Navigating the Future: In a Constantly Changing World
World is Constantly Changing: Identifying Opportunities
The World is Constantly Changing
The world is constantly changing. Retirees need to keep up with new trends to ensure their retirement is secure, identify opportunities, and truly golden.
World is Constantly Changing: INFLATION AND COST-OF-LIVING
Inflation diminishes purchasing power as prices increase. Inflation and rising prices impact the cost-of- living.
Although social security payments are adjusted for inflation, medical care cost usually rise at much greater pace than the overall inflation rate.
In 2022 medical care costs increased at a lower rate than inflation. However, retiree’ medical care costs will increase even more.
Call to Action:
1. Identify additional sources of income. This may include part-time work or side hustles that involve hobbies you enjoy.
(See the Blog titled: "Personal Fulfillment - Embrace the Possibilities and Add to Your Income" for additional detail on finding part-time work or side hustles.
2. Assess spending patterns and needed adjustments to your budget. Go through your bank and credit card statements from the last 3 to 6 months. Assess if your expenses have trended upward. This will give you an idea of how inflation is impacting your spending plan. Assess where can you reduce or delay spending.
(As additional help, see the Blog titled: "How much does it cost to get by in retirement? (Will my retirement funds last?)" for additional detail on implementing a spending plan.
(As additional help, see the Blog titled: "Do You Have a "Spending Plan"? (Discretionary and Essential...protecting yourself from financial ruin...exceptional budgeting tools)" for additional detail and spending plan tools.
World is Constantly Changing: CHANGING JOB MARKET AND EVOLUTION OF WORK
Another trend impacting retirees is the changing job market. Retirees may find it difficult to find a job that pays a decent wage, and some may struggle to find employment at all. Consider that with their life' and career experience, older workers can be an enormous asset to an employer.
Evolution of Work. Working at home remain at far higher levels than they were before the pandemic. Employees are no longer tied down to living in areas close to their employment. This can be a significant advantage for individuals in retirement.
(Source: Navigating the Future:10 Global Trends That Will Define 2024. forbes.com)
Call to Action:
- Consider taking up part-time or seasonal jobs to supplement retirement income.
- Stay up-to-date on skills and technology that employers value.
(See the Blog titled: "Personal Fulfillment - Embrace the Possibilities and Add to Your Income" for additional detail on finding part-time work or side hustles.
World is Constantly Changing: NEW TECHNOLOGY (including Artificial Intelligence)
The computer, internet, and smart phone have had unbelievable impact on our lives and how we work. More recently, in the supermarket, store clerks who check out customer purchases are being replaced by "self-checkout" kiosks. From advances in medical technology to the increased use of social media, retirees must stay informed so they can take advantage of the opportunities these changes present.
New technology has enhanced day-to-day communication with adult children and aging parents. New technology has providedl: digital tools that improve healthy living, investment tools for smarter financial planning and investing.
The speed of technological innovation means opportunities are occurring in industries that didn’t even exist. There is a shift towards lifelong learning, enabled by the emergence of on-line and remote learning technology."
(Source: Navigating the Future:10 Global Trends That Will Define 2024. forbes.com)
Artificial Intelligence. Artificial Intelligence (AI) allows computers and machines to function intelligently. AI has become a part of everyday life; virtually no aspect of our lives is untouched by it.
AI gives computers the capacity to learn, reason, and apply logic. Scientists, medical researchers, clinicians, mathematicians, and engineers, working together, can design AI that enhances medical diagnosis and treatments. (Source: National Library of Medicine)
AI assists doctors in diagnosing disease, suggesting various options for treatment, performing surgery and also predicting if the illness is life-threatening.
(Source: Dina B. “Microsoft develops AI to help cancer doctors find the right treatment” in Bloomberg News. 2016)
Call to Action:
- Learn about AI. If you are retired from teaching, health care, business, or a variety of other fields, take advantage of opportunities that arise from this new technology.
- Sign up for ChatGPT and explore it's possibilities for enhancing retirement. (Double check ChatGPT response with your advisor.)
- Embrace 'Smart' as the future.
World is Constantly Changing: ECONOMIC VOLATILITY
In the past 15 years there has been a housing bust, a global pandemic, unprecedented inflation resulting in increase in interest rates and hints of a recession. There is also recent inflation and huge price swings in expenses like fuel, food, and home maintenance items. Consequently, the nest egg you expected would be adequate for retirement might not go nearly as far as you thought.
