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The changing world of retirement living

The changing world of retirement living

July 27, 2021
, , , Development & Sales, Residence & Lifestyle

Lynda Smith is the CEO of 50+ Skills and Refirement Network – a business involved in helping organisations and Individuals 50+ to understand the opportunities and challenges that the future holds for this demographic group. She is an accredited retirement coach in South Africa through Retirement Options USA.

 

Lynda writes:

“Longevity gifts us with more years and choices that need to be made around life, work, and family. In our parents’ generation the establishment of “old age” homes and nursing facilities were a choice many made as part of their plan beyond their working life. The next generation, known to many as the baby boomers are now aged 56 to 74. They have many more options and choices. Let’s look at what these may be.  In many cases, two generations will be living side by side, but may have quite different needs.

  1. Current Old Age homes that have large numbers of residents 75-100
  2. New Life Rights type villages with cottages and apartments.
  3. New Sectional Title Villages for an Over 50 Market.
  4. Choosing to stay in an inter-generational community close to family.
  5. Remaining in your own home and bringing in services as you need them.
  6. Downsizing from your larger home into something smaller.

This new generation is larger in size and is currently being bombarded with many choices. This generational group has seen the world change greatly over their 56-74 years of life. Each shared cultural moment affected their values, beliefs, and mindsets—creating new generational ideals different from their parents in the Silent Generation. Values like individualism, independence, control, and value define their thinking. Many in this generation are familiar with the concept of “old age” homes as they helped their parents make these decisions and have engaged over the past 20 years in what this model offers. Some of these perceptions may be positive, but many may not be. This can have an impact on sales into this style of living looking to market to the next generation.

Some of the marketing messages that are key for this generation can include the following:

  • Health and Wellness facilities
  • Reliable Fibre Network Solutions
  • Choices around equity and growth of property
  • Security
  • Customized services and personalisation.
  • Care services in their homes on demand
  • Business services
  • Close location to great shopping centres and medical facilities
  • Remaining an active part of the larger community

Within this cohort of baby boomers, the needs will differ. The older group may align more easily with some of the current status quo, but the younger group will demand much more as they enter this market. Managing agents and developers need to be prepared for this potential market.

The challenges from the market are also varied and causing other challenges that need to be addressed. The sale of primary homes is taking longer, and prices have dropped. Sadly, this is the most divorced generation ever to enter this season of life and many cannot afford that current offering. Many have not managed to complete work to the age of 65 for a variety of reasons and this presents less money to invest for this season.  High levies could also be impacting a sale.

There are challenges on both sides of this opportunity and developers and owners of retirement homes, need to do deep research to ensure that there are a range of possibilities that meet the needs of the current market. Please also ensure that your sales teams are equipped and ready to deal with this new generation coming your way.  Individuals need to understand the different opportunities, ask the right questions, and make sound decisions to ensure that this season of life is filled with the best that life has to offer for them.”

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The development of retirement villages is a specialist field and Shire consultants complete the standard professional team of developers who are planning or executing new retirement developments. Click here for details of projects that Shire has contributed to.

 

Why Retirement Lifestyle Villages are a lifeline to elderly people battling COVID-imposed isolation

Why Retirement Lifestyle Villages are a lifeline to elderly people battling COVID-imposed isolation

June 29, 2021
, , , Development & Sales, Residence & Lifestyle

“As the socio-demographic group most at risk of falling severely ill or even dying after contracting COVID-19, there’s no doubt that the over-60’s has been the worst affected by the pandemic. However, the negative impact of the COVID-19 pandemic on the older generation reaches beyond the risks to their physical health.

“To make matters worse, the elderly are not only battling the physical health effects of the virus, they’re also facing the toll that the virus has taken on their mental health – thanks to COVID-imposed isolation”, explains Gus van der Spek (property developer and owner of a life rights company).

“Many elderly people across South Africa live alone and had already been struggling with feelings of isolation and loneliness before the pandemic began, but with the very real threat of COVID-19, these issues only worsened.”

How an existing threat to elderly wellbeing was exacerbated by COVID-19

Loneliness and social isolation for those not living in retirement communities is a well-documented issue facing the older generation, brought on by factors such as the loss of a partner, having family emigrate, losing touch with friends and withdrawing from community activities.

“The physical and mental health risks to elderly people living in isolation are numerous: it increases the risk of premature death, dementia and is associated with higher rates of depression, anxiety and suicide,” explains van der Spek.

The threat of COVID-19 forced even elderly people with community ties and family nearby to go into isolation. Government communication urged over-60’s to stay home as much as possible and family members and friends needed to stay away to reduce the risk of infecting the more vulnerable older generation. Churches and other community centres (which formed the basis of many of these individuals’ social lives) had to close their doors.

“To add to this, while the rest of the world turned to technology as a tool to keep them connected to loved ones, many elderly people struggled to adapt to these tools, especially those who lived alone with no one around to walk them through it,” adds van der Spek.

Community living as a lifeline

Thankfully, not all over-60’s were left to grapple with the physical and mental challenges of COVID-19 on their own. “Those residing in retirement communities were able to interact with their friends and friendly staff members on a daily basis,” he says.

While it is true that nursing homes and frail-care were hit particularly hard by COVID-19 as they were often the location for concentrated outbreaks, van der Spek explains that is unfortunately as a result of the close living conditions in these facilities and the underlying health conditions typically found in nursing home and frail-care residents.

“However, those who had opted to live in retirement lifestyle villages and estates were able to isolate in their own units, with plenty of space to themselves while still interacting safely ‘masked-up’ outdoors with other residents and staff when necessary”.

