Military Officer - September 2008 - (Page 48)

financialforum Your Third Age Today’s generations are staying active later in life, with many older Americans working after they hit retirement age. Phil Dyer, CFP, examines the possible causes of this trend. A Not Sure What to Do in Your Third Age? I Check out “One Step at a Time,” page 80, to read what some people are doing to stay active after they reach retirement age. generation ago, retirement looked much different than it does today. Now, those approaching retirement, recently retired, or even well into retirement are turning the old paradigm on its head by staying active after retirement. What the Europeans have long called the “Third Age” now is making waves across the U.S. So what’s driving this seismic change? Healthy longevity: When people say, “60 is the new 40,” they aren’t that far off. People are living far more active lives today than one or two generations ago. People used to slow down because they had to; now people are staying mentally and physically active into their 80s, 90s, and beyond; seeking new challenges; sharing years of wisdom and experience; and giving back to their family, community, and country. I continually am impressed by the vigor of MOAA members as I meet and interact with them across the country. Changing sources of retirement income: One of the unfortunate side effects of increased longevity is that traditional sources of retirement income no longer are sufﬁcient. Traditional pensions and Social Security are providing an increasingly smaller percentage of retirement income. Military retirees (and other federal and state government employees) have an advantage over most of their civilian-sector counterparts because of another source of COLA-adjusted income. Even so, personal savings in the form of the Thrift Savings 48 MILITARY OFFICER SEPTEMBER 2008 Plan, 401(k) and other deﬁned contribution plans, IRAs, and taxable investment accounts are important to all retirees. More work, more life: One of the catch phrases in Third-Age circles is “you stop, you die” — and this just might be true. Recent research indicates those who stay active past normal retirement age with full-time work, part-time work, or signiﬁcant volunteer activity lead longer, healthier, and more fulﬁlling lives than those who check out completely. In fact, a signiﬁcant number of those who retire prior to age 65 are back in the workforce within six to 12 months. Some stay active because of ﬁnancial necessity, but for many, it is by choice. Corporate America is waking up to the fact that older workers have a lot to offer and is structuring work environments that offer ﬂexibility and choice to appeal to a workforce that brings experience and a great work ethic to the table. In 2000, 19.6 percent of workers were age 65-74, and that number had jumped to 23.2 percent by the end of 2006. In Washington, D.C., nearly 32 percent of workers fall into this age group. So what about you? What do you have planned for your Third Age? MO — Former Army Capt. Phil Dyer, CFP®, is deputy director, Beneﬁts Information and Financial Education. To ﬁnd a ﬁnancial planner near you, contact Garrett Planning Network at (866) MOAA-GPN (662-2476) or www.moaa .org/garrett, or visit www.moaa.org/ﬁnancial center for other resources. PHOTO: SEAN SHANAHAN http://www.moaa.org/garrett http://www.moaa.org/garrett http://www.moaa.org/financialcenter http://www.moaa.org/financialcenter

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Military Officer - September 2008 Contents MOAA Online From the Editor From the President Your Views MOAA Directory Rapid Fire Washington Scene Chapters in Action Financial Forum Ask the Doctor Middle Ground Finance Your Future One Step at a Time Cover Story: Reducing the Threat Slow Boat Through China Practice Makes Perfect Pages of History Faces of MOAA Information Exchange Member Books MOAA Scholarship Donors Advertising Index MOAA Member Services MOAA Calendar Sounding Taps Encore

Military Officer - September 2008

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