The New Retirement versus The Old Fashioned Retirement - How Is It Changing?

It looks like the old fashioned retirement is just a pipe dream for many. Dreams of retiring to a care free life after many years of working are going up in smoke. The bad economy and decreases in your retirement investment balances are just some of the reasons. The rising costs of daily life with the additional rising costs of health care are causing many to postpone or even cancel retirement.

My father's generation looked at retirement as working as long as you physically could and then sitting on the porch waiting for the inevitable. Well, things have changed. Today's retirement will be different for many reasons, and as the leading edge of the baby boomers trade in their work shoes for golf shoes, let's take a look at why their retirement plans will be different.

Even 30 years ago, the norm was to work until 65, retire and die less than 10 years later. Retirement was a short period that was relatively easier to fund and was often with the assistance of a company pension plan. New retirees are now living longer, are more active and will be busier. The goal will be to experience all of those things they did not have the time or money to do while working.

Advances in medical science are allowing us to live longer and in better general health. But, all this can add up to a more expensive retirement. Many people find themselves busier in retirement than they were before at work. "Retirement" could now last 20 to 30 years and it is entirely possible that you could spend more time in retirement than you did in the workforce, and we need to finance that extra time.

For those struggling to make ends meet with their current retirement income, part-time work may be essential. It is amazing how earning even a modest income in retirement will stretch your nest egg by reducing draws from your savings.

My grandparent's generation did not plan very many Caribbean vacations or Disney cruises with the kids while they were working. People are re-evaluating their work-life balance and opting to enjoy life to the fullest while their health is good and they are physically able to do what they want. Phased retirement may not only be good for retirees, but good for the economy. The sheer numbers of baby boomers moving into retirement will create strains on the workforce as fewer workers will be available to replace those moving on. Employers will need to find creative ways to keep older workers engaged and around to pass on valuable skills. I expect to see a rise in part-time employment, flexible work times and job sharing to accommodate these workers in transition.

The idea a working retirement is starting to become the norm because many have failed to plan and many plans have failed to bare fruit. Finding ways to save on living expenses and implementing new part time sources of income are the only way to save retirement for many.

Living longer and healthier has become a blessing and a curse. Mom and Dad didn't worry as much about money as we do now. Because today all the things like cell phones, computers, and other things we spend money on, they didn't have.

Retirement means different things to different people and a healthier much more balanced lifestyle is the goal for many. You will need to determine what is important to you, decide what "your retirement" will look like and plan to make it happen.

Will Hurricane Irene Have Any Effect On Insurance Rates

Image via WikipediaWhile many people in the North East are cleaning up the mess that hurricane Irene left, many of them are wondering what this will do to the rates they pay on the homeowners insurance. In Florida we managed to avoid serious damage from the recent storm. By law, insurers can not hike rates because of financial issues caused by losses in other states.

Florida isn't the only state having trouble with hurricane insurance. Also North Carolina, New Jersey, and Connecticut are having troubles with their insurers leaving the state. Many of these states have formed state sponsored homeowners insurance companies to fill in the gaps of insurance companies failing to provide coverage to the states homeowners.

Many states with long coastlines like New Jersey and Connecticut are in the same shape as Florida. Connecticut has in common with Florida a large percentage of its population living in coastal areas. Florida has 79 percent of its population living on the coast while Connecticut has 65 percent of its people living on the coast.

Don Brown, former Florida State Representative and Senior Fellow at The Heartland Institute and former state legislator who was chairman of the House Insurance Committee and is a noted national insurance expert, said since Irene missed Florida and aimed its fury to the north, any impact on higher rates would be because of reinsurance.

“You might see some upward pressure on reinsurance,” Brown said. “It’s unlikely there would be any immediate impact. It would down the road.” 

Reinsurance: is insurance that is purchased by one insurance company from another for risk management, transferring risk from the insurer to the reinsurer. 

So National insurance companies will have to pay more to other insurance companies who help in sharing the risk. If there wasn't reinsurance, we would all have to pay a much larger insurance premium.

