Americans are gaining 1.1 years of life expectancy every five years -
This article does a good job of summarizing the costs faced by people and our society as we continue to extend life expectancies.
Today there are approximately 53,000 Americans who are age 100 or older, compared with just 2,300 in 1950.
Do you plan on working longer than the average person’s lifespan? Sounds ridiculous, but that’s the new face of retirement. In a survey done by Wells Fargo, it was shown that Americans have only been able to save 7% of what they need for retirement. And 30% of people that were close to the age of 62 have actually saved less than $25,000 for their retirement. The outcome is that people are now expecting to work until they are 80 years of age or older. No more is there a concrete age that you plan to retire by. The new reality is, people are better understanding the amount of money they will need to have a good retirement. If it takes working until they are 75 to reach that goal, then that is what they will do.
It also turns out that many people are choosing to work longer regardless of their financial situation. Granted, 42% of those surveyed said they hope to have a job that has less responsibility than their current job, the trend is to stay in the workforce and remain active for as long as physically and mentally possible. How do you feel about working past the average retirement age of 65? Is this something you want or have to do?
Looking for ideas on retirement jobs? Take a look at some of our suggestions.
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Imagine making $50 million in your career. Now imagine after you retire, you have to take up another 9-5 job because you have lost all of your earnings. Seems almost impossible, right? Think again. It was reported last week that NFL quarterback Mark Burnell did just that. This all happened apparently due to multiple bad investments that he had made over the years. He invested in 9 companies, six of which are already no longer in business. He put money into a high-end real estate company that bottomed out during the start of the housing crisis and he also lost every dime he put into the fast food chain, Whataburger. He’s also facing six different lawsuits and may have to pay almost $25 million towards them.
You do have to feel bad for the guy, but he does provide a good blueprint for how NOT to prepare for retirement.
Make sure you’re on the right track for your retirement by using our retirement calculator.
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People across the country have been struggling in the past couple of years to continue to put healthy food on their plates. It seems that paychecks are getting smaller (or disappearing) and the cost of food continues to rise. One way to fix the problem? Grow your own food!
Across the U.S., gardens are popping up in numbers that haven’t been seen in years. Garden-store retailers have even reported an increase in sales over the past two years. It seems that Americans who live in rural areas and have the land to plant a garden, and even city dwellers that buy a plot of land in a community garden are beginning to take matters into their own hands by growing their own food. The vegetables they grow are healthy and can save a family a significant amount of money on their grocery bill. Selling excess veggies to their neighbors in their community at farmer’s markets can also help retirees put some much needed cash back into their pockets.
Do you garden? Is it something that you do because you enjoy? Has it become supplemental income for you?
See how you can instantly strengthen your retirement plan by using our free Retirement Calculator.
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Earlier this month, consumers seemed to be scared to spend their money and it makes sense when you remember what was happening – the debt ceiling standoff and the downgrade of the U.S. credit rating. But now it appears that American consumers are beginning to spend once again. For August, it is expected that we will not cut our spending and that we will likely spend more money than in the previous three months.
It appears that more vacations are being taken and consumers are planning on purchasing big ticket items such as cars and appliances soon. But do you think it’s simply because people have had to hold off on these types of purchases for so long and now they just cannot wait any longer? Do you think the start of schools around the nation factors into the equation? Are you yourself spending money again or are you still pinching pennies?
See how your retirement saving is coming along by using our free retirement calculator.
When I dream of winning some game show that gives away a million dollars to the winner, my mom always tells me, “A million dollars doesn’t go as far as it used to!” Ain’t that the truth!
Recently, Forbes Magazine featured an article that discussed why $1 Million may not be enough to retire on in present day. Seems ridiculous, right? Well, maybe not so much. When you factor in that many people are living longer lives, spending more on necessities like utilities and health care and having high mortgages while going into retirement, it’s easy to see why $1 Million doesn’t stretch that far. A great rule of thumb is this: You can spend 4% of your initial savings per year, and it will last for 30 years. So say you have saved an impressive $1 Million – 4% of that is $40,000 a year. Can you live on that? Some people who don’t have mortgage payments or live in a lower cost part of the country can do this easily. But others who are helping out their children or grandchildren or those with high healthcare costs can see where $1 Million dollars may not be enough.
Figure out when you will run out of money. Use our free Retirement Calculator.
