Retirement is not a concept that existed in the 19th century. It came into its own in the 20th century and there is much speculation that it won’t exist in its current form much further into the 21st century. In fact, we are already moving in the direction of a radically different retirement than the one you’ve probably envisioned. The reason: things are changing and at a rapid rate.
Just a few years ago, the notion of retirement was to quit your job around the age of 65, live a life of leisure, deal with declining health and eventually die. Today, it’s not unusual to see people begin to mix work and retirement and that trend is not only going to accelerate but expand.
All of this is leading to the thought that retirement will evolve into a cyclical lifestyle of work, sabbatical, re-education and back to work in potentially a completely different field. (I call it the wash, rinse, repeat lifestyle.) The change is, in fact, being driven by necessity because of extended life expectancy and the financial strain it would place on one to live from 65 to 120 without a job. Something to think about.
Does this mean that the concept of retirement planning, saving and investing will also become obsolete?
Not at all. It will take money to take a break from work. It will take money to re-educate yourself and to pay your living expenses while you are reinventing yourself. And, with the evolution of “the gig economy” and the transient nature jobs, you will always need a backstop to ensure you have a regular, predictable, dependable stream of income.
In short, the rocking chair has retired, the 401k’s purpose will evolve, your life will become cyclical rather than linear. But, the need for planning will live on. Let’s talk and Get Ready for the Future!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.