Old verses New 

There is no doubt there is a massive difference in the retirement of  30,40,50 years ago or even 20 years ago verses todays changes and out look.

Back in the day we became employed with a Company, and stayed at the job, and then retired with a Pension, a watch, but this is no longer the case anymore. Should we determine that Retirement plans were better then, or is it better now, not sure. But what I do know as with changes so shall we need change, and especially in retirement planning.

Let's take a look at some different ideaologies.

The old view of retirement planning has changed.

Retiring at 60, going on trips, and not worrying about money are things of the past for most Americans. There are multiple reasons for this. We’re in the worst recession transition since the Depression, Social Security is bankrupt with massive I.O.U.'s, and medical expenses are skyrocketing.  So what can you expect now?

Kiss social security goodbye?

If you’re counting on social security as part of your total retirement plan, think again. I recommend that all Americans completely ignore social security and plan for retirement assuming it won’t be there. If it is there at retirement "Great" if not you prepared. The numbers speak for themselves.  If you simply look at the age social security allows retirees to withdraw money, that age keeps getting bumped up.  Example, if you were born in 1937, you were able to claim the full amount of social security at age 65.  Today, If you were born in 1967 or later, you will have to wait until you are 67.  See the pattern?  With the way the economy is going and how the White House is spending, I could see this number go to 70 quite honestly.  Instead of relying on social security, you really need to shift your focus to private accounts like Roth-IRAs and 401(k)’s and additional independant accounts allowing for more self control.

Don’t depend on your Employer

With higher corporate taxes, and the added burden of the latest healthcare overhaul, many companies are cutting back on retirement perks like 401(k) offerings and contribution matches.  Employers are shifting the burden to the individual now.  It’s no longer your employer taking care of you.  Now it’s your personal responsibility to manage retirement funds.  Currently, only 20% of private companies offer pensions plans and only 59% offer 401k plans.  These numbers are pretty much guaranteed to get worse.

Longer retirements mean bigger expense

Thanks to breakthroughs in medical technology and medicine, Americans are living longer than ever today.  Sure, that’s great, but how is that going to affect your financial plan for retirement?  Well, it means you will need even more money in your retirement accounts.  It sounds scary, but not really.  As long as you do your due diligence and save on a regular basis, you will be fine.  But, you should be aware of it.  If you were born in 1946, the average retirement is 18 years.  If you were born in 1980, the average retirement is 20 years.  With these numbers trending up, your retirement expenses are going to trend upward also.

Call for action

After reading this, hopefully you understand Old vs New creates Urgency on your part in planning! 

If you are considering Retirement Planning, call for a free consultation today.


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