If you think that money you put aside each week or month is intended more to put long-term money - represented by your savings - into the kitty of insurance companies, banks and brokerage houses, than to meet your needs in the golden years, you might just be a tad delusional.

The challenging years of retirement, if unplanned for, can lead to a poverty-stricken existence and a maddening dependence on relatives, and even government.

These are years in which you may be called upon to finance higher health costs, pay for utilities, housing and food when you no longer are employed.

Plan ahead

If your aim is to avoid falling into state care at a 'golden age home', some level of planning is called for.

To aid you this week, we will not frighten you with the impenetrable calculations of investment analysts and retirement advisers, but, instead, share advice from the horse's mouth - so to speak.

Most retirees want to be living in their own homes and be solvent enough to care for their basic needs when age 65 and beyond rolls around.

Some also desire the ability to travel and enjoy all the pleasurable possibilities awaiting a person of leisure.

Hermine - last name withheld to safeguard privacy - will be 62 in May.

She retired two years ago from a local university after having spent 35 years there as an administrative assistant.

So far, Hermine is managing to meet her monthly expenses of $40,000 for food, medication, utilities and leisure activities from the interest payments on the lump sum received on retirement and which she has invested.

Business on the side

She also receives some income from selling books - a side business done periodically in partnership with her husband who is also retired.

Hermine says her single best decision in relation to retirement was the purchase of her Kingston apartment in her the mid-1940s for which she now pays just maintenance. She also notes that although she is both hypertensive and diabetic, her previous insurance arrangement with her employer continues, and so costs are really low.

Added to this is her use of the JADEP government health card which reduces her drug purchase to a mere $120 each month.

Hermine loves to travel but has had to cut back radically since retiring.

"You can't be taking out money at that level when you have nothing coming in," she states.

However, she has not given up her great love of gambling, visiting both a nearby bar and the Hilton Kingston hotel to 'dip her toes' every now and then.

She limits both the amount spent and the frequency of her visits in line with her now more limited income.

"I love to play the slot machine. I never spend more than $300 at the bar or $2,000 at the Hilton. I often win between $600 - $4,000. At the Hilton, I almost never come home without money, although I do lose sometimes."

Hermine advises those who are now planning for retirement to "save as much as you can as long as you can. Save, save, save."

Harvey Josephs, caught working with prized dogs and chickens when located for this interview was 71 when he retired in 2008.

Saving is important

Josephs, who worked with The Gleaner Company, explains that when his three children completed university, he began saving as much as he could.

"That was very important - to save," he said.

"Try to cut and carve and save as much as you can."

He says that he also completed all necessary repairs on the family home before retirement, so that he would not be faced with that expense on a more limited pensioner's salary.

Now that he is retired, he spends an estimated $50,000 on utilities food and other needs.

But, Josephs no longer has a mortgage because this was paid off early in his 50s - an act which permitted him to save even more for retirement.

Now that he is at home, his other passion has become his cushion.

"My hands are filled. I rear German shepherds for sale and common fowl for their nice eggs which people love. We also have a big back yard where we plant food."

He says that he and his wife have been taking care of their health all along.

More active

"We don't buy or use sugar at all and we try to be as active as possible. We are more active in church now as we have more time. People in the community are glad to see me every day."

When Josephs goes out he is chauffeured by his wife Everlan 'Blossom' who enjoys driving their nine-year-old, stick shift, Mitsubishi station wagon.

It's a busy life for the 67-year-old, 110lb woman, a retired social worker who now volunteers with Mothers Union and a community reading class.

Everlan, a 21-year cancer survivor who no longer takes medication, notes: "All through life, we have been working on having good health. Sugar is not used in this house - only for visitors. We use a lot of fruits, using all the skin (peel), pulp, and lots of coconut water."

The couple is physically active, working side by side at chores and their large back-yard garden of gungo peas, pak choi, tomato and oranges, which cuts the cost of food.

They eat very little meat and lots of vegetable and fish.

Their children, who include an insurance consultant, a director of guest services in the hospitality industry, and a medical doctor, also surprise their parents quite frequently with gifts.

avia.ustanny@gleanerjm.com