“Residents of these kinds of retirement communities were able to have the best of both worlds – they had the safety of their own units rather than a single room in close contact to other sick people, and they were able to interact with their neighbours safely outdoors within the boundaries of a safe, access-controlled environment,” he adds.

More senior living options to combat elderly isolation

Van der Spek says he is partly motivated by the desire to combat isolation amongst the elderly and to give them a home that promotes overall wellbeing. “Research indicates that community living has proven to significantly improve the physical and mental health and happiness of the older generation, and we’re proud that our Estate will soon be a part of those efforts.”

Six ways in which living in retirement lifestyle estates help to combat elderly isolation:

1) An abundance of new friends close by. “While there are obviously more ways to connect with your friends and neighbours without the threat of COVID-19, it is still possible to socialise with your neighbours outdoors, with masks on and while 1.5 metres apart.”

2) Staff on hand to talk through needs. “If residents are feeling lonely or that they have no one to talk to about their emotions, they know that professional staff are always on hand to listen and offer solutions where possible.”

3) Assistance with connecting to loved ones. “Many elderly people desperately want to video-chat with family and friends who they aren’t able to see in person, but they are unsure of how to go about it. The Estates staff are able to help get them set-up and comfortable with using these tools.”

4) Beautiful grounds to socialise safely outdoors. “If you’re not comfortable interacting closely with other people yet but would still like to see them and wave hello, many retirement villages feature beautiful gardens so that you don’t have to be stuck inside on your own all day.”

5) Access to top medical practitioners who can spot the signs of elderly people suffering from loneliness before it escalates. “As feelings of isolation can lead to depression, anxiety and even thoughts of suicide, it’s important to have access to medical practitioners who can identify and treat these symptoms.”

6) Smart technology that keeps a watchful eye. “Some retirement villages use smart technology such as sensors in the floor next to the resident’s bed to monitor if they’ve gotten up that day. This is primarily used as way to detect if a resident is ill but could also be used as an way to detect symptoms of depression.”

“Finally, once the threat of COVID-19 subsides, most retirement lifestyle villages and estates will organise regular community events and activities to encourage socialisation among residents and ensure that there is a strong sense of community to combat feelings of loneliness and isolation amongst the elderly,” van der Spek concludes.”

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Shire offers Development Consulting: Assisting Property Developers in the planning and execution of all key elements of new retirement villages. To contact us, click here.

These are the bad things about early retirement that no one talks about

These are the bad things about early retirement that no one talks about

April 18, 2021
, , , Residence & Lifestyle

Marketwatch’s Sam Dogen published the following article on Oct. 13, 2019: “These are the bad things about early retirement that no one talks about.

Welcome to your identity crisis…

For all the glamour of living an early retirement lifestyle, there are plenty of negatives I’ve come to discover since I permanently left my job in 2012. I know why we revert to our baseline state of happiness, no matter how much freedom and money you have. Let’s go through some of the negatives of retiring early now that I’m a grizzled veteran.

1) You will suffer an identity crisis for an unknown period.

When you’ve spent at least a decade working in a profession, you’ll find it incredibly jolting to no longer be identified as the person who is a marketing expert, an investment professional, or the management consultant who can figure out how to optimize a business. It’s only after you leave your job do you truly realize how wound up you were in your profession.

Your identity crisis may last as short as three months or it might last for years. It all depends on how wrapped up you were in your job, how long you spent getting educated after high school, and whether you have a clear plan post-retirement. Doctors are some of the people who suffer the most after leaving their occupations. Conversely, high school graduates who somehow struck it rich with a product or an invention seem to adjust much easier in post-retirement life.

Job titles can be incredibly addictive. Why else do people get so depressed when passed over for promotion? Why else do people try so hard to get promoted sooner and faster than everybody else? Do not underestimate the importance of being a manager, director, vice president, or even a C-level executive.

After all, the most common question people ask when they first meet each other is: What do you do for a living? And if you tell them you don’t do anything for a living, well then, you might just feel like a sheepish loser. You’ll want to try to explain yourself, but by then, your three-second first impression will no longer hold the other person’s attention.

What happened to me: After working in the Asian equities business for 13 years, it felt hollow to no longer have my Executive Director title or be identified with my investment firm. I felt sad that I could no longer go to Asia for conferences or with clients. For so long, taking a business-class trip to Hong Kong, India, China or Taiwan was part of my quarterly routine. Shallow as it may sound, it felt special to have priority boarding. I felt important when clients would entrust me to show them around in a foreign land.

For the first year after leaving my job, I wondered how the business was doing without me. Could they really survive without my expertise? After all, I was there for 11 years. Surely, they needed my relationships. But after months went by with no email or phone call from my old firm saying they wanted me back, I had to come to terms that I was no longer important to them.

I wanted to believe that my position meant something to the firm and to the people that I serviced. But at the end of the day, the person I trained to replace me as part of my severance agreement, was good enough. And because he was good enough, I concluded that I was no longer any good.

What Biden’s First 100 Days Mean For You and Your Money

2) You will be stuck in your head.

When you suddenly have an extra 10 to 14 hours a day of free time, it’s very difficult to optimize your time wisely.

Your productivity will suffer in retirement. You will no longer feel motivated to achieve great wins. As a result, you may slowly start to get depressed. Only after some really deep soul-searching and some, “what am I doing with my life?” questioning will you begin to organize your time better and become more productive.

