Author provides keys to a happy, worry-free retirement

You know the saying, “It’s not rocket science.”

Well, today’s retirement planning is rocket science. It’s often confusing and overly complex. There’s so much you need to know.

Let me put you to the test. How much do you know about the following?

When to take your Social Security. Securian Financial Group surveyed baby boomers 50 to 65 about their plans for claiming Social Security retirement benefits. Only 18 percent knew how or when to go onto Social Security.

The cost to have Medicare. Nearly three-fourths of boomers surveyed by Bankers Life and Casualty Company Center for a Secure Retirement didn’t know that most Americans on Medicare pay premiums, co-pays and deductibles.

Long-term care insurance. Only 14 percent of participants in the Bankers Life and Casualty survey knew that Medicare generally does not cover long-term care. Long-term care insurance can help cover the cost of nursing homes, assisted-living facilities and in-home care. The insurance pays expenses for those who need assistance with daily activities such as eating, dressing and bathing, or who have a severe cognitive impairment such as Alzheimer’s disease.

Your company pension. Have you considered whether to take a lump-sum distribution instead of guaranteed monthly payments? Could you manage the money if you take a lump sum?

Even some people with strong financial backgrounds aren’t prepared enough for their own retirement.

If anyone should have mastered the science of retirement, it would have been Stan Hinden, who spent the last 12 years of his 45-year journalism career as a financial columnist for The Washington Post. Yet Hinden, now 86, admits that he was not prepared with the breadth of knowledge he needed to handle his affairs in retirement.

But, oh, what experience can teach you.

After 17 years in retirement, Hinden is well versed in many issues and shares his wisdom in the Color of Money Book Club selection for April — “How to Retire Happy: The 12 Most Important Decisions You Must Make Before You Retire” (McGraw Hill, $20).

Be sure to get the updated fourth edition, which contains the most recent information about Medicare. The chapter on health insurance covers the new deductibles for Medicare Part A (pays for hospital stays) and the new deductible and new premiums for Medicare Part B (pays for medical tests, doctor and preventive services). It also gives details on the new monthly premiums for Part D (prescription drugs). The new edition also explains some of the salient facts about the new health care law.

Also new to the book are the health issues affecting his wife of 59 years, Sara. She suffers from Alzheimer’s and lives in a small group home for dementia patients.

“Signs of Sara’s illness first appeared in 2007, when she was 78,” he writes. “Needless to say, Sara’s condition dramatically changed both her retirement and mine. Until then, we had been poster children for a happy, upbeat retirement. My experience with Alzheimer’s disease has given me a new perspective on how one prepares for serious illness during retirement.”

One way to prepare is consider getting long-term care insurance. Sara’s policy, which she took out at age 62, is helping defray the cost of her care, which runs about $4,000 a month. The insurance pays $130 a day or $3,900 a month. But her maximum total benefit is $260,000, which equates to 5.5 years. The chapter on long-term care is scary and depressing. Yet it is a must read.

Hinden invites you into the retirement life he and his wife have experienced. Their personal journey is what makes this book so readable and relatable. He nicely weaves their financial decisions and dilemmas around the most important information you’ll need to go over before and during your retirement.

I asked Hinden what one piece of advice he would give someone close to retiring (within five years).

Start working on your retirement budget now, he said.

“Pay close attention to your likely health expenses,” he added. “Prepare to go on Medicare at 65, if you are not already there. See if you can upgrade your secondary health insurance, or arrange to buy it. Study your prescription drug expenses and see if you can minimize those expenses.”

Hinden doesn’t come off as an expert wagging his finger at you. He’s become smarter and wants to help show you how to retire happier and better informed.

I’ll be hosting a live online discussion about “How to Retire Happy” at 9 a.m. PDT on May 2 at washingtonpost.com/discussions. Hinden will join me to answer your retirement questions. Every month, I randomly select readers to receive a copy of the featured book, which is donated by the publisher. For a chance to win a copy of this month’s book club selection, send an email to colorofmoney@washpost.com with your name and address.

