Retirement Advice Changes with Time & Population

When Planning to Retire Calculate Savings & Evaluate State of Mind

Aug 19, 2009

Many working Americans don't have enough savings to retire. But money isn't the only issue when planning retirement; one has to be mentally prepared, too.

Seniors can expect to make changes in retirement plans as life spans increase and the exploding elderly population attempts to navigate proposed healthcare reforms. Baby boomers that were hoping to transition gracefully into the golden years of old age may not have enough financial savings to meet expenses. Predictably, savings from retirement plans will need to last twenty-five to thirty years, or longer.

Secure Retirement Planning

Employee retirement savings plans, Social Security benefits, lifestyle, and a number of other factors can influence retirement planning. The Bloomberg website offers an online retirement planner on their Personal Finance page and gives detailed information on what it takes to work toward a secure retirement. A retirement calculator is provided on the same page.

Seniors traditionally retire at age 65, but instead of indulging in leisure activities many of today's retirees will move on to other employment. Income status doesn't always dictate who works and who does not. Some seniors are forced to return to the workplace so that they can survive and make ends meet. Other retirees – particularly those who retire early – decide that too much free time is not healthy and return to work for the stimulation.

Early Retirement Is Not for Everyone

Some early retirees fail to calculate a plan for happiness. Walter Updegrave, contributing columnist for CNNMoney Web site, presents the article, "Can I Retire Early?" (May, 2005), and discusses the disadvantages of early retirement: "First, there are lifestyle and emotional issues. Some people are just so focused on breaking away from their jobs that they don't think through how they'll actually spend their time. As a result, after an initial period of euphoria, one can begin to feel listless and disengaged."

Another point Updegrave makes is that retirees who suddenly return to hobbies set aside years ago may not experience the same interest or pleasure. The person may simply lack the skills needed to make the project or activity fulfilling.

The decision to retire involves more than money. A good retirement plan factors in age, family history (life expectancy and health issues), current health conditions, retirement wishes, consideration for a spouse, changes in lifestyle, Social Security benefits, current mortgage and debts, and more.

Retirement advice can come from professional sources such as a physician or personal financial planner, or it can come from the guy next door who retired a few years ago. Advice can come from a spouse, best friend, or retirement group. Retirement agencies such as the American Association of Retired Persons (AARP), and the AARP Foundation, provide sensible advice and information to seniors ready to retire or who may be thinking of retiring.

What's the soundest advice? Give early attention to retirement planning and investing, and develop a thoroughly researched retirement plan.

There are preparations one can make for retirement that may be considered advice:

Successful retirement demands careful planning. Financial security is probably the most influential factor when deciding at what age one will retire, but mental and emotional needs are equally important and should be carefully evaluated before making a decision. Retirement advice can come from a variety of sources, both nonprofessional and professional. Solid financial planning is imperative to a long retirement that may last thirty years or longer. Implementing a carefully devised plan to stay active suggests a satisfying and productive retirement.

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