Author Topic: Why Working Till Whenever is a Risky Retirement Strategy  (Read 1439 times)

Parizade

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Why Working Till Whenever is a Risky Retirement Strategy
« on: May 28, 2019, 12:35:20 PM »
Why Working Till Whenever is a Risky Retirement Strategy

I think this is the first time I've seen a mainstream article that addresses the risk of waiting until a "normal" age to retire. I have seen a number of women and men get pushed out of their jobs as they got older. It's often more challenging to keep up with new technology as you age, at the same time health and energy levels begin to ebb. Older workers are often making top dollar because of their experience, and administrators begin to wonder if a young eager person might be more productive for a lower salary.

Continue working as long as you like, but be smart and get to FI as early as you can.

Cassie

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Re: Why Working Till Whenever is a Risky Retirement Strategy
« Reply #1 on: May 28, 2019, 01:32:16 PM »
You just donít know when you will get sick, disabled or downsized.

Freedomin5

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Re: Why Working Till Whenever is a Risky Retirement Strategy
« Reply #2 on: May 28, 2019, 04:18:17 PM »
I agree. Wisdom suggests that, when you have a firehose of cash, you divert a portion of that cash in preparation for the day when the firehose becomes a trickle.

John Galt incarnate!

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Re: Why Working Till Whenever is a Risky Retirement Strategy
« Reply #3 on: May 28, 2019, 05:11:12 PM »
You just donít know when you will get sick, disabled or downsized.

Or drop dead.

pachnik

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Re: Why Working Till Whenever is a Risky Retirement Strategy
« Reply #4 on: May 28, 2019, 05:16:58 PM »
You just donít know when you will get sick, disabled or downsized.

This exactly. 

frugalecon

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Re: Why Working Till Whenever is a Risky Retirement Strategy
« Reply #5 on: May 28, 2019, 06:01:29 PM »
Yep, this article is spot on. Minimal preparation in oneís twenties and thirties pays big dividends. In another thread I chronicled the saga of someone who always responded ďIíll just work until Iím 80Ē when I urged him to save. He lost his job 6 years ago at 61, and he hasnít managed to land full time, regular work since them. Now he is effectively destitute, and he survives on meager Social Security (a legacy of his poor work record), public assistance, and occasional infusions from friends. He will probably struggle from now on.

js82

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Re: Why Working Till Whenever is a Risky Retirement Strategy
« Reply #6 on: May 28, 2019, 06:35:42 PM »
You just donít know when you will get sick, disabled or downsized.

Or forced into premature retirement by AI/automation.  This will be the case for a substantial fraction of Millennials/Gen Z.
« Last Edit: May 28, 2019, 06:38:50 PM by js82 »

Mormon Money Mustache

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Re: Why Working Till Whenever is a Risky Retirement Strategy
« Reply #7 on: June 02, 2019, 08:51:50 PM »
It's funny. My wife and I were just discussing this today. One thing that makes us different from our peers is that I have never once though to myself "yeah, I'll work until I'm 65." Whereas I have heard this sentiment from almost everyone I've ever talked to about the subject. IMO that translates to "I have never paid any dues to figure out the math so I won't strive to do anything exceptional and just hope to hang on until I'm old."

Maybe I'm off-base on this thinking, but what else are people supposed to think? There's no formal education about money so people just do what their parents may or may not tell them to do. So if you parents sucked with money (mine did but go lucky in the end) then your initial trajectory already sucks.

This topic actually makes me sad. If I get to FIRE I'd like to have some company...

Parizade

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Re: Why Working Till Whenever is a Risky Retirement Strategy
« Reply #8 on: June 03, 2019, 03:48:13 AM »
This topic actually makes me sad. If I get to FIRE I'd like to have some company...

What makes me sad is how many people my age (62) don't even have a plan in place to retire at 65. They are still in the mindset that they will just keep working. Then they get pushed out of their job and can't get a new one, but they have no savings in place and an unsustainable lifestyle. I see it happening to people around me and it breaks my heart.

freya

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Re: Why Working Till Whenever is a Risky Retirement Strategy
« Reply #9 on: June 03, 2019, 06:02:20 AM »
We're now well into the post-pension era, and it's not working out so well.  This is a major retirement crisis that's brewing:

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Many Americans understand that working longer can be a good way to improve retirement security. According to the Employee Benefit Research Institute, 33 percent of workers expect to retire between the ages of 65 and 69, and 34 percent at 70 or beyond, or not at all.

Yet a recent study by the Center for Retirement Research at Boston College found that 37 percent of workers retired earlier than planned ó and that the odds of success fell as the goal became more ambitious. In that study, among the 21 percent of workers who said they intended to work to age 66 or later, 55 percent failed to reach that target.

Combine that with the generally low levels of long term savings, and...well, let's just say that I'm very thankful I saw the light early enough and set my sights on becoming FI.  (To say nothing of increasing workplace toxicity.) On the other hand, I'm wondering if people with large pots of savings are going to become a tempting political target.

Cassie

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Re: Why Working Till Whenever is a Risky Retirement Strategy
« Reply #10 on: June 03, 2019, 10:08:52 AM »
Many of my friends worked for the government like me so retired between 54-60.   One couple works from home at 73 with no plans to retire.  I know a few on SS only that had to move to senior housing and pay 30% of income for rent.

Linea_Norway

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Re: Why Working Till Whenever is a Risky Retirement Strategy
« Reply #11 on: June 25, 2019, 04:48:39 AM »
I have always thought it was a depressing thought to be working until the age of 65/67. By the time you are free, you are getting old, fast.

In the beginning we didn't deliberately save for retirement, but we just lived frugally, paid down our mortgage and saved a bunch in the stock market. Turned out to be a pretty good retirement strategy.

GreenToTheCore

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Re: Why Working Till Whenever is a Risky Retirement Strategy
« Reply #12 on: June 25, 2019, 10:42:17 AM »
They stuck this gem at the very end of her story segment, then no further discussion about it.
If she stopped paying the dog show and "other competitive event" fees then I wonder if she would be able to live on her savings.

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ďThis is a topic that makes me really uncomfortable, so I am not studying when we start circling the drain on a very frequent basis,Ē she said.

At this point, Ms. Parker is seeking full-time work and hoping to postpone filing for Social Security until her full retirement age of 66. She expects the coupleís combined Social Security benefit to provide $4,000 in monthly income.

She wants to work as long as possible, partly to support her lifelong passion for dogs ó she has four bull terriers and participates in dog shows and other competitive events.

GreenToTheCore

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Re: Why Working Till Whenever is a Risky Retirement Strategy
« Reply #13 on: June 25, 2019, 10:46:05 AM »
I wish these articles would touch on lifestyle cost.
It would probably explain the Ms. White story, too.


Thanks for sharing.
Sometimes I gotta remind myself that an article can't address all the good money practices, that even addressing just one aspect is a huge win.