A record number of Americans are turning 65 in 2024, and many of them are living their best lives. What are they doing right and how can you emulate them in your own life? To understand more, Kiplinger Senior Editor Sandra Block sat down with Ken Dychtwald. Dychtwald is a psychologist, author of 19 books and CEO of Age Wave, a research and consulting firm that focuses on the aging population.
Why Boomers are reimagining retirement
More than 4 million baby boomers will turn 65 in 2024 — the largest number of people in U.S. history to reach this milestone in a single year. How are boomers reinventing aging and retirement?
When Social Security was set in motion in 1935, the life expectancy in the U.S. was only 63. If people were fortunate enough to reach their 65th birthday, they had a couple more years before their batteries wore out. It was not a time to go back to college, or to fall in love again if you were widowed or divorced. You didn’t even need all that much money saved because you were only going to live a little while.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Flash forward to today, when turning 65 means you have several years before you start thinking of yourself as entering the later parts of your life. There are all kinds of new role models. We see Harrison Ford returning to the role of Indiana Jones at age 81. Oprah Winfrey is still going strong at 70, and if Warren Buffett, who is in his nineties, were available to give me counseling on my investment portfolio, I wouldn’t say, "you’re too old." I’d say, "I’m a lucky guy."
How is turning 65 today different than it was a generation ago?
How do today’s 65-year-olds differ from their parents when they were the same age?
They see that longevity has risen. Their parents might have believed they’d live to be 70 or 75, while most boomers think they’ll live to be 80 to 85 or older. They’re also more used to reinventing themselves than their parents. The boomer generation changed majors in college, relocated for jobs and went through multiple marriages. The idea of trying something new is part of their DNA. They’re battling ageist stereotypes, demanding to remain on the playing field. Their kids are taking notes. They’re growing up with the idea that today’s older men and women don’t want to go off to the sidelines.
Long-term care considerations and outliving your savings
Aren’t many 65-year-olds worried about outliving their savings, particularly given the cost of long-term care?
Eighty-one percent of older people we’ve surveyed say this is the best time of their lives or that the best times are still in front of them. At the same time, when we ask people what they’re most worried about, what rises to top is health and long-term-care costs.
People have begun to realize that we haven’t created a version of longevity where our health spans match our life spans. We spend more money than any country in the world on health care, yet people in 39 countries live longer than we do. We have a large number of people living longer lives, but they’re not necessarily able to work or enjoy themselves. What this demands is that people be more mindful and thoughtful about their financial futures and what they’re going to need when they’re no longer working.
How can retirees achieve a sense of purpose?
Your research shows that having a strong sense of purpose enhances seniors’ sense of well-being and can even reduce the risk of Alzheimer’s. How do you define a sense of purpose, and how can seniors achieve that goal?
For some people, purpose means faith; as people grow older, they’re turning to spiritual and religious ideals. A second bucket into which purpose falls is doing good for others. Studies show that people who volunteer are happier, healthier and live longer, yet only 24% of our retired population volunteer. For the third bucket, people who have spent their lives taking care of kids and pleasing the boss want to do what they like, whether that’s fishing, becoming a teacher or learning how to play guitar.
In the U.S., retiring boomers are going to have 3.9 trillion hours of free time over the next 20 years. The economy may switch from being product-oriented to more experience-oriented. If you’re an investor or in a customer-service industry, here’s a group that has time and money to spend on wonderful experiences.
Note: This item first appeared in Kiplinger's Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Related Content
-
Cord Cutting Could Help You Save Over $10,000 in 10 YearsHow cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement RuleThe '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
The '8-Year Rule of Social Security' — A Retirement Rule
The '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
Tips for Expat Retirees, From Expat RetireesYou may enjoy a lower cost of living by moving abroad, but it requires careful planning.
-
You Were Planning to Retire This Year: Should You Go Ahead?If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.
-
Are You Owed Money Thanks to the SSFA? You Might Need to Do Something to Get ItThe Social Security Fairness Act removed restrictions on benefits for people with government pensions. If you're one of them, don't leave money on the table. Here's how you can be proactive in claiming what you're due.
-
From Wills to Wishes: An Expert Guide to Your Estate Planning PlaybookConsider supplementing your traditional legal documents with this essential road map to guide your loved ones through the emotional and logistical details that will follow your loss.
-
Why Retirees Need a Budget, According to a New RetireeA new retiree explains why retirees need a budget.
-
Hiring a Financial Adviser: 10 Questions to AskWhen hiring a financial adviser, ask these 10 questions to weed out the duds and find the right person to manage your nest egg. After all, you're the boss.
-
Your Home + Your IRA = Your Long-Term Care SolutionIf you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
