New Year, New Retirement Rules: Here's How You Can Keep Up as the Landscape Changes

The retirement rules of the past might not apply to today's economic climate.

As life expectancy increases, health care costs continue to grow and market volatility becomes the norm, the outdated idea that funneling 10% of income into a retirement account is sufficient simply doesn't cut it anymore.

Today, it's important to consider that there's more to preparing for retirement than numbers. The game has changed.

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Old retirement rules banked on some factors that no longer apply:

• People worked for a single employer throughout their careers
• Pensions were paid during retirement
• Retirement looked similar for everyone

The old rules won't lead to a successful retirement, but the new rules can help usher you into your golden years with intention and joy.

The good news: You'll live longer than you think

While most people have a goal of living longer, the financial impact of a longer life might not be something people consider enough. Longevity is one of the biggest blind spots for people as they consider retirement.

Inflation doesn't retire, even when you do, so the money you'd need to live well in retirement right now might not be enough for a future retirement.

The longer you live, the more money you'll need. Perhaps equally important is that the longer you live, the more strongly you should be content in your life and feel good about the decisions you made, because a long retirement full of anxiety and regret isn't a retirement for which people clamor.

Depending on when you retire, you might have multiple decades of your life funded by your retirement savings. You might be surprised by the statistics surrounding aging and longevity.

• Though it varies by state, the average age of retirement in the United States is around 62 years old, with full retirement age for Social Security starting from age 66 to 67, depending on birth year.
• The average life expectancy for a man in the United States is around 75 years, while women typically live another five years beyond their male counterparts.
• The odds are close to 60% that at least one spouse of a couple age 62 will live to age 90.

Retirement can be a profoundly joyful time, but only if your body, mind and bank account are in order beforehand and throughout.

The bad news: You'll spend more than you think

Living longer isn't a bad thing, but outliving your retirement savings can be. Health care costs continue to rise, as does the cost of assisted living.

Housing costs have grown faster than incomes in the past two decades, so the cost of essentials such as medication and a place to live can be challenging in retirement.

A retired couple can expect to pay around $330,000 for health care (not including long-term care or mental health care) throughout retirement. Retirement can be a time of emotional upheaval, and mental health care costs add more to the total cost of health care in retirement.

The isolation and anxiety that can accompany retirement should be addressed, but many retirees avoid treatment because of the cost or stigma associated with mental health care treatment.

All the frugality in the world won't make retirement better if you're miserable the entire time. Protecting your physical and mental health as you move into retirement can help extend not only your lifespan, but your "playspan," as well.

It's not just about surviving; it's about enjoying your life throughout retirement.

It's possible that you'll live out your final years at an age when you'll need help with activities of daily living and won't have your spouse alongside you. But before you reach that point, you'll likely have years of retirement.

How you make those years enjoyable is up to you, but having sufficient assets is only a start.

There's much more to a successful retirement than not running out of money. When done right, retirement can be a redefining of your life. It can be time spent doing what you want to do, when you want to do it.

Retirement isn't only a goal; it's a redefining of your life

The old rules of retirement supposed that retirement equaled the cessation of work and a slowing down of just about everything while the retiree collected a comfortable pension. Retirement was simply an entrance into the final chapter of life.

The new rules of retirement are still being written, but it's generally accepted nowadays that retirement can be a redefinition of life instead of a quiet shuffle to the end.

Instead, retirees are encouraged to be active, not only physically, but mentally and socially. Whether it's at the pickleball court or at an arts collective, retirees are changing the landscape of aging.

Some retirees return to work; some return out of financial necessity, while others return out of boredom. The lack of a pension is one aspect of retirees returning to work, as is the increased cost of living.

But a shift in thinking about what retirement "looks like" is another aspect that compels some retirees back into the workforce. Older adults are now encouraged to seek out social interaction and to stay active to help prolong their lives.

The correlation between social interaction and increased longevity is clear, as is the correlation between social interaction and better mental health outcomes.

The new rules of retirement call for people to safeguard their mental health by staying socially active and building support networks within their communities.

Strong social ties can also enhance cognitive health, which is especially important for an aging population.

The new rule: Emotional preparedness is financial preparedness

With all the benefits surrounding staying active and social, it's apparent that retirement preparation isn't confined solely to stashing money away.

It's also about creating a lifestyle that promotes being active, social, and having a purpose for the best outcomes in retirement.

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