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Vanguard Retirement Study
Old 03-02-2007, 08:41 AM   #1
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Vanguard Retirement Study

From a recent Vanguard sudy:

Six Paths to Retirement

"The study, based on a survey of 2,500 Americans ages 40 to 69, identified six common "paths" to retirement and found that three-quarters of older Americans are on one of the top three:

* Early retirement. People in this group (29% of those surveyed) usually leave their full-time jobs in their 50s and never work again. A company pension or 401(k)-type investment plan can help make this possible, as can a lifelong habit of saving diligently. But you might also be on this path if you're in poor health or if you have a high school education or less.
* Work and play. A small number (12%) leave full-time work in their 50s but quickly take on high levels of part-time work or self-employment. You're probably on this path if you want to continue working to stay active or make extra money, or simply because you enjoy it.
* Delayed retirement. Individuals on this path (35%) leave the full-time workforce much later, in their 60s. Yet three-quarters resume working full- or part-time into their late 60s. A big reason for this: lack of financial resources or poor saving habits in the past.

The other paths defined by the study:

* Returning to work. These individuals (5%) retire in their 50s but then go back to work, for both psychological and financial reasons.
* Spouse's retirement. Those on this path (9%) are likely to be married women who didn't work full-time in their 40s and 50s and so never really experience a traditional exit from full-time work.
* Never retiring. One of every ten older Americans is still working—and plans never to retire!"


I was surprised by the high percentage (29%) who fell into the "early retirement" category until I saw it included those with less education and poor health. Wonder what the % would be if those two categories were removed?

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Re: Vanguard Retirement Study
Old 03-02-2007, 09:01 AM   #2
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Re: Vanguard Retirement Study

The numbers don't add up to 100%. I don't understand the tie to education level for one group and not using it for the others, too. It also doesn't distinguish between those who left the workforce voluntarily and those who didn't.

It is interesting that 41% leave the work force in their 50's. That's pretty high when the media rhetoric suggests that more older Americans will continue to work past retirement age.

In this age of information overload, the truth has to be out there somewhere!

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Re: Vanguard Retirement Study
Old 03-02-2007, 09:13 AM   #3
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Re: Vanguard Retirement Study

Quote:
Originally Posted by OkieTexan
The numbers don't add up to 100%.


29% - Early retirement
12% - Work & play
35% - Delayed retirement
5% - Return to work
9% - Spouse's retirement
10% - Never retiring
100%

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Re: Vanguard Retirement Study
Old 03-02-2007, 09:46 AM   #4
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Re: Vanguard Retirement Study

But you might also be on this path if you're in poor health or if you have a high school education or less.

Assuming you are not a "higher education generated professional" there is a good chance you have a physically demanding job. "Physical burn out" is much more possible under these conditions...

- Ron
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Re: Vanguard Retirement Study
Old 03-02-2007, 10:19 AM   #5
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Re: Vanguard Retirement Study

Quote:
Originally Posted by REWahoo!
10% - Never retiring
100%
Sorry, I missed the 1 in 10. That's 10% every time!

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