The Changing Nature of Retirement

2 years ago

  • Share this:

The way we view and plan for retirement has changed significantly over the years. In the “old days”, retirement meant riding off into the sunset, inclusive of a move to Florida and hours upon hours of golf and shuffle board. Today, retirement is vastly different – people are living longer and generally are subscribing to a far more active lifestyle over more years.

The first significant change to note is that many retirees are no longer simply managing pension and collecting the interest from bonds. That form of retirement is largely gone, as pensions are becoming fewer and the interest generated from bonds is minimal based upon low interest rates. Now, with the advent of 401(k)s and IRAs, retirement is far more complex. It is now more important than ever for retirees to save and manage their wealth themselves. Ultimately, this change has led to a need for continuous retirement planning and far more uncertainty, and has highlighted the importance of having a strong relationship with a financial advisor.

The second major difference in today’s retirement lifestyle is that people want to be more active and engaged in retirement. This is largely accomplished by staying involved in the workforce with part-time employment or by turning a hobby/interest into a business. There are many benefits to this type of retirement, including additional income/retirement savings; by remaining active research has shown that aging happens more slowly; increased activity leads to increased energy levels; and, mental acuity remains at a higher level. In sum, people are working longer – for better or worse.

The third and final major difference in today’s retirement is that people are living longer. According to the Centers for Disease Control and Prevention, the current life expectancy for females in the United States is 81 years of age and for males it is 77 years of age. In comparison, in 1950, the life expectancy was 71 for females and 65 for males. What is the importance of this increase in longevity? First, as mentioned above, it is more important than ever to continuously monitor your finances to ensure a long and financially secure retirement. Secondly, we need to engage in an active retirement in which we remain vital both physically and mentally.

Retirement is not what it was even a decade ago. If the nature of retirement has changed, so should retirement planning! If you are approaching retirement or are years away, it is very likely you will be impacted by these changes.

-Louis Shaff, CFO

Disclaimers:
 

By using this website and or blog, or making a purchase, user agrees as follows:

All written content on http://cabanaportfolio.com website (the “Website”) is for informational purposes only. The material presented is believed to be from reliable sources and no representations are made by CABANA, LLC (d/b/a “Cabana Asset Management”), Cabana Law Group, or Cabana Financial, LLC (collectively, “Cabana”) or its affiliates as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. No party, including but not limited to, Cabana and its affiliates, assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.

The views and opinions expressed are those of the authors do not necessarily reflect the official policy or position of Cabana or its affiliates. Any content provided by our bloggers or authors are of their opinion, and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything.

Information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation.

Viewers or recipients of the information herein that do not agree with the term and conditions of use, should not utilize this website or any information contained herein. Decisions based on information contained herein are the sole responsibility of the person viewing the website. In exchange for utilizing the information on this website, the visitor agrees to indemnify and hold Cabana Asset management, its officers, directors, employees, affiliates, agents, licensors and suppliers harmless against any and all claims, losses, liability, costs and expenses (including but not limited to attorneys’ fees) arising from the use of this website, violation of these terms or from any decisions that the viewer makes based on such information.

Disclaimers

Cabana LLC (dba “Cabana Asset Management” and “Cabana Retirement Solutions”), is an SEC registered investment adviser with offices in Arkansas, Texas and Colorado. Cabana only transacts business in states where it is properly registered or is exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. Additional information regarding Cabana, including its fees, can be found in Cabana’s Form ADV, Part 2. A copy of which is available upon request or online at https://www.adviserinfo.sec.gov/.

By using this website the user agrees as follows:

All written content on www.thecabanagroup.com website (the "Website") is for informational purposes only. The material presented is believed to be from reliable sources and no representations are made by Cabana, LLC, Cabana Law Group, or Cabana Financial, LLC (collectively, “Cabana”) or its affiliates as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with a financial advisor, accountant or legal counsel prior to implementation. No party, including but not limited to, Cabana and its affiliates, assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.

The views and opinions expressed are those of the authors do not necessarily reflect the official policy or position of Cabana or its affiliates. Any content provided by our bloggers or authors are of their opinion, and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything.

Information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a financial advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation.

Viewers or recipients of the information herein that do not agree with the term and conditions of use, should not utilize this website or any information contained herein. Decisions based on information contained herein are the sole responsibility of the person viewing the website. In exchange for utilizing the information on this website, the visitor agrees to indemnify and hold Cabana, its officers, directors, employees, affiliates, agents, licensors and suppliers harmless against any and all claims, losses, liability, costs and expenses (including but not limited to attorneys' fees) arising from the use of this website, violation of these terms or from any decisions that the viewer makes based on such information.

No legal relationship is created or implied by the posting of a blog or exchange of a message in response thereto on this website. All blogs and related statements are not to be construed as legal advice but as general information. In all cases, an attorney should be retained to review the full circumstances and deliver advice consistent with the information disclosed to the attorney.

Please consult with a tax advisor before making any investment decisions.

The insurance and annuity products and services mentioned on this Website are not offered in all states. Insurance products are subject to terms, conditions and exclusions not described on this Website. The information on this Website concerning Cabana and its affiliates’ insurance policies and other products is intended to give you an overview of the policies and the products. None of the information—including any policy or product description—constitutes an insurance policy. The policy contains the specific details of the coverages, terms, conditions and exclusions. All insurance and/or securities transactions between Cabana and/or its affiliates and its customers are conducted based on signed, written agreements. The terms of these signed, written agreements are binding on the parties to the agreements. No other representation, whether made in person, online, electronically, in writing, or by graphic or verbal communication may alter the terms of those agreements.