Washington Post Writers Group

Talk to us

More in Herald Business Journal

Members of Gravitics' team and U.S. Rep. Rick Larsen stand in front of a mockup of a space module interior on Thursday, August 17, 2023 at Gravitics' Marysville facility. Left to right: Mark Tiner, government affairs representative; Jiral Shah, business development; U.S. Rep. Rick Larsen; Mike DeRosa, marketing; Scott Macklin, lead engineer. (Gravitics.)
Marysville startup prepares for space — the financial frontier

Gravitics is building space station module prototypes to one day house space travelers and researchers.

Orca Mobility designer Mike Lowell, left, and CEO Bill Messing at their office on Wednesday, Aug. 16, 2023 in Granite Falls, Washington. (Olivia Vanni / The Herald)
Could a Granite Falls startup’s three-wheeler revolutionize delivery?

Orca Mobility’s battery-powered, three-wheel truck is built on a motorcycle frame. Now, they aim to make it self-driving.

Catherine Robinweiler leads the class during a lab session at Edmonds College on April 29, 2021. (Kevin Clark / The Herald)
Grant aids apprenticeship program in Mukilteo and elsewhere

A $5.6 million U.S. Department of Labor grant will boost apprenticeships for special education teachers and nurses.

Peoples Bank is placing piggy banks with $30 around Washington starting Aug. 1.
(Peoples Bank)
Peoples Bank grant program seeks proposals from nonprofits

Peoples Bank offers up to $35,000 in Impact Grants aimed at helping communities. Applications due Sept. 15.

Workers build the first all-electric commuter plane, the Eviation Alice, at Eviation's plant on Wednesday, Sept. 8, 2021 in Arlington, Washington.  (Andy Bronson / The Herald)
Arlington’s Eviation selects Seattle firm to configure production plane

TLG Aerospace chosen to configure Eviation Aircraft’s all-electric commuter plane for mass production.

Jim Simpson leans on Blue Ray III, one of his designs, in his shop on Friday, August 25, 2023, in Clinton, Washington. (Ryan Berry / The Herald)
Whidbey Island master mechanic building dream car from “Speed Racer”

Jim Simpson, 68, of Clinton, is using his knowledge of sports cars to assemble his own Mach Five.

Inside the new Boeing 737 simulator at Simulation Flight in Mukilteo, Washington on Wednesday, Sept. 20, 2023. (Annie Barker / The Herald)
New Boeing 737 simulator takes ‘flight’ in Mukilteo

Pilots can test their flying skills or up their game at Simulation Flight in Mukilteo.

An Amazon worker transfers and organizes items at the new PAE2 Amazon Fulfillment Center on Thursday, Sept. 14, 2023, in Arlington, Washington. (Ryan Berry / The Herald)
Amazon cuts ribbon on colossal $355M fulfillment center in Arlington

At 2.8 million square feet, the facility is the largest of its kind in Washington. It can hold 40 million “units” of inventory.

A computer rendering of the North Creek Commerce Center industrial park in development at 18712 Bothell-Everett Highway. (Kidder Mathews)
Developer breaks ground on new Bothell industrial park

The North Creek Commerce Center on Bothell Everett Highway will provide warehouse and office space in three buildings.

Dan Bates / The Herald
Funko president, Brian Mariotti is excited about the growth that has led his company to need a 62,000 square foot facility in Lynnwood.
Photo Taken: 102312
Former Funko CEO resigns from the Everett company

Brian Mariotti resigned Sept. 1, six weeks after announcing he was taking a six-month sabbatical from the company.

Cash is used for a purchase at Molly Moon's Ice Cream in Edmonds, Washington on Wednesday, Aug. 30, 2023. (Annie Barker / The Herald)
Paper or plastic? Snohomish County may require businesses to take cash

County Council member Nate Nehring proposed an ordinance to ban cashless sales under $200. He hopes cities will follow suit.

A crowd begins to form before a large reception for the opening of Fisherman Jack’s at the Port of Everett on Wednesday, August 30, 2023, in Everett, Washington. (Ryan Berry / The Herald)
Seafood with a view: Fisherman Jack’s opens at Port of Everett

“The port is booming!” The new restaurant is the first to open on “restaurant row” at the port’s Waterfront Place.