The new retirement is less of a milestone and more of an ongoing journey.
And for a growing number of Baby Boomers, that journey means working longer or finding reliable new sources of income, such as owning a business or consulting.
People are living longer. The average Baby Boomer male will live to be 82.7 years old. The average Boomer woman will live 85.3 years. The life expectancy of a healthy 65-year-old has grown by 37% since 1950.
When people live longer, their money also has to last longer. Or as I wrote in my new book, Retiring Solo: Good health requires a healthy savings plan (or a good source of ongoing income) to go with it.
How much money do you need to save or earn? And at what pace should you spend the funds that you have managed to squirrel away? You can take an online life expectancy quiz to get a feel for how long you may live, based on your current health, habits and family history. I took three quizzes and came up with three different life expectancies: 98, 97 and 88. That’s a range of 30 to 40 years still ahead of me (I am 58 as I write this) – which is considerably longer than the 10-year retirements (from 65 to 75) that earlier generations planned for.
Retiring at 65 just doesn’t make sense as life expectancies continue to increase. If we enter the workforce at 22, plan to retire at 65 and expect to live until 90 or even 100, we will effectively work for 43 years while trying to save for a retirement which could last 25 years or longer. That plan is mathematically impossible for almost everyone to realize.
It’s not surprising that Boomers are starting businesses in record numbers to create new sources of income in ‘retirement’. Encore entrepreneurs (people who start a business later in life) are also starting more businesses each year than any other age group.
Do you have an idea for a business that could help fund your retirement? Do you have expertise to share, or a skill that is marketable? Let’s chat about your goals for your personal retirement and your plan for reaching that destination. If you don’t have a plan, we can work together to create one. The ‘new retirement’ is about reimagining, reinventing and rebalancing your life to incorporate new ways to live, learn and work.