Retirement Makeover

Retirement Makeover

Many babies born today in the developed world are expected to live nearly 100 years.1 Given the vast changes over the past two decades in medicine, technology and the ways we work, communicate and even entertain ourselves, it’s almost hard to imagine how different life will be in 100 years.

While we won’t be around in 100 years, it’s an interesting perspective to assume while making our own retirement plans. For example, many young adults early on in their careers will make decisions (e.g., higher education degrees, skills training, extra certifications, taking low-level jobs or lower pay for better experience, etc.) that they are counting on to advance their careers further when they are in their 30s, 40s and 50s.

That’s the kind of thinking we need to engage in when considering retirement in the future. For example, adopting healthy eating and exercise habits early on are ways we can keep our aging bodies fit and maintain mobility in our later years. These efforts may contribute to lower health care and long-term care bills. Also, making decisions about how to position our assets for long-term growth and a reliable stream of income can help hedge the risk of outliving our savings during a long retirement. We can introduce you to a range of insurance products designed to do just that and help you determine which ones would best suit your circumstances. Feel free to contact us to learn more.

Worldwide, people are outliving their money, on average, by anywhere from eight to 20 years.2 There are plenty of people — and you may even know some — who lived a solid middle-class lifestyle throughout their lives but are now living in Medicaid-sponsored nursing homes because they cannot afford full-time care in their own homes. This is a tough scenario to think about, let alone plan for, but consider the contributing factors. Although concerns about the shrinking Social Security Trust Fund have taken a back seat to the COVID pandemic, the war in Europe and political priorities, it remains in trouble. Furthermore, the pandemic has strained our health systems and exposed just how vulnerable older adults, in particular, are within the health care spectrum.

It is important to consider — now — how to redesign the traditional retirement for stronger financial resilience, to be healthier and less reliant on public resources, and even be happier. After all, if you could live to age 100 or more, it’s important to plan on ways to enhance your quality of life. Part of your planning process should include taking inventory of not just your tangible assets (e.g., savings, property) but also your intangibles, such as health, relationships, knowledge and abilities than can help you continue to earn income even if you have mobility issues.

After all, working from home appears to be a phenomenon here to stay. Consider how you can work your way into a longer career path by adapting your skills and experience to a work-from-home model. For example, teaching/coaching, gig/consulting work, organizing/participating in the sharing economy, or making and selling your wares.

These are decisions and actions you can take mid-career — like those we make as young adults to further our careers. And consider the perks, such as no longer having to report to a contentious boss. In an ongoing study that covers decades, Gallup reports that the majority of employees quit their jobs due to their direct manager, not because of the company itself.3

If you love your job but hate your boss, consider that today, more than 90% of employers report that productivity has remained the same or even improved with the remote work model. Given today’s strong jobseeker’s market, now is the time to consider negotiating more flexibility for your work life in order to allow you to work longer to earn money for retirement while at the same time enjoying your job more than you do now.4

Can you retire now? If you can, should you? If your retirement could potentially last 20 or 30 years, would you get bored no longer having specific work responsibilities? Author Ken Dychtwald refers to retirement as “Life’s Third Age.” He encourages people to think about how they can continue to grow, learn, meet new people, try new things and even discover a new purpose for living. Possibilities include going back to school, starting a nonprofit, learning to play a musical instrument, learning a foreign language, or writing a memoir for your children and grandchildren.5

Abhinav Chugh and Martha Deevy. World Economic Forum. Jan. 19, 2022. “The 100-year life is here. How can we meet the challenges of longevity? An expert explains.” https://www.weforum.org/agenda/2022/01/the-100-year-life-is-here-how-can-we-meet-the-challenges-of-longevity-an-expert-explains/. Accessed April 6, 2022. Andre Belelieu and Yvonne Sonsino. World Economic Forum. Aug. 3, 2020. “Coronavirus is creating retirement insecurity. These 10 steps can defuse the timebomb of an ageing population.” https://www.weforum.org/agenda/2020/08/here-are-10-steps-to-diffuse-the-timebomb-of-an-ageing-population-post-covid19/. Accessed March 8, 2022. Sarah Korolevich. GoodHire. Jan. 11, 2022. “Horrible Bosses: Are American Workers Quitting Their Jobs Or Quitting Their Managers?” https://www.goodhire.com/resources/articles/horrible-bosses-survey/. Accessed March 8, 2022. Mercer. 2022. “Reinventing for the new shape of work.” https://www.mercer.com/our-thinking/career/the-new-shape-of-work.html. Accessed March 8, 2022.
We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom-suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.
The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.

 

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