The “new” retirement assumes you’ll live another 20, 30 or 40 years in “retirement.” And, you can create what that looks like for you in MANY different ways. What does YOUR ideal retirement look like? What does retirement mean to you? If you’re in a relationship, does retirement mean the same thing to you as it does to your partner?
This Is Not Your Grandparent’s Retirement
For previous generations, retirement planning didn’t involve very much. You stopped work when you were “old,” and you lived on your savings and maybe a pension to live out your non-working years (maybe a decade or a bit more) with family and friends.
That’s all changed today. The ideal retirement can look like any or all of these things:
You shift from full-time work to part-time work – either at your current employer (if your firm is flexible) or at another employer (that values having well-seasoned team members on staff) and have more time to do the things you want to do and spend more time with the people you love.
You start a brand new career from scratch – doing something that you always wanted to do and never had the time (and you can afford to do, even if you don’t turn a profit).
You stop working, take some time off and then return to work (at the same or different employer) because you missed work and found being retired really bored you.
You stop working, and either relocate to your retirement paradise or start travelling the world and start whittling away at your bucket list of places to go and things to do.
You never actually “retire” – if you have your own business or teach at a college, for example, you have control over how much and how long you continue working. Or, you work virtually and can work as long as you want from anywhere in the world.
The fact is, the possibilities are endless. The “new” retirement assumes you’ll live another 20, 30 or 40 years in “retirement,” and, you can create what that looks like for you in any number of different ways.
A retirement that lasts 30-40 years used to be unthinkable but I have clients in their 50’s and 60’s with adult parents in their 90’s – and some of those parents in their 90’s are now well into 40 years of retirement. And, this is becoming more and more common with the focus our society is placing on healthy aging and advances in modern medicine.
So, how do you actually PLAN for a 40-year retirement?
You have to get really clear about what retirement means for you and here are some of the resources I have on my website that can help with that:
Once you’ve gotten clear on what you want your retirement to look like, it’s time assess where you stand financially and how you are going to fund your dream retirement.
The Financial Aspects Of Retirement
Here are some of the financial issues you should explore as you create your ideal retirement:
Long-Term Care Insurance – is it right for you? (for many of my clients, the answer is: yes). What will premiums cost you and will this insurance be sufficient to prevent your assets from being wiped out if you need in home or institutional care?
Sufficient Funding To Pay For Health Care. Medicare covers some medical costs but these need to be supplemented with savings. Medicare does not cover vision or dental. Medicare does not cover at home long-term care. Medicaid will cover institutional care only if you’ve spent down virtually all of your assets.
Will You Be Able To Fund Your Ideal Retirement If Your Spouse Predeceases You? What happens if you’re married and your spouse unexpectedly needs care or predeceases you?
Maximizing Your Social Security Benefit. Most Americans simply don’t have access to the right information about claiming Social Security correctly. Filing for Social Security isn’t just about your retirement age, filing early, or deciding to wait; it’s about having a strategy. In addition to basic benefits, there are over 500 different ways to claim when you consider taxes, divorce benefits, widow benefits, and spousal options that can boost your lifetime income. People are leaving thousands of dollars on the table because they don’t understand their options. This matters because, given today’s longer retirement, Social Security is an even bigger deal than before.
Longevity risk is a key issue for those coming up on retirement. It’s great to live longer, but how can you accurately plan when you don’t know how long you will live? How can you make sure that your retirement savings will not run out?
No one can picture your ideal retirement better than you. And, the reality of it is that life happens to all of us. Working closely with a qualified retirement planning Advisor is the best way to expertly examine all of your “ideal retirement” scenarios to discover what are the best, most viable options for you.
As an independent financial planner and retirement coach, I enjoy working closely with individuals and couples to help them identify and pursue their lifelong objectives. If you have questions about your financial situation, desire advice or education to have a happier and more fulfilling retirement, or have yet to get started planning for your future, I’d be happy to help. Give me a call at firstname.lastname@example.org. I look forward to hearing from you.