The Shifting Definition of Retirement Today
Ten thousand Baby Boomers turn 65 years old in the United States each day. That’s one baby boomer retiring every 9 seconds. Baby Boomers aren’t just facing retirement in droves, they’re also facing a shifting retirement landscape posing significant obstacles.
First, we’re living longer than any generation before us. This is placing strain on traditional safety nets like Social Security. Those who designed social security did not foresee that 25% of current 65-year-old Americans will live past 90, and 10% of them will live past 95, according to the Social Security Administration.
Furthermore, pensions are disappearing from employer compensation and benefits packages. Finally, living longer means you could have unforeseen health expenses that could place significant strain on your financial longevity.
Therefore, it is increasingly more important for Baby Boomers and retirees to plan to self-fund their retirement – which could be 20 years or more in spending down your retirement savings.