Helping You Balance Work and Family
Date: January 2001 Volume:  10   Issue:  2
 

In This Issue Looking towards retirement:  Things to think about From the Experts Help is available to help you manage your money Don't leave long-term savings in low-earning account Be older and better by maintaining preventive health care Looking towards retirement: Things to think about Retirement is often viewed as an easy transition. However, it is important to remember that retirement means more than just leaving a job. Most often pre-retirement workshops focus on the financial aspects of retirement while ignoring the social, family and personal components. In hopes of being fully “prepared” for retirement, future retirees may want to consider the following: Redefining yourself and your life If you are a person who defines yourself by the work you do, you may want to set specific goals in retirement. Also, identify ways you can feel productive outside of the worker role. Initially, freedom from the daily grind is pure pleasure. However, many retirees report becoming bored with a lack of daily structure. You may want to establish a flexible routine that encourages you to be productive as well as provides a sense of purpose to your days. Family relationships New retirees often report readjustment in their marital relationship. Have you thought about how you plan to negotiate work around the house? Do you have plans for joint activities with your spouse as well as activities you can do by yourself or with friends? Adult children may assume you are always available for baby-sitting or aging parents may expect constant attention. Have you thought about how you will establish boundaries in your new role? Do you plan on sharing your retirement plan early on with your family? Reserve the right to change commitments you make early in retirement in case you decide later you want more time for something else. Connecting with others Retirees often miss the people they once worked with after they retiree. Have you thought about how you are going to meet new friends? Are there new activities or hobbies you would like to pursue that would enable you to meet new people? What talents do you have that could benefit those around you? Retirees are a vastly neglected resource! Think about activities that you would enjoy that would also help your community. Remember, once retired, you can determine your own schedule! Retirement is an exciting transition, however, it does require some planning and thinking ahead. As you start looking towards your own retirement, think beyond the balance of your checkbook and pay attention to your personal and social needs as well. By Christine Price, Ohio State University Extension State Specialist, Aging From the experts Relax in the in-between time of transitions The time after something ends and before a new period starts is sometimes called the "liminal period" of transition. This period can be difficult. During this time, a sense of identity is hung in suspension between what a person once was and what a person will become. People in this period may find they are unable to concentrate, often feeling like they’re in a fog. They may find themselves testing relationships, either distancing themselves or becoming overly demanding. There may be outbursts of anger or confrontation. Performance may drop, and the person may feel drained. Feelings of isolation and loneliness are common. It’s important to trust in the process of transition — to know that feelings of confusion will eventually end. The challenge is to let go of the past, grieve the losses and look toward the new beginning. Source: "Families Coping with Unexpected Transitions" by Melanie Golden, M.Ed., CFLE & Dana McDermott, Ph.D., CFLE, for Family Information Services, Minneapolis, Minn., 2000. Back to the top Don't leave long-term savings in low-earning accounts By the year 2030, one out of five Americans will be 65 years or older. Unfortunately, many Americans are not preparing themselves financially for a comfortable retirement. With increases in the cost of living and health care costs, cutbacks in medical coverage and other employee benefit plans, curtailments in Social Security benefits, and declining individual savings rates, more retirees will have to adjust to a lower standard of living unless they make smarter investments during their younger years. In several studies, some in partnership with the Consumer Federation of America, Ohio State University researchers Cathy Montalto and Sherman Hanna examined investments, saving and spending rates, planned age of retirement and accumulation of overall wealth of thousands of families, drawing upon surveys conducted over the past five years.  The researchers found a slight increase in the number of workers older than age 35 who are on track for retirement: 54 percent in 1998 compared with 52 percent in 1995. However, most of the improvement was gained by people who own stocks directly or in mutual funds.  Unfortunately, Federal Reserve data indicate that more than 60 percent of American households hold more than $1 trillion in low-interest-rate accounts (passbook savings, statement savings and money market accounts). Much of that money is held by people 65 years or older, indicating the need to help retirees learn more about low-risk, higher-yielding alternatives — necessary to sustain retirement savings over longer expected lifetimes. The researchers estimate that overall, American consumers could gain $30 billion to $50 billion in interest annually by putting their money into higher-yielding accounts.  Where are your long-term savings? Make sure they’re invested wisely for a more comfortable retirement. By Martha Filipic, Technical Editor, Communications and Technology, Ohio State University Extension   Back to the top Help available to help you manage your money Americans’ overall credit card debt is at its highest ever while personal savings rates are at their lowest. In fact, according to the Federal Reserve, Americans’ credit card debt stood at an unprecedented $633 billion in late 2000, and the number of middle-class families declaring “complete financial failure” soared from 313,000 in 1980 to just under 1.3 million in 1999.  If you’re someone who’s closer to “financial failure” than “fiscal fitness,” you need to learn more about managing your money before you begin making firm plans for saving for retirement. “Managing Your Money” is a web-based home-study course, designed to be used by county Extension agents with their clientele but also available to anyone who wants to use it as a self-study course. All six lessons are available at Ohio State University Extension’s website, http://ohioline.ag.ohio-state.edu/home/money/index.html. Lessons include: • Where Do I Begin? This lesson gives you suggestions on how to talk with your partner and family about money matters and helps you think about financial goals. • Where Does Your Money Go? This lesson discusses cash flow, income and expenses, as well as helping you determine your net worth.  • Stop Spending Leaks. This lesson helps determine how you are really spending your money • Developing a Spending Plan. This lesson discusses why a family needs to put together a personal spending plan and gives some guidelines on how to go about creating a plan.   • How Much Credit Can You Afford? This lesson includes a credit signal light which helps determine if credit is overextended.  • Keeping Records in Order. This lesson stresses the importance of keeping all records and other valuable papers in order. It also includes tips for household record keeping. All lessons include worksheets.   Be older and better by maintaining preventive health care  Some people believe disease prevention is for younger people and that by age 65 chronic illnesses have already developed. Although it’s true that four out of five persons aged 65 and older have one or more chronic conditions – such as arthritis, heart disease, or diabetes — preventive health care is still important.  According to “Well Advised,” published by the Park Nicollet Medical Foundation, advice you followed – or ignored – about diet, exercise, and use of alcohol and tobacco is as important now as ever. For example, exercise remains one of the most effective ways to become or stay vital. Aging should bring a renewed focus on keeping existing health problems from getting worse. Three important tips to help make the most of health care: • If you see more than one doctor, make sure each one knows what drugs the others have prescribed; this will help prevent drug interactions. • Tell the doctor about physical ailments. Not all aches and pains are functional declines — some are treatable. • Remember that if you become ill and can no longer live independently nursing homes are not the only option. Hospital social workers and area agencies can assist in finding support services to fit a specific need. By Cindy Bond-Zielinski, Family and Consumer Sciences and Community Development Agent, and Program Coordinator, Learning Center East, for Ohio State University Extension   Back to the top

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Keith L. Smith, Associate Vice President 
Agriculture Administration and Director, OSU Extension 
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