Your mind can be very dangerous because it can always second-guess your actions. Did I retire too soon? What if I run out of money? What if people think I’m a loser? What if I can’t ever get back into the workforce if things go wrong? When you have a lot of time to think, your doubts go on and on.

Perhaps one analogy is to compare being stuck in your head with Locked-in syndrome. LIS is a condition in which a patient is aware but cannot move or communicate verbally due to complete paralysis of nearly all voluntary muscles in the body except for vertical eye movements and blinking. This could be one of my worst nightmares. Retiring early may render you inoperable for a while.

What happened to me: Because I left work at age 34, I was worried for about the first two years whether or not I had made the right choice. No rational person leaves a well-paying job to be unemployed in their mid-30s. Your late-30s is when you start to finally make good money. And by the time you reach your 40s, you should be at your maximum earnings power.

During my first year of early retirement, to the outside world I proudly proclaimed I was retired from a career in finance. But on the inside, I was second-guessing my decision to leave. Because of my uncertainty, I decided to do some part-time consulting with a financial technology startup for about 20 hours a week. It was a great way to distract my mind from all my fears, earn some side income, and re-plug myself into society. I also kept in touch with multiple banks until my Series 7 and 63 licenses expired.

Finally, I dived deep into my writing on Financial Samurai. Writing has always been my most cathartic way to deal with any uncertainty or problems I might have. For example, now that I have a son, I’ve been worried about whether our roughly $200,000 a year in passive income is enough to support a family of three if he doesn’t win the San Francisco public school lottery system. It’s taken almost 20 years for me to generate this passive income level, and it still doesn’t seem like enough.

Given this worry, I did a deep dive budget analysis for a family earning $300,000 a year, and it sure seems like we need to earn $100,000 more to maintain our quality of life in San Francisco. Alternatively, we can always move to a lower cost area of the country or world.

3) People will treat you like a weird misfit.

Whether it’s because retiring early is unconventional or because people are secretly jealous you aren’t grinding away at a day job, people won’t give you the same amount of respect as working-class citizens. After all, if they can’t describe what you do for a living, then they can’t pigeonhole you into an archetype that is comfortable for them.

Having a job means you are a productive member of society. If you retire at a young age, people will assume you are simply slacking off and not paying any taxes. They’ll sometimes look at you as a leech they want to flick off.

Further, if you are an outcast, then you won’t be invited to parties or events that other working people always get to attend. You’re simply not top of mind to them. If you are an extrovert, early retirement will be much more difficult than if you are an introvert.

What happened to me: After the first year of early retirement, I no longer told anybody I retired early. Instead, I told anybody who asked that I was a writer, a tennis teacher, a fintech consultant, or simply in between jobs. Before that, I think a lot of people just assumed I was a trust fund baby who did not have to work. And the last thing this middle-class guy who went to public school wants to be known as is a trust fund baby.

My favorite time of the year was during the winter holidays. I loved going to all the holiday parties and getting tipsy with fellow revelers. Now, I get invited to zero holiday parties because I don’t work for anyone. Nor do I get invited to client holiday parties either, even though I have several partners who are based in the San Francisco Bay Area. It may sound silly, but having a drink with good people with shared interests really means a lot to me.

It takes a lot of effort to build new social networks if you aren’t part of a larger organization. There is no weekend cookout a colleague is hosting on Labor Day Weekend to attend. I’ve had to participate in various meetup events to find new people to hang out with. So far, my social network only revolves around tennis and softball. But even then, it’s not like I’ve found buddies who will come over and just chill in the hot tub over a beer or anything.

4) You’ll be disappointed that you aren’t much happier.

So many people think that once they achieve financial freedom or leave a job they dislike, they’ll suddenly be permanently happier. The truth of the matter is, your elevated happiness will only last at most three to six months. Eventually, you’ll revert to your natural state of being.

Think back to your high school or college days when you didn’t have any money compared with now. I’d venture to guess you were just as happy, if not happier when you were a broke college student.

Having the freedom to do what you want is priceless. But you will eventually take your freedom for granted like the air you breathe. On the days you feel angry or sad, you will start questioning what the hell is wrong with you since you’ve got more than the average person. You’ll feel stupid for feeling unhappy when there are literally hundreds of millions of people in the world wondering whether they’ll have enough to eat the next day.

You think, if I can’t be happy when I’m financially independent, surely there must be something seriously wrong with me. And you could be right! Can you imagine being unhappy as a Norwegian? Norway is perpetually ranked as one of the top five happiest countries in the world.

What’s going on with me: I thought I’d be much happier not having to report to a micromanager boss I did not respect. But my increased happiness was fleeting and only lasted for about a week before I was back to my regular self. Instead, my happiness was weighed down by months of uncertainty on whether I had made the right move to leave my job. It was only after about two years did my doubt finally start to dissipate.

Although corporate politics no longer upset me, other things end up filling the void. For example, drivers who decide to double park on a busy street in rush hour traffic really bother me now. So do dog owners who let their dogs poop in front of my house and don’t pick up after them. In the past, I could only allocate a small amount of annoyance to such incidences.

Instead of being permanently at a happier level, I’m simply no longer as annoyed or as angry at things as frequently. Further, the volatility around my steady state of happiness is lower. In other words, I’ve mellowed out. That said, don’t offend me because I still enjoy a really good fight.

5) You constantly wonder whether this is all there is to life.

Retiring early is like finishing up your favorite longstanding TV show. You’re glad there’s a conclusion, but you’re also sad that it’s over. You hope to find a show that’s as good or better, but there are no guarantees.

