Though retirement party is not ending but rather a new beginning, it may become a splendid opportunity to celebrate certain life accomplishments. As a rule, speeches on such occasions are meant to give credit to the achievements of the retired and hardly ever contain any criticism. At my retirement party, listening equally favorable words from my colleagues, close friends and relatives would be the greatest praise for me because it would imply that I managed to balance my career and personal life.
I would be most pleased to hear that I always managed to allot enough time to my professional growth and my dear and near people. On the one hand, I would like to hear from my relatives that notwithstanding continuous overload, I have always been unselfish and responsive to their troubles.
On the other hand, it would be really pleasant to hear from my colleagues that I have been a good specialist and a good team player. With the present business environment, it is significant not only to obtain deep knowledge and profound practical skills but also to adapt to ongoing changes, focusing on cooperation instead of competition.
Disregarding the generally accepted format of the speeches at retirement parties, according to which they are mostly approving, sometimes even hypocritically approving, the speakers’ words would shed light upon not only my career achievements but also my interpersonal relationships with the rest of the staff which are a significant component of life accomplishments as well. In other words, I consider combining personal and professional growth the greatest possible achievement.
Appraising my current way of life, it can be stated that I am already on track to my dreams though certain changes should be made for increasing the likelihood of their realization.
I do my best for developing my professional skills, trying to balance various dimensions of my life. However, the improvement of my time management and goal stating skills would be helpful for enhancing the effectiveness of all my efforts. Wake (2008) noted that “Consciousness is a continuous process and the only thing that changes is ‘intentionality’” (p. 120).
Thus, watching my intentions is important for selecting the most appropriate methods of their realization and improving the future outcomes. Putting more emphasis on self-organization and soul-searching for defining the major life goals would increase the likelihood of achieving all of them by the day of my retirement party.
Frankel’s view of future orientation is relevant to my situation and allows me to choose the right direction for all my efforts. Frankel (2008) noted that “future orientation implies a determined effort not to be constrained by the past or even the present, but to use all resources to capture the fruits of future opportunities under consistent external and internal threats and technological change” (p. 14).
The choice of the most appropriate vector for all my power is significant because swimming with the stream and living without definite intentions and objectives can be compared to wandering in a forest not knowing the route. Frankel’s concept of future orientation has become an important solution in the process of my soul searching which motivated me to look into better tomorrow instead of being imprisoned in my present.
In general, it can be stated that certain changes in my self-organization and implementation o Frankel’s concept of future orientation would increase the likelihood of realization of my dream to hear equally favorable speeches from my relatives, friends and colleagues at my retirement party.
Reference List
Frankel, E. (2008). Quality decision management – the heart of effective futures-oriented management. Cambridge, MA: Springer.
Wake, L. (2008). Neurolinguistic therapy: A postmodern perspective. New York, NY: Routledge.
Retirement is a definitive end or stage that is anticipated by every American employee. This is a period when they do not need to hustle with traffic to work or interact with demanding bosses. At this stage, people have unlimited time to involve in leisure activities. Retirees face a series of challenges ranging from problems of old age, inability to take care of themselves and lack of company. Many people die soon after retirement due to stress, resulting from lack of company and proper care.
Problem Statement
This paper addresses the steps to be implemented in solving a marketing problem. The paper looks at the strategies to be implemented in the convincing retirees to sell their apartments and move to the Riddle retirement home. The Riddle retirement home offers an excellent home for the retirees; they are able to enjoy the company of one another, engage in sporting activities. The home also prepares food, laundry services and medical care to those housed there.
Background
After retirement, many people opt to retirement homes to avoid the putting a burden to their children. Some also consider life in retirement to maintain the living standards that they were used to as employees. Charges for assisted living in retirement homes are high in most nursing homes, compared to the riddle retirement village.
The riddle village provides a state of art lifestyle for the residents. It is based on the benefits that the riddle village provides that this proposal seeks to launch an awareness campaign on the benefits that retirees would get from joining the riddle village retirement home.
The retiring older population depends mostly on the social security benefits for their livelihood after retirement. Most of them claim the benefits early and end up receiving much reduced amounts that can not sustain them well in old age. The number of retired men and women that began collecting their social security paybacks surged as from 2009 (Casey, 2009, p 430).
This was attributed to the increase in population of people of age 62 years and above. Retired men and women are mostly left along at home while the younger people go out to work. As such, they have no one to assist them with physically involving jobs such as washing, cooking and cleaning. They also lack the company of peers and spent most of the time on their own.
Mr. Samuel Riddle of Delaware County donated his piece of 72 acre land together with $ 2.5 million for construction of a hospital for his community (Schwarzschild, 2007, p 209). A memorial hospital was put up in his honour covering a total of 34 acres. The remaining piece of land was used to put up a fully equipped and modern retirement home.
The home is decent in every manner and is designed to provide a healthy, conducive and secure environment to the residents. The apartments developed at the riddle retirement village comprise of large lobbies, dinning rooms and bedrooms ranging from one to three in number. The apartments are also attached to ensure that the residents do not move outside for either dinner or seeing an ill partner (Schwarzschild, 2007, p 211).
