Will baby boomers retire different from their parents

[johnbrady]

Here is a question i've been wondering about. Baby boomers, by definition, think we do things cooler and smarter than our parents ever could. But do you think that will play out in retirement as well? Or have we mellowed to the point where our retirements will be more or less the same as our parents. If you have any thoughts about this, i would love to hear them, including war stories on how your "golden years" are different.

[Patrick]

Quote:

Originally Posted by boomerbaby Here is a question i've been wondering about. Baby boomers, by definition, think we do things cooler and smarter than our parents ever could. But do you think that will play out in retirement as well?

It already has for me. My dad retired when he was 69, I retired at 49. My income is about 3X his. Also, my annual income is about equal to his entire savings. He lives in a godforsaken desert. I live at the beach.

[setab]

I'm not sure I agree with your premise that boomers think they do things cooler and better. However, I retired a year later than my father (59 verses 58) but still dabble a little at various things on my schedule. His house was paid for; mine is not. He was more frugal than I have been, so I'm not sure who the "cooler" one was. He liked to travel; I enjoy some travel, but would rather hang out at home. Frankly, I don't see a lot of difference.

setab

[Martha]

My father went from running a small chicken farm with his father to running a small business out of his home designing and making radio collars to track animals. This was an interesting business. I remember as a child out in rural Minnesota having a Saudi prince come visit our home in his flowing robes to meet my father who designed a radio collar for his hunting falcon.

My dad did not have a lot of business acumen and didn't patent anything he designed and didn't charge enough for what he made. So we didn't have much money. The money dropped even more after my mother died and my father had to manage 4 children, two who where in diapers and one who was disabled. He had a lot of health problems and so he gradually worked less and towards the end of his life got social security disability. His goal was to live until my brother finished high school. He just made it. he always had a good attitude, was never depressed about life, and enjoyed his work.

My life turned out so different from his life that there is no comparison.

[Mr._johngalt]

Quote:

Originally Posted by Patrick It already has for me. My dad retired when he was 69, I retired at 49. My income is about 3X his. Also, my annual income is about equal to his entire savings. He lives in a godforsaken desert. I live at the beach.

Not a "boomer". Missed by a couple years. My entire adult life was
lived on a much grander scale than my folks. Retirement also.
Dad quit at 67. I "SEMIed" at 49.

JG

[kcowan]

Dad retired at 65 and lived humbly for 30 years. I retired at 59 and am living well so far (4 years with spouse, father's spouse died when he was 65):
Us - Him - What?
2000 - 800 - House s.f.
2 - 1 - Cars
3000 - 100 - Gifts to children each year
4 - 0 - Travel
0 - 800 - Cottage s.f.

[RockMiner]

Both my parents would be shocked if they were still alive. They were pretty much of the "work and save until you die" mentality...spending of any kind was to be avoided. I cannot go down that same road.

[Nords]

Quote:

Originally Posted by Rock They were pretty much of the "work and save until you die" mentality...spending of any kind was to be avoided. I cannot go down that same road.

I think the govt and the financial industry are working very hard to get more Boomers to pick up at least one of the two mentalities.

[riskadverse]

My dad FIRE'd at 55. I made it at 56. I was about 14 before I figured out he wasn't poor, but he chose to drive an old car and live below his means. I didn't quite understand it at that time, but something must have stuck, because I end up pinching a penny at least as hard as he did.

[AltaRed]

Quote:

Originally Posted by riskaverse My dad FIRE'd at 55. I made it at 56. I was about 14 before I figured out he wasn't poor, but he chose to drive an old car and live below his means. I didn't quite understand it at that time, but something must have stuck, because I end up pinching a penny at least as hard as he did.

I think LBYM habits tend to stick between generations. I always was somewhat irritated at how frugal my parents were, but recognized by time I was 30 how that set them up for retirement. Spouse was in similar situation. So she and I have done much the same, though not quite as frugal as they were because my earning power was significantly larger than theirs was. Our 2 sons have been following our example so far.

[Nords]

Quote:

Originally Posted by Cut-Throat Any excess money that they have now is mostly a waste.

Quote:

Originally Posted by riskaverse I was about 14 before I figured out he wasn't poor, but he chose to drive an old car and live below his means. I didn't quite understand it at that time, but something must have stuck, because I end up pinching a penny at least as hard as he did.

Quote:

Originally Posted by AltaRed I think LBYM habits tend to stick between generations. I always was somewhat irritated at how frugal my parents were, but recognized by time I was 30 how that set them up for retirement. Spouse was in similar situation. So she and I have done much the same, though not quite as frugal as they were because my earning power was significantly larger than theirs was. Our 2 sons have been following our example so far.

