Financial planners talk to people from a wide range of age groups about creating their financial plan portfolios. Depending on your age and stage, at one end it’s about saving for retirement, to the other end, what will the package of income sources be and ultimately what will the shift in expenditures become.
As we talk about our brave new world of extended life times being greater than in previous generations, let me say it again – it isn’t real any longer to be using the word retirement as the framework for financial planning. What we are truly doing is “financing for our longevity”. On two levels this matters and the faster actuaries and financial planning professionals move to this phrase the more real it will be.
On a societal level, transforming economic policies for the financing and support of an aging population will become more holistic.
On a personal level, if we consider ourselves as living several more transitions through later life as opposed to a retirement, maybe we’ll approach our relationships with financial planners in the same holistic way.
Transitions through our later life from 55 to 90+ is an exercise in foresight, bridging longevity one financial reset at a time. We don’t know the promise of our longevity or what the real shift of incomes and expenditures will be. But if we continue to look at this experience as a retirement, we won’t have our minds on the right policies or the right attitudes for the journey.