The riddle village is committed to enriching the life of the retired individuals by providing care and a high quality living environment. Health care and recreational services as well as the security of the residents are guaranteed.
The workforce providing care is highly skilled and committed to providing quality home care to the retired residents. Apart from providing the best care to the residents, the management is also committed to the welfare of the workers, making them be committed to the work because they are satisfied by the employer’s treatment (Schwarzschild, 2007, p 212).
Commitment by both the management and workers to the quality of the life of the residents has made the village run for this long. The village has a future, based on the achievement that it has gained in providing quality care to the residents.
There are other retirement homes providing similar care to retired individuals, however, the uniqueness in the quality of home care provided by riddle village makes it a preferred place. Most other retirement care centers do not prepay sufficient amount of money to cater for the health care of the residents. This is attributed to failure by the care centers to attract younger populations.
The centers have only older population whose age again continues to advance with time (Roe & Beech, 2005, p63). With the soaring cost of medical care in the US, many retirement homes have had to alter their policies in regard to health care service provision to the residents. The retirement community as a result has been forced to subsidize their older medical service contracts as a result of the increased medical care service ceilings.
Statement Need
Because of the numerous problems that retired people face alone at home, there is a need for a home that provides them a dignified and quality life after retirement. The riddle village ranks as the best place, providing retirees an excellent living environment after retirement.
The solution lies in convincing retirees to sell their apartments and joining the riddle village retirement center. The centre provides a compressive care ranging from medical, cooking, washing and recreation facilities. There is also the benefit of company provided by the staff as well as peers who are also residents of the village.
By selling their apartments, they will be able to subsidize their living expenses at the centre and enjoy the quality living standards that the center provides. Since most of the retirees are elderly people beyond a productive age, the riddle centre would provide them with an excellent environment to spend the rest of their life after retirement. Besides, the retirees will be willing to be in a place that is devoid of stress and provides a quality living standard.
The admission policy to the village is not discriminatory; it is not based on sex, race, religion or any other discriminating criterion. Admission is strictly based on the state and federal rights law that emphasize on like opportunities for all people (Hunt, 2005, p 59). This applies not only to residents but also the workers in the organization. This fact eliminates the fear that an individual may sell his or her apartment and fail to be admitted to the village based on any illegal discriminatory criterion.
The home provides a variety of three living levels making it flexible for those interested in joining. The three levels of living include residential living, assisted living and skilled nursing care (Schwarzschild, 2007, p 44). Resident living provides an opportunity to one who is fully retired from all chores.
Services provided to such individuals include; cooking, cleaning. Residents enjoy the relaxation in luxurious environment of the riddle village. The retirement community provides recreational, social cultural and educational lifestyle making it a complete lifestyle (Roe & Beech, 2005, p57).
Assisted living is meant for individuals seeking a little help with their routine activities. Services offered at the riddle village to assisted living individuals include; bathing administering drugs and dressing. The riddle village management provides such individuals with private studios or single bed roomed apartments. Skilled nursing care is provided by the supportive staff that works diligently to provide nursing care to individuals who require medical services.
The riddle village retirement home provides more advantage to the resident, with a flexible lifestyle commendable to the retirees. With the numerous advantages, and the quality of life that the village offers, it is expected that the retirees will prefer life in the village to staying alone at their home with no one to take care of them or provide social company. The benefits of the village to those admitted are as soon as one becomes a member; there is no waiting time to begin enjoying the benefits.
Plan of Action
The solution is to be implemented in a time frame of three months based on a sensitization process. This will involve carrying out a sensitization campaign to make potential residents of the village aware of the offer that the riddle retirement home has for them. The campaign is to be carried out through different media outlets as well as through word of mouth. The effectiveness of the strategy applied shall be assessed on a monthly basis by finding out the effect of the campaign on the number of enrollment at the riddle retirement home.
Key personnel to be involved in the campaign will include; the senior management team at the village, workers unions and the media people. Employers will also feature on the list of key persons required for the campaign. Employers have a responsibility of providing advice and direction to their retiring employees on how to spend life after retirement.
Many employees fail in this responsibility and let out their retiring staff without proper life skills to survive after retirement (Casey, 2009, p 434). With the retirement home centers, retirees leave employment walk into an environment that provides quality care. Employers will be expected awareness about the riddle village home offers retirees through seminars and other forums that they use to interact with employees.
The management team at the Riddle village shall provide information that shall be used to assess the effectiveness of the strategy applied in the sensitization program. The information is important as it will let us know whether the strategies in use are producing the expected impact or not.
In case the strategy does not produce an expected impact, then appropriate amendments shall be putting place to avoid waste of funds. The media people will play the role of passing on the information to the general public. This will be through TV and radio programs that relay relevant information on retirement.
