"Golden Age of Early Retirement About to End"

[REWahoo]

Don't think anyone posted this article. Better hurry up and ER. Looks like we're about to become extinct...

http://money.cnn.com/2005/10/04/retirement/dreamretire_changes_0511/index.htm

How retirement will change

NEW YORK (MONEY Magazine) - "We are living in a golden age of early retirement. Like it or not, though, that era is about to end -- and we have only our own prosperity to blame.

In just three generations America has grown so rich that the average worker retires at just 62, four years earlier than his grandfather did. That other byproduct of economic progress -- a longer, healthier life -- has stretched retirement four more years at the other end as well. This isn't bad. It's progress.

The only problem is, within the next two decades, those eight "bonus" years of leisure are about to collide with the 76 million baby boomers now hurtling toward their sixties. It's going to be awfully tough for the economy to support so many nonworking people for so long. "

 

[Mr._johngalt]

Don't think anyone posted this article.  Better hurry up and ER.  Looks like we're about to become extinct...

http://money.cnn.com/2005/10/04/retirement/dreamretire_changes_0511/index.htm

How retirement will change

NEW YORK (MONEY Magazine) - "We are living in a golden age of early retirement.  Like it or not, though, that era is about to end -- and we have only our own prosperity to blame.

In just three generations America has grown so rich that the average worker retires at just 62, four years earlier than his grandfather did. That other byproduct of economic progress -- a longer, healthier life -- has stretched retirement four more years at the other end as well. This isn't bad. It's progress.

The only problem is, within the next two decades, those eight "bonus" years of leisure are about to collide with the 76 million baby boomers now hurtling toward their sixties. It's going to be awfully tough for the economy to support so many nonworking people for so long. "

I just read this article today at the library. More importantly (to me) were
glowing reports in MONEY and The WSJ on the vehicles where I have
a huge amount of my portfolio. Nice to see. I came home and told DW I was
a genius. She ignored me. I don't get no respect

JG

 

[dex]

In the '80s the world was going to end with nuclear war.

It's always something!

 

[laurence]

So employers will entice workers to stay longer with higher wages, it's all good!

 

[yakers]

So employers will entice workers to stay longer with higher wages, it's all good! 

Great attitude Laurence. And about right. Nothing wrong with working a bit if the pay and the work is worth it. Get FI and it all flows from there. Can't lose.

 

[Nords]

In just three generations America has grown so rich that the average worker retires at just 62, four years earlier than his grandfather did. That other byproduct of economic progress -- a longer, healthier life -- has stretched retirement four more years at the other end as well. This isn't bad. It's progress.

The only problem is, within the next two decades, those eight "bonus" years of leisure are about to collide with the 76 million baby boomers now hurtling toward their sixties. It's going to be awfully tough for the economy to support so many nonworking people for so long.

Where's the part about the crushing credit-card debt? Or the boomers having 125% home-equity loans? Or wanting to work until they're 85 so that they can continue to feel "fulfilled"?

Between immigration & overcompetitive boomers I've stopped worrying about Social Security. Plenty of people will be paying into it for a long time, and then dropping dead of overwork before they can withdraw their fair share...

 

[SteveR]

Nords,

Very good point.  We may live longer and retire earlier than our grandparents and parents but we will also do so on less security too.  With the loss of pensions and more reliance on self for savings for retirement, those that are prepared will do fine.  Those that think they can retire like Dad did, are in for a shock.  Those are the ones that will keep SS afloat and the taxes coming in to fund Medicare and the various governements while we piddle with whatever we wish to do and sip our mint julips as we watch the traffic jams in the neighborhood twice a day as every one else continues to work to live.

 

[Tadpole]

Between immigration & overcompetitive boomers I've stopped worrying about Social Security.  Plenty of people will be paying into it for a long time, and then dropping dead of overwork before they can withdraw their fair share...

I agree with Nords as long as these boomers don't loose their jobs and immigrants become visible economies. The laborer (greater % of boomers) will reduce to SS and part time employment but they will not delay retirement. The switch to 401K matching pension plans makes retirement look like throwing away free money if the matching is large enough. Great psychological impact as long as the future tax implications are ignored.

 

[LEX]

The article ignores the axiom proven in countless case studies played out on this board:  If you LBYM and FIRE, you are not going to easily be drawn into the "high needs gotta have a salary" cycle. Personal freedom in ER is the basic result if you so choose.  If there is such concern about the labor force going home early, why didn't these employers ever attempt to create working conditions that one would not seek to walk away from given any reasonable choice? I believe there will be a trend that is just starting for the wealth base to migrate offshore with the people voting with their feet and wire transfers to international economies rather than allowing the US to tax them back into being a wage slave.

If human capital were of value this would never be an issue.  Anyway there are plenty of places to ER and no one is required to remain in the US and be a demographic statistic if this high population presents any issue that would interfere with ER in the US.  Change your dollars into some other currency, and go where your wealth and lifestyle will take you.  It's a bigger world, with way more options in ER than the American financial press, (which is just the house organ for the big banking/brokerage firms), would have you believe.

You are now free to move anywhere and shop for ER support  the same way your old employer shopped offshore for cheap labor.  Maybe I will see you along the Cypriot coast some day, maybe in the Philipines, it is all open territory. 

 

[Nords]

Anyway there are plenty of places to ER and no one is required to remain in the US and be a demographic statistic if this high population presents any issue that would interfere with ER in the US.

One of the main reasons that people leave Hawaii is to live closer to their grandkids.

 

[LEX]

Nords: 

There are still ways to insulate ones assts from punitive taxes which, I expect, would be the form of social maniplulation to force people to choose work over ER.  This includes having a foreign residence and asset cache that is outside of the US jurisdictional reach.

Your points a valid one as to the desire to be close to family.  We spend about half the year offshore, and could easily keep funds offshore working to make them grow. 

I want to alert all that the concept of country diversification to protect your assets from taxation or siezure by any one government, including the US, is an issue that could become more and more relevant given the US trend to take away our personal options by regulations.

 

[Nords]

I want to alert all that the concept of country diversification to protect your assets from taxation or siezure by any one government, including the US, is an issue that could become more and more relevant given the US trend to take away our personal options by regulations.

At some point the expense of diversification outweighs its benefits...

 

[gayl]

Sounds like another re-definition of ER :
"...chuck the old idea of retiring to nothing more than beach chairs, sunshine and trashy novels... for a life that artfully blends passionate engagement, well-spent leisure and, yes, a little paid work."
Am I the only one doing something like that? I work the elections, a little tax prep, less than a day a week. Quite a change from a 60 hr week.

 

[Martha]

Sounds like another re-definition of ER :
"...chuck the old idea of retiring to nothing more than beach chairs, sunshine and trashy novels... for a life that artfully blends passionate engagement, well-spent leisure and, yes, a little paid work."
Am I the only one doing something like that? I work the elections, a little tax prep, less than a day a week. Quite a change from a 60 hr week.

So how long have you been retired? Tell me more about the tax prep work you do, if you don't mind. Do you work for someone? Just during tax season?

 

[laurence]

My step mom is semi-retiring, keeping her tax prep work. Has a fixed client base of about sixty, which turns into about 20 hours a week on average work for about 8 weeks. Granted, it's ten hours the first week and 30 hours the last week before April 15th. She loves it, everybody is a friend or family member, goes to their house to do it w/laptop and portable printer in tow.