(Article from Transamerica - Worth a Look - Fall 2008)

Is retirement an outdated concept? Just a few decades ago, there was a pretty clear transition that occurred at age 65. People left the workforce. They retired. They were thanked for their years of devoted service—often to a single company their entire career. And that was it.

Recently, the lines have been blurred between working and retirement years. Some people are choosing to delay retirement, others take early retirement at or before age 60, and some are exploring a relatively new concept— phased retirement.

Phased retirement is the period between full-time career and complete retirement and can be whatever you make of it. There are no hard and fast rules. You can:

• Work part-time for a few years in a similar job or your current job before fully leaving the workforce.
• Work on a contractual basis, perhaps working on and off.
• Take a new job or start a small business, and set your own hours, becoming gradually less active over time.

Some people stay in the workforce out of financial need, while others desire the social contact or mental challenge.

Continued Contributions
This reflects a change in societal views of aging and the contribution older people can continue to make to society—within the workplace or elsewhere. “There’s a sea change in thinking,” says Dr. Gene Cohen, director of the Center on Aging, Health and Humanities at George Washington University. “We are now aware of the ongoing creative potential and psychological growth we have in the second half of life. The whole concept of retirement is changing. People are seeking meaningful engagement,
through work or volunteer activities.”

There are endless possibilities. As more and more baby boomers retire, they’ll be breaking new ground—as they have throughout their lives—and carving their own paths across something that doesn’t seem to fit the old notion of “retirement.” A variety of activities beckon those who do leave paid work. Volunteers of many types find it fulfilling to stay active and give back—as tutors or mentors to young people, for example. Some return to school, learn a new language or develop new skills,
stimulating themselves mentally and socially—staying active and young at heart.

Life 2.0
Sociologists and advocates for seniors have struggled to find a new word to replace “retirement” and more accurately describe what happens after complete full-time engagement in the workforce. In a contest last year, Smart Money magazine invited readers to come up with a more accurate and up-to-date word. The winner: “Life 2.0”. Runners-up included “aspirement,” “entirement,”
“redefinement,” and “GEN R.”

Retirement is becoming an increasingly individual phenomenon. What would YOU like to do with the
rest of your life? Here are some things to consider …

• Your health—mental and physical: Ironically, if you are healthy enough to remain active, by
  remaining active, you’re more likely to stay healthy.
• Your interests—What do you want from your remaining years? Some people simply wish to relax, having worked hard for many years, while others need to stay involved in order to feel fulfilled.
• Opportunities—Some careers or skill sets more easily lend themselves to a flexible approach to
  work or to an active retirement. What practical opportunities exist for you to stay active should
  you wish to?