As society changes over time, so does the reality of retirement. Whereas our parents’ retirements may have come after entire careers spent at the same companies with cushy pensions as rewards, most retirements today and in the future are looking quite different. Here are seven things to know about today’s retirement.
- You are responsible for funding your retirement. Pensions are all but extinct, and Social Security is waning. Since we can no longer expect the government to support us in retirement, it’s now up to us to make sure we have enough to live off of during the period of our lives when we no longer have steady income from a full-time job.
- Today’s retirements are longer. Life expectancies today are longer than they ever have been. A 65-year-old today is expected, on average, to live another 19 years; however, many of us will live beyond that. Longer life expectancies equal longer retirements. That means there is a longer period of time during which you will need to make sure you have enough to cover your living expenses, as well as a longer period of time for which you will have to plan your time.
- Despite longer life expectancies, your health is still up to you. Average longer life expectancies don’t automatically mean that you will live longer if you do not take care of yourself. If you want to enjoy a long retirement, then it is the time to break bad health habits and implement beneficial ones.
- There are many stages of today’s retirement. An offshoot of the fact that today’s retirement is longer, retirement can now be broken down into several phases. In early retirement, you may still be working a part-time job for additional income. This is also the time during which you may still be active and wanting to travel or take up a new sport or hobby. Later in retirement, your health may limit your activities, but you will still need to be able to pay for your quality of life.
- You will need supplemental medical insurance. Medicare, a government health insurance program for people 65 and older, does not cover all health care costs in today’s retirement. You will need supplemental insurance to cover most doctor’s bills, prescriptions and dental expenses. Still then, you may be paying full price for other expenses you incur as you age.
- You need to account for more than just money. Planning financially for retirement is a critical task, but you also need to plan for how you will occupy your time. Going from a regular working schedule to copious amounts of free time can be shocking, and it can leave you depressed if you do not decide how to spend it productively. Decide whether you will work-part time, travel, volunteer, spend time with your grandchildren, pick up a hobby, etc.
- The possibilities for today’s retirees are extensive. Rather than an end, today’s retirement is viewed more as the start of something new—an exciting chance to reinvent yourself after working hard your entire life to be able to do so. From continuing education opportunities to entire communities designed to support active retirement lifestyles, the chances to thrive in retirement are numerous.
Embrace the opportunity to make the most of your retirement, but keep in mind the ways that today’s retirement is distinct from the retirement of the past.
Stay tuned to Ty J. Young Inc.’s Retirement You Earned blog for more insight into life in your retirement years. To learn how you can maximize the amount of income you receive in retirement, call our knowledgeable Ty J. Young Inc. advisors today at 877-912-1919.