The campaign process will involve printing and distributing brochures and flyers with information on the services provided by the riddle village. TV and radio adverts as well as spreading the information through word of mouth will be significant means of getting the information to the targeted audience. The campaign will take place for three months, TV and radio adverts will be aired for one week within the three month period.
Budget for Implementation of the Solution
The costs to be incurred in the implementation process for the solution will include printing of flyers and brochures, travelling costs, placing TV and radio ads, and contingencies. To minimize the cost of printing, a personal printer shall be used to reduce printing cost to an average of $ 100.
Travelling costs shall be high as it will be a requirement to distribute the flyers and brochures. The US general service agency rates the rate per mileage at $ 0.5 per mile; the journey to be covered in the process will be approximately 1200 miles, resulting to a cost of $ 600. Running a TV and Radio ad for a week will cost averagely $ 7,000. Contingencies for the process will be at an average of $ 500 to cater for unforeseen expenses. The total budget for the implementation of the solution shall be $ 8, 200.
Work Schedule
Implementation of the proposed solution will require contacting the key personnel needed to assist in the implementation. They include; five major employers within the Delaware region, preparation and printing of awareness materials and preparing TV and radio ads. This will require an average period of one month in order to contact each of the listed persons and prepare for the start of the implementation process.
The implementation process will be for a period of two and a half months. Radio and TV awareness will take one week, as the distribution of flyers and brochures take the rest of the time. Brochures and flyers distribution shall target busy places such as churches, markets and hospitals. It is expected that the huge numbers of persons who visit such places will aid in spreading the information to as many people as possible. The period of three months is sufficient to allow the monthly evaluation to determine the effectiveness of the strategy.
Mode of Evaluation
The response received at the riddle village retirement home in terms of applications from potential applicants. The information shall be sourced from the riddle village management team on a monthly basis. An increase in the number of applicants wishing to join the riddle village will be viewed as a success of the program. It is expected that the approach will create awareness to potential applicant.
Conclusion and Recommendations
Retirees face many challenges living on their own after retirement. They pose burdens to their children as dependants requiring personal and medical care. Boredom and stress sets heavily on them causing miserable life for them. Riddle village retirement home is a noble idea for retires. The village is designed to provide excellent and quality life for them, recreation, education and social needs of the residents is well catered for by the organization.
This report recommends riddle village retirement home as an ideal place for people in retirement based on the standard of life that the organization provides its resident. The management also caters for the well being of their staff meaning it is a good place as well for workers. This information should be spread out to as many people as possible so that retirees are made aware of these excellent living conditions for them.
Reference List
Casey, B. (2009). Redundancy and Early Retirement: The Interaction of Public and Private Policy in Britain, Germany and the USA. British Journal of Industrial Relations, volume 30 Issue 3 p 425-435. Web.
Hunt, E. M., (2005). Retirement Communities: an American Original. Oxford: Blackwell Publishing Ltd.
Roe, B. H. & Beech, R. (2005). Intermediate and Continuing Care: Policy and Practice. Oxford: Blackwell Publishing Ltd.
Schwarzschild, E., (2007). The Family Diamond: Stories. New York: Algonquin Books of Chapel Hill.
Compensation and retirement plans are referred to as employee benefits. They are values that are made available to the employee, for the services they offer to the organisation. These benefits or values are outside their regular payments. Compensation and retirement plans are referred to as tangible benefits. An example of a retirement plan is the IRA. Funds that are deposited into the IRA account are deducted by the employer from the employee’s payment and thus are not subjected to income taxation immediately. Except in cases where there are premature withdrawers from such accounts. For example, if the employee’s gross pay is 50,000 and 5000 of the gross salary is directed into an IRS retirement account. This monies can be used to invest in the retirement fund.
Tax Law: Understanding the IRA Retirement Plan and Account
IRA (Individual Retirement Account) is established and operated by the employee or worker. Annual contributions into the account are excluded from his income. The account is often operated with the assistance of the employers. The current contribution scheme is, 3000 for 2002-2004, 4000 for 2005-2007, 5000 for2008 (Hule 126). Depending on the distribution, IRA is subject to tax rates. For instance, premature withdrawals from qualified funds are penalised.
Case Study
Early this year, Scott Lowe, age 54, became dissatisfied with the service he was receiving from the broker who managed his IRA. He requested a distribution of the $48,200 balance in the account and received a check for this amount from the broker on May 23. Scott planned to roll the distribution over into a new IRA with a different broker. Before he could do so, he received news that his son-in-law had died in a hunting accident. Scott immediately travelled to his daughter’s home to console her and his grandchildren. During this period of trauma and confusion, Scott wrote a check for $48,200 to his new broker but failed to instruct the broker to put the money into an IRA.
Instead, the broker invested it in a taxable money market account. Scott and his broker did not discover the mistake until late December. Must Scott include the $48,200 withdrawal in his gross income and pay a $4,820 premature withdrawal penalty?
