Understanding Retirement

Retirement is becoming a more popular and desirable option for those baby boomers who are now in their 50s and 60s, ready to live a more relaxed life without the physical and mental stress of their daily jobs.  Thousands of people choose to retire every day, with thousands more in the wings hoping to plan their own retirement.  However, there are several  important things anyone who wishes to retire should know about retirement in general, retirement ages, retirement living and how retirement has changed in the past few decades.

Retirement is an entirely different ball game in today’s world.  The typical age of an American now extends into their 80s and 90s, making the retirement of baby boomers about 20-30 years instead of the typical 5-10 years as was expected of previous decades of retirees who were not predicted to live as long.  The current state of the economy also forces many to reconsider retirement, when the ability to pay for their homes and bills is at stake.

At what age should you begin thinking about retirement?

Retirement age is the first thing most people consider when they plan to retire.  What age should you retire at?  Baby boomers who are approaching their 60s are now getting closer to the “full retirement age.”  The “full retirement age” mandated by the government depends on the year of your birth.  However, many companies offer early retirement to their employees, especially employees who have logged a certain number of hours over a particular number of years at the company.  You can also retire at any time between age 62 and your full retirement age, however you will not receive full retirement benefits until you receive your full (or “normal”) retirement age.  If you are given the option of early retirement by a company, you will often be given incentives to retire early such as bigger lump sums or other benefit packages.

Now, if you are over the age of 62 and/or have been given the chance to retire early by a company… should you?  Your retirement age all depends on how well you have planned for your retirement, how much money you require to satisfy your base lifestyle needs and if those needs can be fulfilled after retirement.  For example, if you are only going to receive enough money each year from your retirement pension to cover half your base lifestyle needs (rent, bills, food, medical care) then you should consider whether the option of retiring before your full retirement age is right for you.

However, if you have a nest of money saved up, or are being offered enough money to cover your base lifestyle needs, you may decide that retiring early is the right option.

Your general health will also play a large factor in your decision to retire early.  Can you physically keep up with the pace of your job with your current age and health?  Would it be better, medically, to accept the retirement lifestyle for the security of your physical well being?  More and more people in jobs which traditionally cause physical strain and injury are finding that retiring early is saving them visits to the doctors and unnecessary pain.

Should you plan for retirement living?

When most people think of retirement living, their mind turns immediately to the stereotype of a retirement home featured so often in feature films and television:  a place where older adults are placed by children and abandoned, left to a life of boredom, pills and even abuse.  However, it is important to correct this notion.  While there are undoubtedly some poor quality retirement living homes, the majority are akin to living communities for people who—for whatever reason—have decided to no longer live in a traditional home on their own.  Retirement living is not just for those who have a physical handicap or other disability that makes it difficult for them to live on their own.  It can be for those who have retired and decided that they want a different kind of lifestyle.  There are retirement living communities that match just about every personality and desired (or required) lifestyle.  There are retirement living facilities for those with medical conditions, where round the clock care can be provided in a home-style community environment.  There are communities with a focus on active, regular lifestyles for those who perhaps cannot afford the cost of a traditional home any more but are otherwise not incapacitated or disabled.  There are communities where the retired simply live together to enjoy a fun new community environment that the retirees haven’t experienced before!

So, you see, the notion that retirement living = stale “nursing home” is entirely false.  Don’t shrug off the idea of retirement living because of your anxiety about this stereotype.  If you are interested in the idea or find yourself requiring a community environment, check out the facilities in your area and see what they have to offer.  You will likely be more than able to find something that is comfortable, reasonably priced and will be a fun experience for you in this new stage of your life.

However, you don’t have to consider retirement living when you retire.  Many retired people remain in their previous homes or move in with their relatives or even purchase different homes after they retire.  It’s up to you to decide how you want to spend your retired years—make them count!