The other side of the "thou shalt not retire early" coin

[DblDoc]

Saw this linked at the Bogleheads site.

Economic Principals » Blog Archive » A Longer Goodbye?

Myth: Given the growing retirement income challenge, people will have to work forever.

Reality: If individuals worked full time until at least 66, they could enjoy a long and financially secure retirement, with incomes one-third higher than if they retired at 62.

Myth: Older workers will choose to work longer on their own.
Reality: Most people retire as soon as benefits are available at age 62.

Myth: As baby boomers approach retirement, employers will embrace older workers.
Reality: Many employers are lukewarm toward retaining older workers due to concerns that they cost too much, lack current skills, and don’t plan to stick around long.

Myth: Employers will quickly change their tune in response to labor shortage.
Reality: Many employers with a high proportion of older workers are in declining industries. Others can tap global labor markets.

Myth: Older workers have little to offer employers.
Reality: Older workers often have advantages over younger workers — including higher productivity, better judgment, a stronger work ethic, and better people skills.

Myth: Phased retirement — shifting to part-time employment with a career employer — is the solution for keeping people in the workforce longer.
Reality:Many firms are reluctant to offer phased retirement due to concerns over which workers would be eligible, health insurance costs, and part-time schedules.

Myth:Most workers can work longer by remaining with their career employer.
Reality: Career employment is declining fast — only 44 percent of male workers age 58-62 are still with their age-50 employer, down from 70 percent two decades ago.

Myth:The working longer prescription is the answer for everyone.
Reality: While today’s older workers are generally healthier and better educated, up to a third could be hard pressed to work into their mid-60s due to poor health or job prospects.

Myth: Government cannot do much to encourage longer work lives.
Reality: Raising Social Security’s earliest eligibility age of 62 could push back the work/retirement divide by changing the mindset of both workers and employers.

Myth: Eliminating mandatory retirement removed a major barrier to working longer.
Reality: Mandatory retirement could actually promote longer work lives by providing both employers and workers clear expectations about when careers end.

DD

 

[Texas Proud]

Myth:Most workers can work longer by remaining with their career employer.
Reality: Career employment is declining fast — only 44 percent of male workers age 58-62 are still with their age-50 employer, down from 70 percent two decades ago.


How funny.... I turned 50 late last year and got laid off early this year.... so I am in the majority on this one!!!

Still hope to retire in 5 to 7 years... and since I had 55 on the brain when I was only 17... I am going to try and stick with that number.... at least that number to be able to do it even it I put in a couple more for safety...

 

[SteveR]

,,
How funny.... I turned 50 late last year and got laid off early this year.... so I am in the majority on this one!!!

Still hope to retire in 5 to 7 years... and since I had 55 on the brain when I was only 17... I am going to try and stick with that number.... at least that number to be able to do it even it I put in a couple more for safety...

That's what I did. I bailed on my 24 year employer at age 50 but put in a couple more years. Age 55 was my original idea with the former employer but things change and I got out as soon as I could. At age 54. As it was, I could have stayed retired but for personal reasons decided to stick around for a few more years. My last employer had no real retirement plans other than a 401(k) so leaving before age 65 was no big deal.

Given the current market...I might have stuck it out a while longer if DW did not need me at home. Nest feathering does allow one more "toys" and a greater "sleep at night factor" but it has a price. W*rking longer than you really need to has to be balanced with what you gain vs what you loose. Do the math and see if you still really want to w*rk for another 5 years; but do it because it makes sense...not because of a chosen age.

 

[Texas Proud]

Steve R...

Thanks for the words.... I would have stayed where I was if I could.... they kicked me out...

BUT, I have a nice severance and will be 'paid' double for awhile as I get my old check and now my new one!!!

And I am about to have a family.... getting married later in the year and will pick up a couple of kids... so I will have to see how much difference the cost of living will be... SO, some 'feathering' as you put it is OK with me... and since I have a new job, it is not boring yet...

 

[SteveR]

Steve R...

Thanks for the words.... I would have stayed where I was if I could.... they kicked me out...

BUT, I have a nice severance and will be 'paid' double for awhile as I get my old check and now my new one!!!

And I am about to have a family.... getting married later in the year and will pick up a couple of kids... so I will have to see how much difference the cost of living will be... SO, some 'feathering' as you put it is OK with me... and since I have a new job, it is not boring yet...

Congratulations on the new family. I have quite a collection of family after three marriages. My newest family gave me 2 grown daughters and 4 grandkids.

Good luck with the new job. Enjoy your new life and your new family.