People used to work hard for most of their lives before
stepping aside to enjoy the fruits of their labor in a seemingly short period
of retirement. They gladly left others
to fill the void their absence created – seeking the time to do what they
wanted to do rather than what they had to do.
Health insurance, an inexpensive benefit meant to prevent financial
disaster caused by a serious health condition, was readily available at a
reasonable cost upon retirement.
Designed to provide a source of income that would “give back” the money
workers put into it to augment the responsibilities families shared with their
aging relatives, Social Security became the primary resource for many aging
individuals. Employees fortunate enough
to receive a pension while working often entered retirement with the thought of
“living high” rather than of simply “getting by.” Others planned to fund their golden years
using equity from their home. People
focused more on “when” retirement was going to happen than “if” it could ever
occur – rarely thinking about what they would do to fill their days. Unfortunately, many live life "hoping for" a pot of gold at the end of their rainbow, seeking a hidden treasure buried within the caverns of their minds, rather than working to create a fulfilling life that can be supported and maintained through intentional planning.
Today, things have changed.
More workers are leaving the workforce than are entering it. Family is taking a diminished role in caring
for its aging members, often relying upon facilities that can provide appropriate
medical care rather than putting their life on hold to help a relative in
need. Healthcare Insurance provides
cradle to grave coverage for all conditions (or potential conditions – or lifestyle
choices made to improve their perceived quality of life) but is so expensive
that it is hard to pay premiums when no “condition” exists and harder yet to
pay for unanticipated consequences should a major illness occur. Our social welfare system takes care of
individuals in ways that family and/or churches once did – with the
responsibility to finance these services resting upon a minority of the
population to support an ever-increasing majority of individuals choosing to
leave the workplace. Our Social Security
safety net is no longer sustainable yet the meager funds available seem to be
ear-marked for those that contributed least while disqualifying from benefits those
that contributed most (since they probably saved individually for their own
retirement rather than expecting some other entity to take care of them). People COGNITIVELY understand that saving
early in life for retirement makes sense yet few young people have the PRACTICAL
ABILITY to begin saving when they really should – either because they feel
invincible OR they cannot afford to save because of the high price of living
and the relatively low available income stream.
Are YOU planning (and saving) for retirement or are you
expecting a system that faces bankruptcy to care for you? A recent survey found that the average retirement-aged
American worker has savings of less than $50,000. Though housing prices are
going up right now, and home equity is still seen as a source of retirement
income, people are living independently longer so appreciated home value may or
may not be available when needed to help fund retirement. While the cost of living is relatively
stable, the economy is precarious enough that a single “pebble” of economic or
political unrest dropped into the sea in which we live could potentially cause
a tidal wave that could destroy our unsuspecting shore. While the best option for retirement savings
would be to put as much away as possible from an early age, most do not truly
begin saving until their mid- to late-forties.
There is no time, however, that is “bad” for beginning as long as we
focus on the end we wish to achieve and take intentional and measured action to
attain the security that comes with financial independence. Take advantage of your organization’s
retirement plan match (if one is available) to maximize your contributions and
talk to your Plan Administrator to utilize investment options that “fit” your
risk tolerance (how much you are willing to lose in the short run in order to
maximize your gains in the long run). We
must think, anticipate, prepare, initiate, monitor and test everyday as we
perform at work. Unless individuals use
the same perspective when taking on the responsibility for their own future they
may find themselves woefully unprepared to enjoy the opportunities that a “different”
lifestyle presents.
What are you relying on to help cushion your landing should you
choose to escape the regularity of your work world and venture into the uncharted
waters of retirement? Are you preparing
for the future or sitting passively on the sidelines waiting for life to
happen? Are you planning what you will
do with the time you may have available if you do not adhere to a structured
schedule? We all have been “important”
to others while working – fulfilling a vital need, supporting a necessary
process, contributing to the success of others – what are you doing about
filling that “satisfaction” void that many face when they leave the workforce
EVEN IF they are financially prepared? Most
would say that “stepping aside” is never easy.
Having a sound plan as to how you will make yourself FEEL whole and a
well-funded retirement nest egg that will provide financial peace of mind as
you open a new chapter in your book of life will determine whether you begin your
new adventure having a “golden goose” to support you or discovering that your “goose
has been cooked,” providing you with short-term support but NOT the long-term
comfort you had imagined. Having fiscal
peace, though important, is not enough.
Plan ways that you can continue to make a difference BEFORE you retire
so that you can maintain the sense of value and worth you receive during your
days of obligation at work throughout your days of opportunity beyond the work environment.
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