The Retirement Planning Specialty.

Diverse elements are reshaping the field. My parents were immigrants who, like many other immigrants, came to the United States with almost nothing. They worked very hard, planned for the future, and fortunately created a secure and fulfilling retirement. When I told them that one of my professional interests was retirement planning, they were amazed that retirement planning was a specialty. My father's reply was, "Doesn't everyone just do it? " For my father and mother, planning was not optional. It was a way of life for survival and security. Many of their generation felt the same way. In recent decades, planning for the future has taken on new dimensions and complexities. Longer lifespan and increased health have enabled individuals to live twenty to thirty years in retirement, most with high expectations from this next chapter in their lives. This article will address diverse elements of retirement planning that are shaping this field in a new era. The diverse elements include the evolution of the field, retirement versus life planning, the role of technology, and challenges and opportunities. THE EVOLUTION OF RETIREMENT PLANNING Retirement planning has evolved in important ways. The past fifty years. Retirement planning is not new Retirement-planning services can be traced back fifty years to conversations between employer and employee about pension benefits and insurance coverage. In 1948, the first retirement-planning program was initiated by Woodrow Hunter of the University of Michigan. The program was directed at people already retired, to teach them how to get the most out of their later years (Hunter, 1976). From this experience, Hunter developed a systematic approach to retirement education, including financial and psychosocial issues, that has served as a foundation for the field. Other universities continued the effort. The University of Chicago, Duke University, the University of Southern California, and Drake University each made unique contributions both in program content and design. Subsequently, these services were delivered by adult educators, government departments, libraries, YMCAs, churches, industries, community colleges, and labor unions (Dennis,1988). Each decade has brought changes to the field. In the 1960s, an increasing number of private-- sector consulting firms, publishing companies, universities, and advocacy organizations created retirement programs and materials. Retirement planning became part of employee-benefits departments in the 1970s (Migliaccio and Corbett, 1994). The 1980s were characterized by a new awareness of the aging population, as well as massive layoffs and early retirements. During this decade, the concept of life planning emerged, focusing on individuals at midlife. At the same time, technology was creating new learning opportunities (Migliaccio and Corbett, 1994). The 1990s were a time of corporate restructuring and a continued shift away from paternalistic organizations. In corporate America, the theme of self-reliance was evident. Employees were expected to assume increased responsibility for their own economic security, healthcare, and overall quality of life in retirement (Dennis and Axel, 1991). Emphasis on finances. A major emphasis in 2000 and beyond continues to be the importance of saving and investing to ensure adequate finances in retirement. For many, retirement planning has become the same as investment planning, particularly because more employees are responsible for directing their own company-sponsored retirement plans. The federal government is encouraging saving for retirement by providing increased incentives for employees to contribute to company-sponsored plans like 401(k) plans, and individual retirement plans like iRAs. Since January 2002, the incentives have come in the form of revisions in the tax laws, allowing for higher contributions to individual retirement plans. …