Most of us spend 13 years going to grade school so we can spend four years in college to get a decent job. Then we spend decades trying to earn and save money to provide for our family and then one day retire by 65. With good luck, we’ll live for another 20 years to enjoy all the fruits of our labor.

When you retire at a much earlier age, you are constantly left wondering what’s next. You are mentally twiddling your thumbs waiting for the next big thing while your close friends are all at work. Early retirement can get extremely mundane and boring because you have nobody to spend time with.

As a result, you’re repeatedly forced to will yourself into action. This constant self-starting attitude can become extremely trying to the point where you long to rejoin the workforce and be told what to do.

What’s going on with me: I probably drove my wife nuts during the first two years of early retirement because I constantly told her I was bored. Only boring people get bored right? Wrong. Everybody gets bored at some point. When you’re working, you don’t have time to get bored because you’re working. There’s only so much tennis, golf, and softball I can play before my knees break apart. There are only so many churches to visit in Europe before they all start looking the same.

She used to have vacations from me because I would be away traveling for work every month. Now she was seeing my cherubic face every single day. It’s a good thing we had three bedrooms at the time. Otherwise, I’m pretty sure we’d both have gone crazy from seeing each other so often.

It was only after our son was born in early 2017 that I felt a renewed sense of purpose. Before my boy, I felt my purpose was to help educate as many readers as possible about personal finance to one day be free. After my boy was born, my purpose has expanded to keeping Financial Samurai running long enough to teach him about operating an online business out of fear he may have a tough time getting ahead. In addition, I now need to live long enough until he finds someone who loves him as much as I love my wife.”

To read the rest of the article, click here.

Shire Retirement Properties (Pty) Ltd offers interactive workshops on considerations when buying your retirement home. To contact us, click here.

Afraid to retire, even though you can afford to?

Afraid to retire, even though you can afford to?

April 1, 2021
, , , Residence & Lifestyle

Kara Duckworth, CFP®, CDFA® wrote on March 26, 2021 for Kiplinger:

Help! I’m Afraid to Retire, Even Though I Can Afford to

“Actually retiring may be the hardest part about retirement. It’s not unusual to get cold feet. But you don’t want to work forever either, so what do you do? Here are some coping tips to get you over the hump.

I am seeing an interesting pattern in discussions with my clients about retirement — and it’s certainly not one I was expecting. Instead of worrying about whether they’ll have enough saved to enjoy retirement, they’re worrying about whether they’ll enjoy retirement at all.

It seems like discussions about retirement start almost as soon as we get our first job. Whether it’s saving as much as possible in your 401(k) plan or making an annual IRA contribution, the focus is always on having enough money to retire and enjoy all the things they’ve been dreaming of doing. For some, the big plans include traveling to far-flung destinations; for others, it’s spending time with family, finally moving to that place you love to visit on vacation, or volunteering.

To Be Happy Now, Live Like You’re Already Retired

As financial planners, we talk about these dreams as goals and put dollar amounts on them with anticipated timeframes around when you could expect to achieve them.

As we diligently make progress on achieving those retirement dreams, we don’t spend as much time as we should thinking about what life may actually look like in retirement. Just last week, I spoke to a client who says she would like to retire at the end of this year. We have been working toward her economic freedom for years, and she has enough assets to be able to make all the dreams she has expressed come to fruition. We got to the end of the financial plan discussion and I was all set to celebrate starting the countdown to the long-awaited retirement date.

But there was a pause, and then she said, “I don’t know if I can actually start to withdraw the money and feel good about it. I have been so focused on saving, investing and planning for years that I don’t know how I will feel about starting to take money out, even if it’s for things I think I want.”

She went on to say that she always thought she wanted to move to another state to be close to her extended family, but she now realizes that they are going to be busy with their own lives, and it won’t just be fun all the time like when she visits now. And if her family won’t be able to see her multiple times a week, then maybe she doesn’t actually want to live in that state and make a major lifestyle adjustment to weather she doesn’t enjoy year-round and not being able to walk on the beach every day.

She shared that she worries that the photography and golf hobbies that she feels like she never has time to enjoy now won’t be enough to fill her days. She has traveled extensively already, and the list of places she still wants to visit is getting shorter. In other words, her biggest worry about retiring is what she is going to do with her time when she retires — even though she says frequently, even now, that she can’t wait to stop working.

I have had similar conversations with physician clients who start our discussions by telling me that they are very stressed, and the only thing they want to do is close their practice as soon as financially possible. And yet, when we work through their wealth management plan and show that they have more than enough assets to walk out the door tomorrow, they can’t do it. For some people, retiring from being an expert in their field or having a prestigious job feels like giving up part of the identity they have worked very hard to earn.

So, what do you do when the hardest part about retirement is actually retiring? The most successful transitions to retirement I have helped clients implement start years before the planned retirement date or have elements that help ease them into decisions. Here are some ideas to make retirement the next step in a journey, not a final destination:

Consider slowing down at work instead of stopping completely. Working part-time allows you to have the best of both worlds: Continued income and a day-to-day sense of purpose, as well as the time to pursue hobbies, travel and leisure. The physician who wanted to walk away from his practice is now only working three days a week, happy to still be caring for patients while being able to participate in his teenager’s school and sports activities.

Try before you buy. If relocation is in your retirement plans, you can similarly take a new location for a test drive before committing to living there full-time. In the case of the client who might want to live by her family but really likes her current home, I recommended that she rent a house for a year in the new state to see if she can deal with the weather, and if her extended family’s lifestyle suits her before she sells her current home. She can rent out her current home for some income, or she can just come back home for a break during the very hot or cold months in the new state.

