We are in the midst of a longevity revolution. Baby Boomers are hitting retirement age in ever-increasing numbers. We are living longer and getting older. Once we retire, we may live another 35 or 40 years. Have you considered what it means to live and age well post-retirement?

Jane Fonda, the well-known American actress, coined the term Third Act to describe the last three decades of her life. Now in her 80s, she views her life in 30-year blocks, recognizing that she changes her views as she gets older. She summarized her research and thoughts in a TEDx Women Talk (New York 2011).

How do we envision our own Third Act? Most of us would probably say we want to live well with purpose and live life on our own terms—safe, secure, and independent. The key question is how do you plan to get there?

How do you want to live well at 80 or 100 years of age?

Your family's financial success has been built on your ability to see ahead, plan, and manage ahead. These same insights apply equally to creating a plan for your own Third Act. In the same way your chief financial officer (CFO) or family office manager takes a coordinated approach to your family's wealth, a smart aging advisor takes an integrated approach to your life, health, and well-being. How will your financial resources be used to support your plan? If you become ill and unable to speak for yourself, who will make decisions about your physical and emotional needs? What types of care might be needed and how much will it cost?

Let's begin planning with a smart aging audit. The goal is to think through how you want to “live life on your own terms” and audit what you already have in place. The next step is to document your preferences related to life and future health needs, your wishes at end-of-life, and how you want to live with purpose. Your plan is a written declaration of your wishes and a roadmap that can be shared with family members, and those who may have to make trusted decisions for you.

One Scenario:

Charlotte is a 65-year-old lawyer and partner in a large law firm. She lives alone in a house in central Toronto, has a cottage in Ontario's Muskoka Lakes region, and a condo in Naples, Florida. She is a widow. She has one son who has Down's syndrome, and he lives in a private group home in Caledon, Ontario. All other immediate family members have passed away from early onset Alzheimer's disease, and she is concerned this may happen to her. She has a wealth manager advising her on estate planning and acting as her CFO. With the unexpected death of a close friend, she has turned her attention to her own personal health and well-being and that of her son with special needs. These are the questions she asks herself: Where do I go to get the best medical assessments? What happens if I do get Alzheimer's and need to hire personal help? What are the alternatives if I want to stay in my own home? How long can I travel to my cottage and condo in Florida? How does that get organized? Who will manage all of this? Who will manage my son's care if I cannot do so?

Charlotte decides to start with a smart aging audit so she can begin to sort out possible scenarios, her own priorities, and start assessing what decisions should come first. Ultimately, she decided to do a full planning exercise, including detailed costing on future care options for both herself and her son.

Getting Started

In our practice, we often see family disputes emerge when people are guessing about what a parent or family member might wish if they become ill or cannot speak for themselves. By creating a personalized plan, you take the guessing out of the equation and start to be specific about your wishes.

Take some time to consider the future from your perspective. Think about what you want in your life plan as you get older or what your wishes might be should you need assistance. Where do you want to live and with whom? Is it short term or longer term? Do you have preferences for a country or certain location? Would you be happy living in a multigenerational household? What are your goals for life-long learning? With whom do you want to share a meal or attend a concert?

Once you have thought through your preferences, you can start building your smart aging plan. The following section provides an initial outline to get started. You might also find it helpful to have a smart aging advisor or coach to help you build a more comprehensive plan and to pinpoint your preferences.

Once your smart aging plan is completed, we suggest you keep it in a binder in a safe place at home. In case of an emergency, you can take the binder with you to the hospital to share as baseline information. Also keep an electronic copy so you can easily update information and review it in its entirety at least every year.

Smart Aging Plan—Initial Outline

Part 1: Primary Contacts

• List primary family contact details, including cell phone, work phone, e-mails, etc. List emergency contacts who are within 5 minutes of your home.
• In case of a health emergency, create a notification tree—primary contact names, powers of attorney (POA), lifeline, or emergency pendant details etc.