The bottom line is insurers are not going to eat the costs of higher reinsurance costs. Sooner or later they will pass the costs down to the consumer. The days of cheap homeowners insurance died the day hurricane Andrew hit Homestead and wiped it out.


Having proper homeowners coverage means you need check your policy to see if your under or over insured. Check your policy for coverage due to storm wind damage. Also check to see if you need flood insurance.

How To File A Flood Insurance Claim

Irene's path up the Eastern coast of the U.S. has done major damage and left many people with flooded homes. Even in communities that never experienced flooding this bad before, have damage. The New England states have reported flooding in places where there has never been any. If your home is flooded, what should you do next? According to the National Flood Insurance Program's website Floodsmart.gov you can file your flood insurance claim by following these three steps:

STEP ONE:

After experiencing a flood, contact your agent or insurance company to file a claim. An adjuster should contact you within a few days of filing your claim. If you do not hear from an adjuster, you can contact your insurance agent or company again. Make sure you have the following information handy:

• The name of your insurance company
• Your policy number
• A telephone and/or email address where you can be reached at all times

STEP TWO:

Separate damaged from undamaged property. Your adjuster will need evidence of the damage to your home and possessions to prepare your repair estimate.

• Take photographs of all of the damaged property, including discarded objects, structural damage, and standing floodwater levels.
• Make a list of damaged or lost items and include their date of purchase, value, and receipts, if possible.
• Officials may require disposal of damaged items so, if possible, place flooded items outside of the home.

STEP THREE:

Your adjuster will provide you a Proof of Loss form for your official claim for damages. You'll need to file this claim with your insurance company within 60 days of the flood. This document substantiates the insurance claim and is required before the National Flood Insurance Program (NFIP) or insurance company can make payment.

You'll receive your claim payment after you and the insurer agree on the amount of damages and the insurer has your complete, accurate, and signed Proof of Loss form. If major catastrophic flooding occurs, it may take longer to process claims and make payments because of the sheer number of claims submitted.


Flood insurance has become as important as standard homeowners insurance. As the residents of New Orleans found out the hard way.

Are You Covered For Flood Damage?

Image via WikipediaHurricane Irene has finished it's work and is out to sea. In it's path of destruction we see not only damage caused by high wind but by flooding. Is it me or over the last decade has weather events resulted in more flooding than ever. Where I live we are in the middle of the hurricane season. Not since Katrina have we seen any visits by hurricanes. But hurricane season comes every year and more than four out of every five natural disasters nationwide involve flooding. Yet according to the Insurance Information Institute, less than a fifth of U.S. homeowners have a flood insurance policy that protects their property and belongings.

People tend to underestimate the risk of flooding but 90% of all natural disasters in the country involve flooding. During the first 6 months of 2011, the federal government declared 28 major flood disasters, putting it ahead of the pace of 2010, when there were only 50 for the entire year.

Most people think they are covered for flood damage by their homeowners insurance policy. This is not true in the past 10 years there has been $2.7 billion dollars in flood damage to American homes, according to the National Flood Insurance Program.

How Much does a Flood Insurance policy cost?

The average flood insurance policy in 2010 was $594 a year for $220,577 worth of coverage. The average flood insurance claim was $26,067 in 2010. To see if your home is at risk of being affected by a flood go to www.floodsmart.gov.

Do I need a Flood Insurance policy if I am not in a designated flood zone?

There are designated flood zones and there are Special Flood Hazard Areas. If you are in a low risk area, you still are at some risk. Flood insurance covers direct physical losses resulting from heavy or prolonged rain, melting snow, blocked storm drainage systems and levee dam failures. You just don't have to live in a flood plain to be affected by flood damage.

My home is in a designated flood area and I carry flood insurance, which is requires by my mortgage lender. I am glad I have it, even though where I live has never experienced a flood. I am also prepared for wind damage with hurricane shutters even though we went through Hurricane Andrew and suffered no damage. It just makes sense to be prepared with the proper flood insurance