Today, people over 58 aren’t worn out; they’re energized and ready to conquer new worlds. And, with the many recent medical breakthroughs, it looks as though boomers could feel young at 80
Gone are the days when the people would like to be known as “old”, “Senior” etc. Rather they would prefer to be known as “experienced”, ”wise”, “Matured” etc.
Let’s see the facts that counter-argues the common phenomenon of “post-retirement”:
- People aged 58-75 see their later years as a “time to begin a new chapter”
- They intend to stay active, involved and engaged in new learning and goals
- Affluent baby boomers are inclined to view the retirement years as a time to find new challenges
- People who are socially, economically and civically engaged are more satisfied and live longer
- They believe that they have the ability to influence events and be in control of their outcomes are more positive about aging
- Increased self-reliance is important in improving productivity for these older citizens
The above was the ideal scenario.
Post Financial crisis or “may be an extended crisis period” coupled with lot of uncertainties, we continue to hear of retiring baby boomers who are now faced with working longer since their retirement savings has been impacted by the financial crisis. In a recent survey, it was which found that 24% of retiring baby boomers have extended their target retirement date.
The same survey has shown that 3 in 5 baby boomers will outlive their retirement savings if they don’t cut their expenses. Clearly, the game has changed, due to the recent financial turmoils. What had been planned for post-retirement looks different after the losses that have been sustained in the stock market and real estate investments.
What does this mean to you and me?
It means that it is time to re-evaluate the current retirement plans. Putting together a viable financial plan needs to begin with life and career planning. Until we understand what life and work activities we want, the income needed to support our desired lifestyle could not be estimated.
Working with an experienced financial planner/advisor would help to understand what investments are needed (assuming a 4-5% annual return) to fund the life stage after retirement. If the needed investments aren’t available, then the need to either work longer or harder or alternatively, reduce your expenses.
Don’t be caught unprepared. Take the time to complete diligent planning with an experienced financial planner/advisor. Planning will allow you to achieve great fulfillment and peace in this most enjoyable phase your life.
Chief Wealth Architect