The important thing to remember is that the earlier you plan for your retirement—and the sooner you put those plans into effect—the greater your chances are of being able to retire early. Of course the inverse is also true, and in fact if you hold off long enough on this crucial step you may end up with very little funds to retire on in your later years.

 

One crucial factor that can potentially wreak havoc on your early retirement plans is debt. It can severely stunt your financial growth and can directly affect how much money you will have to rely on upon your retirement. If you are struggling with high interest debts such as credit card balances, you should take steps to resolve these issues as soon as possible.

 

The first thing to consider before embarking on any undertaking is a plan. You should consider factors such as how much your lifestyle is costing you right now and the type of life that you want to live after retirement.

 

Consider not only the years after your retirement but also the period leading up to that. This would be a good time to take stock of present income sources and perhaps even explore investments that offer a higher rate of returns.

 

A 401k plan and an IRA can be your best allies in your campaign for early retirement. The numerous tax benefits that these plans offer as well as the possibility of compounding your contributions make them a great choice for prospective early retirees.

Finally no plan is worth much unless you have the will and desire to stick to it. This will require a healthy measure of discipline on your part but in the future you will be glad that you did it.

 

 

Many of the most successful retirement plans are a result of a variety of retirement savings options such as a 401k plan, an Individual Retirement Account (IRA) and a Social Security package. Of course none of these would be of very much use to you in your later years if you do not have the commitment necessary to making sure that you keep up to date on your regular payments.

 

You should really at the very least explore the retirement options that are available to you at your place of employment. If there is no such retirement plan available, you should look into making regular tax-deductible contributions to an IRA.

 

Your Social Security benefits will of course come in handy but you must check your annual Social Security Statement to ensure that your wage records are correctly filed.

 

It is easy enough, especially when you are young and in the pink of health to put off your plans for retirement savings. Indeed almost all of us are guilty of some degree of negligence or another, but it is precisely when you are young and at the peak of your earning power that you should make the effort to set aside something for the future. Think about it: the earlier you start contributing to your retirement fund, the more time your money has to earn and work for you. And of course regular contributions are a must if you want to see any good come out of your efforts. A good way to ensure that you are contributing regularly is to set these contributions high up on your list of priorities. This way you won’t be tempted to neglect your contributions and spend the money elsewhere.

 Retirement is a milestone in anyone’s life and with a bit of prudence and a firm resolve, it can be a positive and enjoyable turning point for you.

 

Many people look towards the day that they can finally retire as a period of relative leisure and relaxation; a period when they can finally kiss the daily grind goodbye. However, more and more people in recent times have opted to continue working even well past the officially mandated retirement age. Some of these people have chosen to go on working—either for themselves, by establishing their own business or for other people by talking on some form of employment—as a means to earn an additional income, which they can use to supplement whatever they will be receiving from Social Security. Others simply choose to work for want of anything better to do.

 

In any case, if you choose to continue working after retirement, you have to be aware of the implications that this will have upon the benefits that you will receive from Social Security. Your benefits could be affected for example by factors such as taxes, the actual amount of money that you will be earning and government mandated exclusions which are based on the age that you actually retire. You can request a Social Security Statement from the Social Security Administration office that shows you how much you are earning and how this will impact upon your benefits, but keep in mind that there still remains other ways in which your benefits can be reduced.

 

You could, for example, earn such a significant amount from your job that it reduces that benefits that you can expect to receive. You may even be required to pay back some of those benefits in the form of income tax if you are making a high enough income.

 

Finally keep in mind that the age of retirement in which you will be able to enjoy full Social Security is scheduled for revision and you should take that into consideration when planning to retire. 

 

 

Individual Retirement Accounts come in two forms: Traditional IRAs and Roth IRAs. While there are a few differences between both these types of IRAs, they will both have the advantage of allowing your retirement fund contributions to grow considerably up until the moment that you retire. What’s more, these contributions will have the additional benefit of being tax deferred.

