“One of the levels of financial freedom is the point where whether you get paid or not, you're going to work entirely because you want to, and not because you have to. That is basically financial freedom or retirement, so to speak. As we redefine what retirement is on a global level, people might actually enjoy continuing to work if they can reframe it as, ‘this is a part of my retirement.’”
Retirement can be a big question for folks nearing the end of their careers, and the next decade may change how and when we retire. Today, Matt Stead, Joseph Sachetta, and Mike Callahan, Sachetta Callahan financial advisors, continue their discussion of 2030: How Today's Biggest Trends Will Collide and Reshape the Future of Everything by Mauro F. Guillén.
Traditional retirement is changing and will likely continue to evolve by the year 2030. Retirement is traditionally seen as a time when an individual can not work at all and continue to live off of their saved-up resources. Traditionally, people have tended to retire around 65. Now, people are working into their 70s due to changing attitudes, longer life expectancy, and the advance of technology. One effect yet to be seen is how today’s Covid work-from-home policies will affect the age that people retire. With more people working remote, the number of folks working into their mid 70s could increase.
When faced with retirement, some people have difficulty finding a purpose for their newfound free time. This lack of purpose coupled with a longer life-span and the need for an income means that more older adults may decide to keep working. We may see a shift towards retirement as a time to remain active and engaged, and possibly continue to work for enjoyment. Most importantly, having enough money saved to be financially free in retirement means that individuals can choose to stop working or do the work they love in their later years.
Social Security benefits are available for individuals in their mid-60s and structured off of life expectancies in the late 60s or early 70s. Now, as life expectancies are averaging in the late 70s, there is a strain on the Social Security system that has not kept in step with elongating life expectancies. In addition, as the next generation retires within this upcoming decade, we can expect to see the effect that their wealth has on stocks, bonds, and investments. Since, no one can predict the future, having a financial plan that takes these factors into account is an important part of reaching one’s retirement goals.
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2030: How Today's Biggest Trends Will Collide and Reshape the Future of Everything by Mauro F. Guillén
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Financial freedom can mean living the life you’ve dreamed of in your retirement. Sachetta Callahan can help create a financial plan to realize your retirement goals. Contact us today.