Plan to explore new things. While you may have a few hobbies that you enjoy now and want to pursue in retirement, you can also plan to try out new experiences to keep your day-to-day life fresh and interesting. Many people find that volunteering gives them the purpose that working used to fulfill — but without the stress. You can also explore those activities that you always thought sounded fun —  like learning to paint, ballroom dancing, playing pickleball, running triathlons or taking a series of cooking classes — but never had time to do before.”

To continue reading the rest of the article, click here.

Shire Retirement Properties (Pty) Ltd (Shire) is based in the Western Cape Province of South Africa and specialises in the provision of a range of services focused exclusively on the retirement industry. Shire also offers interactive workshops on considerations when buying your retirement home. To contact us, click here.

The different phases of retirement

The different phases of retirement

March 18, 2021
, , , , Residence & Lifestyle

Investopedia’s Julia Kagan and Marguerita Chenge wrote on 18 February 2021:

“Retirement isn’t just one phase of life but multiple phases, especially with today’s increased life expectancy and retirements that often last for 20 years or more. Each phase has its own rewards, as well as financial and emotional challenges. Here is how some experts define the phases of retirement.

What Are the Phases of Retirement?

Financial planners and other advisors sometimes divide retirement into three basic phases: an early, active phase when retirees may travel widely or embark on other adventures they had to put off during their career years, a more settled and somewhat less active phase, and a third phase in which the effects of aging begin to take a serious toll. In financial terms, the first phase tends to be expensive—often more so than when people were still working. Expenses generally drop during the second phase but pick up again in the third phase due to medical and/or nursing home expenses.

In the 1970s, the late sociologist Robert Atchley described a more elaborate six-phase process: pre-retirement, retirement, contentment, disenchantment, reorientation, and routine. While not everyone will experience all six of those phases, they can provide a useful framework for thinking about retirement.

Retirement, in Six Phases

Here is brief look at the six phases Atchley outlined, along with some of their financial and emotional implications.

  1. Pre-Retirement

This is the phase when people begin to think seriously about the life they want for themselves in retirement and whether they’re financially on track to achieve it. At least that’s what they should be doing—and not waiting until they’re right on the cusp of retirement to try to figure it all out.

Financial advisor Diane M. Manuel, CFP® CRPC®, with Urban Wealth Management in El Segundo, Calif., says: “We all think that shucking a routine, especially one that may only marginally make us happy, will be easy. Think again. This routine probably began in kindergarten—60-plus years of the same thing. Get up. Get dressed. Get lunch. Go out. Come home. Eat. Go to bed. Repeat.”

Manuel adds, “My recommendation to my clients is this: As you plan for retirement, think about what it looks like. Talk to your friends. Write about it. Create a storyboard. Be imaginative. Your financial plans and your day-to-day retirement plan should go hand in hand. This is your retirement identity.”

  1. Retirement

The big moment comes, and the retiree makes the transition from full-time work to the retirement they’ve planned for themselves. Work, possibly part-time, may still be a factor in the future if they enjoy working or need to supplement their retirement income. But now they are officially retirees.

Shanna Tingom, co-founder of Heritage Financial Strategies in Gilbert, Ariz., says, “The toughest transition most of my clients make is the one from working and saving to retirement and spending. It can be emotionally and financially harder than they ever expected. If they are younger retirees, and they have friends and family still working, it can also be very lonely, especially if they don’t have a plan.”

As Tingom sees it, “A proper retirement plan includes three things: a financial plan, a budget, and a FUN plan! The fun plan includes things that they want to do, places that they want to visit, and how much money is included in the budget for those things.”

  1. Contentment

This is a positive phase when retirees get to enjoy the fruits of a lifetime of labor. It’s sometimes described as a honeymoon period. If the money holds out, this phase can last for a while.

  1. Disenchantment

Once the honeymoon is over, some retirees find themselves asking, “Is this it?” Even if they are doing fine financially, they may experience some of the emotional downsides of retirement, such as loneliness, disillusionment, and a feeling of uselessness.”

To continue reading the rest of the article, click here.

Shire offers:

  • Training of sales teams in life rights and the sale of retirement properties
  • Interactive workshops on considerations when buying your retirement home
  • Continuous personal development of staff and others serving retirement villages.
    • Carers
    • Managers
    • Trustees
Freedom, friendship and fitness in retirement

Freedom, friendship and fitness in retirement

March 18, 2021
, , , , Residence & Lifestyle

After more than a year of living in a pandemic, many are experiencing heightened levels of physical and mental stress as the constant health risks and financial insecurity continue to impact lives. For high-risk communities, such as the more mature, this stress is compounded even further. With lockdown measures and the threat of the Covid-19 pandemic set to continue for some time yet, it’s vital that those looking into retirement to consider freedom, friendship and fitness, when choosing a place to stay.

1. Freedom

Despite stringent lockdown regulations, residents of nature-based estates do not experience the sense of confinement suffered by those living in cities and apartments. Estates that boast 24-hour security allow residents to take full advantage of nature walks. Coastal retirement estates, in particular, have attracted significant attention throughout lockdown as people seek the expansive sea and mountain views and relaxed living.

2. Friendship

The social distancing required to lower the risk of infection has shown the importance of human interaction in happy living. Retirement or mature-lifestyle estates tend to attract like-minded individuals that create a valuable sense of community through low-touch activities, events and socially-driven initiatives. This allows for residents to enjoy safe, social interaction while remaining engaged.

