Part Three: The 'Reflection' stage of Retirement or the Final years

Part Three: The 'Reflection' stage: 85 plus or the Final years

As this third stage is a time when health and finances may limit choice, it's a time to accept help graciously, to make the most of all those memories and to keep up with old friends because you hold each other's history.

In this stage, your life in retirement will change pretty dramatically. Accept it or not, your energy will be a lot less, your health will worsen, and you may not be able to get around like you used to. At this point, the cost of living drops dramatically because you won’t be going out as often, spending money on travel or keeping your gas tank filled up.

At this phase of retirement, chances are you’ve done what you have wanted and are now spending more time at home. There is often a transition to managing your own personal circumstances, which can be dominated by managing your health and well-being. 

Time and age play a role in slowing down activities and abilities. Sometimes this is mental, sometimes physical and sometimes it can be financial. There are often more pressures around managing the challenges of your physical health and potentially your cognitive decline.  

Cognitive decline is likely in some form, and careful planning of health care is needed, along with support to manage any assets and investments you may have to help meet these costs. It is common to be balancing your needs with considering what wealth you would like to pass on to the future family generations.

For many the cost of living drops dramatically in this phase, assuming you don’t need full-time health care. However, if your health dictates that you need to be in an environment with care at hand, then costs will go up during this phase, often rapidly be depleting your resources. Commonly this late stage requires some level of support from family, government and community agencies. It can be a time when assets have to be sold to fund healthcare requirements.

Although Canada’s health care system is very good, there will likely be out-of-pocket medical costs. You’ll also want to be sure to understand all your health care options and choices, especially what would happen if you become chronically or acutely ill. Being aware that costs can increase in this late stage of life means holding some of your resources back for use during these years. Often this stage requires some level of support from family or government agencies.

During the final stage of retirement, you will want to start thinking about your legacy, and if you have any heirs, what you want to leave to them. You should also have a plan about how you will be cared for if your health suffers to the point you can no longer take care of yourself.

You may need the help of family and friends to make the important financial decision as your cognitive skills may be on the decline. During the final stage of retirement, it’s important to focus on yourself, which means tending to your health, enjoying your loved ones and keeping a check on spending for unexpected costs.