 

There are a wide variety of investment options to choose from with either Traditional IRAs or Roth IRAs such as stocks, bonds, mutual funds, and certificates of deposit (CDs).

 

We mentioned earlier that there are clear differences between both types of IRAs. The most significant difference is that with traditional IRAs, your contributions are tax-deductible, subject to some restrictions. If you wait until you retire before you withdraw from this fund, you will only be charged the tax appropriate to regular income. Any sooner than this however, and you will have to pay not only the withdrawal tax but also a 10% penalty besides. The traditional IRA is the ideal choice for you if do not intend to withdraw from your retirement fund before the age of 59.5 years and you expect that the taxes you will be paying upon retirement will be considerably lower than the taxes that you are paying now.

 

With Roth IRAs, your contributions are not tax deductible but the advantage is that upon withdrawal after the age of 59.5 you will not be obliged to pay any more taxes. Furthermore, you may withdraw your contributions even before you reach the cut off age without incurring any penalties. If you anticipate a need to withdraw your money before 59.5 years of age or if you expect to pay more taxes upon retirement than you are paying now, the Roth IRA is better suited to you.

 

It would be worthwhile for you to consider the additional potential for earning that comes with contributing towards a long-term investment plan as early as possible.

 

Somewhere behind this façade of gentle, hopeful retirees however is a group of people who are not quite so anxious to join the ranks of the retired community just yet. Their reasons are numerous and varied, with some of them possibly being so accustomed to working hard all their lives and fearful of suddenly having nothing to do, while others are simply apprehensive about the financial prospects (or rather the lack thereof) facing them upon retiring.

 

What many people do not realize however is that the age in which they will be able to retire is dependent upon more than a few factors outside of their own personal plans or decisions. The official retirement age as mandated by the Social Security Administration has already been increased and is scheduled to increase even more in the years to come. This will have the effect of reducing the benefits that early retirees can hope to expect from Social Security. Given this reduction in the benefits given by Social Security, people will simply have to make plans to work longer if they hope to have something more to rely on other than their 401k savings.

 

One of the best things that you can do to secure your financial well being upon hitting the retirement age is to make sure that all major financial obligations that you are currently dealing with today will have been taken care of by then. If, for example, you have 25 years left to pay off your mortgage, but you intend to retire in less than 20 years, you may want to consider a refinancing option that will help you rid yourself of this debt sooner. In this way when retirement comes along, with its inevitable decrease in income, you will also have correspondingly lower expenses to deal with.

 

With a sound retirement plan under your belt and a sensible lifestyle right now, you may just find yourself looking forward to retiring after all.

 

According to U.S. Law, 401k is a trust fund that is created or organized in the United States and forms a part of a stock bonus, pension, or profit-sharing plan of an employer for the exclusive use of his employees or their beneficiaries. Okay fair enough, but what is that in simple terms? Very simply, the 401k retirement plan is a means by which employees can contribute money towards an retirement plan for their very own use in the future that is deducted before any taxes are taken into consideration. An employer is a crucial part of this equation as many companies offer as one of their perks a contribution from the employer that is equivalent to the amount that the employee puts in. Any number of specific investment options is typically available to the employee using the funds that have been deposited in their 401k account.

 

401k accounts have been established primarily to ensure that the contributor has enough money to live on upon his or her retirement, but an added benefit to this arrangement is that the contributor’s income tax is reduced considerably; in effect leaving more of his or her money for future use. In this regard, 401k retirement plans are considered a wise financial investment that ensures a healthy foundation for your pension in the event that you retire.

 

The 401k retirement plan is typically available to all full time employees whose employers offer a retirement plan that is in accordance with current 401k laws.

 

The process is relatively pain free and largely invisible; payments are deposited from your paycheck according to predetermined scheme and automatically deposited into your 401k account. Upon signing up with the 401k plan, you will determine how your balance will be invested.

 

We mentioned earlier that your employer may contribute a sum that is equal to your contributions, but keep in mind that the total of these contributions may not be available to you for some years afterwards.