Scott will have to pay the 10% premature distribution penalty. This he would have avoided by, within 30 days of lump-sum distribution, he would have rolled the distribution into a new account, taking distribution after 59 ½ years of age, and the distribution would have been taken at the disability of a planned participant, making a distribution that is subject to a qualified domestic relations order. These exceptions are permitted.
Minimum Required Distribution (MRD) Rules
These rules exist to force access to the accounts, not considering whether the beneficiary needs the money. Retirement accounts are meant for retirement and not to pass wealth, this is where this policy stems from. The age differs from policy to policy, but the rule is the same, withdrawals from retirement accounts must begin at age 70 ½ (Internal Revenue Code, 401(a) (9)).
Related Case
Blaylock v. Harris, 531 Fed. Supp. 24 (1981), considering SSI regulations regarding monies deposited on behalf of the beneficiary during his employment years. These monies were in a civil service retirement plan, and due to his employment termination, he had the opportunity to withdraw from the account. The court reviewed 42 U.S.C. § 1382a, as well as 20 CFR § 416, and found that the monies, as they were available for withdrawal, were considered resources for SSI eligibility purposes (Nyoosu 34).
The court decision as a state: The regulations, therefore, provide that the account (retirement) may not be excluded as property essential to self-support of the claimant if the account is considered a liquid resource. The issue, therefore, becomes where the plaintiff’s civil service retirement account was considered a liquid resource.
The plaintiff believed that the retirement account was not a liquid resource, as it is not mentioned in specific in the examples in the regulations. It is considered by the court that a retirement account is a property similar to a saving account. The $5,250 credited to the plaintiff retirement account was considered a liquid resource. As the plaintiff was entitled to a complete refund of the amount credited to his retirement account, he could convert the $5,250 credit to cash and use the cash for his support.
Conclusion
State agencies should act in a way consistent with the national policy as it relates to retirement savings. Instead of its present contradictory stand to the national policy. Sometimes, they implement policies that are even inconsistent with their regulations and state statutes. These cases are now further made confused by the Supreme Court “waiver” issued by Justice Ginsburg in the case of Wisconsin v. Blumer, 534 US 473 (2002), which permits the state to consider any policy not specifically prohibited by the Congress. Planning carefully, based on the understanding of both the tax and Medicaid implications will be of great assistance.
References
Hule Johnson. Compensation And Retirement. Abuja: Lande. (1999).
Compulsory retirement age, is the age at which employees in particular positions, by law are no longer eligible to continue working. Since this practice is unlawful, many countries have instituted laws to discourage it.
However, the truth is that despite these measures, aged workers continue to experience discrimination; for example, they are least preferred for job opportunities and are the most likely victims for retrenchment.
Most people who retire between the ages of 65- 80 are still energetic and able to carry out their duties effectively if granted an opportunity to continue with their jobs (Wallace, 2004, pp.15). Their retirement is a loss of productivity not only to the country but also to the retirees themselves.
The retirees lose a source of income and those who would not have developed an alternative source of income prior to retirement may face a financial crisis. The loss of income leads to the retirees cutting down their expenditure considerably in order for them to be able to manage financially.
For instance, they may cut down leisure and entertainment expenses. A classical example is when a regular tourist overseas no longer tours his/ her favorite destination after retirement (Lynch, 2012, pp.12)
Retirement also comes along with health repercussions. An increase in stress leads to hormonal derangements which may be fatal. There is also an increase in musculo- skeletal and cardio vascular diseases among retirees due to reduced exercise after retirement.
Workers between the age brackets 65- 80 are still productive and this is the age at which they have gained enough experience in the field to offer the best services. Their continued employment will also ensure a continued supply of labor force to continue with nation building.
Objectives for the study include: To find out whether the removal of the compulsory retirement age will lead to increased productivity and economic growth, to find out whether it is cheaper to recruit fresh labor force after retirement of previous labor force as opposed to maintaining the retired labor force.
In focus of the first objective, some employers argue that elderly employees, especially 65 years and above tend to be less productive and less efficient and yet so highly remunerated. The elderly workers are less hardworking and equally less enthusiastic as a result of senescence.
On the other hand other employers say that elderly employees are well experienced in the particular field and for this reason, they will be more productive in the same field.
This study will shade more light on this issue and hence assist employees make informed decisions when they wish to improve the productivity of their firms (Wallace, 2005, pp.34).
For the second objective, it is aimed at establishing which is more economical between hiring a fresh employee and maintaining the employee who has exceeded age 65. Recruitment is an expensive process in regards to vacancy advertisement.
It can be quite time consuming on the part of the employer during the hiring process since several interviewing sessions need to be carried out to determine the suitability of each candidate to the vacancy. With regard to this, maintaining elderly workers becomes a better option than hiring.
On the other hand, elderly employees tend to be less productive and yet highly paid due to their experience in the field. Achievement of this study objective will shade more light on which way is more economical (Djos, 2010).
The most suitable approach to this study is a structured questionnaire administered to various employers to fill in and the data collected analyzed and conclusions drawn.
The questions asked will cause the employers to divulge information regarding the performance of their employees (Aunders, Lewis and Thornhill, 2009).
