Your Retirement Duration is Longer than you Think
As a result of declining fertility and mortality rates, it has been estimated that more than 80 million Americans will be over the age of 65 by 2050 – almost twice the amount of older people that are around today. This has serious implications on virtually everything from the availability of a skilled labor force to the amount of funds that will need to be allocated to healthcare spending.
A Potential Marketing Goldmine
Numerous policymakers have voiced concerns regarding the fact that having more and more senior citizens collecting public benefits would damage the economy. However, director and founder of MIT’s AgeLab, Joseph F. Coughlin, has suggested in his new book entitled, “The Longevity Economy,” that the rapidly accumulating golden years may in fact represent somewhat of a goldmine. This is owing to the fact that the consumer goods market that has been tailored to seniors is worth as much as $8 trillion per year.
A new form of innovation will be needed to tap into the resources of the quickest-growing demographic of the country’s population, and this will have to start with a fresh way of thinking about old age.
A Social Shift
During the 19th Century, doctors firmly believed that when people got old, they needed to slow down in order to conserve the last bit of energy they had. However, people started living longer after 1900, meaning that there were more senior citizens than before.
This resulted in industry, business and government agencies wanting to justify removing them from the workforce to accommodate younger employees. As a result, a ‘retirement age’ was created. Despite the fact that people are healthier and living longer than ever before, the myth of ‘old age’ and retirement has been kept alive. This has resulted in society in general trying to literally write off up to 25% of the lifespan of people over 65.
Ensure that you Plan Accordingly
Although you may already have a plan in mind for how you would like to spend your retirement years, it’s crucial to keep in mind that you will need funds to live on – and with inflation being what it is, relying exclusively on Social Security to provide for your retirement funding is a bad idea.
If you are in your 30s or 40s, you may be thinking that you still have ‘a good few years’ to set aside or invest money to keep you afloat during your golden years. However, the earlier you start investing, the less you will have to set aside each month, thanks to compounding interest.
Here at Dream Bridge Planning, we are able to provide you with a host of information pertaining to financial planning services, enabling you to enjoy the retirement plans you have been dreaming about. If you would like to get on the right track and start securing your financial future, get in contact with one of our qualified and experienced financial planners today. We will always be willing to provide you with the right advice.