 

Any way you look at it, 401k retirement plans are a wise investment for the future, no matter what stage of life you are in right now.

 

 

The 401k plan is traditionally the one area in which many people who are currently employed target the greater bulk of their retirement investment efforts. This is quite understandable given the many benefits that such a plan has to offer the prospective retiree. The way that you can make this plan work for you in terms of tax concerns is upon signing up for this plan, you agree to deduct a portion of your salary and deposit it into your 401k retirement account.

 

Now the beauty of this plan is, these contributions are made before any tax deductions are imposed upon your salary. You will in effect defer any tax payments on this amount until your retirement when it comes time to withdraw the full amount along with any earnings that you have made in the interim. By then of course, you will probably be making considerably less income and therefore be relegated to a lower income tax bracket, the end result being that you will ultimately end up paying less taxes than you would have otherwise. It is absolutely brilliant in its simplicity and this is one of the primary reasons that many people opt to go for this retirement plan in preference to all others.

 

The difference in tax rates can be quite considerable too; many people who can expect to pay up to 35% rates on their current taxes will probably only be paying somewhere in the neighborhood of 25% upon retirement.

 

Additionally, the lesser income that you bring in will also have an effect upon your adjusted gross income or AGI and this too can have an effect on other aspects of your tax return.

 

There now, you see? The IRS isn’t so bad after all is it?

 

 

Perhaps one of the most crucial steps in this regard is deciding exactly what you want out of the community in which you will end up living in. Your expectations in this matter will be largely dependent upon factors such as your age, health and general physical condition, whether you are married or not, your financial standing and to some degree, your religious leanings. Any interests or hobbies that you may have will also have to be taken into consideration. Carefully taking stock of these factors will ensure that any retirement community that you eventually decide to settle in will be well suited to you in as many ways as possible.

 

If you are one of those senior citizens who can manage to live fairly independently both in physical and societal terms, you may wish to opt for one of the many independent living retirement communities available. One of the most attractive features of these types of communities is that they are largely maintenance free, with many of your common needs such as house and grounds maintenance, laundry requirements, garbage concerns, transportation--and in some cases even meals--taken care of for you.

 

If you are not quite ready to spend the rest of your remaining years sitting in a rocking chair just yet, you will want to look into a retirement community that has a number of activities available for its residents. Many such communities have been designed to provide retirees with engaging activities that keep not only the body but also the mind--active and occupied, such as crafts and hobbies, physical exercise classes, various forms of live entertainment, movies, parties and social gatherings, field trips and outings and overnight bus trips.

 

Given the nature of the clientele of these communities, they will more than likely be adequately equipped to meet any medical and health concerns that may arise.

 

Retirement has the potential to be the most enjoyable and satisfying phases of anyone’s life and with the right retirement community this can be a reality.

 

 

There is no getting around the fact that in order to make sure that your plans are carried out after you are gone, you will need to have a will. The most obvious and readily apparent function of a will is of course to ensure that any wealth, possessions, property or any other assets are left to your remaining family in a way that you so wish. Wills also serve to stand as a testament to how well you have managed your various affairs and assets for the eventual good of the loved ones that you will leave behind.

 

One of the most important things to remember is that a will is not a static document and depending on factors such as an increase in wealth or property and changes in tax laws, you may find that you have to update the contents of your will as the need arises. Any major changes that occur in your life should be considered carefully in terms of how it can affect the coverage of your will.

 

The effectiveness of your will is largely dependent on the executor that you have assigned to oversee the task of carrying it out. Needless to say, you will want to choose an executor that is not only efficient and ready to serve your needs at a moment’s notice but one that is honest and otherwise morally above reproach. It would also be a good idea to have more than one alternative in mind in the event that something untoward happens to your present executor.

 

Finally, it would probably be a good idea to assign different people to the respective tasks of guardian and trustee to ensure that each of these tasks is performed adequately without any conflict of interest.

 

A well-planned will coupled with good sense and judgment will ensure that any family that you leave behind will have a lasting favorable impression of you for many years to come.

