Plan Your Retirement
Save now for later
Retirement used to conjure up images of people who were too old to work and who had packed in the paycheck for the quiet life. But today it represents just another life phase. People are living longer, healthier lives, and those in their "retirement age" are still going strong at work and play. In fact, the Boomer generation, born between 1946 and 1964, is redefining retirement.
Retirement trends reveal that many older people are staying in the work force longer due to better health, less physically demanding jobs and a need for more financial security through work income and benefits.
According to The Urban Institute, between the years 1985 and 2005, the number of men in the work force increased from 46 to 53 percent at ages 62 to 64, and 24 to 34 percent at ages 65 to 69. The same is true for women. Over the same time period, the number of women in the labor force increased from 29 to 40 percent at ages 62 to 64, and 14 to 24 percent at ages 65 to 69.1
But what's the key to a successful retirement at any age? Careful planning and saving. Not only will saving enough money make living feasible, it can actually make retirement more satisfying. Research done by a Dartmouth College professor shows that people who say they plan for retirement enjoy this phase of life more than those who didn't put much thought or effort into their financial future.2 The research shows that two-thirds of those who planned "a lot" were very satisfied, while only four percent of those who didn't plan were satisfied.
And it's never too late to start saving. No matter what your age, you can still set money aside through personal savings accounts or employer-provided plans to ensure you have a happy and secure retirement. In this section, get the basics on how to calculate what you'll need for your retirement, understand your benefits, and learn how to start saving to make your golden years really golden.
1 Why Do Boomers Plan to Work So Long?
Gordon B.T. Mermin, Richard W. Johnson, and Dan Murphy. The Urban Institute.
2 Transitioning To Retirement: How Will Boomers Fare?
Pension Research Council, The Wharton School, University of Pennsylvania. June 2006