3. Fitness

Physical health is connected to mental health and this is increasingly important as one ages. Doing some form of daily exercise will improve mental health among seniors. While maintaining optimum health during the pandemic has proved challenging for most, it’s a lot easier for those residing in nature-based retirement estates. There are many nature trails for running or walking as well as professionally-supervised exercise classes.

Living in lockdown with the freedom of movement, strong friendships and nature-based facilities that encourage improved overall fitness result in improved wellbeing and a quality lifestyle.

To read more about the developments and retirement villages that Shire Retirement Properties (Pty) Ltd. are involved with, click here.

IF YOU LIVE TO 100, YOU’LL NEED MORE THAN MONEY

If You Live to 100, You’ll Need More Than Money

March 8, 2021
, , , Residence & Lifestyle

John F. Wasik wrote on March 6, 2021 for the New York Times:

“If You Live to 100, You’ll Need More Than Money – The number of centenarians in the U.S. is growing steadily. If you join them, you’ll need not just a robust retirement fund but also a plan, and a purpose.

Dani Rizzo and Adam Hoyt are diligently saving for retirement. They’re putting away money each month and monitoring their investments. They’re looking ahead, as a couple, and trying to be socially responsible.

He’s 32, and she is 33, but they wonder: How many years of life could they be looking at, and saving for? Pondering the far-off future “seems daunting,” Mr. Hoyt said.

So with their financial planner, they ran an online longevity calculator. The prediction, based on their family histories, health and lifestyle, popped up: Mr. Hoyt could very well live to 92, Ms. Rizzo, to 94.

Mr. Hoyt, a senior account executive for the Washington Nationals, and Ms. Rizzo, digital director for the Humane Rescue Alliance in Washington, D.C., are looking far beyond the current dark pandemic moment — and toward, they hope, long lives.

Before the pandemic, Americans had an average life span of nearly 79 (76 for men and 81 for women), according to the Centers for Disease Control and Prevention. But centenarians are a steadily growing demographic group — totaling an estimated 92,000 — giving rise to a relatively new approach to retirement preparation known as longevity planning, which combines conventional financial techniques with “life” planning.

While the couple are saving regularly in their individual retirement accounts, they are also envisioning “what we want our retirement to look like,” Ms. Rizzo said. “We have no plans for kids, but travel will be a big piece of what we do.” They also care about investing responsibly, investing in companies that promote racial and gender equity and divesting from fossil fuels.

They are working with James Brewer, a certified financial planner with Envision Wealth Planning in Chicago. While focusing on their savings goals, Mr. Brewer also helped them embrace life planning, which asks: Besides not outliving your money, how can you make your life meaningful in retirement, which could last three decades or more?

Mr. Brewer says longevity is something that can be planned for, and often yields pleasant surprises. “My mother is a Black woman from the Jim Crow South who is 92 and lives independently,” he said. “She never thought she would have lived this long. Fortunately, my dad had pensions.”

The growth in the 100-plus age group is partly a result of better medical care and a combination of improved lifestyle factors. This cohort has expanded 44 percent since 2000, according to a C.D.C. study. Eighty percent of centenarians are women. And in about 40 years, the number of people 100 and older will be six times as high as it is now, according to the Census Bureau.

What enhances longevity? College degrees and continuing education are correlated with it, a Yale and University of Alabama-Birmingham study found. Having a degree doesn’t guarantee you a longer life, but one’s longevity may be augmented by factors such as enlightened self-care, better medical attention and activity later in life.

Genetics also play a significant role. The landmark New England Centenarian Study, begun in 1995, identified genetic markers associated with those living past 100. The researchers, led by Dr. Thomas Perls, a professor of medicine and geriatrics at Boston University School of Medicine, found that these markers over all were 61 percent accurate in predicting who hits 100.

“The genetic component is a factor in 40 percent to 50 percent of people who make it to 100,” Dr. Perls said, “and 70 percent for those reaching 106, but it’s like winning the lottery. Only one in 5,000 Americans make it to the century mark.” And longevity isn’t distributed equally: A Princeton University study in 2012 found that socioeconomic differences can account for 80 percent of the life-expectancy divide between Black and white men, and for 70 percent of the imbalance between Black and white women.

An enlightened attitude and deliberate mental, social and physical activity during retirement also matter. That means continuing to learn new things, staying involved in the community and working to some degree.

Activity is critically important, said Mitch Anthony, a consultant in Rochester, Minn., and author of “Life Centered Financial Planning.” Mr. Anthony, who trains financial planners in life planning, has found that people who embrace what he calls a “new retirementality” do best when they remain socially and mentally vibrant.

In developing a core life-planning philosophy, he said, you will have to ponder answers to three questions: “What do you want out of life, what gives you joy, and how do you pay for it?”

Purpose and meaning throughout life are important, many researchers agree, although it’s hard to pin down on how they improve longevity. One study, published in 2013, suggests that these factors may offer a mental and possibly physical breakwater for life’s many travails.

“Having purpose in life may motivate reframing stressful situations to deal with them more productively, thereby facilitating recovery from stress and trauma,” the researchers found.

When estimating how long one could live and need money, it helps to run some possible outcomes. Most advisers who offer comprehensive financial planning do this, because it’s critical to see how long your money will last given a host of factors. You’ll also need to review some long-term estate planning, Mr. Brewer said.

“A lot can happen over 10 decades, especially over the last three,” he said. “It’s important to review your wealth-transfer and personal wishes annually. While you may still be alive, many of your friends or desired beneficiaries may no longer be alive.”

