Retirement is not what it used to be. Today at 65, we are likely to be healthier and much more active than our parents were at that age. And we’re likely to maintain vitality into our 70s, 80s and even 90s!
Medical advances and shifting societal attitudes are offering Americans new and seemingly unlimited options for their retirement years. To make the most of these wonderful developments simply requires some thought and planning.
What is Retirement Anyway?
Not too long ago, everyone knew that retirement started at age 65 when people stopped working and started collecting a pension and Social Security. These days, however, retirement is seldom defined by a single date or event. There is no longer a legal age at which someone must retire. Even the age when Social Security payments start has changed to reflect the extraordinary health and energy of today’s older workers.
Perhaps the best way to think of retirement now is less as a specific event and more as a process. That process begins when you sit down to think about the life you want during your older years and start to plan and prepare for that life emotionally and financially. It continues as you approach the age when you can retire – whether you choose to or not – and are eligible to receive pension income, Social Security, and other benefits earned during your years of work.
To Retire or Not to Retire: When Is the Question?
For many individuals, the decision about when to retire is dependent on their financial ability to do so. Others will be more concerned with the psychological and emotional adjustments they’ll need to make when they stop working full-time. The first step is to identify what you want from your retirement years. These questions may help you begin the process:
- What does retirement look like for you? Envision the lifestyle you want as an older person. Will the activities and interests you plan to pursue continue to satisfy and enrich your life over time?
- What resources will you need to maintain your household and pursue the retirement lifestyle you want? Although financial resources are perhaps most important here, don’t forget the emotional and community resources you will also need.
- Where will you live? In the same home? In a more temperate region? In a retirement community? If you do move, how will your expenses change?
- If you have a spouse, how does your vision of retirement fit with his or hers? If you are single or outlive your spouse, how will your needs change as you age?
Finances: Make a Plan and Stick to It
Once you have a vision of your retirement, you can plan to make it a reality. The key here is to start early. Whatever your age, make preparing for retirement a priority, not something you’ll worry about next year or when you have more time. If you put it off until you actually retire, you may find that your options are more limited than you’d like.
Having the money and other resources needed in retirement are significant factors for most of us. Retirement income typically comes from four sources:
- Social Security. The Social Security Administration can provide you with information about your future benefits and options.
- Pension. Contact your benefits office at work to learn exactly what your pension will be and when it will begin.
- Savings. Conduct a self-assessment of your assets and savings.
- Employment. For those who continue to work after retirement, a job may contribute to retirement savings.
Even if you’ll be receiving income from all four sources, don’t assume that the amount will be sufficient for your needs. Remember, the sooner you know where you stand, the easier it will be to make adjustments to your current lifestyle now to prepare for the retirement you want.
You may want to consider hiring a financial planner who is licensed and professionally trained to help you project what your retirement income will be, and assess the inevitable effects inflation will have on it.
The Best Years of Your Life
Today, the exciting retirement options and opportunities available to American workers are promoting a fundamental shift in society’s attitudes. More and more people now see retirement as a new beginning. No more stressful routine. No more worries about a career, such as promotion and job security. Finally, in retirement, people are finding the time and freedom to do just what they enjoy.
Here are just a few of the opportunities open to retirees today:
- Don’t retire. If you enjoy working and feel up to the ongoing challenges of full-time work, no one says you must stop. Indeed, certain individuals may need to continue earning a full-time salary for as long as possible to supplement a retirement nest egg.
- Continue to work part-time. You may choose to work in a previous or a new career. Many people truly enjoy work’s challenges, its personal interactions, and the satisfaction of productivity.
- Start your own business. Is there something you’ve always wanted to do, but couldn’t afford to? Many people who retire use the relative financial security to launch new ventures where they themselves are the boss.
- Return to school. Get that long-delayed degree. Study something for the sheer pleasure of it. Most colleges and universities have special programs for older adults, and there are other organizations that design educational opportunities and experiences especially for older men and women.
- Volunteer. Lots of retirees find great joy in giving back to their religious institutions, communities, and local nonprofit organizations. Read to children, help blind people with their shopping, deliver meals to home-bound individuals, and offer personal support.
- Travel. Drive cross country in a mobile home to visit relatives and see the sights. Tour Europe at your leisure. Take that trip around the world you’ve always dreamed about. If you can afford it and enjoy the rigors of travel, your opportunities are virtually unlimited.
- Just relax. What a pleasure to wake up each day with no schedule, no must-do activities, and no boss to report to. Golf. Garden. See friends old and new.
Remember, retirement is not an end as much as it is a beginning. Prepare to enjoy yourself!
