"Many Plan to Keep Working Into Retirement" article

[wildcat]

http://biz.yahoo.com/ap/050817/worki...etirement.html

Either these people don't have jack saved for retirement or have yet to discover the forum.

One part in the article that bothered me was the notion that older workers refusing to leave will reduce opportunities for younger workers. If true

But some threads have included stories of older employees getting the boot b/c of age so it is hard to tell which will win out.

[Dawg52]

Quote:

Originally Posted by wildcat http://biz.yahoo.com/ap/050817/worki...etirement.html One part in the article that bothered me was the notion that older workers refusing to leave will reduce opportunities for younger workers.* If true*

I will be doing my part in 16 months.*

[peggy]

Quote:

One part in the article that bothered me was the notion that older workers refusing to leave will reduce opportunities for younger workers.

It was a similar situation (lots of young men needing jobs currently held by older workers) that led to the formation of Social Security, if I recall correctly. I wonder what steps the government will take if this situation does play out this way.

And it's worth noting that just because people aren't optimistic doesn't mean those opinions are necessarily grounded in fact--just look at all those articles saying you'll need 80 to 100% of your pre-retirement income, as one example.

We on this forum know that's not true, but many people are swallowing it hook, line, and sinker, thus distorting their perceptions of what their retirement will really be like. Once they get there, perhaps they'll realize that, despite their pessimism, they may not be in as bad a shape as they thought they were.

Which would render all of the speculations in the linked article (however interesting) moot.

[SteveR]

Quote:

About 18 percent of all the workers surveyed -- and 28 percent of boomers -- said they plan to work part-time in retirement because of a need for money, according to the survey. The overall figure is up from 10 percent the last time the survey was done in 2000, at the height of the economic boom. The number indicating they plan to work part-time to satisfy personal interests or for fun dropped sharply from 42 percent to 27 percent. "People are less optimistic about their ability to live on their retirement income," said Carl Van Horn, director of the Heldrich Center.

Quote:

Nine in 10 workers would like to retire by age 65 -- roughly the same as indicated in the last survey. But the gulf between that goal and financial reality has widened. In 2000, 82 percent said they'd be financially able to retire by 65. In the newest survey, the number has dropped to 63 percent.

This information in this article would suggest that SS won't be as fragile as once thought. With all these people still working and paying into the system, we should be fully funded for a long long time.

As for making way for the younger workers....the next generation is far smaller than the Baby Boomers so there should be plenty of room as they retire.

[charlie]

Scott Burns recently wrote an article that showed how the average
couple reduces spending naturally as they age .... almost matching
the rate of inflation as I recall. That has been the case for Lynda
and myself. This raises the possibility that those retirement calculators
that project spending in retirement rising at the rate of inflation
are overstating the required nest egg for survival.

Cheers,

Charlie

[Nords]

Quote:

Originally Posted by charlie Scott Burns recently wrote an article that showed how the average couple reduces spending naturally as they age .... almost matching the rate of inflation as I recall.* That has been the case for Lynda and myself.* *This raises the possibility that those retirement calculators that project spending in retirement* rising at the rate of inflation are overstating the required nest egg for survival. Cheers, Charlie

Keep in mind that the original study of that phenomenon did not address health care costs, and the anecdotal info is coming from people who aren't paying five-figure amounts in continuing-care facilities.

Survivor bias indeed.

[MJ]

Quote:

Originally Posted by SteveR This information in this article would suggest that SS won't be as fragile as once thought. With all these people still working and paying into the system, we should be fully funded for a long long time. As for making way for the younger workers....the next generation is far smaller than the Baby Boomers so there should be plenty of room as they retire.

This is great news!
People believing that they need to have a larger nest egg to retire, will continue to work into their late sixties contributing to SSA. When they retire with a much larger nest egg then they really needed, they will fire up the econony with all that extra cash to try to make up for lost time.