 

While it is indeed a significant turning point that heralds the end of one phase in your earthly existence, you can also choose to view retirement as a new beginning and perhaps a new step into a more personally fruitful and productive period. The key to how your life after retirement will turn out is of course dependent on the measures you take in preparation for it. In this respect, it is no different from making plans for your life after you have graduated from school; both events mark a major milestone in your life with a new set of challenges—as well as opportunities—that you will have to contend with and make provisions for.

 

The years leading up to your retirement is a good time to take stock of exactly how you feel about this life changing event. Many people will of course look forward to finally being able to leave the daily grind and devote the rest of their lives to other pursuits such as relaxation, travel or perhaps a spiritually rewarding hobby. Other people though, particularly those who have attacked their previous professional lives with a healthy degree of enthusiasm and passion, may find that the prospect of living out the rest of their natural lives without having to do anything fills them with fear of the ensuing boredom that may come with being retired.

 

Like it or not money is one of the most important driving factors in any persons life and this issue will come into increasing prominence the closer you get to retirement age. You should take careful stock of your present financial needs and means and take into consideration how much they will change upon your retirement. Not everyone’s needs will be the same and you should determine precisely what your financial goals are before you hit this crucial juncture.

 

As you can see life after retirement can be quite a complex stage in your life but with careful and judicious planning it doesn’t have to be.

 

            First and foremost is determining you retirement goals. It is not enough that you envision your retirement years as enjoying the fruit of your long years of labor, you must carefully plan it like any other important periods of your life. As early as possible, you must be able to evaluate your current savings and sources of retirement income. When your financial situation’s not stable, you must find suitable means to correct it as soon as possible.

 

            If your company is offering an employer-sponsored retirement plan, do try to determine if it affects your paycheck and retirement savings if you make some changes, like in the instance that you contribute more.

 

            You also have to consider the tax laws in your state, as these have impacts on your retirement plans.

 

            One big factor to consider in your retirement plans is your health care costs, as this can expectedly increase as one grows older. A person suffering from current health problems would need to consider how he or she can pay for medical bills in the future.

           

            The calculator used by the National Association of Securities Dealers (NASD) is relatively easy to use. Being a leader in financial regulatory services, a lot of people depend on the NASD for their financial planning. However, this calculator has a default age of 85 and could provide some problems for those expecting to live longer and may outlive their retirement plans. Apart from the issue of longevity, the NASD calculator provides a realistic estimate.

 

            A mutual fund company, T. Rowe Price, also offers its own retirement calculator. Though easy and helpful, this calculator excludes Social Security benefits and has a default of 8% for rate of return for taxable investments, which could overestimate your retirement savings.

             If you are 50 years old or older, you might want to consider the retirement calculator offered by the American Association of Retired Persons. This calculator allows changes for projected investment rate of return, an advantage since older people tend to favor more conservative investments over time. This calculator would consider retirement-account contributions and has an expected life expectancy of up to 99.  

 

            Retirement plans are either defined contribution or defined benefit. Examples of defined contribution plans are the Individual Retirement Accounts (IRA) and the 401(k) plans in which contributions, paid into individual accounts of members, are invested. Return of investment is credited to the individual accounts which then become the sources for retirement benefits. The employee, to some degree, will direct the selection of investments and can choose from mutual funds to stocks and other securities. There are even defined contribution plans that call for employers to match the employee’s contribution.

 

            An example of defined benefit plan is a final salary plan which depends on the length of employment. The final amount is given to the retiree as monthly pension or lump sum. Aside from that, Social Security also provides additional benefits to the employee. A contributor gets benefits through credits earned in paying Social Security taxes. However, the amount of benefits would depend on how long you worked as well on the age of retirement. Those choosing to retire at 62 would get less than those who retire at a later age. Members of the contributor’s family would also get their Social Security benefits. Spouses or former spouses reaching the age of 62, as well as minor children, can also avail of benefits. Social Security benefits are also allocated to widows and widowers.

