Article: what 100-year olds can teach us

[Guest guest]

Dear All

We often discuss here about longevity and the concern for our financial

wellbeing as well as our physical wellbeing as we age. I found this article

useful on this subject.

Cheers,

Arturo

What 100-somethings can teach us

Those who hit the 100-year milestone don't just have longer lives. They have

lives freer of medical problems and financial worries, even though many aren't

well-off.

When 100-somethings make the news, it's usually in the human-interest pages.

Last year, Emma Hendrickson, 101, became the oldest person ever to compete in

the U.S. Bowling Congress Women's Championships, rolling a 318 series in Reno,

Nev. Harriet Ames, 100, of Concord, N.H., received her bachelor's degree in

January, then died the next day. Political operative DiPaolo, 103, retired

this June as a doorman at the Rhode Island State House in Providence.

How to save money for retirement

We'll likely hear many more such stories in the coming years, because the cohort

of centenarians -- people who have reached 100 years of age -- is one of the

fastest-growing groups in the U.S. The population of triple-digit Americans

zoomed from about 37,000 in 1990 to more than 84,000 in 2008 and is expected to

reach 580,000 by 2040, according to the Census Bureau.

We can learn a lot from those who have already reached 100, because when it

comes to independence, money and health, centenarians stand apart from younger

seniors.

As a group, 100-year-olds aren't 80-year-olds who have tacked on 20 years of

physical and mental decline. Instead, centenarians typically don't suffer the

chronic illnesses associated with age -- such as Alzheimer's disease,

cardiovascular trouble or diabetes -- until shortly before dying. In fact, they

often escape these maladies altogether, according to studies of centenarians in

Georgia and New England.

Of people who make it to 100, more than 90% were physically and mentally healthy

into their 90s, and about half still live either on their own or with families.

" Centenarians disprove the perception that 'the older you get, the sicker you

get,' " says Perls, an associate professor of geriatrics at the Boston

University School of Medicine and the director of the New England Centenarian

Study. " They teach us that the older you get, the healthier you've been. "

Sunny outlooks on finances

Further, centenarians derive a remarkable amount of happiness from the financial

resources available to them -- even if those resources are often limited. In a

seminal study published in the Journal of Aging Studies in 1996, researchers

from Iowa State University and the University of Georgia found that 67% of

100-year-olds had incomes below the poverty line. The interviewers who gathered

this data concluded that 44% of centenarians had no financial reserves and 37%

had no money for buying any luxuries -- both rates are about double those for

Americans in their 60s.

Surprisingly, the centenarians themselves told their interviewers entirely

different stories. A full 95% said they had enough money to meet their needs,

while 76% reported they had " enough to buy extras. " Overall, a staggering 96% of

100-year-olds said they were doing better than or the same as others of the same

age. These expert survivors, the researchers concluded, have managed to adapt

successfully to a ripe old age, and they perceive themselves to be better off

than their peers -- even if objective measures reveal quite the opposite.

Scientists are still exploring the reasons for centenarians' sunny views of

their own finances. Certainly, while their numbers are growing rapidly, there

are still so few that they may simply feel good about having made ends meet for

so long. And to be sure, some people 100 and over are cash-poor by choice,

having outlived some assets and given others away, sometimes to minimize taxes

or qualify for Medicaid.

According to the Iowa State-Georgia research, only 54% still had any

investments. But centenarians do get some help back; they're four to five times

more likely than people in their 60s or 80s, for example, to get regular

assistance with food and other daily expenses from friends and family members.

And interestingly, research also shows there's a strong psychological component

to financial self-assessment.

A study of 100-somethings recently published in Gerontology focused on

congruence, a psychological term for the harmony we feel when the various areas

of our lives, including our motivations and achievements, are in balance. It

concluded that satisfaction in a centenarian's early life influences how that

individual views his or her health and economic well-being and is directly

associated with current happiness.

Lessons to be learned

So as we aim for 100, what can we learn from centenarians about staying

psychologically and financially satisfied? First, however well most centenarians

say they're coping, no one wants to completely outlive their savings. About 20%

of those 100 years old or older need assistance meeting basic costs. So to help

ensure you have income beyond Social Security to last your entire lifetime,

consider an immediate annuity, indexed for inflation. It's a great way to cover

ongoing costs you don't expect to outlive, such as premiums for long-term-care

insurance and property tax bills.

Next, adapt your lifestyle to avoid disabling illnesses and mental decline. It

may surprise you to learn that scientists think only about 30% of longevity is

rooted in genetics. The rest is up to us. So eat right, don't smoke, and drink

in moderation. Exercise consistently. Keep your brain stimulated; the more you

continue learning, the more cognitive function you will preserve. Stay socially

engaged, since interaction helps ward off depression, a physical and mental

killer as you age. And develop a support system of close family and friends who

can help you if you fall, financially and literally.

To lessen the burden of making all these changes during retirement, find

creative ways to tackle several at once. Research has shown that volunteering,

for example, helps keep you physically as well as socially active. (In a recent

study of centenarians by Evercare, which provides health plans to the elderly,

ill and disabled, nearly 30% of respondents said they still volunteer their time

to help others in their communities.)

And it's important to choose an environment that allows you to stay as active as

possible. When looking at an assisted-living or nursing facility -- for a parent

or for yourself -- make sure it offers a wide range of mind- and

body-challenging activities, whether it's memoir-writing workshops or tango

classes. It's crucial for caregivers to know how to modify your diet, provide a

range of exercises and help you engage in your hobbies, notes Lily Sarafan,

chief operating officer of Home Care Assistance, a Palo Alto, Calif., firm that

has adapted lifestyle lessons from centenarians in Okinawa, Japan, for U.S.

seniors. " Too many home-care providers just do the bare minimum, " she says, " as

though you're OK as long as you've had a bath. "

Finally, stress leads to anxiety, depression and eventually the actual death of

brain cells, but centenarians seem better at letting things roll off their backs

and living in the moment. Specifically, in psychological tests, they demonstrate

competence at skills they focus on but, at the same time, have low neurosis

levels. The lesson for aspiring 100-year-olds? Control what you can, and don't

worry about the rest.

Financially, that means save, save and save some more -- and whenever possible,

diversify your assets. But when unavoidable bumps or even crashes occur, keep

the setbacks in perspective and find ways to relax, whether it's by listening to

your favorite music, walking the dog or taking a yoga class.

You have choices to make and plans to execute. But very few are a matter of life

or death. Just ask the people who have seen more of both than anyone else.

This article was reported by Keating for SmartMoney.

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