It’s no secret now: 77 million Baby Boomers are heading into
their 50s and 60s and planning for the next phase of life
– retirement. Just as the Boomers have transformed every other
life stage, they are now revolutionizing and re-visioning
retirement as well.
By Eric Heckman
It’s no secret now: 77 million Baby Boomers are heading into their 50s and 60s and planning for the next phase of life – retirement. Just as the Boomers have transformed every other life stage, they are now revolutionizing and re-visioning retirement as well.
According to Dr. Ken Dychtwald, the nation’s foremost expert on aging and retirement, two-thirds of people that have lived past the age of 65 in the history of the world are alive right now. Humans have long searched for that fountain of youth, but there was no breakthrough until the twentieth century. Healthcare advanced and before we knew it, we were inundated with “old” people. We have fully embarked on the longevity revolution.
We’re an aging society. The only difference now is we’re not growing old. Our parents did in the past and didn’t have to worry about what to do after retirement because they weren’t going to experience 20 or 30 years of it.
Have you ever realized that in one generation, 65 has gone from being “old” to being middle-aged? Here’s a quick history lesson for you: Otto Von Bismarck developed Europe’s first pension plan in the 1880s. He picked 65 as the age when people were “too old” to work – this age has remained a marker today to begin receiving benefits, such as Social Security. The only problem? During this time, life expectancy was only 45 years old and the average retirement was only 1.2 years.
Many wonder now, “What if I outlive my money, purpose, etc?” What to do after retirement is a question Boomers are beginning to toy with. The linear life plan many used to go by (education, work, leisure) is being replaced with something much more cyclic – education, work, leisure, work, leisure, education, etc. But there is an entire generation who might not be able to retire unless they start thinking about and planning financially for it now.
It’s up to you to determine what kind of retiree you already are or who you plan to be. The following “faces” of retirement were compiled by Dychtwald, Harris Interactive and AIG SunAmerica and appeared in Time Magazine.
1) The Ageless Explorers (27 percent) – youthful, empowered, optimistic, very happy, loves retirement freedom, high net worth, wants work to be part of lives, seeks personal growth.
2) The Comfortably Contents (19 percent) – wants to be free of obligation, living their “golden years,” wants to relax, enjoy the fruits of their labor, high net worth.
3) Live for Todays (22 percent) – adventurous, pursue active life and personal growth, financially unprepared, anxious about retirement, modest net worth, not very happy because they HAVE to work.
4) Sick and Tireds (32 percent) – inactive, unfulfilled, worried about everything, the least happy, low net worth, given up/little interest in anything, living a retirement nightmare.
As you can see, most fall in the Sick and Tireds (perhaps considered the “old” way to retire), but more are beginning to move into the Ageless Explorers face.
Preparing for retirement is taking on a whole new face so it’s never too early, or too late, to start with a strategy. It’s important for you to make sure your financial professional is planning your finances thoroughly. As you can see, you could be getting short changed if the plan lasts for only 15-20 years.
Eric Heckman is president of Heckman Financial & Ins. Services, Inc. Eric brings over 13 years of experience to the field of financial planning. Contact him at www.WealthCreator.com or 297-9800.
