Retirement in the New Normal: Part 3
Last week, we shared three things to keep an eye on and approach differently in the “new normal”. For the next two weeks in our series, we will share additional things that you can do to help yourself succeed in the new retirement landscape. By the end of this month, you will be armed with ten things that will hopefully encourage you to feel more positive and more in control of your retirement scenario regardless of what is going on in the world around you. The encouraging thing is that there are many things you can be proactive on.
Here are four more tips I encourage clients to consider implementing in their retirement strategy.
4. Figure out what you’re living on now
I don’t know a lot of people that actually do this because it’s overwhelming to face the actual amounts you’re spending in your current lifestyle. Back in the day, people lived according to their budgets, but now, with all the crutches out there, we can easily spend money we don’t have and get into a lot of debt-related trouble. However, knowing where your money goes each month is critically important in helping you figure out what you’ll need to live well in the future.
5. Accept that we are all living longer
We are living longer and longer these days which puts a lot of stress on your retirement savings. Twenty to 25 years ago we didn’t typically make it past 60. Now, if you make it to 60, there’s a good chance you’ll live to 90. Everyone needs reliable retirement income to live comfortably and as stress free as possible in the later part of your retirement. When we figure out what you are living on now, the obvious next, albeit uncomfortable step, is to face what you can be doing to your retirement income needs in a prolonged retirement scenario. Afterall, outliving retirement savings is the number one fear for Americans when it comes to life after active employment. Consider the benefits of working
A number of studies show a connection between how long you work and how long you live. When we are actively working, we’re more engaged, in fact, working may delay Alzheimer’s, and being part of a social group at work is proven to be a health benefit.
In the first blog of this series, we discussed the effects of unexpected employment or underemployment. If you are forced out of your job early on, you may find that job availability is limited, and that the income available in other jobs is less. Many retirees, including people in their late 50s, are having a hard time finding work that pays what they made before because of the rapid changes due to COVID-19, but also because of the influx of millennials entering the workforce. Think about what you’d like to do while saving for retirement
The new reality of retirement planning is that many retirement-age folks plan to continue to work for some time, even if only part-time. Many of the folks in this situation decide to engage in an entirely new career path that lets you leverage your experience and skills.
6. Consider the benefits of working
A number of studies show a connection between how long you work and how long you live. When we are actively working, we’re more engaged, in fact, working may delay Alzheimer’s, and being part of a social group at work is proven to be a health benefit.
In the first blog of this series, we discussed the effects of unexpected employment or underemployment. If you are forced out of your job early on, you may find that job availability is limited, and that the income available in other jobs is less. Many retirees, including people in their late 50s, are having a hard time finding work that pays what they made before because of the rapid changes due to COVID-19, but also because of the influx of millennials entering the workforce.
7. Think about what you’d like to do while saving for retirement
The new reality of retirement planning is that many retirement-age folks plan to continue to work for some time, even if only part-time. Many of the folks in this situation decide to engage in an entirely new career path that lets you leverage your experience and skills.
Next week I will provide three final tips for retirement in the “new normal” and I encourage you to reach out and schedule time to review your personal retirement scenario to make sure you are on track and that you have done everything possible to safeguard your savings in this strange and endless new work.
P.S. If you enjoyed what you've read here and found it beneficial, we encourage you to share it with your friends and family. I firmly believe that an educated investor is more confident, which leads to healthier finances and fewer sleepless nights.
Until next time...
Source: The New Retirement = The New Normal