More and more boomers are delaying retirement for
non-financial reasons and need advice on how to do it
Everyone has heard of planning for retirement, but what about planning for pretirement? If Peter Lindquist has his way, growing numbers of financial planners will be helping clients to plan for “the stage of life that falls between intense work and the rocking chair.”
Speaking here at the annual conference of the Financial Planning Association, Lindquist, president of Life Puzzles, LLC, of Louisville, Colo., said the linear model of life that has reigned for the last 50 years is changing. In that scenario there were three distinct stages in a person’s life, he said. These were: 1) the education/growth stage; 2) the work/accumulation stage; and 3) the retirement/relaxation stage.
But what has been happening, he said, is that the education stage has been extending further into what would have been the working years, while at the same time, retirement has been occurring earlier for many people than it would have in the past. The upshot, he explained, is that the number of working years has been shortened.
But the retirement stage could not keep growing indefinitely, Lindquist maintained, due to a number of reasons. Some of these were financial, he said, pointing to the phaseout of defined benefit plans, the problems with Social Security, boomers’ high personal debt levels and low savings.
But in addition, he said, boomers have rejected the traditional retirement scenario of their parents for non-financial reasons and many of them intend to continue working part time.
So, what do these “preretirees” really want? According to Lindquist, they want freedom and flexibility, new opportunities, involvement, choices, and discretionary work that has meaning and purpose. A lot of this has to do, he said, with intense dissatisfaction with their careers as they’ve aged.