“Seniors are smoking marijuana that they didn't use before and treatment for addiction is not fully covered by Medicare, so for those of the aging population who get into a serious situation, it can deplete their retirement savings,” Avery said.
One strategy is for advisors to encourage their clients to take full advantage of their employer’s health and wellness programs five years before they get on Medicare in retirement as a preventive measure.
“Schedule appointments to be seen by specialists, stop smoking, change eating and exercise habits for the better as you're winding down your career because it’s much more difficult, once you do retire, to figure out what to do,” Avery said.
To make the most of the unstructured time that comes with relinquishing a full-time job, advisors can assist clients in the process of inventing a new weekday and weekend schedule so that retirees are in sync with their neighbors.
“Otherwise, every day is Saturday and retirees are likely to feel irrelevant and invisible,” said Avery. “We are not prepared for how our mental capacity and acuity will diminish once we are no longer problem-solving and when we [aren't] socially interacting in ways that are challenging, invigorating and inviting.”
Financial advisor Leon LaBrecque ’has become creative in suggesting to his retired clients potential hobbies, such as yoga, group fitness classes or spending the day watching live legal proceedings at the courthouse.
“Whether it’s district court or circuit, eventually you’ll find a case that you love and start following it,” said LaBrecque,whose retired father was an avid court watcher until he passed away. “It gives you something to look forward to during the week.”
Counseling retirees before they retire about starting a business in retirement or adapting their homes to accommodate a roommate is one way to address concerns about ongoing income.
“What I'm finding among our boomer clients is that instead of retiring, they are shifting into consulting,” Kirchenbauer told Financial Advisor. “They aren't necessarily leaving the workforce at the same level at 60 or 62 or even 65 years old. They're pushing the envelope closer to Social Security’s maximum age of 70 and we've been supporting them on that.”
By 2030, some 76 million boomers will turn 65, according to the U.S. Census Bureau, creating a shift in demographics that will impact medical services in a myriad of ways. For example, the American Geriatrics Society projects that approximately 30 percent of people 65 and older will need a geriatrician and that each geriatrician can care for up to 700 older adults. That means 30,000 geriatricians will be in demand by 2030.