For example, the employer will gauge the performance of all his/ her employees and give a feedback. Performance of the employees who are less than 65 years of age will be compared to that of employees who are above 65 years of age.
The data collected will be analyzed to determine, between the two groups, which one is more productive.
The respondents will also be required to give the cost of recruitment and hiring new workers to replace the aged employees, which will be weighed against high wages and salaries paid to the aged employees. This will give an insight into which of the two scenarios is more economical to the organization.
Other relevant questions in relation to the viability of employing people above the age of 65 years would be asked through the questionnaire and the responses analyzed appropriately.
The health status of former employees who retired after reaching age 65 would also be sought to determine if there is any relationship between retirement and these ailments (Whitehouse, 2006).
Literature Review
As the older generation is trying to extend its life in the work place, there is bound to be a change in the workforce demographics and productivity. Questions also arise on the issue of what costs the firms will incur; in terms of worker compensation due to health risks.
Studies are proving the fact that; older workers tend to have a lower productivity ratio compared to the younger workforce. Companies and especially the private firms tend to have a bias toward the younger people because of their output capabilities (Gardner, 2008)
The older people are associated with time loss and high costs of maintenance. The Demographers predict that the trend of the rising aged work force will continue to be witnessed for the next fifteen years; this is the case not only in Australia but globally.
The percentage of the old work force has risen from 11.2 in 1992 and is predicted to be at 18.7 by 2020.
Firms are retaining the old work force, because of the experience they bring to their companies; this also eliminates the huge training costs they would have to spend on new recruits (Pransky, 2005)
Prevalence of work disability increases with the age of the workers. These disabilities tend to limit the productivity of the workers. In some cases the productivity is reduced by 22 percent compared to 4 percent within the younger labourers.
The legislations that extend the working years only create other forms of problems to the already congested population. Unemployment rates are bound to sore globally as the young graduates are denied vacancies (Biddle, 2004)
Conclusion
The aged workforce, bring about a professional skill forged with time. Their skill is unmatched by the younger generation.
It is however important to note that with age, productivity of the aged people is minimal in other professions. The young people bring about an enthusiasm that develops competition, quality and maximum output.
Reference list
Aunders, M., Lewis, P. &Thornhill, A 2009, Research methods for business students, Prentice Hall, Harlow.
Biddle, J 2004, Older workers and workplace injuries. Brown and Company Publishers, Boston.
Djos, M 2010, Sailing out of retirement: living the dream, Cambridge University Press, Cambridge.
Gardner, J 2008, Return to work incentives: Lessons for policymakers from economists, Harvard University Press, Cambridge.
Lynch, C 2012, Retirement on the line: age, work and value in an American factory, Cornell University Press, New York.
Pransky, G 2005, A comparison of older and younger workers, McGraw Hill, New York.
Wallace, A 2005, ‘Mandatory retirement at age 65 in question. (Law)’. (Brief Article): An article from Sask-Business, Harvard University Press, Cambridge.
Wallace, M 2004, The aged work-force, John Wiley & Sons, West Sussex.
Whitehouse, E 2006, Retirement Income-systems in 53 countries, Morgan Kaufman Publishers, San Francisco.
There is a developed Social Security System in the US today, which includes funds to support mature people, people with disabilities, and others in need. A person has the opportunity to secure financial resources for oneself to use at an age when one cannot work. In the United States, there are systems that allow not only to save money but also to increase it at the expense of the interest rate. Small deposits from everyday expenses in a few decades can turn into a significant amount. Thereby, the aim of the paper is to analyze the retirement plan considering the option of automatic daily deduction from the individual’s salary.
Retirement Funds
Retirement funds had their roots in distant history when money resources were paid from the country’s treasury for people in need. Today it is a well-developed system that allows mature people, the disabled, or others in need to receive financial resources. Usually, an individual’s payments depend on the individual’s lifetime contributions (OECD, 2018). In other words, the greater the person’s contributions to the retirement fund, the greater the salary in the future. This can be in the form of monthly payments or in opening a special benefit account. In the latter, the interest rate is also taken into account, due to which the amount can be increased.
In the US, there is also the option of opening a special retirement personal account. In this case, the individual can determine the number of deductions to the account by oneself and take advantage of the fixed interest rate (Barry, 2018). This is advantageous because even small contributions can form a significant amount, considering the interest rate. However, it will take many years to form a large amount, usually 20-40 years. Thus, if one starts thinking about social payments from an early age, one has the opportunity to provide a significant amount in the future. The person has the possibility to choose the interest rate option, depending on one’s aims. The interests can be higher, however, one will be able to formulate a significant sum faster, and taxes would be higher. In case of a lower interest rate, it will take more time to accumulate finances, and taxes would be lower.
