I have high expectations for retirement. I’ve been working for decades and the idea of someday being able to live a life without a 9-5 schedule seems really appealing. Plus, there are some things that I’ve really like to do that are hard to do while holding down a full-time job, like traveling or pursuing hobbies.
Some of you may know that I am a rail buff. I am fascinated by these big machines that were a big part of the industrial revolution and now are one of the most fuel-efficient ways to move anything, especially big, heavy things. I’d like to take a few train trips especially a cross-country trip through the Rocky Mountains.
Katie and I have also recently been hooked on detective shows from Briton with “Shetland” being our most recent interest. The series was filmed in the Shetland Islands and Scotland, both beautiful locations with thick English accents that are, at times, almost unintelligible to us.
And I’ve only just begun my stream of consciousness on what I might do in retirement!
Of course, having the right expectations is one thing. Having the matching resources is another.
People are retiring earlier than planned
The Wall Street Journal recently reported on retirement expectations. Interestingly, most pre-retirees say they plan to retire at age 70 or 65 (about 25% for each age). But the reality is that most people are retiring before then, some well before that age. Why? There can be many reasons, but an often-overlooked reason is one’s health.
When we are healthy in our 40s and 50s it is easy to forget that as one gets older, health issues can appear. People simply tend to have more health issues as they age. I think the potential for health issues as we age is significantly underestimated by most people.
I’ll just work longer
Perhaps most concerning is that when people are thinking about retirement income sources, they believe that earnings from work and their employer’s 401(k) or 403(b) are going to be major sources of income in their retirement years. These were the two areas of biggest disappointment, especially work for pay.
Think about it. If you plan on working past 65 and then develop a health issue that prevents you from working, that could eliminate a major and important source of income in your retirement years. It doesn’t always have to be a debilitating condition. It could just prevent you from doing your current occupation easily.
While you might hope that you’ll live forever (okay, maybe not quite that long), we may not be so lucky. After all, we are all mortals.
This might help to explain why we try to help our clients plan now for the future. The earlier one has a comprehensive financial plan in place, the better. We don’t know if our health is going to hold up and if it doesn't, we want our clients to have a back-up plan.
So, if you are planning to work full-time until you are 70 or 80, give me a call so that we can build a plan together that helps protect you and your family. You can also schedule a quick call with me by clicking HERE.
Lyman H. Jackson
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Check out our other blogs at www.PlanWithFPS.com/blog What, exactly, is retirement today? https://planwithfps.com/blog/what-exactly-is-retirement-today Will Social Security run out of money in 2034 https://planwithfps.com/blog/my-predictions-for-social-security-will-social-security-run-out-of-money-in-2034 5 things you should do to be ready for your golden years https://planwithfps.com/blog/5-things-you-should-do-to-be-ready-for-your-golden-years
Financial Planning Solutions, LLC (FPS) is a Registered Investment Advisor. FPS provides this blog for informational and educational purposes only. Nothing in this blog should be considered investment, tax, or legal advice. FPS only renders personalized advice to each client after entering into an advisory relationship. Information herein includes opinions and forward-looking statements that may not come to pass. Information is derived from sources believed to be reliable. Information is at a point in time and subject to change without notice. Such information may not be independently verified by FPS. Please see important disclosures link at the bottom of this page.