What Do Today's Retirees Look Like?

Look at that couple taking their third European vacation this year. They're retired.*

How about that woman handing in her term paper to the professor? She's retired.

The man who spends 20 hours a week helping others to build new businesses?

The woman who just started her own business; or the one baking cookies with her grandchildren?

Then there's the "young couple" playing golf. They too are retired from their long-term jobs, but not from their dreams and aspirations. They have moved on to a new phase of life.

Finally, how about the 55-year-old who goes to work three days a week at his old company? He takes a lot of ribbing from his coworkers because he too is retired.

There are as many profiles as there are people. The difference is this: some of them have choices; others do not. Some have the financial flexibility to direct their lives while others find themselves directed by the lack of financial flexibility.

Overall, most retirees are doing more than any previous generation. They're traveling, contributing, learning, and volunteering. Retirement has become a transition from working full time at a job, to working full time at enjoying life... from traveling, to working, to building a new lifestyle.

Retiring From Corporate Life

Bob and Laura (both age 50), had a combined annual salary of $170,000 as well as $250,000 accumulated in a 401(k) plan plus pension income that he will begin to take at age 55. Their goal was to retire from corporate life in five years and move to New England to be near their family. Bob also wanted to continue working in a job where he could reduce the daily stress and strains of commuting and work. Today, they're living just outside of Boston, within 10 miles of their family, with no debt beyond their mortgage. Bob works at a school and helps run the after-school program where he can plan and coordinate programs, spend time around youngsters, and get some fresh air during the day rather than be cooped up in an office. Bob's dreams were not exotic. They were simply dreams of doing what made him happy.

Laura, meanwhile, wanted to be around her grandchildren. She too was happy to leave the corporate world and take a volunteer position at a local hospital. She was always looking to find the time to do volunteer work, but never had the time.

Bob and Laura were able to make their dream a reality sooner than anticipated because they had a sound financial plan in place. When the right opportunity arose, they were ready to take it. They were able to restructure their life so they could be near their family, stay busy, and enjoy more time outdoors. Emotionally, they looked forward to their new lives in a new place. This is an example of a simple plan that came together through planning.

Downsized and Uplifted

Diane worked for a large corporation. About 10 years ago, as a result of financial constraints, she was let go. As a single woman who felt the need to continue working, she then took a series of temporary accounting positions where she could use her skills. In recent years, because of new technology, it became increasingly more difficult for her to find a position.

We examined Diane's needs based on the planning we had done while she was working full time. On the basis of her current income needs, she was in a position to retire if she chose. Having no partner to share her emotional concern, she decided to continue to work-but on her terms.

Tired of temporary jobs, Diane now felt free to pursue a job of her choosing. She landed a position in full-commission sales for a furniture company that gave her greater flexibility and allowed her to utilize her skills in home decorating. She could pick her hours and work as much or as little as she chose, depending on how much income she felt she needed.

In three years, she will be eligible for Social Security, which will likely pick up the portion of her income that she is now earning by working at the furniture company. But it wouldn't surprise us if Diane continued working. After all, she is doing something she enjoys which fits into her lifestyle.

Life In The Big City

Wendy and Chris worked for years in the corporate world. Upon retiring, they wanted to pursue their love of history and spend time with their children and grandchildren. For this couple, retirement was more traditional, no part-time jobs or business ventures. Instead, their life is full of short trips visiting family, or volunteering at museums and on historical tours of Chicago. They even sold their home in the suburbs to move into the city. Now, they take part in the culture and enjoy the history of a great city in which they had spent so many hours working in the corporate world. Wendy and Chris knew they would have to continue an ongoing plan of investing and saving through their working years. They followed their plan, and it resulted in a very fulfilling retirement.

As you can see, each client sought a slightly different retirement lifestyle, yet the results are the same in one key respect: each created a financial plan and a life plan and set about making them happen together. Everyone realized his or her "total vision."