Further, there is an option to choose the most suitable type of retirement. Thus, the most popular types of pension are the state pension and the employer’s benefit. In the last option, one can conclude a special agreement with the employer and choose the amount of deduction from the salary. This is a convenient option since one can initially plan one’s budget, taking into account the deduction of resources for the retirement account. In this case, one does not have to deal with the determination of certain amounts on his own, which is often difficult. In addition, one can take advantage of the interest rate in the future and be provided with a significant amount of savings. The person may determine the interest rate and taxes, depending on one’s goals. In case the individual plans to accumulate finances for several decades, one should choose a lower interest rate as taxes would be lower.
The Automated-Deduction Retirement Plan
Thereby, to analyze my retirement options for me, it is necessary to develop a retirement plan. In the current case, I will elaborate on the plan considering the daily payroll deduction for the retirement account. Thus, the deducted sum will be 15$ per day, which formulates the regular deposit amount; thereby, it will constitute the 450$ monthly deduction. Supposedly, I start the retirement plan for 40 years, which is 480 months to save. Further, it is appropriate to consider the average annual interest rate of 8 percent. Finally, I will not deal with one’s income tax rate since taxes would be deducted after beginning the withdrawal.
Thus, after 40 years of saving 15$ per day, considering an 8 percent annual interest rate, I will have $1,570,953 (Adirondack Bank, 2022). It will provide a comfortable existing at the retirement age, with the possibility to travel and self-development. Therefore, one may notice that a simple daily deduction may result in a significant sum in the future. $15 is a tiny amount that many people spend on things that are not essential. It is enough to give up coffee, daily taxi rides, going to a bar every weekend, or even giving up cigarettes, which in the future can bring a million.
Conclusion
To conclude, it is worth mentioning that an employer-sponsored retirement plan is more beneficial than a non-sponsored one. It is formulated by the convenience of the automatically deducted resources, which makes the economy easier. It will help to achieve my goal more effectively since there is a possibility to maintain financial discipline. In other words, one will have to plan one’s budget considering the daily or monthly deductions. In this case, it is not necessary to decide whether one will set aside this sum today or not. Finally, I would mention that with an automatic deduction, my goal is achievable. However, I cannot be sure that it will be easy without the automated deduction since it will be challenging to refuse some daily habits.
The aspect of mandatory retirement, which stipulates that team members quit the labor market at a particular age, has been debated in the recent past. Initially, the age limit was 60 years, but federal regulations have moved it to 70 years over time (Oude Mulders, 2019). Though various companies and employees have insisted on the age population retiring from active service, the decisions face stiff opposition from our other stakeholders and employees.
Despite these arguments, from a logical perspective, some professionals should have a mandatory retirement age. This is because of the ever-changing manner of events and technology in various fields in the present-day world. In industries such as the military and medical professions that involve highly critical and high-risk procedures, age affects the efficiency of one’s ability to perform well (Oude Mulders, 2019). Therefore, this will necessitate the set retirement age to avoid poor performance, which will cause devastating effects on human life.
Retirement also serves as a justice means of balancing between the ages and the young population. Retirement creates opportunities for newly graduated youths to find space in the labor market. Industries and companies require to employ new knowledge in the operations. Setting retirement age in industries involving technology helps bring into the company new ideas and talent (Rabaté, 2019). Therefore, retiring the elderly will not be discriminated against but will be giving the young an opportunity.
Some industries offer hazardous work environments that are unsafe for age people to work in. Industries such as nuclear plants producing chemicals and radioactive radiation should have a mandatory retirement age for all employees because of the effects on health (Oude Mulders, 2019). Long periods of exposure will increase the chances of developing various health conditions such as cancer which will be harmful to the employee’s health status.
In the case of public health programs, there is the need for depending on several sources of funding for taking care of the long-term medical needs of people especially elderly people nearing retirement. This becomes essential since most of the social insurance programs cover people within a specified income range. Some of the sources which can be used for funding the long-term medical needs of senior citizens are discussed in this paper.
Private Insurance
A large number of Americans depend on long-term care insurance. Elderly people might be able to buy at least long-term insurance coverage. Although the senior people nearing retirement in the middle-income group cannot afford to buy the most comprehensive insurance plans, many of the private insurance carriers offer a number of variants with the best possible benefit combinations. When the senior person is able to specify the amount, he/she can afford to pay as premiums, the agent can arrive at an acceptable price by adjusting the policy design. However, it is not possible to identify the important policy features readily and it needs a complete analysis of the different options available. However, it must be noted that any change in the environment like modifications in the Medicare policies or the introduction of other new public funding programs may make the policy obsolete. These changes may overlap with the coverage under the long-term insurance policy procured by the individuals. This implies that the policy bought today might lose its value in the future or might fail to provide access to newly emerging service facilities. Stand-alone insurance products may become handy and may prove to be a sensible investment option (Merlis, 2005).
Reverse Mortgage
Home equity is one of the available sources of funding for long-term care for senior people nearing retirement. Under a reverse mortgage, the lender advances to an elderly person against a future claim on the home. Even though this practice has not become popular, some of the state’s borrowers have presumably been using the proceeds to pay long-term health care needs. One disadvantage with a reverse mortgage is that this method is costly and in extreme emergent situations people can avail the funds for immediate use (Merlis, 2004).