Mr. Brewer recommends reviewing those beneficiary designations and choosing contingent beneficiaries as well for life insurance, individual retirement accounts, and 401(k) and 403(b) plans. It might also be important to consider the tax benefits of bequeathing assets to a charity you love rather than to a living beneficiary, he added.”

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Retirement Village patriarchy

Retirement Village patriarchy 

March 8, 2021
, , , , , Development & Sales, Management & Operations

Patriarchy is a social system in which men hold primary power and predominate in roles of political leadership, moral authority, social privilege and control of property.

My daughter will be 18 years old this month. I find it hard to believe, and yet it is true. Soon she will  no longer require a lift to the beach or anywhere else, as she spreads her wings and finds her feet in  this world. A world dominated by men and in which she must learn to thrive. I have little doubt that  she will do so! 

Facing the reality of her pending adulthood has brought about a change in me too. It is a change that  has perhaps come late in my life, but I have a few years of fight left in me and I sense the need to be  less complicit in a situation that requires urgent attention. 

My work focus over the past ten years has been to understand and improve the so-called “Retirement  Village”. “Retirement” is an irksome term, but it is useful because everyone knows what you are  talking about – that stage of life when many people sense the need to gear down, take an interest in  less money-making activities and “smell the roses”. For some that stage is at age 55 and for others it  is at age 88 – or it never comes. 

It will come as a shock to nobody that many retirement villages and retirement organisations are dominated by men – especially during the early years of development. I have been comfortable in  that environment, but am becoming less and less so, as I have begun to realise the very far-reaching  impact of that male domination. 

An 88-year-old lady recently stood up rather shakily in a meeting and asked whether I did not think  that the organisation that owned the village in which she lives, should not have at least one woman  on the board of trustees. I had to agree, despite being employed by those same good gentlemen. 

Too often, houses and common facilities are designed by men, the engineering is done by men, men  run the service organisations and men run the village as trustees, directors and committee chairmen. 

This all despite the fact that the vast majority of retirement villages (if not all) are mostly populated  by ….. WOMEN! 

Women outlast men by a significant factor, and while this is an uncomfortable reality for men to face,  it is a fact. Almost from the first batch of occupants, women will be in the majority. 

Surely there is a pressing need for more women to take an interest in influencing the early  development of retirement villages. More property developers need to have women involved in the  reviews of house layouts and in the types and formats of services offered. 

It is heartening to see the level of female involvement in the management of certain villages. There  is no shortage of talent and strength, and one has to wonder why in some villages, so few women  stand for election as trustees. Perhaps they have little appetite for the power-plays within the male dominated boards of trustees – often comprising several ex-captains of industry? 

If this matter is to be remedied, women will have to step up and men will have to step back – realising  that women must shape the environment that they will live in for the longest. Their needs must thus  be placed first. 

Author: Rob Jones: MD – Shire Retirement Properties (Pty) Ltd

Shire Retirement Properties (Pty) Ltd (Shire) is based in the Western Cape Province of South Africa and specialises in the provision of a range of services focused exclusively on the retirement industry.

Reasons to start a business in retirement

Reasons to start a business in retirement

January 25, 2021
, , , , , Residence & Lifestyle, Shire

ENTREPRENEUR LEADERSHIP NETWORK  writer – Connie Inukai, wrote the following on January 22, 2021:

“If sitting around just isn’t your thing, then retirement is the perfect time to live out the dreams you may have put on hold. Simply filling empty hours with pointless recreation may feel like the opposite of freedom for many of the 72 million U.S. baby boomers, who have worked their entire lives. Launching your own business may be your ideal “retirement lifestyle.”

Six reasons to start a business in retirement

Stay active

Studies have indicated that the average retiree will experience a significant health issue within six years of retirement, commonly including heart disease, stroke, arthritis and depression. Staying motivated, active and connected is the best way to combat health declines due to aging. Being active includes exercising daily. Exercise may seem like a daunting task, but it’s easier to be active than one might think. A great way to stay active is to start a business, which involves packing materials, going to the post office and attending networking events. All of this gets your blood pumping.

Keep mentally alert 

The brain needs regular exercise, too. One way to improve your quality of life is by keeping your brain active through continuous learning. The day you stop learning is the day you start becoming old, no matter your biological age. Staying mentally active can reduce the risk of dementia and Alzheimer’s disease. Learning how to run a business and planning marketing campaigns will keep your brain active.

Pursue a passion

You don’t stop dreaming at 50. Find that niche that you are really passionate about. Research has shown that having a purpose in life can lead to a longer life. If the main goal is not to make money, then dig into your interests and hobbies and focus on something that brings you joy. If you enjoy woodworking or needlecraft, consider selling your handmade items online (e.g., Etsy) or at local fairs. When you have time on your hands, there are few barriers to turning your hobby into a business.

Supplement your pension or income

You may be relying on reduced income after you retire. A small business could provide support for staying on top of bills, paying down debt or tucking away for a rainy day. You might want to rethink your former career. For example, I used to be a college writing professor. I now use those skills to guide people in writing their life stories.

Stay social

Maintaining strong social ties is essential for aging adults to feel a sense of purpose and avoid feelings of loneliness or depression. Nearly one-half of all older Americans report feeling lonely sometimes or always. Leaving a job may mean giving up most of your daily social interaction. By starting a business, you can replenish some of that interaction — with customers, suppliers, postal carriers and other professionals. There are also plenty of online communities for small-business owners where you can get advice and meet people with similar interests.

