Today’s show is all about the forces and factors that are shaping retirement in the 2020s. We’re going to look at some of the biggest ones affecting retirees today.
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So much has changed since your parents retired. Gone are the days of the pension, and technology is playing a larger part than ever in how we save money and invest in our future. Today we’re sharing what factors and forces are shaping retirement in the 2020s.
Back in your parents’ day, people often had long careers and then a guaranteed stream of income when they retired. A lot of companies no longer have pensions, but those that do often want to pay out a lump sum so they don’t have to continue paying it.
Many people these days use 401(k)s, Roth IRAs, brokerage accounts, etc. to save for retirement. If you really want to build wealth, the key to that is automating your contributions. It’s so easy to set up. Just set up a certain amount to come out of your bank account each month and let it compound.
Americans in their 50s had, on average, $203,600 stashed away in their 401(k)s as of the fourth quarter last year, with people in their 60s reporting savings of only $25,500 more, according to this article on Kiplinger.com.
They key is to not let lifestyle expenses get ahead of their income and their savings.
In this episode, we also share:
- Why you can continue working on your terms
- How technology is affecting life
- What changes are coming to Medicare and other entitlement programs
- How climate change could affect retirement
Listen to the full podcast or use the timestamps below to jump to a specific section.
[1:00] – Automation
[4:08] – Pensions
[6:37] – Redefining retirement
[10:03] – Work where you want
[12:01] – Technology
[17:12] – Entitlement programs
[19:28] – Climate change
[23:15] – Mailbag: New job
Thanks for checking out this episode. We’ll talk to you again soon.
“I’d really like to stress to people to really think about automation when it comes to building their wealth.”