Prefer to watch? Click here to watch and listen on YouTube.

How has retirement changed over the last decade, and why does it matter now? If you’re planning for retirement the same way people did 10 years ago, you may be relying on assumptions that no longer apply.

In this episode of Money Wisdom, Jake Doser, CFP®, CPWA® and Nicholas J. Colantuono, CFP® discuss how retirement planning has shifted over the past decade and what those changes could mean for your financial future.

More People Delaying Retirement

One of the biggest changes over the last 10 years is that, generally, people are waiting longer to retire. For some, they continue to work because they find enjoyment and purpose in their jobs. This has led to more semi-retirements, part-time work, and continued career involvement.

For others, it’s about feeling financially productive, withdrawing less from their portfolio, or simply wanting extra cash without the guilt of withdrawing.

Shifting Away from Pensions

Fewer Americans have guaranteed income outside Social Security. Private pensions have nearly disappeared, meaning more retirement planning responsibilities have fallen on the individual.

Turning a lump sum into a reliable income stream can be an overwhelming and often complicated task. With a greater emphasis on planning, it’s clear why there’s more to consider before setting a retirement date.

Rising Healthcare Costs

Another reason people keep working is to stay on employer-sponsored health insurance until Medicare starts. Healthcare costs in retirement are on the rise. Today’s average 65-year-old may need to plan for around $172,500 in medical expenses—and that excludes long-term care.

Planning for healthcare coverage before age 65 also comes with several variables. Depending on where you live, your insurance options may include state exchanges, the Affordable Care Act marketplace, or COBRA.

Longer Retirement Periods

Retirement today can also last much longer than it did for our parents and grandparents. Now, we must plan for up to 30 years or longer in retirement. Not only are we living longer, but we’re also leading more active lives. An active lifestyle requires long-lasting income, and that requires a solid plan.

Higher Inflation and Social Security Uncertainty

The cost of living is also rising, which means we need to plan on giving ourselves raises throughout retirement just to keep up. Additionally, experts project that Social Security will run short around 2033, creating growing uncertainty. This could result in a reduction in Social Security benefits if nothing changes.

All is to say, your portfolio needs to provide dependable income for the rest of your life. The good news is that, with the right planning, you can navigate whatever challenges the coming decades bring.

Want inside access to the Money Wisdom podcast? Get your free Your Money Wisdom Playbook—The Ultimate Listener’s Guide—by texting “PLAY” to 800-757-0436.