Today’s workforce has a different idea about retirement than generations past. Today’s workers recognize that retirement is a long-term plan. No longer do people look at retirement as a far-off, magical day where they can finally stop working. Today’s retirement is viewed as a new chapter filled with new experiences, new hobbies, and maybe even a second career. The changing face of retirement also has to do with the fact that workers understand that having a career is a huge part of their lives. They have responsibilities beyond just their jobs, and they expect to be able to continue their professional careers after they retire.
The good news is that older workers are more likely to retire than they have been in the past. The bad news is that they have more financial obligations to think about. They’re also more likely to outlive their retirement savings, making it even more important to plan your retirement. Let’s take a look at some of the key factors that are changing retirement.
Retirees Have More Financial Obligations
Retirees have more financial obligations than they did in the past. They may have to support their children or help their aging parents either financially or with care needs. It’s important to take into account the financial obligations that come with retirement. It’s also important to consider that you may want to work longer than you did when you were in your prime working years.
One option for retirees is to continue to work part-time, which could help them cover their financial obligations while allowing them to maintain their retirement savings. Working part-time can also give retirees a feeling of productivity and busyness, which can help to alleviate the feelings of anxiety and boredom that can come with retirement. Another option, if you own a home, is a reverse mortgage. Simply looking at a reverse mortgage calculator can give you an idea if this financial direction would help with your financial obligations.
Shorter Time to Build Savings
Shorter time to build savings is due to the fact that today’s workers are generally less likely to have a traditional pension than past generations. The median worker in the United States has less than $10,000 in his or her 401(k) account. That’s enough savings to provide a modest income after retirement, but it’s not nearly enough to support a comfortable lifestyle. The good news is that more than 80% of Americans say that they’re saving for retirement. But the bad news is that they have a lot of catching up to do. The only way to have a financially secure retirement is to save for it. And the only way to save for it is to put money into a retirement savings plan. But you’ll need to get started quickly if you don’t have any savings.
Millennials Are Less Willing to Retire
Millennials are less likely to retire than other generations. In fact, only 36% of millennials say they are willing to retire as soon as they can. The good news is that millennials are generally more financially savvy than past generations. They’re also more likely to have a financially secure retirement thanks to the changes in the workplace.
One solution to making your retirement dreams come true is to take advantage of your employer-sponsored retirement plan. Depending on your employment situation, your company may offer a 401(k) or another type of retirement plan. Another solution is to start your own business. If you have the drive to succeed, you could open your own business and work when you want, how you want, and how much time you want to devote to your business.
Working Conditions are Changing
Working conditions are changing, and people expect more from their retirement years than past generations. Working in a place that offers a retirement plan is one way to make sure that you will have something to retire from. The good news is that many employers are offering their employees the option to participate in a company retirement plan. But if your employer does not offer one, you need to get one. That’s because it’s likely that you won’t have access to a company plan when you retire.
Employers Are Changing, Too
Employers are changing too. Companies are starting to realize that offering a retiree benefits plan isn’t just a good idea for the business…it’s a good idea for the employees who will be working there in the future. Many large employers have shifted their focus away from traditional, employer-paid pensions. This has left many employees without the ability to provide for their own retirement. Employers can help to bridge the gap between what you have saved and what you will need to have a comfortable retirement by offering savings plans. If your company doesn’t offer a retirement plan, ask your employer to start one.
Bottom line
Retirement has become a more flexible term. To meet the expectations of today’s workers, you will have to adapt your retirement plan to fit the changing face of retirement expectations. Work part-time, continue to build your retirement savings, and explore ways to make your work experience more fulfilling and productive. Retirement can be a brand new adventure, but the only way to get the most out of it is to be financially ready to take on what life puts before you.