[vc_row][vc_column][vc_column_text]A focus on the retirement trends impacting decisions for healthcare, housing and consumer goods.
Retirement trend for the ultra-wealthy:
The ultra-wealthy expect to have access to the latest life-extending medical technologies. They are also undergoing genetic testing to discover which specific therapies they may have to budget for in the future.
The ultra-wealthy are planning for an ultra-extended life — to 100 years old or beyond.
A new trend among the ultra-wealthy is “comprehensive longevity planning.” This is plan that combines extensive healthcare planning with detailed financial planning.
Retirement trend for wealthy boomers:
Flush but fearful.
People who retired with high assets before the 2008 crash fear another market crash.
They are also mindful of skyrocketing healthcare costs, and they are holding onto their wealth. Every month, they spend less than they earn from their retirement savings, so their wealth continues to grow.
Overall, this group is very cautious about spending down their retirement savings. In fact, the wealthiest 20% of Older Boomers spend only about 1/2 of their monthly retirement income.
Deep dive: “Spending in Retirement: Determining the Consumption Gap,” Financial Planning Journal, Browning, Guo, Cheng & Fink.
Retirement trend for middle-income:
Still in debt.
8 in 10 middle-income boomers rely on social security and employer pensions — they aren’t relying on their savings.
Middle-income boomers don’t know if their assets will last. Many have credit card debt or are still paying off mortgages. Most middle-income boomers have no retirement plan,.
When it comes to retirement, savings and spending, fears of another market crash or catastrophic health care costs are a strong psychological driver.
Most Boomers (84%) and GenXers (92%) agree that a “retirement crisis” is coming. Both groups report that the crash of 2008 has changed how they live and spend. For GenXers, keeping a job and planning for retirement are more difficult than for Boomers.
Into this climate of fear comes the resurrected reverse mortgage. Shunned by mainstream banks since last decade’s abuses and elder-evictions, reverse mortgages gain in press and popularity.
Retirement trend for low-income:
Spend it down.
Medicare spend-downs are a well known way to get government healthcare benefits. Medicare helps applicants understand how to spend down their monthly income to qualify.
From Medicare’s website:
Medically needy individuals can still become eligible by “spending down” the amount of income that is above a particular state’s medically needy income standard.
Housing and food will be the major challenge for lower-income retirees. Low-income senior housing is available, but there are bureaucratic hurdles, wait lists and residency requirements.
To qualify for low-income housing, seniors need to spend down their assets or gift them away. An entire field of elder-care law helps people navigate each state’s laws, but getting access to this expertise is difficult.
Retirement is hard if you’re poor. The multitude of non-profits have difficulty banding together to create a nation-wide solution to the distinct difficulties of low-income seniors.
Read: “Waiting for Super Aging Man,” Matt Perry, California Health Report.[/vc_column_text][vc_column_text]
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