A reverse mortgage is an improved type of loan. Under this facility, the seniors are given the option of receiving the money in different forms. The elderly people can receive the benefits as a lump sum payment. They can also avail the facility of receiving fixed monthly payments for up to life. They may also opt for a line of credit or a combination of a line of credit and monthly payments. Most people choose the line of credit which allows the borrower to utilize the funds as and when necessary. Virtually any individual of more than 62 years old can qualify for getting the reverse mortgage (Day).
Medicare Supplementary Insurance
Private insurance companies sell Medicare supplemental insurance policies to fill up the gap in the Original Medicare coverage. These policies provide for additional coverage of expenses that are not provided for by regular Medicare plans. Such expenses include co-payments, deductibles and coinsurance. Medicare supplementary policies provide benefits beyond the level provided for by the Medicare plans which are in practice. This type of insurance coverage is also referred to as Medigap insurance. Under the Medigap policy, the beneficiary can avail of all the general benefits applicable for the healthcare coverage. These benefits are available as prescribed under the law without regard to the insurance company which has sold the policies (Economywatch).
To begin with, both Continuing Care Retirement Center (CCRC) and a Skilled Nursing Facility (SNF) is based on the principle of providing assistance and help to people who are senior and independent. These units provide valuable services to residents entering through a long-term contract, enabling seniors to remain in a familiar setting as they grow older. Centers are set by non-profit-based agencies that cater to different ethnic or social groups like Christians, Jews, etc. Therefore, it is easy to adjust as one can find his or her match in no time (helpguide.org).
Skilled Nursing Facility
Skilled Nursing Facilities (SNF) provides a 24-hour service to people who are unable to look after themselves due to emotional, physical, or mental conditions. These services are provided by registered nurses while a licensed physician supervises each person and looks after their bathing, dressing, eating, and other daily activities. Candidates can stay in an SNF for a temporary treatment or they can register for a long-term contract as well. (Angelelli, p.246).
Continuing Care Retirement Centers
While SNF provides only nursing facilities and treatments, Continuing Care Retirement Centers (CCRC) provide independent living, nursing home, and housing services as well. Candidates usually enter into a CCRC when they are healthy and active, to live independently. Once they feel they need proper care, they can move into a nursing home within the CCRC. Many people are now moving from SNF to CCRC due to proper lifestyle, social groups, and extracurricular activities provided that might not be present in an SNF. (Keating, p.93).
Advantages and Disadvantages
Nursing facilities and CCRCs provide once in a lifetime chance to live in a place where people are cared for and looked after with proper nursing facilities, food, medicines, and extracurricular activities. The fee provided is usually a one-time payment. In case of financial problems, monthly/daily payments can be made or the contract can be renewed after a certain period. In case of poor facility or services provided at a CCRC/SNF, a complaint to the State Survey Agency can be made with a request for investigation and action.
On the other hand, fees for registering into a CCRC unit can range from as low as $20,000 to $400,000 while monthly payments can vary from $200 to $2,500 (www.strengthforcaring.com; 2009). In most cases, the entrance fees are not refundable and it is a sort of a permanent contract, therefore, one should be very careful in planning. On the other hand, SNF’s fee is based upon the treatment a patient is going to receive and is relatively low most of the time.
Conclusion
It is necessary to evaluate a CCRC or an SNF before you want to make a contract because it may have a good physical setting but an untrained staff or vice versa. Check out if any other CCRC or SNF is providing better facilities at a low price. Make sure that the food being served and the timing of different facilities/assistance (such as bathing, dressing, medicines, etc.) is given importance. It’s best to find a CCRC or SNF that has facilities and people matching the requirements of those who want to sign in.
Works Cited
Angelelli, J. A comparison of skilled nursing facility rehabilitation treatment and outcomes under Medicare managed care and Medicare fee-for-service reimbursement. The Gerontologist (2000) 40 (6); pg. 646
Keating, D. Appraising continuing care retirement centers: The income approach. The Appraisal Journal (1994) 62 (4); pg. 546.
“Continuing Care Retirement Communities: A Background and Summary of Current Issues.” U.S. Department of Health and Human Services.
In the United States of America, the Accreditation of CCRC is done by the Continuing Care Accreditation Commission (CCAC) which is sponsored by the American Association of Homes and Services for the Aging. This body is the only one charged with the responsibilities of accrediting CCRCs. Accreditation of these communities ensures that quality, integrity, and customer satisfaction are maintained at all times. The process of accreditation is normally voluntary and is thorough and involves wide self-evaluation by the staff, residents, and board of directors. The commission’s mission is very clear as explained by Gillespie is “to inspire excellence and advance innovation and improvement in organizations dedicated to serving older adults in the continuum of care” (Assisted living success, 2002). Government regulation is done by the state’s government and mostly by the departments of insurance. Most states do this through the departments of health, and others such as consumer protection and aging departments. According to a report by the US department of health and human services (2007), which quoted Conover and Sloan (1995,) stated that “Government involvement may take the form of measures designed to improve the ability of prospective residents to make informed decisions (e.g. consumer disclosure requirements), entry regulation (e.g. certification as a prerequisite for selling CCRC contracts), and measures to mitigate the adverse financial consequences to residents when bankruptcies occur” (p.445).
