With people living longer these days, all things being even, it’s no wonder that a new buzz word has cropped up: 60 is the new 40. And you know what they’ve always said about life beginning at 40. Retirement has never looked so good, and retirees in recent times have been discovering a new lease on life with their waking hours filled with relaxation and no worries from a job. In fact, surveys have shown that the over-60 set is living longer, healthier, more active lives. Case in point: In the early 1950s, life expectancy was about 60 years old. In 2022, the United Nations projected life expectancy in Jamaica to be approximately 74.77 years. In 2050, that figure is set to go up to 78.13 years.

A time to look forward to

If you’re approaching or have turned 50, if you haven’t already done so, it’s time to seriously consider your retirement plans. In particular, your retirement savings. The problem is that, inside, you still feel like 35. If you’re a woman, you can probably get away with looking 40. (Thank God for those online make-up tutorials during the early days of lockdown!) Why think about retirement, a time that’s so far away? But, listen, 10 years go by in a blur. The weeks finish faster, and don’t even talk about the weekends. Then another birthday arrives. And another. Listen, nobody can work full-time forever. By 65, most people are ready to slow their pace. If, as the trends are seeming to show, people are living longer post-retirement, will you have enough savings to tide you over in retirement for an additional 15, maybe even 20, years?

Carefully weigh your options

So, let’s say you’re 55 now. The thought has suddenly hit that you have probably another 10 years left on your job. You think about 10 years ago and how the cost of living between then and now has changed so much. Surely, the same thing will happen again 10 years from now. Will you be able to rely solely on your pension? Sure, the figure might seem gargantuan now but, factoring in cost of living and inflation, you understand that it likely won’t be able to keep you living the way you’ve been accustomed to now, don’t you, without a Plan B in place?

First, don’t panic. The good news is: There’s still time to prepare if you act now.

Start investing

Retirement planning, financial advisors always recommend, should ideally begin in your twenties, when you have finished school and are earning pay cheques. However, it’s one of the most ignored pieces of advice we give out. It’s right up there with advice about making a will. And we get it. You’re building a career, raising a family; retirement isn’t top of mind. But there’s amazing power in beginning your retirement savings early in order to give yourself time for interest to accrue and compound.

If you haven’t already done so, consider the option of investing. Maybe you came into some money recently; rather than spend the funds on things that aren’t a priority right now, like more clothes in your already crammed closet, consider investing. Sitting down with a financial advisor will help you decide where you can park that money, depending on your risk tolerance, volatility in the market, and so on. There are so many options, including stocks, bonds, certificates of deposits, cash-value life insurance plans, high-interest savings accounts, real estate. Your advisor can help customise a package for you with what you have. You don’t need to be rich to start investing. If you are closer to retirement, consider seeking advice on investing your pension lump sum even while preserving the principal, which over time will see a reduced value due to inflation.

Bottom line

Retirement is meant to be a joyous time in a person’s life. You can, once and for all, quit the rat race that’s known as the workforce. Now you can stop and smell the roses, indulge in a hobby, and live life at an unhurried pace devoid of alarm clocks and stressful deadlines.

Certain current economic realities, including the Russia-Ukraine war that is affecting prices worldwide, are making it difficult for pre-retirees to envisage the golden years as being filled with anything but penury and need. But it’s not too late to replace that mindset with one of abundance and prosperity. A nest egg in your golden years is not an unattainable goal if you start planning now, to give your savings time to grow.

Next Week: A part-time return to the workforce and other options to consider.