Do you think your retirement will look exactly like your parent’s retirement? The answer is probably “no,” and hopefully, it’s “it will look even better.” Retirement is changing, and it’s important to think about what you want in retirement and how you’ll afford it. Here are four retirement lifestyle predictions.
More People Will Be “Pulled” into Retirement Than “Pushed”
Older workers can sometimes find themselves “pushed” out of the workforce sooner than they anticipated by layoffs and age discrimination. However, it may be that more people voluntarily enter retirement earlier to spend more time with friends and family and to travel while they’re still young. A financial plan is especially important for those who want to retire early and pursue their desired retirement lifestyle.
Aging At Home Could Become More Popular
Many will remember the spread of COVID through nursing homes for years to come. Visitor bans and lockdowns don’t sound appealing, and the idea that nursing homes are dangerous places could stick around. One survey found that the majority of Baby Boomers want to age in place “where their marriage and mortgage and memories are.”[1]
Most Retirees Will Want to Maintain Their Pre-Retirement Lifestyle
A recent study shows that about one in three retirees actually spent more than they expected they would when they first retired, and one in 10 spent much more than they anticipated.[2] This could be because many retirees don’t want to downgrade their lifestyle as soon as they retire. You may want to travel, continuing dining out, and spend more time on leisure activities like golf. It’s great to thrive in retirement – not just survive – but this can be expensive.
Planning Will be Key for Retirees
After an unforeseen pandemic with widespread economic consequences, the importance of a financial plan aimed at mitigating risk is clear. Anyone can assess their risk tolerance and create an investment strategy before market drops. They can also choose to have someone in their corner to help with a long-term plan and handle bumps along the way. A financial advisor can help you create an investment plan, as well as a Social Security maximization strategy, estate plan, and tax minimization plan to help you win the retirement lottery without winning the lottery.
Everyone has an ideal retirement and retirement start date, which is why it’s important to have a plan based on your unique financial situation and goals for the road ahead. We can help you figure out how to finance your retirement lifestyle by building a comprehensive retirement strategy. To sit down with us and start the discussion, sign up for a complimentary review.
[1] https://crr.bc.edu/working-papers/are-homeownership-patterns-stable-enough-to-tap-home-equity/
[2] https://finance.yahoo.com/news/nearly-40-retirees-spending-expected-report-202123085.html
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