Lincoln Bonus years catalysts, retirement, aging, seniors v3.1

Kaleidoscope Years

A new look at later-life.

“The first responsibility of a leader is to define reality.”

- Max DePree

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AgendaOver-all:• To describe the new realities of retirement American

style

To show:• How this new batch of later-life Americans is

different from its forebears.• How these differences are best described and

understood.• Why these differences are taking root in our culture• Why many are likely to endure.• What these differences mean for financial planning.

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Baby Boomer Realities• Big numbers:

▫ 78 Million strong▫ Retiring at a rate of 10,000 a day

• Long Duration:▫ The next 18 years

• Cultural Change:▫ Boomers shaped American culture at every stage

of their lives▫ Boomers already shaping a new life stage once

called “retirement”

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Longevity

Technology-Driven Change

1. Medical & pharmaceutical research: e.g., antibiotics for TB, whooping cough; penicillin.

2. Medical instruments: X-Ray, MRI.

3. Improved practices: public health, safer food, water, driving; worker safety; reduced smoking; organ transplants.

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7Technology Direct Impacts

Spill-over EffectsCultural Changes

Compass Map-making Increased safety permitted larger ships, sailing in all kinds of weather, expanded global trade, exploration.

Steam engine Powered machines

Industrial revolution, railroads, steamships, faster communications, increased trade.

Railroad Pullman sleeping car,air brakes

Led to creation of time zones, demographic decentralization, opened interior regions for economic development.

Automobile Paved roads, electric start,rubber tires

More personal freedom, democratized destination recreation, suburbs, sprawl, fast food, motels.

Antibiotics Greatlyincreased longevity

People work longer, retire later; post-career life has more stages, lifestyles, transitions, catalysts; crisis for welfare state.

Microchip Faster, cheaper computing

Anytime, anywhere communications, blending of workplace and home life, massive creative destruction, new distributed business models.

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Evolving Views of Retirement

• 1935-1960: Winding Down Years

▫ A short period of rest – measured in months or a few years – after a life of work.

• 1960-2005: Golden Years

▫ Years, even decades, of leisure and amusement supported by savings, expanding entitlements.

• 2005-present: Kaleidoscope years

▫ A new chapter in life including varieties of work that are productive and satisfying + leisure.

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Note: Only two (in green) of the top six concerns are financial. Source: Harris Interactive, 2011.

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Cascading Impacts of

Longevity Are Dramatic

• A variety of lifestyles

• Lived out in stages

• Triggered by catalysts

• Each requiring a new script

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Longevity in Years

Chances that one of a 65 year-old married couple will live to:

▫ 85 years ≈ 3 out of 4 – 75%▫ 90 years ≈ 1 out of 2 – 50%▫ 95 years ≈ 1 out of 5 – 20%

Source: The Wall St. Journal, 2011.http://bit.ly/yhDKjW

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Longevity Requires

New Scripts for Life

• Infancy to first day at school

- Parents, siblings, extended family

• K-12 through college

- Peers, teachers, school, culture

• Working years to retirement- Partner, bosses, family, job requirements

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New Life ScriptsMust be centered on

Continued Social Engagement

Using gifts of

TimeTalent

Treasure

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Life’s Journey

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Lifestyle ChangesBoomers exchange “Golden Years” of endless

leisure and amusement for a second act that

includes working.

• 70% ± anticipate working in some manner their post-career years.

• Number rises to 77% in the 55-64 age demographic

• 54% will work as a choice, not a requirement.

Source: Harris Interactive, 2011

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Post-Career Work

1. Paid work

2. Volunteer work

3. In-kind work

4. Samaritan work

5. Enrichment work

6. Reflect and restore

7. Rest & relaxation

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Retirement LifestylesSun Financial Merrill Lynch

• Ageless Explorers

• Cautiously Contents

• Live for Todays

• Worried Strugglers

• Empowered Trailblazers

• Wealth-Builders

• Leisure Lifers

• Anxious Idealists

• Stretched and Stressed

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Retirement Lifestyles (cont.)

TransAmerica Lincoln Financial

• Venturer

• Anchored

• Pursuer

• Adapter

• The Instructor

• The Volunteer

• The Entrepreneur

• The Adventurer

• The Enthusiast

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1. Pre-retirement

2. Retirement Event

3. Honeymoon

4. Rest & Relaxation

5. Letdown

6. Reorientation

7. Routine

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Stages of Retirement

Catalysts

• Trigger a “turn” of life’s kaleidoscope

• Lead to life transitions

• Motivate, require, incent, nudge

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Life Transition Catalysts

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Challenges Opportunities

Divorce Marriage

Unemployment Becoming parents

Care of a parent Buying/selling a home

Long-term care Buying/selling a business

Loss of a loved one Receiving an inheritance

Personal injury The retirement event

Types of Catalysts• Economic catalysts

▫ Macro-economic change: recession, inflation, etc.▫ Loss of job or under-employment

• Health-related catalysts▫ Declining health▫ Disability: physical, mental

• Psychological/spiritual catalysts ▫ Loss of identity, purpose, status▫ Later-life marriage/divorce

• Lifestyle catalysts ▫ Empty nest, grand parenthood▫ Inheritance

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25Type →Control ↓

Catalysts that are Opportunities

Catalysts that areChallenges

GenerallyUnder YourControl

Preparation for retirementPost-career changes:• work• enrichment• leisure, recreationDownsizing/rightsizingAge-relevant fitnessLater-life marriage

Loss of purposeLoss of identityRelocation – e.g., to • a new community• institutional care• home of childrenLater-life divorce

Generally Beyond YourControl

The retirement eventThe empty nestBecoming grandparentsReceiving an inheritanceComing to faith

Later-life losses • employment• income• power, status Care-giving for parentLoss of a loved oneDisabilityLoss of faithLater-life divorce

A variety of lifestyles

That occur in stages

Triggered by catalysts

Later-Life Dynamics

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Ray’s Post-Career ScriptDay Activity

DescriptionReboot Activity

TypeMonday Photography; family

albums, memoir.Enrichment Work

Tuesday Volunteer advisor for SCORE

Volunteer Work

Wednesday Fee-based consulting Paid Work

Thursday Recreation-fishing, sailing, kayaking, golf.

Leisure

Friday Home maintenance, special projects, day trips

Enrichment

Saturday Home time, neighbors, relatives

Leisure

Sunday Church; home time, neighbors, relatives

Reflect

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Ray’s Kaleidoscope Profile

Mark Patterson’s Kaleidoscope

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Sue Patterson’s Kaleidoscope

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For additional information:

Reboot website: www.BooterNation.com

Follow on Twitter: @DrBooter

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