Retirement Income Really Means Lifestyle Income...What Is It?

It’s been said that the word retirement no longer fits. The word itself means “to withdraw, to give up one’s work, profession or career especially because of advanced age”. Few people today would accept this definition. In fact, study after study shows that individuals over fifty consider the word “retirement” to have a negative connotation.

Recently the National Endowment for Financial Education redefined retirement as "a point in life when a person switches their main focus from economic activity-earning a living- to self-realization, choosing one’s personal goals and aspirations".

This new lifestyle requires the careful management of one’s “career savings” to meet possibly several different objectives. Not only the day to day expenses of an active lifestyle. But also perhaps the funding of a child’s education, or extensive travel, maybe the care of an elder parent or even the beginning of a new business.

Lifestyle Income involves the recognition that one’s income needs may vary from year to year. Careful planning is necessary to anticipate for not only those personal needs, but also for changing economic circumstances. With always an eye to the future knowing that one can never afford to outlive their money.

Lifestyle Income is the dynamic process of preserving savings and enjoying the opportunities of economic freedom.