Retirement for Baby Boomers is about smart living – by preparing and planning for a different future.
Longevity is opening an entirely new life stage of 20 or 30 ‘bonus’ years in which traditional retirement practices are no longer appropriate.
I recently attended the Retirement Coaches Association conference in the U.S.A. The conference highlighted key retirement trends including:
- Inadequate finances to sustain a comfortable retirement
- Importance of social connection
- Decisions of where to live.
In Australia, we are facing similar trends.
Inadequate retirement finances
“The dream of owning your own home before retirement is becoming less likely as fewer Baby Boomers are entering retirement mortgage free, in comparison to previous generations” says the Australian Housing and Urban Research Institute [20/11/19]. Data from their survey revealed just 43% of respondents aged 60-64 own their own home outright.
In addition to the mortgage, there is also credit card debt and the costs of supporting children and or ageing parents; leading to a rise in mental distress.
Accumulated life savings are being used to regularly fund retirement living. Needing to find work once retired has become important for some to fill the gap. Baby Boomers are starting their own businesses or using the growing gig workforce economy to become, for example, Uber drivers and AirTasker professionals.
“Those at the greatest disadvantage in retirement are renters with the relative poverty rates in this cohort among the highest in the OECD” [Centre of Excellence in Population Ageing Research 19/11/19]. After paying the rent, electricity etc; private renters can have little left for healthy food choices, transport and other needs.
Working in retirement is not just about the income. Work also fulfils the importance of social connection and intellectual stimulation.
Social connection
“The quality of social connections is around four times more important as a predictor of a retiree’s physical and mental health than the state of their finances” [The Conversation 19/11/19].
Having a role within a network, community organisation or work group provides a sense of self identity and belonging.
When working, it is estimated that we engage in up to 22 high quality face to face interactions daily. However, in retirement that number often cuts to half. Those interactions are usually of a lower quality, because they often occur by email or phone. This can lead to negative feelings about retirement such as being isolated, bored and out of touch.
Feeling connected is the key to a satisfying retirement, one where you strengthen and recommit to family and friends, while developing new interests and relationships.
Deciding where to live
The quesiton of where to live in retirement requires weighing up various living options, for example:
- Stay, renovate or sell?
- Downsize. If so, where? Nearby in a community I know, move closer to the kids and grandchildren, or relocate somewhere warmer?
- Or upsize so that ageing parents, studying children or children who are trying to get into the property market, can live together?
Discussing and reassessing the reality of your retirement dream, family-care needs and work availability, all need to be considered in deciding housing and location options that might also change over time.
Retirement is a major life transition that is filled with exciting possibilities and new challenges to embrace.
Retirement planning enables you to clarify choices, reduce risks and expand options enabling you to live smart.
Merilyn HIll – Professional Retirement Life Coach, Trainer, Speaker
woocommerce-243135-748018.cloudwaysapps.com
Bob Laura