Transitioning into Retirement: Key Issues for the Physician and Scientist. Presented by: The Faculty and Physicians Wellness Committee – Transitions Sub-Committee September 23, 2011 - 12 noon to 5 pm

Retirement Questions Do you know how much you save annually in your 401K? Do you know the estimated cost of food alone required during retirement? Can you describe all 4 parts of Medicare and Medicare supplements? Do you know your mandatory matched contributions as a faculty member? If you max out your retirement savings, is that enough to live for 15-20 years?

Purpose To provide faculty nearing retirement information on key issues they will face and should plan for when considering retirement from academic medicine.

Objectives Participants in the session will: Reflect on the four “must cover” items of retirement planning. Complete an action plan addressing the four “must cover” items of retirement. Identify gaps in their knowledge regarding retirement planning and develop a plan for addressing these gaps.

Agenda Welcome and overview Andy’s Story Keynote Address – Jeanette Norden Breakout Sessions: Health Insurance and Finances in Retirement Mental, Physical, Emotional and Spiritual Wellness: Now and throughout Retirement Evaluations & Summary

Retirement Facts “Retirement is a process, not an event. Retirement involves many transitions – some fabulous and some we would prefer not deal with, some predictable and some totally unexpected. Retirement is life.” ~Paths to Creative Retirement http://www2.unca.edu/ncccr/programs/paths/index.asp

Retirement Facts 3 phase theoretical framework: Preretirement – 5 years or earlier; “preparation and planning stage” Retirement – 6 mo before to 6 mo after; “action stage” Postretirement – >6 mo after; “maintenance stage” LaBauve, B.J. and C.R. Robinson, Adjusting to retirement: Considerations for counselors. Adultspan: Theory Research & Practice, 1999. 1(1): p. 2.

Retirement Facts 42% of those 46-64 yo guess at their retirement needs1 58% of MD population is over 45 yo2 Over 50% of physicians do not have a retirement plan and most wish to retire on about 75-80% of their current salary.3 Challenged with reality 1: AARP http://www.aarp.org/work/retirement-planning/ 2: Sanfranski, S. “The New Retirement Reality for Physicians” , AMA Insurance Agency, 2009. http://www.amainsure.com/static/cms_workspace/brokerage/MD_News.pdf 3: Sheila M. LoboPrabhu, M.D., at al The Aging Physician With Cognitive Impairment: Approaches to Oversight, Prevention, and Remediation Am J Geriatr Psychiatry 17:6, June 2009

Retirement Facts Most scientists don’t plan well for retirement but seem to accept it as part of the life cycle.1 Preretirement planning was crucial to faculty satisfaction in retirement.2 1: Row, AR. The Retirement of Academic Scientists. J Gerontology 1972. 27(1):113-18. 2: Firmin, M.W. and A. Craycraft, Life meanings for past and present: Case studies of four retired faculty. Educational Research Quarterly, 2009. 32(4): p. 17-35.

Retirement Facts Retired faculty with active social connections and opportunities for involvement with their institution expressed the most satisfaction. Studies suggest need is more than feeling secure (finances and health coverage) – recognizing “positive accomplishments”. Firmin, M.W. and A. Craycraft, Life meanings for past and present: Case studies of four retired faculty. Educational Research Quarterly, 2009. 32(4): p. 17-35.

Top Concerns

Retirement Scenario You make ~$200,000.00/yr Max contributions ~$19,000.00/year Work max ~40 years = $750,000.00 for retirement Retirement (70-90) = 20 yrs Food alone for 20 yr = $219,000.00 750K – 219K = $538,000.00/20 yrs $27,000.00/year!!!!! (housing, health care, travel, entertainment, etc.) Retirement funds – are not enough! SS payout ~$2,400.00/mo Minimum need to retire at 70 is $1,450,000.00

Retirement Facts Getting the retirement you desire is ultimately your responsibility. You must take charge! “Savings Fitness: A Guide to your Money and your Financial Future.” U.S. Department of Labor, Employee Benefits Security Administration (EBSA). www.dol.gov/ebsa

Four “Must Cover” Issues Retirement savings and budgeting Health care coverage: Medicare Maintaining health and wellness Caring for yourself and your loved ones

Retirement Resources Guide book Action plan Web page – CPH www.mc.vanderbilt.edu/cph Monthly email Q&A

Andy’s Story “Retirement requires the SAME level of planning as applying for medical school or residency.” ~ Andy W. Anderson Spickard, Jr., M.D. Professor, Emeritus Vanderbilt University School of Medicine

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“The Healthy Brain: What Money and Insurance Can’t Buy!” Keynote Speaker “The Healthy Brain: What Money and Insurance Can’t Buy!” Jeanette Norden, Ph.D. Professor, Department of Cell and Developmental Biology Vanderbilt University School of Medicine

Acknowledgements Transitions Committee Members: Charlene M. Dewey, M.D., M.Ed. W. Anderson Spickard Jr., M.D. Jeanette Norden, Ph.D. Reid Finlayson, M.D. Roy Elam, M.D. Center for Professional Health and FPWC Faculty Affairs Office Vanderbilt HR – Teri Armstrong

Acknowledgements Center for Professional Health: Diana Phillips Marlene Meienburg Marine Ghulyan

Exhibitors Vandy Credit Union - Bill Rochford Financial Advisors: TIAA CREF – Susan Martin Fidelity – Brandon Hall Vanguard – Michael Loscavio & Phillip Cowles VALIC – Deborah Murphy

Speaker Teams Team A: (Art Gallery) Dewey Finlayson Susan Martin Derrell Payne Shannon Jones Team B: (Cumberland) Finlayson Dewey Roy Elam, M.D. Rick Shelton, M.D. Dino Nowak

Special Request Happy Birthday Reid Finlayson, M.D.!!!!

Evaluations and Summary Please complete your: Evaluations Individual action plans Review your faculty resource guide Keep planning Seek assistance as needed

Thank You!!