When you’re young, retirement seems far in the distant future. It’s what you do when you’re old. Why should you put away money now?
Then, before you know it, retirement is staring you in the face. And if you haven’t been strategically saving over the years, that will make for a scary moment.
Do you think you have enough in your retirement account? Are you on track?
Recent surveys show “a third of Americans have less than $5,000 saved for retirement.”
So while most Americans don’t have enough saved for retirement at all, there is another development to consider: much longer retirements. With the help of modern medicine people are living longer than ever, so you may very well be the lucky winner of the longevity jackpot and reach age 100! That means you’ll need more money to fund a longer life. So what’s your plan?
Why Planning for Retirement is Important
Saving money is one thing, but creating a long-term strategy and investing wisely is another. Most Americans don’t receive adequate financial education in school or even from their parents, so it’s easy for them to forget the first and most important step: create a financial strategy.
Working with a financial professional and putting together some sort of blueprint will get you thinking about what you want your retirement years to look like and can help you have the money to support it. According to Dr. Joe Coughlin, (aka Dr. Joe) founder and director of MIT's AgeLab, “A plan puts retirement upfront and deserving of the attention.” See more of what he has to stay about planning in our video:
Working in Retirement
If, after doing your planning, you find your investments for retirement are coming up a wee bit short, you may need to consider working in your later years. But this doesn’t have to be a drag. Your encore career could mean picking up forgotten passions, remaining in your current role for longer, scaling back to part-time work, or totally reinventing yourself in a new profession that excites you.
“But wait,” you say, “isn’t retirement about not working? Is it even healthy to be working in your later years?”
Dr. Joe says people may consider working in retirement not just for the money but for more important reasons: a sense of meaning, a sense of purpose, and a reason to get up in the morning.
See more of what he has to say in our video:
Even if your retirement involves working in some capacity, having a plan will allow you to choose and prepare for the type of work and leisure time you want — with the confidence of knowing you’ll have the funds to make the last quarter of your life a fulfilling one.
Is your retirement plan traditional or a bit more ambitious? If you were to work later in life, what would bring you joy? We’d love to hear from you in the comments below.
Transamerica is a proud sponsor of Dr. Joe Coughlin and MIT AgeLab
Neither Transamerica nor its agents or representatives may provide tax, investment or legal advice. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely on their own independent tax and legal advisors and financial professional regarding their particular situation and the concepts presented herein.
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