The greatest inventions in history have come from individuals who were willing to rethink the way something was done.  In 1875, Alexander Graham Bell developed a new way to communicate, and the telephone was born.  Ten years later in 1885, Karl Benz designed and built the world’s first practical automobile, eventually replacing the horse and buggy as a means of transportation.  And in 1928 Sir Alexander Fleming discovered penicillin, forever changing the way we fight disease and illness.  Each of these great inventors had the curiosity and intelligence to look at a problem in a different light, and came up with a solution that advanced civilization in profound ways.

The concept of retirement took hold in the United States in 1935.  In the depths of the Great Depression, with 25% of the labor force unemployed, Franklin D. Roosevelt put a plan in place to put younger people to work by offering a pension allowing older men to retire.  Social Security was born, and a broad segment of the American population was introduced to the concept of retiring from work. 

Retirement has evolved over the years.  When Social Security was implemented in 1935, the earliest retirement age of 62 was very close to the average life expectancy of 63 years of age.  It was pretty easy to make the math work under that system!  Now, with life expectancy at age 78 and many living well into their 80s and even 90s, the equation has definitely changed.
 

Not only has the length of retirement changed, but what we expect out of retirement has changed too.  Back in 1935, retirement was a much-needed break from a physically demanding job.  In today’s service economy, a 62-year old can be in their prime.  Yet the traditional concept of retirement being a “life of ease” is stuck back in 1935.  A Rethink of Retirement is definitely in order!

What are the components we need to rethink when it comes to retirement?  At Modus Advisors, we’ve identified the four main areas to address.

Over the next two weeks, we’ll be exploring these areas at a high level, and over the course of the next couple of months we’ll get into more detail surrounding each one.

Take five minutes to watch our informational video to help you get started on Rethinking Retirement.

Also, become a fan of Modus Advisors on Facebook, and get LinkedIn to the Modus team to stay on top of the latest developments in retirement and investment planning!