March 29, 2018
Future Retirees Financially Fragile
The scary thing about fully retiring is the obvious thing: the ability to earn stops cold.
Most retirees live on what they get from Social Security and what they can spend from their savings, if they have any. So how many older Americans with fixed incomes can accurately be described as being in difficult straits financially?
Only about 10 percent of retired people today are being forced to cut back on food and medications to pay their other bills, concludes a summary of recent studies on retirement income by the Center for Retirement Research (CRR), which supports this blog.
Tomorrow’s retirees have a more troubling outlook, in part because they will be dramatically more reliant on 401(k)s.
The typical middle-income worker in Generation X, who ranges in age from 37 to 53, can expect his savings to supply 42 percent of his total income when he retires. Savings are necessary for just 27 percent of the total income of current retirees born during the Great Depression and World War II, according to one of the studies summarized by CRR and conducted by the Urban Institute and U.S. Social Security Administration. …Learn More
March 27, 2018
Boomers Do Retirement their Way
In the two years since starting a series of blogs, “Boomers: Rewriting Retirement,” I’ve profiled five willing baby boomers in various phases of retirement as they grapple with a variety of issues.
The individual profiles are again posted here, in the event one of them might be helpful to a reader who missed it the first time.
And we’re always looking for more guinea pigs, if anyone has an interesting story to tell!
Click on the links at the end of each headline:
- “A Familiar Dilemma: to Work or Retire.”
- “Finally retired. Now What?”
- “Caring for her elderly parents 24/7.”
- “The Ultimate in Travel: Retiring Abroad.”
March 15, 2018
Boomers are Longing to Retire Overseas
Australia, Cambodia, Laos, Thailand, Spain, Portugal, Scotland, Ecuador, Belize, Nicaragua – our readers living all over the world, or planning to, shared their experiences in comments posted to a February blog, “The Ultimate Travel: Retiring Abroad.”
The article profiled a Houston couple on the verge of retiring who are systematically exploring cities that interest them in Panama and Costa Rica. Few blogs have elicited so many comments – no doubt because thoughts of retiring overseas are more fun than worrying about whether the 401(k) account has enough money in it.
The success of retiree Dennis Desmond and his wife’s relocation to Australia makes it hard to resist temptation. “The weather here is incredible, the people are fantastically friendly, and the scenery is wonderful,” Desmond said in his comment.
But the picture isn’t all roses. William Pederson wrote in his comment that he knows five couples who’ve moved overseas and returned stateside. “You get what you pay for,” he said.
Here’s more of the fun stuff, and a few downsides, from our readers: …Learn More
March 13, 2018
Dreams of Retirement? Watch for Pitfalls
Early last year, a client who was a month away from retiring walked into Matthew Jackson’s office and asked him to manage his money. Then the client started pulling financial statements out of a folder and slid them across the desk.
“I’m excited for you,” Jackson recalled was his first reaction. “But let’s talk more about what you want to do with your money, rather than want you want to do for your money.”
The client “looked at me and then past me. In 4 or 5 seconds he said, ‘Matt I have no idea.’”
To prod others into weighing this critical question for themselves, Jackson wrote a book, “The Retirement Dreammaker: Master the Art of Retirement Abundance.”
And the dream maker is not Jackson – it’s you.
People facing impending retirement are about to hop on a wild ride that will take them from the emotional high of having the freedom to do whatever they like to an unfamiliar low: no job to give them purpose. Because of that, Jackson is on a mission to warn baby boomers they need to really prepare emotionally for retirement, just as they should prepare financially. (A financial planner turned financial coach, Jackson’s new book also includes a financial chapter.)
“The ultimate freedom is the freedom to follow your purpose,” he said in an interview.
Jackson’s goal in trying to help people who don’t prepare emotionally is not simple but boils down to this: he does not “pump people up – rah-rah.” He prefers to warn of the six retirement pitfalls: …Learn More
March 8, 2018
Retirement – Ripped from the Headlines!
When Squared Away first went live almost seven years ago, few reporters in the mainstream media wrote regularly about retirement. Things have really changed.
The Washington Post recently declared a “new reality of old age in America.” The New York Times and The Boston Globe have regular retirement writers. Even The New Yorker – the go-to read for the aging but still hip – dived in and investigated an abhorrent case involving an abused elderly woman.
Retirement is a hot topic, because some 10,000 boomers have been retiring daily for years – in fact, the media frequently cite this statistic – and an unprecedented number of the boomers who still work are thinking a lot about whether or when to stop.
This blog publishes twice a week, and I don’t have time for the in-depth investigations I did as a Boston Globe reporter. But plenty of newspaper and magazine reporters are exploring retirement issues in great detail.
Here are five of the best articles in recent months:
The New Yorker: “How the Elderly Lose their Rights”:
Metropolitan newspapers often cover local nursing homes charged with elder abuse. This lengthy article is about one government-appointed guardian’s abuse of one elderly woman. This extreme case carries a larger message: how readily some people take advantage of the most vulnerable elderly.
The New York Times: “There’s Community and Consensus. But it’s No Commune.”
Here’s some good news: rather than funnel older people into housing strictly for the elderly, multigenerational “co-housing” developments offer children of the 1960s a place to live, where they can remain engaged with younger people – and society.
The Atlantic: “This is What Life Without Retirement Savings Looks Like”:
Analyses by our research center here at Boston College find that about half of working Americans should have enough money to retire. But the other half of retirees will rely solely on their Social Security. This woman, age 76, had to go to work at a grocery store to supplement her income. …Learn More
March 1, 2018
Future ‘Retirees’ Plan to Work
Most people used to sign up for Social Security when they were fairly young – around 62, which is the earliest age allowed. Not today: fewer than 40 percent are filing for benefits at that age.
So what else are we doing differently? Well, working in retirement is high on the list.
About one in three Americans calling themselves retired in a new AARP survey have worked or now work in part-time, seasonal and sporadic jobs or sometimes full-time.
Keeping in mind that people don’t always do what they’d planned, boomers’ expectations for work exceed what current retirees are doing. Well over half of workers over 50 plan to find some kind of work after they retire.
The seeming oxymoron – working “retirees” – plays out in various ways. State and local government workers retire as early as their 50s if they’ve worked enough years to max out their pensions. Some of these civil servants find other jobs while collecting a pension. Boomers who’ve left career jobs but lack a pension cut back to part-time work in their field or find a full- or part-time job in a new field.
Money is a major reason, with a notable exception. Some people work into their late 60s or 70s because they just enjoy it. They’re usually the most educated and frequently see their jobs as a labor of love that sustains their personal growth, professional identities, or relationships. …Learn More
February 20, 2018
What’s New in Retirement Research
Millennials, longevity, Americans’ retirement outlook – these are among the topics economists tackle in five interesting research briefs.
Links to each brief below appear at the end of their titles. (Full disclosure: the researchers are at the Center for Retirement Research at Boston College, which funds this blog.)
- “Will Millennials Be Ready for Retirement?” – They are the most educated generation. Yet they lag previous generations of young adults in their retirement preparedness. Student loan debt is one big reason.
- “National Retirement Risk Index Shows Modest Improvement in 2016” – Rising house prices boosted individuals’ wealth, modestly improving our retirement outlook. But, again, Millennials face significant headwinds.
- “Is Working Longer a Good Prescription for All? – Most households’ retirement plans would benefit from working longer, saving more, and delaying Social Security. Low-income and less-educated workers with the most to gain financially, however have fewer job options for postponing retirement. …