You’ve heard your parents discussing how difficult things used to be. We’ve all heard the adage about walking uphill both ways in the snow to get to school. However, reality suggests retirement planning actually used to be easier than it is today. Find out why.
(Click the featured times below to jump forward in the episode)
[2:05] – Pensions Have Become Increasingly Rare.
- Your parents were probably able to factor a pension into their retirement plan. However, those days are gone, and pensions have become increasingly rare. You can no longer always factor them into your retirement planning equation. Instead, you must develop a viable income plan.
[3:00] – Employees Are More Transient.
- It used to be you’d work for a company for forty years, retire, and get a pension. When companies began doing away with pension plans, employees became less loyal and more transient. Now, even if you work for a company with a pension plan, you probably won’t work for them long enough to take advantage of it.
[4:48] – We’ve Become A “Sandwich Generation.”
- You might find yourself in the sandwich generation. This means you’re taking care of your aging parents while also caring for your kids in high school or college. This conundrum didn’t exist until we started living longer as a population. Longevity has created unique challenges for retirees and pre-retirees alike.
[5:37] – Longevity Presents A Challenge.
- Longevity is a wonderful thing, but it was a lot easier to plan for retirement when you didn’t have to make your money last as long. We need more income to support our longer lifespan.
[8:08] – Healthcare Costs Are Skyrocketing.
- Healthcare is more expensive today than it was for our parents. The quality of the care is better, but it costs more to obtain this care. Therefore, it’s become a greater factor in retirement planning.
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