3 Things That Will Improve Your Retirement Life in the Future

It is that time of year when everyone is looking ahead – but if you're feeling really reflective, you may be looking ahead many years ahead. That is, you may be wondering what your retirement will look like. And why not? Whether you love or hate your career, it's always interesting to contemplate what one's life will be like after you stop working full time.

It can be scary to contemplate as well. Last year, the Employee Benefit Research Institute's 2017 Retirement Confidence Survey, which surveyed 1,671 individuals, found that just six in 10 Americans said they had saved money for retirement and only 40% had tried to calculate how much income they'd need each month after leaving work.

Still, if you're looking for some good news and wondering what the future holds, there are a number of things that will likely make your retirement better than the one your grandparents lived.

Technological advances. But, of course, technology will make our retirement lives easier, and it's the most fun part of the future to speculate about. Roger Whitney, a certified financial planner and advisor who specializes in retirement – he has a book coming out in 2018 called "Rock Retirement" and a podcast called "The Retirement Answer Man" – says that technology will significantly improve people's lives in the future.

It's that time of year when everyone is looking ahead – but if you're feeling really reflective, you may be looking ahead many years ahead. That is, you may be wondering what your retirement will look like. And why not?

Whether you love or hate your career, it's always interesting to contemplate what one's life will be like after you stop working full time.

It can be scary to contemplate as well.

Last year, the Employee Benefit Research Institute's 2017 Retirement Confidence Survey, which surveyed 1,671 individuals, found that just six in 10 Americans said they had saved money for retirement and only 40 percent had tried to calculate how much income they'd need each month after leaving work.

Still, if you're looking for some good news and wondering what the future holds, there are a number of things that will likely make your retirement better than the one your grandparents lived.

Technological advances.

 But, of course, technology will make our retirement lives easier, and it's the most fun part of the future to speculate about. Roger Whitney, a certified financial planner and advisor who specializes in retirement – he has a book coming out in 2018 called "Rock Retirement" and a podcast called "The Retirement Answer Man" – says that technology will significantly improve people's lives in the future.

So that's the good news. You will likely remain hireable, if that's what you want. The bad news is that your gig income probably won't be going toward a vacation or a kitchen addition, according to Koff. That's where the irony of your not being paid benefits will come in.

"Retirees will find that the out-of-pocket costs of health care will have skyrocketed to a point where they need additional income," he says.

Planning for retirement will change. That is, as a country, we'll likely get smarter in how we save money. Hopefully.

It's inevitable that retirement planning will evolve, according to Robert Johnson, president and CEO of The American College of Financial Services in Bryn Mawr, Pennsylvania.

Because we're all blowing out candles for a much longer time than our grandparents and great-grandparents did, instead of planning a retirement for the average lifespan, we need to start thinking about planning for the longest lifespan, Johnson says.

For instance, Johnson cites a 2014 study by the Employee Benefit Research Institute that estimated a 65-year-old couple should save between $241,000 to $326,000 to cover medical and drug costs.

"That doesn't include long-term care," he adds.

"Retirement savings will have to increase and last longer to reflect this increasing longevity," Johnson says.

Johnson also thinks that it'll soon become more common for retirees to allocate more investments to stocks, as it becomes clear people are going to be sticking around longer and can risk a little more money than they used to. He also thinks that longevity insurance will become increasingly important.

"In essence," he says, "one needs to build an age-100 portfolio."

Popular

More Articles

Popular