Forget Traditional Retirement – Ignite A New Career

Is traditional retirement still a thing? Wondering what your retirement years will look like? I understand! Let’s look at what two respected sources are saying about traditional retirement. And touch on why you need to create a strategy for the years ahead.

You might feel nervous about the whole retirement thing. Or, you may be thinking that since retirement is a few years off you’ll figure it out once you reach that age. Or maybe your perception of retirement is based on previous generations.

So, can we forget traditional retirement? And, if so, what do those years beyond 60 looks like? What are the options? In fact, should we ditch the notion of a “traditional retirement” altogether?

First, let’s think about what many people think traditional retirement looks like. And we’ll see what two leading sources say about these “retirement years”.

I remember when the traditional retirement age in the United States was 6o, but those days are long gone.

Some of us can still remember the days when the traditional retirement path went something like this:

• You work for a company for a set number of years.
• You leave the workforce in your early sixties.
• The company provides you with some sort of retirement package.
• And, along with your savings, investments, assets, and Social Security, you could live comfortably for your remaining years.

But, introducing 401Ks back in the early 1980s changed retirement planning. Much of the financial burden of saving for retirement shifted from the employer to the employee. And, ever since then, we’ve needed to start our retirement plans.

What Experts Are Saying About Traditional Retirement

I recently read J. P. Morgan’s “Guide to Retirement” for 2022 and a transcript of a Washington Post interview titled “Future of Work: Retraining for the Digital Age” with Dr. Susan Wilner Golden. She is a lecturer in business management at Stanford University and the author of the book Stage (Not Age).

These articles drive home some hard-hitting facts.

Both the guide and the interview have an obvious common thread. Both state in no uncertain terms that many of us can forget “traditional retirement”.

They point to the fact of increased longevity. And that may be the most important trend our society has ever experienced.

Everyone wants to live longer, happier, healthier lives.

Longevity affects our health, lifestyle, business, and our finances in many positive ways. But, it should also impact our thinking about “retirement”.

Plan on Living To 100 Years Old

J. P. Morgan’s “Guide to Retirement”, says its advisors should expect their clients to live to be 100. And, they’ll spend about 35 or more years living in retirement. Sounds great, doesn’t it?

But, it also says that “too few Americans have calculated what it will take to retire at their current lifestyle.”

In the Washington Post interview. Dr. Golden points out that

The sad fact is that 25% of Americans have no retirement savings.

Many that have a retirement account have dipped into their retirement savings. Many people left the workforce unexpectedly because of COVID-19. But, there are other reasons too. Some people withdraw from savings because of health issues, caregiving responsibilities, or becoming unemployed.

For most of us, no retirement plan can meet our financial needs in our 90s.

Longevity alone is enough to make us forget traditional retirement and make other plans for those years beyond 60.

The J.P. Morgan guide points out that many people will have to generate 70 to 80% of the income they require for their retirement years. That means either through savings or other means, such as working a job. People with low incomes will need close to 100%.

So, because we’re living longer, there’s a chance your retirement savings won’t cover your expenses into your 90s.

Many of us have concluded that we’ll need to work part-time or full-time jobs past our “full-retirement” age.

The Bright Side of Working In Retirement Years

Now, let’s look at the bright side. While I love the idea of living a life of leisure for my remaining days, it’s not practical on several levels.

For me, it’s beneficial to my physical and mental health. And, Dr. Golden’s statement that “More and more, people want to work longer and need to work longer”.

I left my job working in high-tech manufacturing in my early 60s. (If you want to know why I did, here’s a link to my blog post and my video.

I enjoy what I do for a living now. I’m super engaged in my work. I have reasonable deadlines. And interact daily with a team of experts scattered around the globe in over 40 countries.

My work gives me purpose and provides my wife and me with an income comparable to what I was making at my previous job. And I do it all from home.

I knew that my 401K wouldn’t be enough to maintain the type of lifestyle that I’d become accustomed to. So, I prepared to make the leap early to a job I could do well past my “full-retirement age”.

Plus, It’s working allows me to remain relevant, keep up with the new technology, and I don’t even think about my age.

An Even Bigger Picture About Encore Careers

But, continuing to work is more than just feeling good about oneself. It’s also beneficial from a societal standpoint. Remaining in the workforce offsets the decline in the percentage of younger workers.

While many of us will have to forget traditional retirement, there’s a bright side.

There’s an increasing number of companies that see the benefit of having older workers. And they’re finding new ways to integrate them into the company.

Dr. Golden points out that “People have a variety of contributions to offer, from 65 to 100. She says, “the global market for the 60-plus age group could be $22 trillion and, includes “every industry you can imagine”.

So, why is all that important?

The Next Phase of Employment

So, if you’re over 50 years old, it is time to think about what you want this next phase of your life to look like.

Consider a full-time encore career or a part-time job. Or becoming a freelancer, a consultant, or starting your own business, and you can work at your own pace.

One thing is for sure, it’s better to plan now before you feel pressured into deciding.

Yes, many of us can forget the traditional retirement age. The future for most Americans isn’t a “retirement” from work, it is just another phase of work-life.

T L Walters Midlife Career and Life Coach

T.L. Walters helps clients turn midlife changes into opportunities for success and fulfillment. His unique approach stems from his own successful career pivots at ages 50 and 63. Terry holds a degree in Interdisciplinary Studies from Liberty University, and a Diploma in Counseling where he specialized in Life and Career Coaching and Alzheimer's Care.

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Midlife Career Change and Life Coaching