By Jim Flasch

The Steady Climb
If there's a 5-year-old in your life, you might want to start discussing career options with her. Heavy subject matter for a kindergartener? Maybe not, considering her estimated retirement age may be as high as 79.

Retirement has never been a hotter topic. America is on the cusp of a demographic revolution unseen until now, when its 75 million baby boomers (Americans born between 1946 and 1964) begin cashing in their chips and merging into their golden years. However, as talk of modifying the nation's Social Security program continues, and as some company pension plans show signs of teetering on the edge of drying up, many Americans may have to work longer than they anticipated.

But it's not only boomers who are facing postponed retirement dreams. If you're 65 today, your estimated retirement age is 67. Not too bad. But children born in 2025 could be bringing home a paycheck until they're 83.

This "edging up" of the nation's estimated retirement age is precisely why a solid retirement plan is more important than ever—and why a majority of Americans are "very or somewhat worried" about retirement, according to a 2003 Gallup Poll.

Retirement planning, according to Chris Ginkel, a Thrivent Financial for Lutherans regional sales consultant in Minneapolis, Minnesota, is as simple as enlisting the help of a qualified professional. "We want to make sure there are no obstacles preventing you from achieving those dreams and goals," Ginkel says. " We're there to help you work toward financing and protecting those dreams."

Getting Ahead of the Curve
Thrivent Financial member Eric Haase, a San Diego electrical engineer, is taking a serious look at his retirement plan—even though he's just 33. "My parents worked and are still working and getting closer to retirement. They've been reading lately that many people end up working until they're 75. That's not the situation we want to be in," Haase says.

After college, Eric and his wife, Julianna, had the "big life things" happen. They married, bought a house and had two kids. They knew they didn't want to find themselves in the same situation as Eric's parents later in life, and this concern motivated them to contact Tim Essman, a financial consultant with Thrivent Financial.

"Going through the process with Thrivent Financial has been very helpful because we've been able to pinpoint where we want to be and where we would be if we didn't start saving now," Haase says. "We've also been able to look at the different investing tools—insurance, mutual funds, 401(k)—for our strategy."

Essman says that while many understand the importance of saving for retirement, most people don't understand how the money should be distributed once they reach retirement or how death and disability can impact that nest egg. It's a simple matter of education, he says.

Linda Leigh, a Thrivent Financial member from Chandler, Arizona, will retire in October when she reaches age 65. A loan closer for a large national bank, Leigh knows the value of an established financial program. She had an IRA with Thrivent Financial, along with other vehicles at various brokerage firms, but wanted consolidation. "I just couldn't be out there pulling money from various places when I retire," Leigh says.

After reading about Thrivent Financial Senior Financial Consultant Teena Milldebrandt in a magazine, Leigh gave her a call. "We talked about issues like health care and Social Security and getting my finances in line," Leigh recalls. "Teena's knowledge and her understanding of those issues made me feel very comfortable."

According to Milldebrandt, of Gilbert, Arizona, the biggest mistake most people make is "not planning to save before they plan to spend. They let their daily quality of life become the priority rather than thinking ahead, and they end up spending what they have rather than what they have left."

Tim Szwec, a Thrivent Financial associate in Ocala, Florida, advises clients to put away 10 percent of their income for retirement early on, and to establish a retirement emergency fund for unforeseen problems like major car repairs.

That kind of strategic planning can be challenging for 60-year-olds, much less 20-year-olds. But the earlier you start planning, the better. Take it from retired police officer William Buschman of Waldo, Florida. During his first month on the job when he was in his early 20s, a fellow officer was killed in the line of duty. " That makes you think about the future and being prepared. A lot of the senior guys on the force had to retire into some other job or more police work to make ends meet," recalls Buschman, a Thrivent Financial member. "I started saving right away after seeing that."

Buschman's early retirement planning has paid off. While most people his age will have to work another 15 years until they can leave the workforce, Buschman, at age 52, is already retired and enjoying the Florida sunshine.

Jim Flasch is an Appleton, Wisconsin-based journalist.

Going Up?

What will the retirement age be in the future? No one knows for sure, but trends suggest it will rise. Americans are living longer and working longer (7 in 10 now plan to work beyond age 65), while the graying U.S. population continues to put a strain on the Social Security system.

Year	2005	2010	2020	2030	2040
Life Expectancy	77.8	78.3	79.1	79.9	81.0
% of U.S. Population Over 65	12	13	16.3	19.6	20.4
Age Eligible for Full Social Security Benefits	66.25	67.5*	68*	?	?

Sources:

Life expectancy data from Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, 2003.

Population data from the U.S. Census Bureau, 2004.

Age Eligibility data from the National Commission on Social Security. Ages marked "*" are based on the National Commission's proposed legislative changes to Social Security retirement age.