Longer life expectancies—an additional 10 to 20 years than previously estimated—are changing retirement plans as never before.
If you’re like most of today’s older adults, you probably aren’t interested in the conventional meaning of what we used to call retirement. You want more. You want to live a longer, happier, more fulfilling life filled with purpose. You also understand the importance of staying healthy as you age so that you may continue to pursue new interests and find more meaning in life.
It’s all part of today’s new conversation: instead of aging, it’s all about longevity. And it’s more than just numbers.
What might longevity look like in the near future?
According to a recent study by Age Wave:
- The definition of “old” has been pushed back 20 years
- People over 60 today are more active, open-minded and curious than those a generation ago
- 71 percent of people 65+ say the best time of their life is now or in front of them
- 83% of adults 65+ say it’s more important to feel useful rather than youthful
In other words, today’s older adults want to live better, and retire better. They want to use their longer life expectancies to spend more quality time with the grandchildren. Explore new adventures. Discover a renewed sense of purpose. And of course, have the funds to do it all. In today’s world, that’s going to mean a retirement plan that encompasses more than a financial approach to dealing with higher inflation, rising healthcare costs, and increasing housing costs, just for starters. It also could mean working longer, putting more money away, or even returning to work.
It’s simple math: the longer you live, the more money you will need.
What if you retired at 65 and were planning to rely on your savings to enable you to do all the things you wanted to do…and now are scared that’s not going to be possible due to longer life expectancies?
Time for a new way to look at your best retirement
Used to be, you went to school and got your degree, then built your career, and then retired. In this new age of longevity, there are many more options—and challenges.
Here are a few adjustments that many retirees are making:
- Creating a multi-stage retirement. For example, taking a break from work. Going back to school. Returning to your job but working part-time. Taking a family leave. Trying a new career. Working remotely.
And with these new stages comes the need for some re-skilling to remain relevant in the workforce—or maybe accept the fact that you’ll earn a lower income and might have to take an hourly job at the food mart to make up the difference.
- Including a focus on healthspan. No one wants to live to 100 but be in terrible health for 20 of those years. With longer life expectancies come the opportunities to do more, travel more, learn more, and enjoy every day more—along with the need to maintain health and wellness as long as possible so you can actually enjoy it all.
If you haven’t already, start a consistent program of exercise, good nutrition, strength and balance training and overall wellness to help stave off chronic health conditions. To do otherwise, means having to factor in having the financial resources to pay for future health care (the cost of which goes up as the years go by). Having long-term care insurance or setting up a health savings account (HSA) can help with medical expenses.
But prevention is still the best policy: good habits today can help you achieve good health—and a good retirement—tomorrow.
- Staying flexible. Things change. Unforeseen issues come up. That’s why it’s important to regularly check in with your financial advisor and stay informed on what is happening in the world of taxes and investments. Be willing to work longer than you first planned. Cut out a few expenses and sock the money away. Stay connected and involved and open to new opportunities.
Thinking about longer life expectancies is exciting, and also a little scary. But if you widen your perspective and stay nimble, you can make it work for you.
A successful, fulfilling retirement lifestyle is about so much more than money. At Retirement Lifestyle Coaching, we go deeper, to really understand what motivates you and lights you up. Because life isn’t over at retirement—it’s your chance for an exciting new beginning!