CCAC Regulation and Accreditation
The CCAC in the past years developed and adopted some standards to regulate fundamental areas touching on CCRC operations. The process starts with self-evaluations with focuses on these aspects after which the CCAC carries another inspection. Every five years, the CCAC carries out inspections after which the CCRC is certified to continue with the provision of its services. In addition to this, the CCRCs must also submit annual financial reports/statements. The standards that are used by CCAC have threefold purposes: assisting CCRC in creating, understanding, improving, and evaluating all aspects of their operations; providing the blueprint for decisions concerning accreditation; and increasing consumer confidence in the services offered by CCRC. The CCAC standards for accreditation do not necessarily mean that accredited CCRCs must guarantee long-term care coverage throughout the lives of their clients. Long-term care coverage only happens in cases where the benevolent service is part of the CCRC’s mission statement (Sanders, 1997). Due to the nature of insurance characteristics of CCRC, resident contract, it is a requirement by states that CCRC creates reserves with purposes of ensuring that these facilities meet future health care obligations. The investment regulation of these reserves is not the same in all states but a common requirement is that they must be invested in a way to do away with or minimize the potential risk of loss and to allow easy conversion to cash if needed (Keating and Brace, 1994).
Evaluation Process
The evaluation process is an eight-step process which includes: taking the CCRC’s marketing tour to assess the safety, upkeep, and sanitation of the facility; verification of the quality, type, and methods of training given to the staff; checking if the facility does a thorough check on any criminal background on its staff; comparing the number of staff to workload and services offered; finding out the nutritional services offered in the facility in terms of the type of food and balanced diet; finding out about alternative facilities that the CCRC has entered with into agreement to assist during full capacities and for purposes of transition; assessing the availability of activities that meet the seniors’ needs on-site and off-site; inquiring if the facility offers other services such as weight control, mental impairment and blood sugar checks (eHow Health Editor, 2007). These steps are used in self-assessment.
Works Cited
“How to Evaluate a Continuing Care retirement Community.” eHow: How To Do Just About Everything. 2009.
Assisted living success (2002) CCRC accreditation booming.
Conover, C.J. and F. Sloan. “Bankruptcy Risk and State Regulation of Continuous Care Retirement Communities”. Inquiry 32.4 (1995): 444-456.
Keating, D. M., and Brace, G. L. (1994). “Appraising continuing care retirement centers: The income approach”. The Appraisal Journal 62.4 (1994): 546.
Sanders, J., “Continuing Care Retirement Communities: A Background and Summary of Current Issues.” U. S. Department of Health and Human Services. 1997.
The number of the elderly and their life expectancy has increased, extending the retirement period. Aging comes with various implications, such as decreasing physical and cognitive capabilities. Berk states that approximately 17% of senior citizens cannot accomplish simple self-care and technical duties (CHAPTER 17 P.461). Physical exercise and healthy eating are essential to keeping fit and avoiding illnesses that encroach due to sedimentary lifestyles following retirement. I would recommend working with a physical therapist to develop a physical training program that suits their health conditions. Last summer, I enrolled in a fitness class and made a workout schedule with my trainer to improve my flexion movement. A nutritionist could also help retirees formulate a dietary plan for their optimal ketosis to control chronic illnesses. A learning program can boost an elderly’s cognitive abilities, increasing independence and life satisfaction (Berk CHAPTER 17 P.462). Engaging in leisure and group activities, such as climbing and community activities, builds physical resilience. Assistive devices such as hearing aids are vital to helping the aged adjust to their declining sensory capabilities.
Support System
A social support system could help a person have an enjoyable retirement. The socioemotional theory posits that aging contributes to alterations in the purposes of social relationships (Berk CHAPTER 18 P. 499). The retiree should select cordial people that induce their positive emotions to foster emotional wellness. Preconceived biases for the elderly make them recipients of a judgmental and condescending environment. Additionally, the feeling of being in charge of the happenings of one’s life is strongly associated with retirement fulfillment (Berk CHAPTER 18 P.512). Friendships are a vital element of their social cycle as it fosters optimism and life fulfillment among the aged (Berk CHAPTER 18 P.508). People with disabilities, cognitive disorders, and chronic illnesses require the help of family members or assisted-living arrangements for comfortable living (Berk CHAPTER 18 P.502). My retired step-grandfather, who is partially blind due to diabetes, became happier and healthier after we moved him to a life-care community. The community is nearby, they pay him frequent visits, and he confessed to feeling less lonely due to interaction with his peers.
Works Cited
Berk, Laura E. Exploring Lifespan Development. 4th ed., Pearson, 2018.