The sky is full of clouds: Planning for retirement
【Practical】
If life is compared to a long river, meandering down over time, through mountains or valleys, rough waves or downstream, the boat of life passes through thousands of scenery and drifts into the final waters. Not far ahead is the sea where all the currents are heading; just like the place where our ancestors returned, the river is deep and there is no need to paddle and fight. Do we hope that these years will be peaceful and peaceful? Are there any necessary preparations in advance?
Longing or lost? Let’s see how to plan
According to research conducted by the National Center for Biotechnology Information1 , up to 28% of retired people suffer from depression. The reason is that many people are full of yearning for retirement life and face a lot of leisure before they are ready. How to deal with it becomes a pressure; some people are worried about losing their fixed income; some people keep thinking about their past glory and feel a sense of loss when facing the gap.
In addition to changes in daily life, retirement also brings about changes in social relationships, roles, status, achievements and aspirations, etc. If health problems arise again, it will only make things worse. Relevant research also points out that higher self-acceptance and life satisfaction are "negatively related" to depression in old age. In other words: If you can plan in advance and make your life closer to your expectations, you should be able to get rid of depression.
Jesus reminds us this: The birds of the air do not sow or reap, nor gather into barns. Even if the Father feeds them, are you and I not more valuable than the birds? Christians are God’s stewards, and all the tangible and intangible assets they possess come from God’s grace and provision, and are all entrusted by God to manage. In this case, is it possible to live by faith, not follow the secular world, and not plan for retirement?
These words of Jesus do not mean that everyone should lie flat. Rather, no matter what the situation is, we must accept the opportunities God gives us with faith and trust Him with all our heart, soul, and mind. Since you are a steward, you should fulfill your management responsibilities and make plans and preparations for life and God’s inheritance. Through prayer, ask Him to guide us so that our expectations and imaginations for retirement can be based on self-awareness and a better understanding of what kind of life we should live. Ask Him to give us wisdom to help everyone create a retirement list and formulate a plan. Execute hard.
1. Diligent planning
Retirement checklist is a comprehensive planning process. In addition to finances, you should also consider lifestyle, family, medical, social... You can also list the dreams you want to fulfill and the places you want to go on the list, because the fulfillment of your wishes is particularly important for your physical and mental health after retirement.
From a financial perspective, everyone has different requirements and standards for life. Some people advocate simplicity; others pursue refinement. But the general principles are the same: regularly review investments to protect assets; use current income and expenses to plan post-retirement expenses and estimate living expenses; evaluate whether the financial resources at hand are sufficient to maintain the life you want.
The most popular and easy-to-understand pension estimate is the "4% rule" introduced by The Trinity Study in the United States.2, although it is not precise, it can give an outline. If you maintain your current lifestyle, assuming you need US$100,000 a year, your estimated monthly expenditure should be US$4,000. Based on an estimated retirement life of 25 years, the total required pension will be 1.2 million (formula: annual expenditure ÷ 4% = monthly expenditure; monthly expenditure × 300 months). Only 4% is withdrawn as retirement reserve every year, and the remaining 96% is still managed through various methods to earn interest and create passive income.3. Under this premise, asset allocation is re-adjusted every year based on age and risk tolerance. Assuming there are no devastating abnormalities in the economic environment, it should be enough to combat inflation and ensure financial security in your later years.
Annie Xu An, who is engaged in financial management and investment, has experienced early retirement, returned to the workplace, and reached the current digital nomadic lifestyle (refer to the 72nd issue of the housekeeping unit of this magazine "Walking Horse Life - A Brief Talk on Digital Nomadism"), and put forward another estimate. Consider: What kind of mentality and how you want to live your retirement life. Do you want to stay in the house and city where you currently live, or change to a smaller house and move to a less expensive city? Want to keep the same lifestyle and consumption patterns, or make some changes?
2. Early layout
People in the United States, in addition to paying attention to the economic pulse and making investment adjustments, should also join the corporate annuity plan 401(k) as soon as possible.4and individual retirement plans (IRAs and Roth IRAs)5. Special article from the U.S. Department of Labor "Top Ten Ways to Prepare for Retirement"6, has more detailed teachings. In Taiwan, there are national pension, labor pension and independent investment7and other channels; in addition to pension insurance funds, China can also invest and manage its own finances. Think and plan early to build passive income as much as possible.