Call to Action:
- To protect yourself from economic uncertainty, provide yourself with a source of income in retirement. This provides added security if your investments see a sudden and dramatic decrease in value due to economic volatility. Even if that income is somewhat modest, it can still provide a safety net.
- Investment portfolio diversification. Keeping your money or assets in complementary investment classes can stabilize your net worth in times of volatility. Consult with your financial advisor. (Source: Uncertain Economic Forecasts and Inflation (Forbes. Challenges Facing Retirees In The Next 10 Years And What To Do (forbes.com)
World is Constantly Changing: RETIREMENT AGE
A large number of "baby boomers" are reaching retirement age, triggering labor shortages. On the other hand, some people are staying in the workforce longer because they didn't save enough for retirement. (Source: New Retirement Normal: Today's Trends Shaping Tomorrow | Kiplinger)
Impact of Aging on Pensions. As societies age worldwide, pensions and public policies will adapt as a higher burden is placed on workers to support retirees. This dramatic change will have important economic and social implications that cannot be ignored by governments or individuals. This has the potential to increase the statutory retirement age and tightening retirement eligibility rules.
Call to Action:
- Consult with your financial advisor regarding your current financial situation, future needs for retirement income and cash-flow, and how your current assets will sustain your retirement lifestyle, taxes, and inflation.
World is Constantly Changing: CLIMATE CHANGE
Large, dramatic changes in weather patterns, such as flooding, unprecedented winter events, droughts, devastating fires, hurricanes, seem to occur more frequently.
Call to Action:
- Climate change requires added preparation for power outages, food and water shortages.
- Individuals may face higher insurance premiums, increased medical costs, and the cost of adapting to changing weather conditions.
- Climate change events also provide opportunity for community service.
World is Constantly Changing: ELECTIONS THAT DETERMINE THE COURSE OF DEMOCRACY
This topic is not intended to add to the ever-prevalent political discourse.
Through elections, at the community, State, and Federal level, we have the opportunity to choose the leaders that will guide and set direction. Elections provide an open and transparent way to evaluate and select the people who will represent us and make the decisions that will shape our future.
Call to Action:
- Become informed of political candidate positions that impact retirement.
- Become involved in those matters that shape your future and retirement.
WE LIVE IN AN AMAZING TIME
We live in an amazing time when challenges are unprecedented AND opportunities are unlimited. It is up to you (and me): "After each storm comes the rainbow (of opportunities)".
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ADDITIONAL RESOURCES THAT MIGHT BE HELPFUL...
Navigating the Future
Challenges Facing Retirees In The Next 10 Years And What To Do. Jaime Catmull. Forbes. Challenges Facing Retirees In The Next 10 Years And What To Do (forbes.com)
New Retirement Normal: Today's Trends Shaping Tomorrow. New Retirement Normal: Today's Trends Shaping Tomorrow | Kiplinger
Navigating The Future: 10 Global Trends That Will Define 2024 (forbes.com) Bernard Marr. Forbes.com.
Inflation
How Inflation Impacts Your Retirement Income. Rebecca Lake. Investopedia. How Inflation Impacts Your Retirement Income (investopedia.com)
Rising Inflation may be Eating Away at Your Retirement Funds; Here are Ways to Safeguard Them. Vallari Vaidya. Rising Inflation may be Eating Away at Your Retirement Funds; Here are Ways to Safeguard Them (msn.com)
Spending Plan
Retirement Expenses Worksheet - Vanguard. Retirement Expenses Worksheet | Vanguard
"Budgeting Discretionary, Variable, and Fixed Expenses". Budgeting Discretionary, Variable, and Fixed Expenses (thebalancemoney.com)
Personal Finance Made Simple - Intuit Mint provides a robust set of automated tools for tracking your personal finances and creating multiple budgets to view your spending across different categories. Intuit Mint review: Personal finance made simple | Tom's Guide (tomsguide.com)
Artificial intelligence
Unleashing the Golden Years: How Retirees are Embracing AI Tools and ChatGPT for a Brighter Future. Unleashing the Golden Years: How Retirees are Embracing AI Tools and ChatGPT for a Brighter Future - Blank Title (iaaassoc.com) (Note: this article has "boundless ideas for retirees")
Retiree Jobs - Career Guide
Indeed Career Guide | Indeed.com
SO...What'd we miss??
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