{"id":6759,"date":"2018-02-11T08:10:32","date_gmt":"2018-02-11T12:10:32","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=6759"},"modified":"2018-02-11T08:10:32","modified_gmt":"2018-02-11T12:10:32","slug":"when-will-you-retire","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=6759","title":{"rendered":"When Will You Retire?"},"content":{"rendered":"
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Kerry Hannon<\/a>\u00a0speaks to audiences around the country, she can see \u201cthe palpable fear in their eyes.\u201d<\/span><\/div>\n
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\u201cThey\u2019re going to outlive their money,\u201d she said. \u201cA\u00a0lot of people have not saved for retirement (and) they need to work.\u201d<\/p>\n

\"retire
Source: 2016 Retirement Confidence Survey<\/figcaption><\/figure>\n

People are living longer than ever and saving less during their careers. One in four 65-year-olds today will live past age 90,\u00a0USA Today reported<\/a>. And, with the average retirement age sitting at 62 these days, that means some retirees will need money to last almost 30 years or longer. That\u2019s a high bar to reach.<\/p>\n

Read on ReWire<\/a><\/strong><\/p>\n

Instead of a vacation, a second career<\/h3>\n

Because of that, more and more people are starting new jobs, and even new careers, once they retire from their first, said Hannon, author of \u201cGreat Jobs for Everyone 50+<\/a>.\u201d That will be the case for\u00a0many of our parents<\/a>. And likely for us, too.<\/p>\n

A 2015\u00a0Nerd Wallet study<\/a>\u00a0predicted the average millennial will really be able to retire at age 75, thanks to expensive rent and our huge collective student loan debt.\u00a0Others predict<\/a>\u00a0many of us will never retire, ever.<\/strong><\/p>\n

While that might sound scary, Hannon doesn\u2019t see it as a bad thing. If trends continue, millennials will have a \u201cmyriad of jobs in this patchwork quilt of work you do.\u201d<\/p>\n

\u201cIf you stay healthy, you\u2019re going to keep wanting to stay in the world and do things,\u201d she said. \u201cThere might be a time in your life where you\u2019re trying to make the big bucks. Then there\u2019s a stage in your life when\u2026 you\u2019ve met some of those goals, you\u2019ve met those life stages, and you\u2019re ready to keep doing fun stuff and keep mentally alive and engaged in the world.\u201d<\/p><\/blockquote>\n

Work longer, retire stronger<\/h3>\n

Grant Sabatier, founder of Millennial Money,\u00a0wrote<\/a>\u00a0that he doesn\u2019t plan to ever fully retire: \u201cTo me that actually sounds pretty boring\u2013why would I\u00a0want to \u2018disengage\u2019 for the rest of my\u00a0life? \u2026 I don\u2019t imagine ever just \u2018checking out.\u2019 How many rounds of golf can someone play, anyway?\u201d<\/p>\n

Many people continue working out of necessity\u2014they need to (or want to) pay bills without dipping into their retirement savings. Money expert Suze Orman suggests everyone hold off on retirement until they\u2019re at least 70, which more people in the workforce \u2014almost 40 percent\u2014are planning for than ever before, according to the\u00a02017 Retirement Confidence Survey<\/a>.<\/p>\n

\u201cThe bottom line is that working longer is the key to a secure retirement,\u201d Orman\u00a0wrote for Money<\/a>. \u201cEvery dollar you don\u2019t spend in your 60s is a dollar that can keep growing for your 70s and beyond.\u201d<\/p>\n

But a lot of folks have an encore career because doing a job they enjoy makes them feel happy and fulfilled.<\/p>\n

\u201cIn the last several years what\u2019s changed about retirement is work is not a four-letter word anymore,\u201d Hannon said. \u201cIt\u2019s something people look forward to doing in retirement, even if they have saved. \u2026<\/p><\/blockquote>\n

\u201cLifelong learning is absolutely nonnegotiable, particularly for millennials.\u201d<\/p>\n

Regardless, our retirement is going to look a lot different than it has for past generations. And it might be time to start tempering expectations.<\/p>\n

What can you do to stay on track?<\/h2>\n
\"retire
Source: 2017 Retirement Confidence Survey<\/figcaption><\/figure>\n

Financial expert\u00a0Erin Lowry<\/a>, author of \u201cBroke Millennial: Stop Scraping By and Get Your Financial Life Together<\/a>,\u201d is hesitant to give savings benchmarks we should be hitting by age 25, 30 and so on. Trying to hit those can get pretty overwhelming and discouraging. It\u2019s better to focus on making \u201cproactive choices in our 20s to save for our futures.\u201d<\/p>\n

\u201cInstead of comparing yourself to the benchmark,\u201d she said, make sure you are \u201csaving the best that (you) can every single month\u201d \u2014 \u201cdiligently and consistently saving into a savings account,\u201d as well as\u00a0an emergency fund<\/a>.<\/p>\n

If you\u2019re having chunks of your paycheck go directly to savings accounts, revisit those direct deposits, take a look at your budget and make sure you\u2019re putting away as much as you can. If you\u2019re not already doing a direct deposit, it\u2019s a good idea to start. And if your workplace offers a 401k match, make sure you\u2019re maxing that out if possible.<\/p>\n

A new\u00a0report by Bank of America<\/a>\u00a0suggests millennials are getting better at socking away cash for the future. A survey of 2,000 adults ages 23 to 37 revealed that one in six has at least $100,000 saved, and nearly half has at least $15,000, up from 8 percent and 33 percent, respectively, in 2015.<\/p>\n

One of the factors making it difficult for many millennials to save is student loan debt. That\u2019s why you should also have a plan to pay it off as quickly as possible, rather than merely paying the minimum every month, Lowry said. Come up with a more aggressive payment schedule based on your budget and stick to it.<\/p>\n

Developing healthy habits<\/a>\u00a0today is also an investment in the future, Lowry said, though it is rarely framed that way.<\/p>\n

\u201cHealth is wealth at the end of the day,\u201d she said. \u201c(Keep) yourself healthy and (build) your behaviors when you\u2019re young. \u2026 Stay healthy now and minimize health costs in your life. You never know what\u2019s going to happen, but we do the best we can.\u201d<\/p>\n

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\"Katie\u00a0By\u00a0<\/span>Katie Moritz<\/a><\/p>\n

Katie Moritz is Rewire\u2019s web editor and a Pisces who enjoys thrift stores, rock concerts and pho. She covered politics for a newspaper in Juneau, Alaska, before driving down to balmy Minnesota to help produce long-standing public affairs show \u201cAlmanac\u201d at Twin Cities PBS. Now she works on this here website. Reach her via email at\u00a0kmoritz@tpt.org.\u00a0Follow her on Twitter @katecmoritz and on Instagram @yepilikeit.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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