitful and productive Fulfilling stage is that it will not happen without a plan and the financial resources to fund the journey. For those who have planned properly it is a period of helping others along with the benefit of having the free time to do what pleases us most.

The key financial skills needed in the Fulfilling stage revolve around providing for the impacts of increased health needs, possible cognitive decline, funding passion projects and initiatives, the complexities of retirement income planning and the possible impacts of estate-planning issues. We as an industry need to spend more time and resources educating aging individuals about this stage of life and the skills they will need. They include:

• Managing healthcare related matters, including long-term care needs
• Knowing where they want to live, including location and type of housing
• Turning accumulated assets into a stream of regular income to sustain their standard of living
• Using protection products such as life insurance to pay for funeral, final expenses and leaving a legacy
• Getting legal assistance to set-up proper wills and trusts

A Stage Coach World

It’s time to rename retirement to be the Fulfilling stage of life.  The new name better reflects the reality of our lives today.  As I have learned, each stage of an individual’s financial life has distinct questions, needs and responsibilities.

Each stage has its own financial risks that must be addressed. Individuals need knowledge, coaching and resources to successfully navigate each stage. We need to better focus industry education efforts to help individuals fulfill their potential and make our society better in the process.

Harry N. Stout has been the president of Fidelity & Guaranty Life, deputy chief executive of Old Mutual Financial Network, and managing director of Insurance Insight Group. He is also the host of the “FinancialVerse Podcast” and the author of The FinancialVerse personal finance books and of Today’s Annuities — A Tool to Create Protected Lifetime Income.

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