 

            In addition, several organizations and financial institutions are offering their own retirement plans and benefits. The American Association of Retired Persons provides several insurance and discounts to its members. Merrill Lynch is offering several flexible retirement plans for small businesses, self-employed individuals and those wishing to make tax-deductible contributions.

 

            You also have to evaluate several things to ensure that you enjoy a comfortable retirement. Be sure to check not only with your current employer but also with your previous ones as you may be qualified for their employment-based benefits. Do check your current Social Security statement to validate its accuracy. If you can, maybe you could consider consolidating your retirement funds and transferring them to a rollover IRA, when possible. It would also help to examine your tax obligations with each retirement plans. Examine your eligibility for health benefits, as some employers provide health benefits in retirement. Last, make sure that you create a will or update an existing one to make sure your assets go to your beneficiaries and not on probate or to other people you might not wish to benefit.

 

            There is also a change in workplace perception regarding the hiring of older people. Employers are increasingly recognizing the value of expertise a retiree has to offer. People getting retirement jobs exhibit great energy as well as good work ethics that can serve as good examples among younger workers. The deterioration of physical capacity experienced by most aging workers would be supplemented by the skills and knowledge they bring into the workplace.

 

            So what are the kinds of jobs available out there for those in their retiring years?

 

            There are a lot of part-time jobs suited for older workers, and some employers even make suitable arrangements in recruiting them. The American Association of Retired Persons even formed partnerships with large companies to acquire older yet skilled workers. Retirees can also use their expertise be consultants, and there is a healthy demand for this kind of profession both within and outside the country. A lot of manpower agencies also hire older workers for temporary jobs to supplement full time staff.

 

 

            A retirement letter should contain your name, address (with city, state, and zip code), your phone number, and your email address, if you have one. This is followed by the date of submission, then information on the letter’s recipient. Indicate his name, title, name of organization and its address (with city, state, and zip code). The body of letter follows the salutations. You should indicated the effective date of your retirement along with your length of service. Do express short yet sincere words of gratitude and pleasure at having to work at the institution. Some letters even mention information on retirement parties. After another salutation, end your retirement letter with your full name with affixed signature.

           

            For those who had forgotten the art of letter writing, a lot of resources can be found in the Internet, there are even downloadable programs for it. Some web sites even offer different templates that would suite your taste and situation.

 

            In some instances, your employer will also send you congratulatory letter and provide information on your pension benefits. They may even inform you on procedures on claiming your pension, with the forms needed to be filled up.

 

            Do not ever underestimate the value of your retirement letter. Though in most cases, your employer is well aware ahead of time of your impending retirement, you must submit your retirement letter to formally initiate the process. This document also supports whatever paper works you would need to do before you can completely go on with your retirement and enjoy whatever retirement benefits awaiting you. Retirement letters lend formality to the period of employment and service you rendered to your institution. If you wish, you can circulate a copy of your retirement letter to other personnel in your work place to inform them of your impending departure and most would try to send back congratulatory notes.

 

 

Retirement apartments or senior apartments are part of active communities designed for the elderly wishing to live independently. Most apartments are single units, although condominium units and single detached family homes are also available. Costs ranges from $25,000 to over $500,000.

 

Though on their own, these occupants require the services of others to do maintenance and yard work. For some that need extra nursing or medical care, caregivers and nursing from the local area can be contacted. There are a lot of choices around the country for people wishing to live in this kind of community and developers devote certain areas for socialization and exercise, like golf clubs, tennis courts, hiking trails, swimming pools, exercise rooms and clubhouses There are a lot of senior apartments developed throughout the country, though those located in warmer climate are more popular and sought after. Also preferable are those close to shopping malls, parks and public transportations. To encourage economic development that goes with the building of retirement communities, states like Texas, Louisiana, Mississippi, and Kentucky had created Certified Retirement Community programs. On the other hand, the magazine “Retirement Lifestyle” presented the top cities it considers as best for retirement. Topping the list is Chattanoga, Tennessee, followed by Natchez, Mississippi and San Antonio, Texas.

