Is retirement at 60 or 65 still achievable?
When Sir Paul McCartney wrote “When I’m 64,” he probably didn’t expect to be still working in his 80s. The song, released in 1967 as part of The Beatles’ album Sgt. Pepper’s Lonely Hearts Club Band paints a picture of a happy, contented retiree spending his days gardening. But for many people today, that image of retirement is no longer realistic.
The 21st century has brought about many changes that have made traditional retirement at 60 and 65 much less common. People are living longer and healthier lives, which means they’re able to work and be active for many more years than previous generations. This is a way to provide financial security in one’s old age, keeps the brain active, and is good for overall well-being.
Pensions have changed
Additionally, traditional final salary pensions have become less common, and the state pension retirement age has risen, especially for women. Consequently, many people have to rely on their pension plans, savings and investment portfolios to fund their retirements. As a result, it’s essential to start saving and investing as early as possible, so that you’ll have enough money to last throughout your retirement.
Another change is that many people are choosing to continue working past the traditional retirement ages of 60 and 65, whether it’s to keep active, to supplement their income, or to pursue a passion. This is a way to both increase financial security and enjoy the benefits of work, such as social connections and mental stimulation.
Health in retirement is an increasing concern
Finally, this new idea of retirement also requires taking into consideration long-term care and healthcare expenses that are likely to increase with age.
What can you do?
So, what does this mean for you? First, you need to rethink retirement and start planning accordingly. It’s no longer enough to save a few thousand pounds and hope for the best. Instead, you’ll need to take a more holistic approach that includes saving and investing, understanding your pension options, exploring different work options and preparing for unexpected expenses.
In conclusion, the idea of retirement is changing, and it’s essential to keep up with the times. By planning ahead, and taking the right steps, you can ensure a comfortable and secure retirement in the 21st century.