Xiaofang used to work in nursing. When she was 35 years old, she met an insurance agent. During a casual chat, the other person asked: "You are now in good health and have a good income, but how long can this kind of high-intensity and stressful occupation last?" This was a wake-up call for her to start. Thinking about how to make life more quality? Can work not be done for money? I reviewed my income and expenses, set monthly savings, investment and consumption ratios, and paid attention to various retirement-related policies. After 20 years of planning, Xiaofang retired early and started a slash life as a "travel blogger", ushering in a new outlook in life.
So the earlier you plan, the sooner you will reach the set thresholds and get your retirement finances on a solid footing. In addition, it is also necessary to pay attention to the evolution of various retirement-related social policies and benefits. For example, many countries are facing pension reform problems and are continuously delaying the legal retirement age. Will these changes directly impact us? Based on the current Social Security fund in the United States8For example: Retirement at the age of 62 is considered early and can only receive 70% from the fund; retirement at the age of9You can receive the full amount; those who choose to delay retirement can receive incentive benefits (Delayed Retirement Credits) on the basis of the original pension.
Taiwan’s labor retirement system also has the so-called “new and old systems”10 points; China’s pension insurance annuity is about to undergo the “Progressive Delayed Retirement Act”11. Only by understanding the relevant regulations can you adjust and plan a retirement plan that suits you.
3. Make good use of medical and insurance resources
God gives Christians the commandment to "love your neighbor as yourself." It is also a way of love to take care of and settle oneself without causing a burden to relatives and friends. Proper planning of elderly medical care is also the duty of a housekeeper. As we age, the need for medical care increases year by year. Is medical insurance sufficient? How can we get maximum protection without becoming a burden to our loved ones?
Mr. Lin, who lives in the United States, has been thinking about retiring due to long-term work pressure. However, his wife, a housewife, is younger than him and has not yet applied for Medicare.12At the legal age, once Mr. Lin retires, it means that his wife will lose her health insurance. Although the Consolidated Omnibus Budget Reconciliation Act (COBRA)13, applied for extension insurance after retirement, but the extension limit of 36 months is not enough to cover the wife’s years of application for federal insurance. Mr. Lin had to postpone retirement until there was a better alternative.
In order to overcome this problem, is it necessary to purchase insurance to share risks in old age when you are healthy? Medical insurance, accident insurance, major illness insurance, cancer insurance, long-term care insurance...how to choose? Good insurance planning can help reduce the burden of related expenses in the future, but it needs to be reviewed according to different life stages, regions and situations. The content of insurance will vary greatly depending on the country you live in. For example, with the popular "medical out-of-pocket insurance" in Taiwan, foreign citizens are not eligible for insurance unless they have a legal residence permit in Taiwan; even if they are eligible, the insurance purchased by foreigners will not be eligible. The amount will also be limited. If you don’t buy the right insurance, or if you don’t buy enough insurance, the purpose of risk diversification will not be achieved.
Thinking from another perspective and working hard to maintain health is also a practical way to reduce the medical burden. Maintaining exercise, a good diet and lifestyle; participating in church and fellowship life; maintaining meaningful social relationships and avoiding isolation can all prepare for retirement to provide physical, mental and spiritual pleasure and satisfaction, and build a more stable retirement Life.
Rich and wonderful? Choose to continue making a difference
Retirement doesn’t mean life remains the same. God allows us to recuperate and enjoy the remaining time on earth after a lifetime of hard work. Different stages may occur as our bodies decline and personnel change.
The first stage is when you are healthy and can live independently. You should accept the call and command from God and set goals for your life. You can consider joining the ministry to start a second career, or even fulfill your past dreams, travel or learn new skills and things.
The psalm hopes that people who have entered old age will continue to bear fruit, be full of juice and always green; Pastor Wang and his wife are an example. They retired from pastoring churches. Take a closer look at their current schedule: Monday prayer meeting, Tuesday voluntary teaching to students with dyslexia in school, Friday Bible study, quarterly sermons, participation in women's care every other month..., the full schedule seems to be more than Used to be busy. Ask them why they don’t take some time off? "God has given us a mission. How can we tell God to retire?"