 

Retirement apartments provide its residents with safe environment and a community of neighbors that share common interests. There are even communities that provide added services like meal preparation, transportation, and recreational opportunities like organized trips to shows and casinos. Since Medicare and Medicaid do not provide any assistance for this type of living arrangement, payments for these apartments mostly come from private funds, though some are under subsidized programs like Section 8 voucher or the 202 programs of the Department of Housing and Urban Development. These kind of financial arrangements are usually targeted for low income elderly and have long waiting lists. Only those aged 55 and above are accepted in retirement apartments and senior communities, though there are communities, termed “Age Inclusive,” that attract retirees but do not have age requirements.

 

Retirement apartments are not under any federal or local agencies, hence, there is no formal regulation. Managing companies established the rules and day to day maintenance are done by off-site or on-site managers.

 

 

            Las Cruces ranked top in the magazine’s list for its sunny weather, affordable taxes, and low cost housing. For senior citizens, there is the Munson Center which serves as a liaison between seniors and the local government, offers hot meals, educational and recreational classes, and a senior’s companion program. The city is also home to the New Mexico State University, and along with the Elderhostel and the Academy of Learning, provides a wide range of opportunities for continuing education. There are also plenty of outdoor recreation activities, like hiking and camping. The median housing price is $168,000, a far cry from that of nearby Santa Fe.

 

            Though housing in Rehoboth Beach is admittedly expensive, retirees still flock to this charming city for all its other perks, the foremost of which is living near the beach. Senior citizens can also take advantage of the state’s low property tax, with no tax on food, entertainment, and goods. The city itself is just about one square mile, but its 1,500 plus full time residents love the opportunity of walking along the beach anytime they want, go to its numerous restaurants, and having to personally know the mayor and other local officials. What’s more, Social Security, railroad-retirement benefits and even out-of-state government pensions are exempted from income tax.

 

            Culture and housing are two of the greatest attractions of Memphis for retirees. It also has fairly affordable housing, with condominium units selling for an average $164, 940 in 2005. Retirees enjoy the city’s several parks, including the Memphis Botanic Gardens as well as its rich musical history. Of course, an added plus is the lack of state income tax on salaries, wages, Social Security, IRAs, and pension income.

 

            St. George is a city known for its fitness culture, which isn’t a surprise since the Zion National Park is nearby and the abundance of hiking trails within the locality. It also plays hosts to the St. George Marathon and the Huntsman World Senior Games. The city also boasts of low crime rate and excellent local governance. It is also enjoying a housing boom with increasing demand among elderly migrants.

 

Though there are still many civilian federal workers currently covered under the CSRS, the Federal Employees Retirement System (FERS) was created in 1987 to replace it. This was done in answer to the need of modernizing benefits extended toward federal workers in the country. Workers hired after 1983 are automatic contributors of this system. This system still has the provisions covered under CSRS, though FERS benefits are added to Social Security, with the exemption of workers who are totally and permanently disabled. The FERS was designed to provide enhanced retirement benefits to workers who have relatively low salaries throughout their careers, as CSRS was found to be more advantageous to higher grade federal civilian workers. Employees who leave federal service after just five years are still eligible under this system. FERS is a three-tiered system composed of a defined benefit plan, Social Security and a Thrift Savings Plan, which is likened to a 401k.

There are three categories of benefits under the FERS Basic Benefit Plan. Immediate retirement benefits starts within 30 days of employment separation, following fulfillment of certain age and service requirements. A worker can avail of early retirement benefits under certain involuntary separation cases, like in the case of reorganization or reduction of workforce. Those eligible for deferred retirement benefits are those that leave federal employment before reaching the age and service requirements. To do this, one must work in federal civilian service for at least 5 years and must be at least 62 years old.

