To many Americans, the thought of retirement conjures up visions of restful days playing golf, reading a good book, or traveling to new and exciting destinations.

Have you thought about your own retirement? Have you thought about how you’ll pay for it?

The concept of retirement our parents and grandparents had is changing. When you reach age 60, one third of your life or more may lie in front of you. It has become increasingly important to plan for that time in your life. What will you do with those years, and how will you pay for them?

Many individuals approaching the age of traditional retirement are deciding to leave the work force slowly, with periods of partial retirement or part-time schedules. Most Baby Boomers expect to work full-time or part-time long after age 65. Some will even retire from one career to pursue new vocational interests and employment opportunities. There is no set age for retirement, and workers are protected against age discrimination starting at age 40.

However, decisions to retire are influenced by many factors, some beyond the control of the retiree. These include health, the needs of other family members, mergers and corporate changes, and retirement income sources.

Americans are living longer and enjoying a healthy and active later life. As people live longer, the chance of outliving savings and assets grow. While most older Americans never experience poverty, poverty rates are higher among people age 85 and older, women, minorities, and individuals living alone.

Longer life expectancies require planning for the number of years spent in retirement and the need to build adequate income sources. Individuals are increasingly responsible for their own financial security in later life. In recent years the responsibility of paying for retirement has shifted from employer-funded to employee-funded plans.

Older persons must often manage multiple income sources. In addition to workplace 401(k) or 403(b) plans, individuals may have pensions, individual retirement plans (IRAs), real estate and other investments, as well as Social Security. Although Social Security was never designed to be the only source of retirement income, it remains critical to many. Those who rely solely on Social Security are much more likely to live at or near poverty levels.

Longer life expectancies also increase the likelihood of unexpected changes in health. Health care is a major cost for many older Americans. Five of the six primary causes of death for older Americans are chronic diseases or diseases that are seldom cured. These diseases – including arthritis, diabetes, and heart disease – can negatively affect quality of life and ability to function. The high costs of treating and managing these diseases increase the chances of becoming a financial burden. Planning for later years must include protection against expenses related to health needs, including health insurance beyond Medicare and methods for financing long-term care.

You are not too young (or too old!) to start planning. The U.S. Department of Labor offers the following “10 ways to beat the clock and prepare for retirement.”

• Know your retirement needs . Experts estimate that you will need at least 70 percent of your pre-retirement income to maintain your standard of living.
  
  
• Find out about your Social Security benefits. On average, Social Security pays about 40 percent of pre-retirement earnings. Call the Social Security Administration at 1-800-772-1213 to get a free Personal Earnings and Benefit Estimate Statement.
  
  
• Learn about your employer’s pension or profit-sharing plan . If your employer has a plan (you are fortunate!), determine what your retirement benefit will be. Most employers provide an individual statement upon request. Before changing jobs, find out what will happen to your pension. Determine what benefits, if any, you are due from previous employers and from your spouse’s plan.
  
  
• Contribute to a tax-sheltered savings plan through work . If you have a 401(k) or 403(b) plan, contribute as much as possible. Your taxes will be lower, your company may match some or all of your personal contribution, and deductions are automatic from your paycheck—out of sight, out of mind! Over time, the tax deferral and compounding of interest will make an even bigger contribution to what you save.
  
  
• Ask your employer to start a plan . If your employer doesn’t have a retirement savings plan, suggest starting one. From their perspective, it is a great tool for attracting and keeping good employees.
  
  
• Put money into an Individual Retirement Account (IRA). You can set a tax-derferred IRA through your bank, accountant, or financial planner.
  
  
• Don’t touch your tax-sheltered retirement savings . Besides what you will lose in principal and interest, you may lose tax benefits or have to pay a penalty. If you change jobs, roll over your tax-sheltered retirement savings into your new employer’s plan or an IRA.
  
  
• Start now, set goals, and stick to them! The sooner you start, the more time you have to save. Make saving for retirement a high priority.
  
  
• Educate yourself about basic investment principles. Where you invest savings can be as important as the amount you save.
  
  
• Ask questions. As questions arise, ask your employer, your

UNH Cooperative Extension offers a free program called "Take the Road to Financial Security in Later Life." For more information or to schedule a program for your group, call the Family and Consumer Resources educator in your county Extension office.