Retirement is the great unknown, and much to everyone’s chagrin, there are no cut-and-dry answers to most of our biggest retirement questions: when should I retire, and how much money do I need? The answers are different for everyone, and they are much more nuanced than coming up with a set age and amount. But, clients still ask these questions, and financial advisors still need to find a way to respond. I’ve addressed the “magic number” question in the past, but for the “when?” question, I suggest using a three-tiered approach: fiscal, physical, and psychological.
It’s crucial for financial advisors to know what emerging trends are changing the industry and how those trends might affect their clients. The sharing economy phenomenon—the upsurge of community-based online services such as TaskRabbit, Airbnb, Yelp, Lyft, etc.—is a topic that could be particularly pertinent to retirees, even though you might expect the older generation to be a little more wary to embrace such innovations. The ability to participate, as both a consumer and a provider, in economy-sharing resources has the potential to change the face of retirement as we know and envision it today in three important ways: