The Changing Nature of Retirement

The way we view and plan for retirement has changed significantly over the years. In the “old days”, retirement meant riding off into the sunset, inclusive of a move to Florida and hours upon hours of golf and shuffle board. Today, retirement is vastly different – people are living longer and generally are subscribing to a far more active lifestyle over more years.

The first significant change to note is that many retirees are no longer simply managing pension and collecting the interest from bonds. That form of retirement is largely gone, as pensions are becoming fewer and the interest generated from bonds is minimal based upon low interest rates. Now, with the advent of 401(k)s and IRAs, retirement is far more complex. It is now more important than ever for retirees to save and manage their wealth themselves. Ultimately, this change has led to a need for continuous retirement planning and far more uncertainty, and has highlighted the importance of having a strong relationship with a financial advisor.

The second major difference in today’s retirement lifestyle is that people want to be more active and engaged in retirement. This is largely accomplished by staying involved in the workforce with part-time employment or by turning a hobby/interest into a business. There are many benefits to this type of retirement, including additional income/retirement savings; by remaining active research has shown that aging happens more slowly; increased activity leads to increased energy levels; and, mental acuity remains at a higher level. In sum, people are working longer – for better or worse.

The third and final major difference in today’s retirement is that people are living longer. According to the Centers for Disease Control and Prevention, the current life expectancy for females in the United States is 81 years of age and for males it is 77 years of age. In comparison, in 1950, the life expectancy was 71 for females and 65 for males. What is the importance of this increase in longevity? First, as mentioned above, it is more important than ever to continuously monitor your finances to ensure a long and financially secure retirement. Secondly, we need to engage in an active retirement in which we remain vital both physically and mentally.

Retirement is not what it was even a decade ago. Whether the nature of retirement has changed, so should retirement planning! If you are approaching retirement or are years away, it is very likely you will be impacted by these changes.

-Louis Shaff, CFO

Disclaimers:
 

By using this website and or blog, or making a purchase, user agrees as follows:

All written content on https://cabanaportfolio.com website (the “Website”) is for informational purposes only. The material presented is believed to be from reliable sources and no representations are made by CABANA, LLC (d/b/a “Cabana Asset Management”), Cabana Law Group, or Cabana Financial, LLC (collectively, “Cabana”) or its affiliates as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. No party, including but not limited to, Cabana and its affiliates, assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.

The views and opinions expressed are those of the authors do not necessarily reflect the official policy or position of Cabana or its affiliates. Any content provided by our bloggers or authors are of their opinion, and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything.

Information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation.

Viewers or recipients of the information herein that do not agree with the term and conditions of use, should not utilize this website or any information contained herein. Decisions based on information contained herein are the sole responsibility of the person viewing the website. In exchange for utilizing the information on this website, the visitor agrees to indemnify and hold Cabana Asset management, its officers, directors, employees, affiliates, agents, licensors and suppliers harmless against any and all claims, losses, liability, costs and expenses (including but not limited to attorneys’ fees) arising from the use of this website, violation of these terms or from any decisions that the viewer makes based on such information.