Research & Education

The New Rules of Retirement

Retirement and retirement planning are changing.

They were changing before the bear market of 2000-2002, the recession of 2001, and before Sept. 11, 2001. Significant trends were already afoot that changed many aspects of retirement and retirement planning: the cost of retirement, pensions, health care, housing, the financial markets, estate planning, tax planning, and many more facets of the years after middle age. In coming years, there will be more changes to retirement, and the changes will occur much more rapidly.

Virtually everyone's future safety and comfort will be affected. Whether you are 40 or 80, you will feel the effects on the Age Wave. Even those who already are retired have felt the forces f The Wave and will feel them in the future. Many of the changes will be positive. Yet, not everyone will enjoy riding The Wave. To take advantage of the coming retirement opportunity, you have to adapt. You must plan and prepare for the consequences of the new trends.

A force that is bigger than anything that has tested retirement plans so far is causing these changes. This force is coming. You cannot stop it. Neither can the government.

This force is known as the Age Wave. Three key, unstoppable trends that already are in place combine to make up The Wave: the historically large generation of Baby Boomers is entering middle age; life expectancies are longer; and smaller generations follow the Boomers.

The Age Wave already has changed retirement. Social Security and Medicare are in precarious shape. Employers are reducing or eliminating pensions and retiree medical coverage. Retirees more and more are on their own for financial security. Retirement lasts longer and costs more. The structures of the economy and financial markets are changing. Retirement is an opportunity. It is an opportunity to do things you never could find the time for. It is a chance to plan how to spend your next 50 years. But to take advantage of the retirement opportunity, you have to plan and prepare. Most of all, you need to know the new rules of retirement planning.

We stand at the threshold of a transformation. The population is aging, and that is going to force us to reinvent retirement. We've seen the beginnings of this new retirement, but the real changes are coming in the next few years.

You should be prepared to save more than past retirees did and to take investing more seriously. You might not receive as much help from Social Security, Medicare, and your former employers as prior retirees did.

"Retirees" might not even retire, at least not until well past age 65. Retirement might come gradually. First might come a reduction in hours worked or in the difficulty of the work done. This could be followed by gradual reductions until full retirement.

To take advantage of the new retirement opportunity, you have to adapt to the changes. Study the new face of retirement, plan, and prepare.

In The New Rules of Retirement Bob shows you how to incorporate the Age Wave into your planning.

You will explore the financial concerns of retirees and pre-retirees and how they are affected by the trends. We'll look at the right way to estimate retirement spending and how much money should be accumulated for retirement. Bob explains the health care options and how to pay for long-term care. You'll learn how to invest before and in retirement. You will see how to plan an estate, cut taxes, provide for loved ones, and handle all the other financial aspects of retirement. Bob covers these topics and much more without giving give the obvious advice, such as start early, invest the maximum in a 401(k) account, invest for the long-term, and so on. Think of this book as your instruction manual for the new world of retirement.

You can have the retirement you desire. But you must act now to stay ahead of the dramatic, rapid changes that are taking place. Even those who already are retired will be affected and must act. The time you lose may be your own.

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