5 Tips for Planning Your Retirement

Wound care professionals are among the healthcare industry’s most knowledgeable and skillful clinicians. They are also some of the most overworked. The need for expert wound care in the United States continues to intensify, with current estimated costs of chronic wound care at approximately 4% of the health system’s budget. Whether wound care professionals are providing direct patient care, offering educating and consulting services, or working as program directors or administrators, challenges in this field abound. So, too, do the rewards and self-fulfillment, because helping patients to heal from painful, chronic conditions (and perhaps prevent further complications) is a great achievement. One of the rewards of a successful career as a

clinician should be the ability to plan for a comfortable retirement. Because of demographics and the aging of the baby boomer generation (about 10,000 people reach age 65 each day in the U.S.¹), many wound care providers are growing older. In 2013, there were more than 1 million physicians  in the U.S., the vast majority of whom held active licensure.²According to the U.S. Department of Labor’s Bureau of Labor Statistics, nearly 3 million registered nurses were employed in 2017,³and the physician workforce is expected to increase by as much as 13% by 2026.⁴ The bureau’s statistics also show nearly 300,000 physical therapists employed in the U.S. as of 2016.⁵This article will share advice for those who will reach retirement age over the next 5-10 years.

DO NOT FEAR THE END

Regardless of their profession, some people approach the retirement decision with fear, avoidance, and/or denial. As with all things in life, there is no “typical” way to retire and there is no one-size-fits-all, evidence-based plan to approaching retirement. However, most experts do agree that the best basic advice consists of trying to remain as active as possible and avoiding financial ruin by spending frugally in your later years. According to the Social Security Administration, the average male can expect to live to be 84.3 years old while the average female will live to be 86.6 years. That is nearly 20 years for a man and nearly 22 years for a woman to enjoy retirement, generally speaking. Despite these facts, many people spend more time planning their yearly vacations than they do planning for a lengthy retirement.  With the benefit of good health, these years can comprise a significant chunk of any person’s life. Often, our planning and resource allocation for these later years are overlooked or deferred until just before retirement, which can add undue stresses and challenges to a time that should include a significant amount of rest and relaxation.
Additionally, the successful pre-retirement professional has earned all desired educational degrees and has set aside enough money to maintain a comfortable lifestyle. Consider these five strategies to retirement planning:

1. Begin to decide at which age you would like to stop working, and start setting money aside specifically for personal retirement savings in excess of Social Security, 401(k), and pension payments. As a first step, speak with your employer about when you would like to retire so that the company can have a plan in place for when your role is vacated. Also, consider the advice of a financial advisor and try to involve others in your planning, particularly family members, friends, and/or former colleagues who may have previously retired. Also, schedule an appointment with your physician to have a physical and health exam to make sure there aren’t any health concerns that should be addressed as you prepare to retire. 
2. Decide if you want to age in place or plan to relocate to a new living situation. As plans for retirement begin to take shape, professionals should survey their present living situation. Is it “age friendly”? Are you engaged with your community? How do you like the weather? Are you close to family, friends, and significant others? If the answer to any of these questions is “no,” consider researching other locations to live. Various communities may offer better availability of amenities such as transportation services, healthcare facilities, recreational and social activities, walking and bicycle trails, entertainment districts, and other aspects of a region that could encourage older adults to consider a relocation after full-time work.
3. Consult with a financial advisor to examine future financial need. According to a survey by the American Medical Association, only 6% of physicians consider themselves “ahead of schedule” in planning for retirement, and a majority of physicians would have sought the advice of a financial advisor.⁶According to Geoffrey Forcino, CPFA,^®AIF,^®director of 401(k) and retirement plan services at Kathmere Capital Management, an organization based in King of Prussia, PA, that provides financial advisory services for individuals and businesses, it is suggested that professionals save 12-15% of their salary each year for retirement. This includes any contributions their employer might make on their behalf, such as a 401(k) match. “This is in line with the data from the top financial institutions, citing that an employee would have to contribute this much in order to maintain their standard of living through retirement,” Forcino said. “These percentages have gone up over the last couple of years due to increases in healthcare costs and life expectancies. With all of this being said, retirement needs certainly differ based on individual circumstances.” For example, a targeted saving rate could depend on age, number of years of anticipated work remaining, retirement lifestyle goals, and/or amount of money already saved. Professionals can roughly calculate their Social Security benefits, pension payments (if any), income from investments, and savings-account statements to get a basic idea of the lifestyle that will be available post-retirement. Some suggest that most people should plan on providing about 45% of their retirement income from savings to supplement their Social Security benefits.⁷This is also a time to become familiar with Medicare benefits and projected healthcare expenses. The earlier these assessments begin, the easier the transition will be. 
4. Begin to investigate post-retirement volunteer and service opportunities by visiting the websites of local nonprofit organizations. Review their goals and mission statements, and think about how many hours you have available to volunteer. How will it work if you travel and are not available for regularly scheduled meetings? Or maybe you want to do work that does not involve a lot of face-to-face interaction? Be selective with your time and energy.
5. When, where, and with whom do you want to travel (if at all)? When was the last time you vacationed? Hopefully you can remember. You no longer need to worry about how long you can be away when you are retired, but setting an appropriate budget will determine your schedule. Do you have children or grandchildren? Trips do not need to be long to be memorable. Perhaps you want to travel alone on occasion. There are also tour groups available for those who are single but would like to travel with others. 

MOVING ON FROM PATIENT CARE

Beyond securing finances, one of the most challenging aspects of any healthcare professional’s retirement is going to be walking away from a lifelong career of caring, commitment, and service to others. How does someone known for their compassion and empathy transition to retirement and continue to find fulfillment in their life? What types of activities can members of this workforce choose in retirement to fill unstructured time? 

Many people find satisfaction in taking volunteer opportunities as a means to continue to contribute to society and achieve self-fulfillment in a variety of roles, including research and education. For those who may have the energy and desire to remain as close to full-time employment as possible, taking a “second career” approach with a part-time or per-diem opportunity can be a way to engage in more work, including direct care with an active license. Others may wish to prioritize travel or make little to no specific plans. Others may yearn to make up for “lost time” with friends and family. Regardless of what any professional decides to do with his or her time after retirement, it is important to plan for whatever it is that you would like to be doing accordingly. 

Patricia Tabloski is co-author of the book  Redefining Retirement for Nurses: Finding Meaning After Retirementand is associate professor at the Boston College Connell School of Nursing. She may be reached at 617-552-4065 or patricia.tabloski@bc.edu

References 

1. Heimlich R. Baby boomers retire. Pew Research Center. 2010. Accessed online: www.pewresearch.org/fact-tank/2010/12/29/baby-boomers-retire

2. Statistics & facts on U.S. physicians/doctors. Statista. 2018. Accessed online: www.statista.com/topics/1244/physicians

3. Occupational employment statistics. Bureau of Labor Statistics. 2017. Accessed online: www.bls.gov/oes/current/oes291141.htm

4. Occupational outlook handbook, physicians and surgeons. Bureau of Labor Statistics.2018. Accessed online: www.bls.gov/ooh/healthcare/physicians-and-surgeons.htm#tab-6

5. Occupational outlook handbook, physical therapists. Bureau of Labor Statistics. 2018. Accessed online: www.bls.gov/ooh/healthcare/physical-therapists.htm

6. Top personal finance tips from experienced physicians. AMA. 2015. Accessed online: https://wire.ama-assn.org/ama-news/top-personal-finance-tips-experienced-physicians

7. How much should I save for retirement? Fidelity.^® 2018. Accessed online: www.fidelity.com/viewpoints/retirement/how-much-money-should-I-save