Current events clearly demonstrate that longevity is the new norm. We recently lost a former president at the age of 100. We have a sitting president who will soon exit the Oval Office as the oldest president to ever finish a term. And we will soon inaugurate the oldest incoming president in our nation's history.
Age isn't limited to politics. Not by a long shot. Speaking of which, LeBron James, one of the most famous professional basketball players, is 40. Former professional football coach Bill Belichick is beginning to coach college football at 72. At 73, a year older, former Seattle Seahawks coach Pete Carroll is looking for a new job. And who can forget the great Gordie Howe?
Colonel Sanders started his Kentucky Fried Chicken franchise in his late 60s. At the time, that was considered somewhat unusual. In today's environment, starting a business and succeeding in your 70s and 80s hardly merits front-page news. Thriving later in life is not out of the ordinary.
A major life insurance company's new promotion says that 100 is the new 70. In essence they're suggesting that 100 could eventually become the new "typical" retirement age, similar to how 70 is currently perceived.
The point is that you may need to consider planning for a longer retirement period. And I think it's prudent that everyone in the workforce does just that. Be prepared to adjust your finances accordingly.
Counting entirely on Social Security to get you through the retirement years is probably not a good idea. The program, after all, was designed more as a safety net to supplement your retirement income.
The trustees have been warning us that Social Security is in dire need of reform. I have little doubt there will be changes in the upcoming years. So again, don't put yourself in the position where you're overly dependent on Social Security.
Some people feel when they retire their working days are over, and that may be true for some. But longevity has changed that. For many, a part-time job or cash producing sideline is needed to generate an additional income stream. After 30 or so years in the workforce, chances are good you're going to live another 30-40 years.
Another option, of course, is to keep on working. Wherever you go it seems like we're seeing a greyer workforce. Some keep working because they need those regular paydays just to maintain. Some like the financial benefit of having an additional income stream. And some even do it for social reasons. They simply enjoy interaction with other people.
At the end of the day, I encourage people to at least consider working past their initial retirement. In a perfect world, that would mean turning a passion into a source of income. The bottom line is that longer lifespans are real, and we need to adjust accordingly. So, enjoy the longer journey and prepare to do your best physically, mentally, and financially along the way.
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