May 2016

Person screaming

To Escape Stress, Some Workers Retire

Call it the “fed-up factor” – the uncomfortable circumstances at work that spur some older people to retire, sometimes prematurely.

Squared Away’s readers recently shared their personal experiences in comments posted to a blog post about three job characteristics, identified by researchers, that are linked to earlier retirements: stress, inflexibility, and increasing demands.

Working in the healthcare field has had unique stresses – at high levels – for one reader, Elin Zander, a dietician. Stress “is experienced by clinicians trying to provide quality care in an ever more difficult environment,” she said. “That is why I will retire as soon as I can afford to.”

Paul Brustowicz and his wife both retired to remove themselves from uncomfortable situations – her retirement was to relieve her stress from working as a manager in the demanding healthcare field. As for Brustowicz, “an abrupt change in management with a supervisor who treated me like a newcomer changed by mind,” he said.  He had planned to work until 68 but didn’t make it to 67 in his non-managerial job as a training professional for a life insurance company.

John Schmidt’s stress came in working as a high-tech consultant after 30 years in the field – though not for obvious reasons. …Learn More

Housing, Health Are 1/2 of Elderly’s Costs

How will your spending change once you retire? Will you be able to afford your needs? Will healthcare drain your budget?

The U.S. Bureau of Labor Statistics (BLS) provides some clues in its data on the spending patterns of older Americans. The pie charts below show the percentage of total household budgets in 2014 that went to everything from housing to entertainment for two older age groups.

The two age groups selected highlight how spending changes between one’s final years in the labor force (ages 55-64) and retirement (the over-75 group). (Note: a household’s age is determined by the age of the individual who responded to the survey.)

pies

The pie charts tell part of the story. Here’s what the BLS report adds to our understanding of spending among older Americans:

  • Housing. Nearly 70 percent of elderly homeowners over age 75 have paid off their mortgages, while only a third in the 55-64 group have. But there are other costs associated with homeownership, such as maintenance. And a large minority of older people are renters. The upshot: housing gobbles up about one-third of older households’ yearly budgets, regardless of their age.
  • Healthcare. The share of the 75-plus elderly population’s total spending that goes toward health care (15.6 percent) is nearly double that of the younger group (8.8 percent). … 

Learn More

12