There’s been lots of talk lately that the definition of retirement has clearly changed.
Apparently you can retire successfully and still save later in life.
What does this mean? This is just more piece of evidence that the definition of retirement is changing. Golf courses are struggling. Travel companies are reporting more guests of earlier ages.
In short, as companies helped people get rid of the idea of 30-and-out (because they no longer wanted to pay pensions and other longevity benefits), people got rid of the idea of a traditional retirement.
Here’s a quick look at “before” and “now.”
Before Save for retirement (or let the company do it through a penion fund).
Now Continue saving for financial independence later in life.
Before Retirement is golf and travel
Now While some people golf and take trips, these are more often happening between work gigs or on weekends. Retirement is a job with a continued paycheck.
Before Retirement means health benefits for life.
Now Health benefits are the biggest retirement expense and people keep working to secure benefits.
Before Fast food and convenience jobs were held by high schoolers and other young employees.
Now Service sector jobs are filled more often with seniors who either need extra income or want to stay active.
Before Social Security benefits lasted for a short while, when the average person passed away in their 60’s or 70’s.
Now The average person is being advised to push back their Social Security benefits to have enough money to live a long, long life.
Before Annuities were considered poor investments for many retirees.
Now Longevity annuities are the hottest product in a financial advisor’s arsenal.
It’s clear: a successful retirement isn’t what it used to be. When we used to think that retirement meant being put out to pasture to enjoy your later years, now it seems people are on a mission to continue working, but only in ways they prefer, until they aren’t healthy enough to continue.