To the world from all of us born after 1985: we gave you selfies, likes, and Taylor Swift. There’s also twerking, which sounds like kvetching, but the two should never be confused.
For all of this, we apologize. We owe you one. And finally, we have a good idea.
And for once, our parents are on our side!
TransAmerica Center for Retirement Studies has released its 2015 report, titled “Retirement Through the Ages.” It has a lot of facts and numbers, but one bit of data stands out: workers in their twenties and sixties want to work because it’s fun.
42% of the twentysomethings and 40% of the sixtysomethings say that they want to keep working into their retirement years for “enjoyment-related reasons.”
Workers in their thirties, forties, and fifties are more pragmatic. They say that they would keep working mostly for income and benefit reasons.
Who’s right? Everyone, of course.
Retirement isn’t what it once was. Few can afford to leave work and live off their savings, Social Security, and other benefits indefinitely.
We can kvetch and moan as to why, but the reality is: Americans need to stay relevant to stay alive.
And twentysomethings understand this. Retirement is no longer an escape; it’s a career move.
OK, but how do you stay relevant?
- Plan your retirement as part of your career. Think of your “golden age” as your “guru time.” Experts are often worth their weight in gold. And even if the job market doesn’t cooperate with you 100%, having more skills gives you an edge.
- Liking what you do helps. But forget about the “do what you like” career advice; it’s too nebulous. “Like what you do” is a much better approach. But how do you accomplish that?
- Become better at what you do. The more confident I feel in my job, the more I like it—it works for my friends, too. Dennis Miller, my colleague and mentor, works in his “golden years,” because he is great at what he does: giving actionable and easy-to-understand investment advice.
The best way to put your money to work is different for everybody. This is what twentysomethings don’t always get right. Having seen their parents’ wealth damaged by the Great Recession, they often shun the stock market. The TransAmerican study says that although 62% of twentysomethings are saving, more than a third of them know nothing about asset allocation. They invest too conservatively, choosing low-risk, low-return vehicles.
While their “guru time” is far ahead, the younger generation should invest more aggressively. Workers in their fifties and sixties, on the other hand, should pay more attention to risk.
But where millennials and boomers are both right is that retirement should not be a hazard. It can be a long stretch of fun, fulfilling time. Thinking about retirement as part of your career is a smart move. When it comes to portfolio decisions, we are here to help.