Retirement: what's your plan?
By Brett Anderson
St. Croix Advisors
With the first round of baby boomers either entering retirement or entering it shortly, the timely topic is buzzing in every industry. Some companies are losing their top execs while others are trying to figure out how to tap into the largest market in history.
On the retiree end, they are trying to figure out what to do with their golden years, and in some cases redefining what retirement means.
Each retiree has an idea of what their perfect retirement looks like, however, financially it may not be feasible. A lot of baby boomers have fallen victim to the current economic climate and are sitting on bad investments, are underfunded for their children’s college, and may even still have an adult child living with them.
This is causing the baby boomer generation to stay at their current jobs longer to keep saving so they don’t run out of money. Running out of money is a legitimate concern for the baby boomer generation, with life expectancy rates on the rise some retirees are out living their money.
One advantage of working longer, either full or part time, is that it allows you additional time to save for your retirement and means that you need to take less money out of your IRA accounts.
Employers are opening their arms and graciously welcoming retirees. They appreciate the vast amount of knowledge and experience baby boomers have, as well as their outstanding work ethic. The other bonus of hiring retirees is that often, they do not require benefits such as healthcare due to their eligibility for Medicare.
The baby boomer generation has more knowledge and experience than any other working generation and they are not ready to stop kicking yet. Some baby boomers are deciding to reshape their retirement and work somewhere part time. They have retired, realized they want still want to contribute, and now want to work somewhere to fill a few hours a day or week (anyone ever been to a golf course in Arizona?) thus creating their new retire-mentality.
The baby boomer generation has been trailblazing since they were born, and that won’t be changing as they transition into retirement. Overall, a retirement strategy and overall financial plan is necessary for any retiree and their family. There are no two identical retirement strategies because no two people have led the same life, had the same career or made the same investment choices. Therefore, you are never too young to start planning for your retirement and thinking about the tough or easy realities you will be facing.