A generation or so ago, people didnt just retire from work many of them also withdrew from a whole range of social and communal activities. But now, its different: The large Baby Boom cohort, and no doubt future ones, are insisting on an active lifestyle and continued involvement in their communities and world. So, what should you know about this "new retirement"? And how can you prepare for it?

For starters, consider what it means to be a retiree today. The 2020 Edward Jones/Age Wave Four Pillars of the New Retirement study has identified these four interrelated, key ingredients, along with the connected statistics, for living well in the new retirement:

Health While physical health may decline with age, emotional intelligence the ability to use emotions in positive ways actually improves, according to a well-known study from the University of California, among others. However, not surprisingly, retirees fear Alzheimers and other types of dementia more than any physical ailment, including cancer or infectious diseases, according to the "Four Pillars" study.

Family Retirees get their greatest emotional nourishment from family relationships and theyll do anything it takes to help support those family members, even if it means sacrificing their own financial security. Conversely, retirees lacking close connections with family and friends are at risk for all the negative consequences resulting from physical and social isolation.

Purpose Nearly 90% of Americans feel that there should be more ways for retirees to use their talents and knowledge for the benefit of their communities and society at large. Retirees want to spend their time in useful, rewarding ways and theyre well capable of doing so, given their decades of life experience. Retirees with a strong sense of purpose have happier, healthier lives and report a higher quality of life.

Finances Retirees are less interested in accumulating more wealth than they are in having sufficient resources to achieve the freedom to live their lives as they choose. Yet, retirees frequently find that managing money in retirement can be even more challenging than saving for it. And the "unknowns" can be scary: Almost 70% of those who plan to retire in the next 10 years say they have no idea what their healthcare and long-term care costs will be in retirement.

So, if youre getting close to retirement, and youre considering these factors, how can you best integrate them into a fulfilling, meaningful way of life? Youll want to take a "holistic" approach by asking yourself some key questions: What do you want to be able to do with your time and money? Are you building the resources necessary to enjoy the lifestyle youve envisioned? Are you prepared for the increasing costs of health care as you age? Have you taken the steps to maintain your financial independence, and avoid burdening your family, in case you need some type of long-term care? Have you created the estate plans necessary to leave the type of legacy you desire?

By addressing these and other issues, possibly with the help of a financial professional, you can set yourself on the path toward the type of retirement thats not really a retirement at all but rather a new, invigorating chapter of your life.

This article was written by Edward Jones for use by your local Edward Jones financial advisor.

See the rest here:

Financial Focus: How can you prepare for the new retirement? - The-review