This PowerPoint – prepared as background for a keynote address to the Annual Meeting of Lincoln Financial Advisors Resource Group for their annual conference in Las Vegas – focuses on the forces shaping the new realities of aging in America, the different lifestyles followed by those living in their Bonus Years, and the many lifestyle and life-situation changes that shape and reshape the lives of Americans after 60, resulting in a highly-segmented 60-90 age cohort.

1. Kaleidoscope Years
A new look at later-life.

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“The first responsibility of a
leader is to define reality.”
- Max DePree

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Agenda
Over-all:
• To describe the new realities of retirement American
style
To show:
• How this new batch of later-life Americans is
different from its forebears.
• How these differences are best described and
understood.
• Why these differences are taking root in our culture
• Why many are likely to endure.
• What these differences mean for financial planning.

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Baby Boomer Realities
• Big numbers:
▫ 78 Million strong
▫ Retiring at a rate of 10,000 a day
• Long Duration:
▫ The next 18 years
• Cultural Change:
▫ Boomers shaped American culture at every stage
of their lives
▫ Boomers already shaping a new life stage once
called “retirement”

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Longevity
Technology-Driven Change
1. Medical & pharmaceutical research:
e.g., antibiotics for TB, whooping cough;
penicillin.
2. Medical instruments: X-Ray, MRI.
3. Improved practices: public
health, safer food, water, driving; worker
safety; reduced smoking; organ
transplants.

7. Technology Direct Spill-over Effects 7
Impacts Cultural Changes
Compass Map-making Increased safety permitted larger ships,
sailing in all kinds of weather, expanded
global trade, exploration.
Steam engine Powered Industrial revolution, railroads, steamships,
machines faster communications, increased trade.
Railroad Pullman Led to creation of time zones, demographic
sleeping car, decentralization, opened interior regions for
air brakes economic development.
Automobile Paved roads, More personal freedom, democratized
electric start, destination recreation, suburbs, sprawl, fast
rubber tires food, motels.
Antibiotics Greatly People work longer, retire later; post-career
increased life has more stages, lifestyles, transitions,
longevity catalysts; crisis for welfare state.
Microchip Faster, Anytime, anywhere communications,
cheaper blending of workplace and home life,
computing massive creative destruction, new
distributed business models.

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Evolving Views of Retirement
• 1935-1960: Winding Down Years
▫ A short period of rest – measured in months or a
few years – after a life of work.
• 1960-2005: Golden Years
▫ Years, even decades, of leisure and amusement
supported by savings, expanding entitlements.
• 2005-present: Kaleidoscope years
▫ A new chapter in life including varieties of work
that are productive and satisfying + leisure.

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Note: Only two (in green) of the top six concerns are financial.
Source: Harris Interactive, 2011.

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Cascading Impacts of
Longevity Are Dramatic
• A variety of lifestyles
• Lived out in stages
• Triggered by catalysts
• Each requiring a new script

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Longevity in Years
Chances that one of a 65 year-old married
couple will live to:
▫ 85 years ≈ 3 out of 4 – 75%
▫ 90 years ≈ 1 out of 2 – 50%
▫ 95 years ≈ 1 out of 5 – 20%
Source: The Wall St. Journal, 2011.
http://bit.ly/yhDKjW

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Longevity Requires
New Scripts for Life
• Infancy to first day at school
- Parents, siblings, extended family
• K-12 through college
- Peers, teachers, school, culture
• Working years to retirement
- Partner, bosses, family, job requirements

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New Life Scripts
Must be centered on
Continued Social Engagement
Using gifts of
Time
Talent
Treasure

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Life’s Journey

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Lifestyle Changes
Boomers exchange “Golden Years” of endless
leisure and amusement for a second act that
includes working.
• 70% ± anticipate working in some manner their post-
career years.
• Number rises to 77% in the 55-64 age demographic
• 54% will work as a choice, not a requirement.
Source: Harris Interactive, 2011

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Post-Career Work
1. Paid work
2. Volunteer work
3. In-kind work
4. Samaritan work
5. Enrichment work
6. Reflect and restore
7. Rest & relaxation

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Retirement Lifestyles
Sun Financial Merrill Lynch
• Ageless Explorers • Empowered Trailblazers
• Cautiously Contents • Wealth-Builders
• Live for Todays • Leisure Lifers
• Worried Strugglers • Anxious Idealists
• Stretched and Stressed

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Retirement Lifestyles (cont.)
TransAmerica Lincoln Financial
• Venturer • The Instructor
• Anchored • The Volunteer
• Pursuer • The Entrepreneur
• Adapter • The Adventurer
• The Enthusiast

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Stages of Retirement
1. Pre-retirement
2. Retirement Event
3. Honeymoon
4. Rest & Relaxation
5. Letdown
6. Reorientation
7. Routine

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Catalysts
• Trigger a “turn” of life’s kaleidoscope
• Lead to life transitions
• Motivate, require, incent, nudge

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Life Transition Catalysts
Challenges Opportunities
Divorce Marriage
Unemployment Becoming parents
Care of a parent Buying/selling a home
Long-term care Buying/selling a business
Loss of a loved one Receiving an inheritance
Personal injury The retirement event

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Types of Catalysts
• Economic catalysts
▫ Macro-economic change: recession, inflation, etc.
▫ Loss of job or under-employment
• Health-related catalysts
▫ Declining health
▫ Disability: physical, mental
• Psychological/spiritual catalysts
▫ Loss of identity, purpose, status
▫ Later-life marriage/divorce
• Lifestyle catalysts
▫ Empty nest, grand parenthood
▫ Inheritance

25. Type → Catalysts that are Catalysts that are25
Control ↓ Opportunities Challenges
Preparation for retirement Loss of purpose
Post-career changes: Loss of identity
Generally • work Relocation – e.g., to
Under • enrichment • a new community
Your • leisure, recreation • institutional care
Control Downsizing/rightsizing • home of children
Age-relevant fitness Later-life divorce
Later-life marriage
The retirement event Later-life losses
Generally The empty nest • employment
Becoming grandparents • income
Beyond
Receiving an inheritance • power, status
Your
Coming to faith Care-giving for parent
Control Loss of a loved one
Disability
Loss of faith
Later-life divorce

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Later-Life Dynamics
A variety of That occur Triggered by
lifestyles in stages catalysts

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Ray’s Post-Career Script
Day Activity Reboot Activity
Description Type
Monday Photography; family Enrichment Work
albums, memoir.
Tuesday Volunteer advisor for Volunteer Work
SCORE
Wednesday Fee-based consulting Paid Work
Thursday Recreation-fishing, sailing, Leisure
kayaking, golf.
Friday Home maintenance, special Enrichment
projects, day trips
Saturday Home time, neighbors, Leisure
relatives
Sunday Church; home time, Reflect
neighbors, relatives

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Ray’s Kaleidoscope Profile

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Mark Patterson’s Kaleidoscope

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Sue Patterson’s Kaleidoscope

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For additional information:
Reboot website:
www.BooterNation.com
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