Give back to the community

  • Volunteer at a school: Public schools, in particular, are chronically underfunded and in need of volunteers for a wide array of tasks: tutor, crossing guard and mentor. There are always kids and teachers who need some help.
  • Work at a hospital: Volunteers receive thorough training for the particular positions and annual refresher courses are common, the American Hospital Association says. Some typical volunteer roles include visiting patients, working at the gift shop and assisting in blood drives.
  • Get involved in politics: Volunteer for a political crusade, grassroots organization or political action committee. You can also work for a candidate you support.
  • Help on a hotline: Suicide hotlines exist in almost every city, manned by volunteers. This is obviously an important — even life-saving — way to help. Help lines are also available for people who just need to hear another voice.
  • Contact animal shelters and humane societies: Local animal shelters and humane societies need volunteers to care for animals, organize fundraising events, perform administrative tasks, and help rescue pets in the wake of natural disasters such as floods and fires.

The best retirement business ideas start with what you know. If the goal is not necessarily to make money, dig into your interests and hobbies, and choose something that brings you pleasure. If you are looking for something new, here are some ideas.

  • Services. Babysitting, pet sitting, guiding tours and interior decorating are activities that can keep you physically active and social while focusing on your community and picking your own hours.
  • Handcrafted goods. What are you already doing in your spare time? Things to make and sell might include soap, candles, jewelry and pottery.
  • Courses. You have a wealth of life and work experience! How can you monetize what you know?  Teaching online courses may require more work upfront, but it offers excellent margins and takes minimal effort in the long run. In addition, you can work from home.

Take control of your life

It just doesn’t make sense to throw away all your knowledge and experience just because of a particular date on the calendar. With life spans increasing, you could easily change your career when you’re 50 or 60 or embark on an exciting entrepreneurial venture for the next 20 to 30 years. So why be stuck in a dull retirement when you can take control of your life and do something interesting, rewarding and fulfilling while contributing to society at the same time?”

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Changes coming to retirement villages

Changes coming to retirement villages

December 2, 2020
, , , , Development & Sales, Management & Operations

Bonnie Fourie from www.property360.co.za wrote on the 26th October 2020: CHANGES COMING TO RETIREMENT VILLAGES

“Modern villages are following the worldwide trend towards professionally managed home-based care to allow retirees to live in their own homes.

Covid-19 will prompt modifications to the way estates function, with more home-based care and a different approach to frail care, say experts.

The Covid-19 outbreak in South Africa and the lockdown that followed had a detrimental effect on the country’s retirees, changing their ways of life and the operational processes of the retirement villages they live in.

Considering the risks associated with contracting the virus – and other future viruses – for the elderly, these shifts will no doubt have to become the new normal in retirement accommodation and be factored into new village designs.

During the height of the pandemic, the number of people attending care centres across the province dwindled markedly as retirees moved into home-based care or temporary assisted living.

This is a movement that will become “more of the norm”. People are more comfortable with being treated in their own spaces where that is possible.

Access to open spaces was also appreciated during the pandemic with many retirement village residents welcoming such offerings during a time when they could not leave the estate except to purchase basic necessities.

This means common areas and green spaces within estates would become key features of differentiation. Freestanding units with their own gardens will also be a key point for new purchasers. People who found themselves in apartments with limited ability to move around clearly felt the effects of the pandemic more seriously.

The pandemic and lockdown is a difficult time for all retirement villages, with many advising that a significant number of residents suffered from anxiety and depression. Regular interaction and communication with residents were crucial and those who were suffering the most stress through not being able to have family visits, had to be closely monitored.

All communal facilities were closed, but fortunately, where units have relatively large gardens and many of them surrounded by open green areas, residents could maintain social contact.

The model of home-based nursing care is a winner in this type of situation, rather than the traditional frail-care model.

In fact, the provision of health-care facilities is the biggest change being seen – and needs to be made – in the design of retirement villages.

The traditional frail-care model has become prohibitively expensive and requires increasing financial support, either from the resident population or from an outside benefactor, to remain financially viable. Modern villages are following the worldwide trend towards professionally managed home-based care.

This model will include a clinic staffed by professional nursing staff and a small “emergency” frail-care facility, but the main care is performed by registered caregivers in the comfort of one’s own home, supervised by the professional nursing staff.

Rob Jones, retirement-living consultant to The Somerset Lifestyle and Retirement Village in the Western Cape, agrees: “Retirement villages will retain many of the same elements that they have had until today, however, those services will need to be offered in a very different way than before.

Gone are the days of regimented, institutional frail-care units, run in a hospital-like fashion.” Another change being seen is the disappearance of the “onerous compulsory levies” that require residents to take all main meals in the communal dining room.

A number of new services are also arising. “The reason for these changes relates to the modern crop of retirees – many of whom are still very active and who often do not self-identify as ‘old’, even though the corporate world no longer thinks it needs them.”

To cater for these evolutions and ensure that elderly residents still receive the care they need, the “big trend” both here and overseas is to offer various wellness features within senior living facilities.

These include fitness programmes; healthy eating plans and options; planned social activities; lifelong-learning courses; volunteer opportunities and wellness education workshops.

In addition, from a design perspective, senior living communities are now attractive, modern and appealing places to live, underpinned by the requisite operational and hospitality services.

Availability of care and support is critical as people live longer, and aspects such as dementia care need to be addressed… People also want choice as to how their care and support is delivered and senior living operators must cater for this.”

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The development of retirement villages is a specialist field and Shire consultants complete the standard professional team of developers who are planning or executing new retirement developments. To view the portfolio of retirement developments that Shire Properties (Pty) Ltd are involved with, click here.

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