A Sea of Change

    As we review life in the 21st century, we realize that demographic, economic, workforce, and societal trends are driving a fundamental shift in the way that individuals view and prepare for retirement. Five factors in particular are shaping the realities of the “new retirement”:

1. Increasing longevity:
Life expectancy has increased dramatically since the early 1900s. Not only are pre-retirees questioning how they will fund a period of retirement that could span one-third of their lives, they are also wondering how they will spend their time.

2. Accelerating need for self-reliance:
The slogan for everyone preparing for retirement should be, “If it is to be, it’s up to me.”  Building financial security for the future has become more and more the responsibility of the individual.
 
3. Growing interest in active lifestyles:
Increasingly, those looking ahead to retirement expect this stage of life to be a time for new endeavors. The results of several studies indicate that individuals anticipating retirement are more likely than previous generations to view retirement as an opportunity to start a new career and pursue meaningful activities.

4. Expanding interest in post-retirement work:
The concept of retirement can no longer be equated with a permanent exit from the workforce.  The vast majority of Baby Boomers plan to stretch out their working lives, moving in and out of new and varied careers. Their top reasons for working include a need for additional income, desire to keep active, and the need to fill time and feel productive.

5. Broadening view of retirement planning that looks beyond financial issues:
Individuals and retirement planning professionals are increasingly recognizing that a successful and satisfying retirement experience depends on more than a healthy nest egg. Instead, retirement should be thought of as a major life transition that deserves planning and preparation in all areas of life.