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Since the 19th century, retirement has been the life stage in which we no longer work full-time. With Social Security, Americans can collect retirement benefits as early as 62. But while retirement remains a relevant concept, its purpose has changed for many Americans, creating what is now known as “modern retirement.”
The New Norm for Retirement
Traditional retirement marked the end of one’s professional career and revolved around relaxation and leisure. But the reality is that this form of retirement may no longer be practical. And for many, it’s not even desirable. Americans’ life expectancy is rising, and with it, the probability of outliving standard Social Security benefits. Beyond the financial strain of traditional retirement, many retirees struggle to find a sense of purpose.
Enter modern retirement: a time later in life dedicated to pursuing new experiences, personal growth, and passions. Retirement is no longer just about rest; it’s a time for fulfillment and productivity. And it might just be the key to living a more fulfilling life during the Golden Years.
4 Ways Retirement Has Changed
Retirement has become more flexible and dynamic. In effect, you can make it whatever you want or need it to be. Here are a few ways retirees are changing what it means to retire.
1. Traveling more
Many people spend their lives dreaming of places they want to visit, but time keeps getting in the way. Retirement gives them the time to enjoy what the world has to offer. With supplemental income streams (we’ll touch on that next) and a strong desire for personal fulfillment, the latest wave of retirees is more ready and willing to seek adventure and new experiences — often in the form of travel.
2. Working part-time
Retirement is no longer defined solely by the end of one’s career. Some choose to work full-time into their 70s, delaying their Social Security benefits and lowering the chances that they’ll outlive their retirement funds. Others look for part-time work to find a sense of meaning and purpose. And the extra money certainly doesn’t hurt!
3. Pursuing passions
Working isn’t the only way to find meaning during retirement. There are multiple ways to pursue passions; it just requires someone to be open to new experiences. Once new interests are identified, retired individuals can chase after them through educational courses, new hobbies, or even volunteer opportunities.
4. Becoming a caregiver
Rising life expectancy has impacted our society in many ways. As Americans are joining their parents in retirement, they may simultaneously be taking on the role of primary caregiver.
This role may require an adjustment of retirement expectations as new retirees may have less downtime and more responsibilities than expected. But in many instances, the busyness of caregiving provides the exact purpose and drive retirees are looking for.
Financial Security Matters More Than Ever
This new retirement model offers many benefits, including the opportunity to engage in activities that promote physical and mental well-being. But what about financial well-being?
If retirement funds are a point of stress in your life, this reimagined version of retirement may be right for you. It doesn’t remove the need for retirement planning, but it does give you more time to plan and build your savings. But a longer life expectancy also means more time spent in retirement, so it’s essential to plan accordingly.
After all your hard work, retirement — however you define it — is well-deserved. You might as well enjoy it!