 

 

            For federal civil workers covered under the Civil Service Retirement System, you can apply for disability retirement after you have proven to your agency that you are disabled and had given adequate documentation. The agency is required to retain you through reassignment or accommodation, in which your workplace and job specifications will be adjusted to adapt to your altered condition. When all else fails, you will be advised to apply for disability benefits. You need to complete several forms provided at the Office of Personnel Management (OPM) within a year of your separation. You will be eligible for benefits when you worked for a minimum of 5 years and had contacted the disease or injury during the course of your employment. OPM will be obliged to examine your condition and supporting documents to warrant your disability. Your entitled earned annuity will be computed according to the OPM’s general formula, and the amount would vary depending from one beneficiary to another based on age, length of service, and average salary. Beneficiaries would still need to pay federal taxes, unless you are proven to be totally disabled and cannot engage in any other gainful employment.

 

 

 Compared to nursing homes, this type of community is more affordable and takes lesser time for admission. Along with housing, assisted living residences provide individualized health and personal care services to its residents, which are physically and mentally semi-independent. These facilities are licensed and are regulated by state social welfare agencies. Their goals are meeting the residents’ supportive needs without being too institutionalized. Most residents in assisted living communities need help in executing daily tasks like meal preparation, taking a bath, dressing, housekeeping and going to the toilet. It is the suitable place for those needing some health care assistance and those that experience some memory problems.

 

Apart from the services mentioned above, those looking for assisted living centers should consider some factors that could contribute to the satisfaction and good adjustment of its would-be residents. A good center should have 24-hour security with emergency call systems installed in each unit. Exercise, wellness, social, and recreational programs should also abound, to meet the needs of each resident.

 

It would also be advantageous to scrutinize the philosophy of the selected assisted living community. Every community or center needs to recognize senior citizens as individuals that should be treated with respect and dignity. These residents should be accorded their rights to privacy and selection of care and lifestyles. Some communities are members of the Assisted Living Federation of America, which has its merit as this organization expresses commitment to excellent services and professional development.

 

Evaluating the staff is also important in selecting assisted living centers. These centers should have someone who coordinates health care visits from nurses, physical and occupational therapists, and other medical personnel, when needed. Sometimes residents would ask to go to hairdressers and shopping malls, and it would be nice for these centers to provide transportation whenever needed.

 

 

            There are over 300 Holiday Retirement communities all throughout the U.S., Canada and the U.K. Each community employs two couples to serve as manager and co-manager teams and both live on site. Residential living arrangements include studios, 1- and 2- bedroom units. Amenities include 3 meals per day, transportation, housekeeping, and laundry service, among others. There are also opportunities for entertainment and exercise as each community is equipped with cable television, library, billiard room, craft and activity room, exercise room, and hiking trail. Each community also employs an executive chef who oversees not only the distribution of good food but also the observance of special diets for some of its residents.

 

            The company’s target market is middle income North Americans over the age of 75. The company, which currently employs more than 12,000 people, has its headquarters in Salem, Oregon. All the units are rented on a monthly basis for $1,600. Most of the residents are single, with women comprising 80% and the men about 20%. Holiday Retirement takes pride in the fact that it provides a community with homogeneous residents, where social status and class takes a backseat to harmonious living.

 

            Most of the residents use private funds for payment, since Holiday Retirement does not cater to those who are under government assistance as well as those belonging to the upper class. Being a community supporting independent elderly living, there is minimal or almost no healthcare facility available. 

            During the later part of 2006, Holiday Retirement entered into an acquisition agreement with Fortress Investment Group LLC. Estimated to cost $6 to $7 billion, the deal includes 265 properties in North America and 34 in Canada and is expected to close during the first quarter of 2007. Investor interest in retirement communities is strong following the ever increasing demand for elderly housing. Occupancy rate is on the rise, coupled with expected 5% to 10% increase in rent. The company’s estimated annual revenue exceeds $1 billion. Holiday Retirement had been implementing several strategies to improve operations, such as reducing non-profitable units, building newer yet smaller communities with improved facilities and higher quality amenities. Fortress is expected to retain the strong management team of Holiday.