We baby boomers tend to fool ourselves a little bit.
We were the Woodstock generation, the “never trust anyone over thirty” group: Then, of course, we all turned thirty and (for the most part) became part of the establishment.
We thought we could change the world, “All we are saying, is give peace a chance”: We are still trying to work on that one.
Now, baby boomers are turning sixty-five at an incredible rate and we are all trying to figure out retirement. According to the financial expert Jane Bryant Quinn there is a myth out there that many future retirees feel they can make up for small nest eggs by working longer. The phrase often heard is “I’ll work till I drop.” Most experts agree that if everyone works until age seventy, most retirement income problems go away.
However, that is a big “if”. According to the Bureau of Labor Statistics, in 2011 only 32.3% of men and 18.7% of women age seventy or older were still employed in some capacity.
The truth is that you are very lucky if you are still working at seventy. Half of retired people today say they were either forced out, downsized or had health problems or disabilities which took them out of the job market.
As we all have learned over the years, things don’t always work out the way we expect. One of the answers, according to Quinn, is “power saving” during the time you have left to work. Reduce expenses and pour everything you can into savings. If you don’t have the money at retirement, you will have to lower your spending anyway, probably much more.
Of course, as Quinn says, consult your financial advisers regarding your own personal situation.
(Full article: ‘Power Saving’ for Retirement, AARP Bulletin March 2013)