Trending Finance Topics: Retirement
Retirement age expectations versus reality, coping with unplanned retirement, and new meaning of retirement are some of the most popular financial topics/online conversations currently trending around retirement. The requested information about the topics is presented below.
Retirement Age Expectations versus Reality
- A growing mismatch between the age at which many Americans expect to retire and the real age at which they actually retire is evident. According to recent statistics, many Americans are forced to retire earlier than their expected retirement ages for various reasons.
- Many working Americans expect to retire at the age of at least 66 years, an increase from the projected age of 63 years in 2002.
- Several financial planners think that 63 years is the ideal age for retirement. Their argument for late retirement age is based on the premise that retiring late increases the retirement savings considering the longer lifespans of Americans today.
- However, in reality, majority of the American workers do not retire at 65 years or above. In one survey by the Employee Benefits Research Institute conducted in 2018, the median age of retirement was 62 years.
- According to scientists and researchers, both positive and negative developments determine the actual age of retirement for most Americans.
- On the positive side, some people are retiring younger because of having more wealth such that they have the means to support themselves after retirement.
- However, for the majority of Americans, negative developments in terms of poor health and loss of jobs are the underlying reasons.
Coping with Unplanned Retirement
- The reality of unplanned retirement in America is a trending topic in the US. According to financial and retirement analysts, coping with forced early retirement is a major concern for many Americans, especially those who had not planned for it.
- Some analysts note that unexpected retirement could bring self-doubt and fear in the vision of the carefree golden years for most people.
- As a result of the growing concerns, financial and retirement experts have provided many recommendations on how to cope with the predicament of unexpected early retirement.
- Financial experts recommend reviewing one’s financial situation by figuring out one’s cash flow, monthly expenses, and retirement account statements. This will allow one to reevaluate their existing retirement plan based on their real financial situation.
- Some experts recommend adjusting one’s financial lifestyle by avoiding unnecessary expenses such as travel, vacations, expensive restaurant dinners, and gold membership among others.
New Meaning of Retirement
- Retirement in the American society is gaining a new meaning as observed by financial and retirement experts. Apparently, the nature and meaning of retirement has evolved significantly over time.
- While retirement in the past meant time to relax from active involvement in work after reaching a particular age, especially 65 years, it is more about maintaining a busy and happy lifestyle today.
- Owing to these changes, a universal definition of retirement seems nonexistent.
- Many older workers are not retiring fully as was the case in the past. Rather, analysts have found that almost half of the retirees intend to work in their retirement.
- Some of the types of work that the retirees consider during their retirement include pet sitting, small businesses, teaching, volunteering, consulting, or short-term jobs like working as drivers for ride sharing companies.