Retirement planning means life planning
Mary Medland
Contributing Writer
If retirement seems an eternity away for today's 20-somethings, it's becoming more and more real to those in their 50s. "What we know is that as Americans age today, they are doing so in very different ways from their predecessors," says Joe De Mattos, state director for AARP Maryland. "It's no longer a matter of turning 65 and spending the rest of their days on the golf course. Planning for retirement really means planning for the rest of your life."
De Mattos adds that surveys have said that 69 percent of baby boomers – those born between 1946 and 1964–do not plan to retire completely. "These men and women say that they expect to do part-time or full-time volunteer work or continue to work full- or part-time," he notes.
Taking stock
Of course, what one is able to do largely depends on one's health and finances. This is the time to sit down with your financial planner and take stock of investments, IRAs and other sources of income, including Social Security. It's also a time to start tracking just how much money you'll actually need to live comfortably. Money won't be needed to be shelled out for parking at the workplace or a career-enhancing wardrobe, for example, and the old homestead might be happily downsized to a two-bedroom condo.
De Mattos advises that those nearing retirement take inventory by examining what he calls the "Fours S."
- Savings. Do you have enough? If not, what steps can you take to change that?
- Space. Do you need to downsize? Should you move closer to younger or older family members?
- Skills. If you are planning to continue working or doing volunteer work, do you need to sharpen the skills you already have or learn completely new ones?
- Smiles. More than ever, older Marylanders are looking at what they are engaged in and whether that makes them happy. "These people are looking for work that they will enjoy," notes De Mattos, "as well as to staying active and engaged with their family and communities."
Lots of opportunities for women
There are some 1.4 million baby boomers in Maryland and, when polled, fully 10 percent said they want to be entrepreneurs when they "retired." "We know that women live longer than men," says De Mattos. "So we should expect to see a lot of new women-owned businesses on the horizon."
|