Part 2: Health, Medical, and Personal Living Information

• List your normal routines for daytime and nighttime. Where do you eat meals, and what are your preferences? Do you exercise daily? How do you relax?
• What are your future living preferences? What location(s) do you prefer? If you are unable to care for yourself, do you prefer care in your own home with a live-in caregiver or someone who comes in each day? Would you consider going to a retirement home with assisted living services, if needed?
• Document a current list of your medical and health care providers and their contact details. Examples include family doctor, dentist, physical therapist, podiatrist, etc.
• Medical and surgical history: List any medical issues. List surgeries. Include all relevant data and contact physicians. Include allergies.
• Prescription medication: List all medications including dosage, renewals, referring doctor.
• Over-the-counter medications: Include herbal remedies. Some may cause drug interactions.
• Eyeglasses, hearing aids, mobility aids, and other aids: Include copies of prescriptions, supplier, etc.
• Vaccination records: Include official receipts for COVID-19 vaccinations.
• Other sections could include medical coordination services, home care companies, etc.

Part 3: Financial Preparedness Related to Future Costs

• Determine ranges for future care costs and discuss funding strategies with your wealth manager. For example, compare staying at home with 24-hour care versus assisted living facility options, etc.
• Review relevant tax planning items related to care situations, depending on your jurisdiction, for example, disability tax credits, home renovation credits, etc.
• Review health and dental insurance benefits coverage related to care costs, mobility aids, etc.

Part 4: End-of-Life Planning

• Document your preferences and advance care directives you may wish to put in place.
• Include information about medically assisted death, depending on jurisdiction.
• Supply information on funeral preplanning and prepayment.

Part 5: Review with Designated Attorneys

• Discuss overall plan. Are your attorneys able and willing to carry out your plan?
• Do your attorneys understand your preferences and estimated costs for services and accommodation?

Part 6: Next Steps

• Discuss your plan with advisors, family members, and designated attorneys. Seek buy-in and integrate information such as cost estimates with financial strategies.
• Identify priority actions, set timelines, and services to assist you.

Thinking about our Third Act in life takes time and reflection. Many of us have not considered how we would define living well as we age. By using the smart aging plan approach, you can begin to document your wishes for family and substitute decision-makers. This is especially important if the unexpected occurs and you are not able to speak for yourself.

This process also gives you the opportunity to explore a few “what-if” future scenarios regarding your health and well-being. With a well-thought-out and written plan, it gives you an opportunity to cost out different options and to integrate the funding of those options into your financial plans.

Imagine living to 100 years! For the first 60 years we focused on education, building wealth, and planning for retirement. For the next 30 years, we will focus on living our lives. It's worth rethinking our priorities and planning for our own Third Act with a focus on living a purposeful and fulfilling life beyond retirement.

Additional Resources

1. Joseph F. Coughlin, The Longevity Revolution (Cambridge, MA: MIT Age Lab, 2017).
2. Lynda Gratton and Andrew Scott, The 100 Year Life (New York, NY: Bloomsbury Business, 2016), www.silversherpa.net.
3. Silver Sherpa Inc., www.silversherpa.net.

Biography

A leader of the “smart aging” movement, Susan J. Hyatt is the CEO and co-founder of Silver Sherpa Inc., a professional services company delivering confidential planning, coordination, and crisis management services for high-net-worth individuals and families planning for or in transition in their later stages of life. With over 40 years of industry experience, Susan is an expert in transforming healthcare systems and is widely quoted on elder management, “smart aging,” and estate planning issues. Susan has served on numerous public and corporate board of directors and commissions in Canada, Australia, Ireland, and the United States. She is a member of the Canadian College of Health Service Executives and the International Federation on Ageing. Susan holds a postgraduate certification in negotiations from Harvard Law School/MIT and a master's in business administration with a specialty in international business from Griffith University, Australia. She also holds a bachelor of science degree in physical therapy specializing in critical care/trauma from the University of Toronto, Canada, where she taught in the Faculty of Medicine.