No matter whether you’re a millennial, boomer or Generation Xer, retirement’s new reality is sinking in. Whether you’re a farmer or a nonfarmer, you’re increasingly unlikely to have a “golden parachute” or rainbow gold waiting at the end of your career. Concern about a secure retirement crosses all generation lines.

That life leap into retirement increasingly looks more like a step down from your parents’ generation than an exhilarating leap higher — especially for Gen-Xers and millennials. That’s the bottom line of recent research by the Transamerica Center for Retirement Studies.

GRAMPS HAD IT BETTER: Outliving retirement income is a greater risk today because we’re living longer and spending more. (Dan Foote image)

In brief, the study found that 45% of baby boomers expect to experience a reduced standard of living in retirement. Some 83% of Gen-Xers anticipate a harder time achieving financial security than their parents did. Only 18% of millennials foresee a comfortable retirement.

See accompanying Millennial infographic. For a peek at the Transamerica study’s differing perspectives of each generation, click on: Perspectives on retirement.

Many fear outliving their money, warns Joshua Mellberg, founder of the J.D. Mellberg Financial investment advisory. “We’re living longer, meaning we need to save more money or find ways to make what we have last longer. Pensions are a thing of the past for most Americans.”

There are constant rumbles about whether Social Security faces a bleak future. Don’t forget ag-related reasons, too — higher business and personal taxes, rising costs of living and equipment replacement, to name a few.

3 successful habits to cultivate
Concentrate on trying to control the things you can, urges Mellberg. Here are three habits worth incorporating into your planning:

• Live with some urgency. Instead of sitting idly by, successful retirees seize each and every day to stay healthy and happy. Actually, that mindset starts long before retirement.
This applies to all aspects of life, from the way you save money throughout your work life to what you do during retirement. “A sense of urgency can call you to action, so you're more likely to prepare for a great retirement,” he says.

• Retire based on your financial assets, not age. Traditionally, people have targeted a retirement age, rather than a target amount in their portfolio. Today, that’s the wrong approach, he warns.
“While you might have a certain age in mind, it can be more worthwhile to create a retirement plan based on your finances,” explains this financial consultant. “That’ll give you a much better chance of having enough money to last you the rest of your life.”

• Minimize risks, but don’t eliminate them. In many cases, it’s best to minimize risks, especially as retirement nears. But Mellberg adds: “You may not always want to live your life on the safe and boring side. Retirement is supposed to be about enjoying yourself after a lifetime of work, not merely counting pennies as you try to survive.”

That’s why advance planning is so important — investing in more income growth opportunities in younger years, then gradually moving to more conservative, less risky savings options as you move toward retirement. One way some retirees minimize financial risk is to use a portion of their savings to purchase an annuity. While annuities aren’t for everyone, they can guarantee a set amount of income for life, much like a pension.

“Once you know your retirement income is in order,” concludes Mellberg, “you can be free to take some risks in other areas of your life and pursue your lifestyle goals.” But first, put yourself in a financial position to thrive, not just survive.