Page 17 - MCUL: Contact Magazine - Q4 2019

REDEFINING RETIREMENT:

WHAT TWILIGHT LOOKS LIKE FOR A NEW GENERATION

By Ariel Ryan

Imagine yourself at age 65, 70, 80 (if you’re not there and supporting humanitarian, social justice or environ-
already). What kind of life would you like to be living mental movements.
then? Surprisingly — or maybe not surprisingly — many
answers from the millennial generation and younger The shift in views regarding retirement and financial
are different from the average answers their parents independence may also be due in part to having seen
gave at their age. how volatile and changeable any market is. What’s
“guaranteed” or a safe bet today might not be tomorrow.
For many Americans, gone may be the dream of twi- And so, putting stock (pun intended) into a single plan
light years spent on the golf course and keeping an for their twilight years doesn’t seem like a wise move
immaculate lawn. And at the same time, gone may be for a large portion of today’s younger workforce.
the guarantee of Social Security and dependable pen-
sion plans. Contributing to this shift in the retirement Financial independence doesn’t
landscape is the desire of 20- and 30-year-olds to be
involved and serve a purpose with their time and talents mean leaving the workforce. It
when they get older. They often cite wanting to live more means being able to live a desired
now and spend their retirement years staying relevant
and useful, even if that means working part-time. All lifestyle not hindered or dependent
of this means their financial needs in retirement will
be different. on a certain size paycheck.

What millennials are looking for might be more accu- That being said, the conventional wisdom of saving
rately termed “financial independence,” which doesn’t 15%-20% of your net income toward retirement (and
have a minimum age requirement or a reliance on pro- this can include aggressively paying off debts) still
grams, such as Social Security, in order to achieve it. stands as sound advice if pursuing financial indepen-
With millennials pioneering new budgeting tactics, life- dence for the later years of life is on the agenda. Save
style blogs and a willingness to invest in new financial more if you’d like to gain that independence sooner.
tools such as cryptocurrencies, they are breaking the Diversifying those savings is also a wise move. Take
long-standing mold of working oneself to the bone for advantage of any matched 401(k) program offered by
40-50 years in order to retire to a guaranteed life of an employer, but also look into contributing to a Roth
quiet leisure at 65. Financial independence, on the other IRA account or annuity.
hand, can be realized in their 40s, 30s, or even 20s.
Getting creative and thinking outside the box in regard
Financial independence doesn’t necessarily mean leav- to finances isn’t something new for younger generations,
ing the workforce. It means being able to live a desired as many struggle to find ways to pay off large student
lifestyle not hindered or dependent on a certain size loans. But they are carrying over this determination,
paycheck. It’s saving for short-term goals and not just creativity and willingness to self-educate themselves
retirement. That may require them to work longer, but when it comes to saving for the future, near and far-off.
it’s more likely to include prioritizing travel, expanding
life experiences, working in different fields regardless of Ariel Ryan is a digital content writer at
income incentives, pursuing fitness, enjoying hobbies, CU Solutions Group. ■

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