Taiwanese blogger Xian Ren said, "I suddenly don't know what to do after retirement?" 〉It lists 21 executable items in seven areas, such as leisure activities, knowledge learning, interests, family, social activities, retirement, preparation for the future, etc. Taking knowledge learning as an example, she listed: learning languages, learning digital tools, taking certificates and creating part-time opportunities... etc. Social activities include: making friends, volunteering, participating in clubs and religious activities...
For Christians, it is natural that they cannot ignore fellowship life and church service. Churches and evangelical institutions also need to provide a "place for use" for this human resource with professional knowledge and life wisdom, to serve side by side with the younger generation, appreciate and learn from each other; not as role models, but to support and watch over them.
From his own experience, Xu An realized that today's retirement lifestyle may be different from the past. For example, many people choose to work part-time in order to meet different people and stay connected with society.
It can be seen that there are only feet that cannot be crossed, and there is no threshold that cannot be crossed; as long as you are willing, make plans with a suitable mentality, and then take action, your retirement life will still be wonderful.
Image Source:https://www.freepik.com/free-photo/woman-offering-food-neighbor_27645474.
Family love is a beautiful blessing and should not become a fetter.
After retirement, in addition to enjoying interactions with family members, I can share the pressure of childcare with my adult children in a timely manner. And we should respect generational differences and reserve appropriate space for each other.
Ms. A raised her children independently after her divorce, and life was not easy. She habitually complained to her children and emphasized the sacrifices she had made, which was tantamount to emotional blackmail. This makes it difficult for children to be close to her. When she retired and asked to live with her children, she was rejected. The sad Ms. A did not expect that the emotional needs for her children were a disguised dependence, which placed the responsibility on the other party and made people breathless. Jiang Xun mentioned in "Six Lectures on Loneliness":"Mature love is about dependence, not dependence. Dependence means that you can lean on and take a break when you are tired occasionally, but dependence means that you can't go away."Short-term dependence can enhance feelings, but long-term dependence can cause the relationship to break down.
Is the afterglow still filling the sky? Be a steward of faith
Ecclesiastes 3 says that there is a season for everything, and a season for everything under heaven. No one can escape God's law of time, and one day he will have to face physical decay. In the second stage after retirement—when your health begins to decline and you need help taking care of it—how can you use a stewardship to manage everything God has given you, including your family, time, finances, and even medical decisions?
With thousands of years of cultural tradition, many people have unrealistic imaginations about a loving father and filial piety. As times and family types change, we should view the changes rationally. According to data from Taiwan’s National Development Council14, the number of people over 65 years old will account for 16% of the total population in 2024. This means that every four young adults have to take care of one elderly person. The pressure on the younger generation is self-evident. Due to the influence of China's past one-child policy, this situation is even more severe.
It is important to know that although families provide care and support, as life stages change, children's prime years are also the peak of life stress. If you are able to do so at this time and are willing to take on the responsibility of taking care of yourself, it is a wonderful grace from God. If you are unable to catch it, you should settle for yourself with an open-minded attitude. At this point in your life, you may be facing the loss of old friends, or you may be widowed or divorced. Know that in good times and bad, God’s grace and love will never leave you. Paul said that he knew how to be abased and he also knew how to abound, because he had learned the secret: He could do all things through Christ who strengthened him.
Yang Zijing, the author of "The Chairman Tells Stories", believes that the elderly should not be a worry for their children."Everyone's expertise is different. If everything can be left to professionals, the world will be a better place. ⋯⋯None of my children's majors are taking care of the elderly. If I let them take care of them, not only may I not be taken care of well, but I will also be wasted. I put all my effort into cultivating them. What they should do is: come see me when they have time, chat with me, and then use their expertise in the right place."
Perhaps accepting professional long-term care is also an open-minded and responsible choice.
Make “advance medical directives” for yourself when you are conscious15(Advance Directives), don’t leave your problems to your family. Discuss with your family, listen to each other's opinions, and make it clear how you want to be treated when a serious illness occurs and cannot be treated, so that the journey back to heaven can be more peaceful and dignified. The United States has always advocated advance medical directives; Taiwan also passed the "Patient Autonomy Rights Act" in 2019, which began to respect patients and protect patients' rights to know their condition, choose treatment methods, accept or refuse medical treatment, and can participate in medical treatment even before they become unconscious. decision making.16
Retirement is a path of faith
When the noise stops, retirement is a time for us to deepen our relationship with God.
