Oran Hall, Guest Writer

For many persons, life in retirement is a nightmare. For others, it is a happy, time, a dream come true.

The fundamental difference between the two experiences rests on the level of preparation that each group makes.

This is the real-life experience of a couple living in St. Andrew. Mr. and Mrs. John Blake (not their real names) are experiencing a dream retirement. They have very few regrets and are enjoying their time together.

The couple, married for 52 years, established three major life goals. They wanted to own their own home, give their children a good educational foundation and have financial independence in retirement while maintaining a standard of living similar to that of their pre-retirement years.

Purchase of their home

The first goal realised was the purchase of their home. They opened an account at a building society so they could secure a mortgage and later bought a lot of land.

As soon as they saw the house they desired to own, they sold the land and, with the sales proceeds and borrowed funds, made the deposit. The early years were so challenging, they lived in rented premises and rented out their new home to be able to pay their mortgage.

They moved into their home when their financial situation improved and are still living there 46 years after acquiring it.

Mrs. Blake, who spent her entire working life in the health services, migrated to the United States to improve the income of the family. She returned home regularly and her husband, who spent most of his working life that spanned 46 years in the manufacturing sector, visited her just as regularly.

The children joined her after high school and worked while securing their post-secondary education.

Having realised their second major goal, they started their retirement programme in earnest, immediately increasing their rate of savings.

They maintained their long-standing programme of prudent financial management. They avoided waste, monitored their expenses closely, bought good-quality items that could last a long time, chose not to hire a housekeeper and eschewed debt, preferring to buy only when they were able to make cash purchases. This gave them scope to negotiate prices.

Mr. Blake engaged in part-time employment at some stages of his regular working life and operated a business in the earlier part of his retirement years. He retired in 1989, and his wife in 1996, after 40 years of employment.

They are "perfectly satisfied" with life in retiremen neither has a pension.

Although they are not great risk takers, their investment income is enough to give them the $40,000 they require each month to enjoy a satisfactory standard of living.

Mr. Blake manages the couple's investments well. He invests in tax-free instruments, shops around for good rates and structures the portfolio to guarantee a regular flow of income.

To ensure they do not deplete their assets, they live within their means, managing expenses tightly.

They still lead a reasonable social life. Many of their contemporaries have predeceased them or migrated, but they find time to play relaxing games with each other and with neighbours and friends.

Both are very active members of their citizens' association and attend church services regularly.

Mr. and Mrs. Blake, 82 and 74 years old, respectively, are active and are in reasonable physical health. They spend much time in their garden and do low-impact exercises regularly. Mrs. Blake still finds time to pursue her interest in craft.

Common health conditions

The retirees experience some common health conditions. but are able to lead normal lives because they see their medical doctor regularly, and "live a clean life".

They do not party anymore, and Mr. Blake only drinks mild alcoholic beverages in moderate quantities.

They eat a wide variety of foods in moderation and maintain a low-fat, low-sugar diet. They live well with their neighbours; "do not brood for more than a day"; do not concern themselves with the affairs of others; do not allow themselves to get upset; settle any differences they have before retiring at nights; and, trust in God.

Mr. and Mrs. Blake are having a good retirement because they started to make preparations early and have managed their whole life very well.

Most of all, because they were never afraid of retirement, they were emotionally prepared.

finplan@cwjamaica.com.