LBYM frugality may be a great habit to get us to ER, and it's certainly a great habit to fall back on in tough years of ER, but why would people stay frugal long beyond the point at which it makes sense?

I think we tend to develop habits that have the greatest return on investment and we have a tough time changing a habit that's already been optimized. At the point in our lives where we could "loosen the purse strings" and "live a little", we still see more value in saving for our grandkid's education or bequeathing $35M to charities instead of a new car or flying first class or dining finely.

Especially when we can inflict our frugality on our descendents by guilting the heck outta them...

[RockMiner]

Quote:

Originally Posted by Nords LBYM frugality may be a great habit to get us to ER, and it's certainly a great habit to fall back on in tough years of ER, but why would people stay frugal long beyond the point at which it makes sense?

I see no point in frugality except as a means to an end...If I won the lottery all this LBYM crap would dissapear in a heartbeat

[sgeeeee]

A large number of baby boomers indicate that they are looking forward to a transitional retirement. They plan to cut back gradually, or switch to another (less stressful) career, or work intermittently. This is as opposed to working full-time until retirement, then quitting completely.

Time will tell whether this turns out to be true.

Quote:

Originally Posted by Nords LBYM frugality may be a great habit to get us to ER, and it's certainly a great habit to fall back on in tough years of ER, but why would people stay frugal long beyond the point at which it makes sense?

Mostly because by that time it is longer fun spending any money!

[unclemick]

Hmmm

Being a really cheap bastard when you can afford to is one way of getting your perverted left handed jollies -- vs say having to live in poverty.

Not all of us golf or ah surf.

heh heh heh heh heh heh heh heh heh heh - of course frugal in one area allows splurging in another - eye of the beholder and all that rot.

[riskadverse]

Quote:

Originally Posted by sgeeeee A large number of baby boomers indicate that they are looking forward to a transitional retirement. They plan to cut back gradually, or switch to another (less stressful) career, or work intermittently. This is as opposed to working full-time until retirement, then quitting completely. Time will tell whether this turns out to be true.

The queue for WalMart greeter must be 150 deep already. I have a hard time thinking that there are going to be jobs for all these boomers. A better plan might be to acquire a taste for pet food.

[sgeeeee]

Quote:

Originally Posted by riskaverse The queue for WalMart greeter must be 150 deep already. I have a hard time thinking that there are going to be jobs for all these boomers. A better plan might be to acquire a taste for pet food.

Yeah. I'm skeptical too. When I read what a lot of boomers are saying about transitional retirement and not wanting to stop working, I wonder if the 65 year old version of these people will think the same way. Who do they think is going to want to hire them part-time when they're 65+ years old?

Quote:

Originally Posted by sgeeeee Yeah. I'm skeptical too. When I read what a lot of boomers are saying about transitional retirement and not wanting to stop working, I wonder if the 65 year old version of these people will think the same way. Who do they think is going to want to hire them part-time when they're 65+ years old?

I agree!

I think transitional retirement is a myth. I tried it about 5 years ago. I wanted to work 20 hours per month. I only found contracts that wanted me to work 80 hours a week, and then not call me for 4 months. Impossible to plan my life around. - After 1 year of this - I quit! - Pissed me off more than a full time job.

I don't think employers are too keen on part timers at all.

[RockMiner]

Quote:

Originally Posted by Cut-Throat I think transitional retirement is a myth. I tried it about 5 years ago. I wanted to work 20 hours per month. I only found contracts that wanted me to work 80 hours a week, and then not call me for 4 months. Impossible to plan my life around. - After 1 year of this - I quit! - Pissed me off more than a full time job.

This goes to the questions I have about consulting work...pays well but a PITA to line up jobs. You need to be "on retainer" to have a steady income but then you are always on call. Flipping burgers anyone?

[kcowan]

Quote:

Originally Posted by Rock This goes to the questions I have about consulting work...pays well but a PITA to line up jobs. You need to be "on retainer" to have a steady income but then you are always on call. Flipping burgers anyone?

I also found that every assignement led to a lucrative request for fulltime employment (albeit on a consulting pay scheme). So the money after tax was very attractive and it was much more fun than neing employed. But after ten years (and three CEO jobs), I decided to retire for real. Each assignment was followed by an intense period to get the next one. Only the last one was a result of Ernst & Young headhunting me. After that, I turned down two offers so I could stay retired.