Most of the time in life, I am like "Jacob", constantly grabbing around and trying to possess, fighting for the future based on flesh and blood. In old age, the body gradually weakens, and partners, friends, and time are gradually lost like fine sand in the hand. On days like this, you should continue to communicate with God by faith, only then can you become "Israel" and live a victorious life relying on the Lord. No matter what is left in your hands, you have the assurance that God will provide for it. God has promised to be with you and me, and will never leave us nor forsake us.
The focus and value of life is that we are God’s children and royal priests. With a stewardship mentality, make good use of, cherish, and guard everything God has given you. Even if everything in your hands seems to be gradually disappearing, because of His presence, your life will be abundant and wonderful.
When the time comes to return to the land of our ancestors, I pray that we can gently say to God: "Thank you for your guidance and use as a steward and vessel. I have not wasted this life."
- Note: 1. Research on depression among retired people at the National Center for Bioinformatics and Information Technology:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7551681/;Clinical and Experimental Research on Aging: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8429157/. 2. The Trinity Study 4% rule, for relevant Chinese introduction, please refer to:https://yp-finance.com/the-trinity-study-%E6%BA%96%E5%82%99%E5%A4%9A%E5%B0%91%E9%8C%A2%E6%89%8D%E8%83%BD%E6%94%BE%E5%BF%83%E9%80%80%E4%BC%91%E7%94%9F%E6%B4%BB/. 3. Passive income: Income generated automatically, such as investment returns, stock dividends, bond interest, rent income, etc., is called passive income. 4. Enterprise Annuity Plan 401(k): The "Enterprise Supplementary Pension" system that is led by the enterprise, where employers and employees jointly contribute, and enjoys tax benefits, is the most common retirement benefit plan provided by American employers for employees. 5. IRA and Roth IRA: Both are individual retirement accounts. Traditional IRA is a "pre-tax" savings. When you receive it at the age of 59.5, investment income and interest must be included in the tax. Roth IRA only accepts "after-tax" savings and can be withdrawn after the age of 59.5. All investment income and interest are no longer taxed. 6. U.S. Department of Labor's "Top 10 Ways to Prepare for Retirement":https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/publications/top-10-ways-to-prepare-for-retirement-zh-sc. 7. Independent investment retirement funds: refers to stock investment, real estate investment, funds, insurance, fixed deposits, etc., investments made by individuals’ choices. 8. Introduction to U.S. social security benefits and federal health insurance:https://www.ssa.gov/pubs/CH-05-10024.pdf. 9. Age retirement: Different retirement ages are set according to the year of birth: for those born between 1943 and 1954, the retirement age is 66 years old; for those born between 1955 and 1959, the retirement age increases (in 1955 it was 66 years and 2 years old). months (66 years and 4 months in 1956). For those born in 1960 and after 1960, the retirement age is 67 years old. 10. Comparison between the new and old labor retirement systems in Taiwan:https://blog.104.com.tw/labor-pension-retirement-mechanism-difference/. 11. Reference articles on China Pension Insurance Fund:https://health.gvm.com.tw/article/99577. 12. Please refer to Note 8 for an introduction to US social security benefits and federal health insurance. 13. COBRA Consolidated Omnibus Budget Reconciliation Act:https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/publications/an-employees-guide-to-health-benefits-under-cobra-zh-tc. 14. National Development Council Population Estimate Inquiry System:https://pop-proj.ndc.gov.tw/. 15. Please refer to:https://www.nextstepincare.org/next_step_in_care_guides/211/Advance_Directives/chinese. 16. For more information, please refer to the theme project of the 136th issue of "True Love" family magazine [Love stays with you throughout the entire journey].
Yang Xuejing, worked as a planning copywriter for an advertising company and a high school Chinese teacher. After coming to the United States, he settled in Texas and participated in local Chinese education work. I hope that through words, more people will know the gospel and the values of heaven will be spread widely.