Financial planning is a powerful tool that can help you not only anticipate risks and opportunities but also help you envision your future to ensure that you can retire the way you want to retire.
As Howard Marks says, “You can’t predict but you can prepare.”
As you prepare for retirement, it’s helpful to stay up to date with the latest retirement trends. This is why we’re excited to share our takeaways from the JP Morgan Guide to Retirement with you.
You may be curious about how you are doing compared to others in your demographic and guides like this one can help you more deeply understand current retirement trends and where you stand in your retirement planning journey.
Increased longevity is changing retirement
You may have seen this for yourself by observing loved ones or read about it in the news; life expectancy has increased dramatically in recent years. This trend is especially true for affluent people. If you are 65 and married, there is a 50% chance that one of you will live to age 95.
The good news is that people are not just living longer, but living well. With increased knowledge of nutrition, fitness, and health, people can live not only longer lives but healthier lives as well.
Are you prepared for a 35+ year retirement? It is important to have a plan that prepares you for a potential range of outcomes.
How will you spend your Third act?
People are now spending a longer time in the workforce with some working until 65, 75, or even longer. Before Covid, there weren’t as many options on how to work. But one positive aspect of the pandemic is that it forced companies to become more flexible.
People who aren’t quite ready to retire may now be able to work from home, work part-time, or do consulting. This flexibility is allowing people to stay more engaged in work if they so choose. Working part-time or on a flexible schedule can increase your income security and help you hang onto your nest egg a bit longer.
Others may find themselves out of work before they are ready. One of the downsides to the pandemic was the many layoffs that occurred. People in their 50s were often the target of these layoffs due to their high salaries. This is just one example of ways that you could be forced into retirement before you are ready. Since you may not have a choice of when you retire, it is important to be prepared and think through alternative outcomes.
How to spend time in retirement to make it more fulfilling
We all know that time is our most limited resource, this is why it is so important to carefully consider how to spend your time. Spending time in retirement is about creating a balance of blending vacation and vocation. The acronym PUSHES describes individuals who strike that balance and age well.
- They have purpose
- They use the time to work, help others, go to events, and participate in activities
- They socialize with friends and family
- They practice healthy behaviors
- They experience gratitude
- They focus on their strengths and abilities
Spending time in these ways makes retirement more fulfilling. Ideally, retirees can find 3-5 activities to keep up positive momentum. How do you plan to spend your time in retirement?
Listen to this episode to hear how retirement trends are changing and how that can help you envision your own retirement. Enhance your today and enrich your tomorrow by staying informed with Financial Symmetry.
Outline of This Episode
- [2:10] Increased longevity is changing retirement
- [5:33] How will you spend your 3rd act?
- [9:30] Time is a limited resource
- [13:50] How are retirees spending their money
- [20:21] The benefits of diversified sources of savings
Resources & People Mentioned
Connect With Chad and Allison
- https://www.financialsymmetry.com/podcast-archive/
- Connect on Twitter @csmithraleigh @TeamFSINC
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