Dear Bernard,,

Have you thought much about your retirement? What will it look like?

I think for many people, before they leave work, retirement looks like unlimited golf, travel to places they've never been, or checking off items on a bucket list. Maybe they have been waiting to jump headfirst into new hobby or adventure.

In our industry, we have been counseled to explain retirement in 3 phases: the go-go years, the slow-go years, and the no-go years. The go-go years are the early years of retirement, when you travel and try to do the things you pictured before you retired. The slow-go years are times of still being active, but at a slower pace. Maybe your retirement activities are less often and at a less daring. The no-go years are when age and medical conditions have caught up with you, and you are no longer able to do the things you had done in the past.

According to NAPA, pre-retirees envision an active retirement lifestyle with traveling (79%) and exercising (71%) rising to the top of their lists. In contrast, watching TV is the top activity for current retirees (83%).

Why is age 65 the standard for retirement? According to journalofaccountancy.com, this occurred when the Social Security Administration began recognizing retirement at age 65 in the year 1935. Sixty-five is also the age when federal Medicare healthcare coverage begins, and when many private pension plans begin paying benefits.

This also has become the most common age for retirement around the world. However, Saudi Arabia allows full retirement below age 50. By contrast, full retirement in countries such as New Zeeland and Indonesia is after age 67. If you would like to see a graph of ages by country I have posted the link below:

Retirement Age by Country



One more thing: Fidelity Investments has posted that the average 65-year-old retiring in 2024 will spend $165,000 on health care and medical treatment for the rest of their life.

So whether you are, or become a TV watcher, a go-go retiree, or something in between, retirement is something you should look forward to and enjoy. Think of age as just a number and don't forget, senior status may be good for discounts at restaurants, but be sure to challenge yourself and live your life to YOUR fullest.

As always, thanks for reading.