Baby Boomers are changing the face of retirement. Just ten years ago, the age at which most people hoped to retire was 64. Now in 2011, that age has increased to 69 according to a survey done by Harris Interactive. Some of it has to do with the current economic picture – people are trying to gain back what they lost in the markets. Surprisingly though, many people are postponing retirement because they are not ready to give up the satisfaction they receive from their work. That is definitely not to say that everyone wants to work a full time job for the rest of their lives, but it may mean working a part time job a few days a week or even volunteering their time. Many people just aren’t ready to live a life of pure leisure.
Does this sound crazy to you? Do you want to work part time in retirement or do you think you’ll be ready for a permanent vacation?
Read “Redefining Retirement Post Recession” the full survey from Harris Interactive.
What would you do if you were forced to retire today? Would you be financially ready? Most people have an exact date in their head of when they would like to retire. But many people are forced into early retirement due to their company downsizing, health problems or having to care for a loved one.
One way to prepare for the scenario that early retirement could become a reality is to take a step back and really look at your situation. If you were forced out of your job today, would you have health insurance? If you are under 65 and not yet eligible for Medicare, knowing that you may have to pay into COBRA or find your own personal plan may help soften the blow if the time comes. Also, look at what part of the country you’re located in. Is it too expensive for a newly decreased budget? The difference in pricing throughout the country is so large that by just moving to a new and cheaper location, you may be able to make your financial future a little more secure.
Get more tips and read the full article, “How to Cope With a Forced Retirement,” here.
Is you retirement plan strong? Find out here with our Retirement Calculator.
Why on Earth would you want to work during your retirement? Read some reasons here!
MSN news, January 30th, 2010
There’s
a lot of chatter these days about how eagerly Gen Y is embracing
entrepreneurship. But you don’t hear nearly as much about the other
demographic that’s also pursuing business ownership, driven more by
purpose than passion.
There’s
been a surge of people aged 50-plus starting businesses, and it’s
happening for a number of reasons. But today’s driving factor, according
to the Staying Ahead of the Curve 2007 survey from AARP, appears to be “financial need.”
Americans
over 55 were particularly hard hit by this past recession. Not only did
their jobless rate hit record levels, but their average length of
joblessness, according to the U.S. Bureau of Labor Statistics, was over
35 weeks, compared to 30 weeks for workers ages 25 to 34. (These stats,
provided earlier this year, were the latest supplied by the bureau.)
According to a report titled “What’s the Matter With the U.S. Job Market?” — part of the UCLA Anderson Forecast,
an economic outlook released last December — about 5.5 million lost
jobs are not coming back. So instead of seeking jobs that don’t exist,
older Americans are starting businesses. In fact, the Kauffman
Foundation reports there’s an entrepreneurial boom among 55- to
64-year-olds, who are now nearly twice as likely to start successful
businesses as 20- to 34-year-olds.
Assessing the risk
But
before you jump into reinventing yourself as an entrepreneur, remember
that starting and running a business both entail risk. And the older you
are, the lower your tolerance for risk is likely to be. Obviously,
success in business is not guaranteed, and younger entrepreneurs have
more time to regain any money lost from investing in a venture gone bad.
Late last summer, Newsweek
reported that Vivek Wadhwa, a self-described “academic, researcher,
writer and entrepreneur,” conducted a study of over 500 successful
technology businesses and found that older startup entrepreneurs were
actually more successful than younger ones — despite common perceptions.
Wadhwa credits their expertise, customer experience and relationships,
and established network of supporters for their success. Still, you’ll want to mitigate as much of the risk as possible. You can do this in several ways:
Read more of this article.
Working in Retirement: Whether as an entrepreneur or simply an employee, many seniors are turning to the working world to cement their retirements. Consider the options, benefits, and drawbacks, at NewRetirement.com.
News Observer, January 12th, 2010
Strapped for cash and short on staff, the UNC system wants the state
to lessen the six-month period that retired state employees must wait
before going back to work for North Carolina.
If the state scaled
that waiting period back to one month, as the UNC system wants, faculty
and staff members could draw retirement pay while providing expertise in
classrooms and elsewhere that, in an era of budget cuts, may otherwise
be lacking, officials say.
UNC-system leaders will discuss the
issue this week and might make it a formal part of the system’s 2011-13
legislative policy agenda – essentially, a priority list of needs to
lobby for.
For university leaders, the use of newly retired professors -
generally on a short-term, part-time basis – is a cheap way to fill
teaching slots with experienced instructors. The six-month waiting
period is, in many cases, too long to wait, said Laurie Charest, interim
vice president for human resources with the UNC system.
“Retirees
are the most valuable and most needed immediately after they retire,”
Charest said. “We’re getting a knowledgeable person to do a job,
generally at a low rate of pay.”
