REWahoo
Give me a museum and I'll fill it. (Picasso) Give
As if those reading this forum needed added motivation to reach FIRE sooner...
In his column today in my local paper (not online), Scott Burns talks about two critical questions those approaching retirement must answer:
1. Do I have the resources to retire now?
2. Do I have the option of working longer?
Burns discusses the relative merits of the four possible responses, from the most favorable (“yes, yes”), to the least favorable (“no, no”). However, the meatiest part of his column is devoted to the third, and likely the most common response to the two questions: No, I don’t have the resources to retire now, and yes, I have the option of working longer. He cautions those in this category to do a reality check, citing the very high likelihood of someone in their 50’s experiencing a “shock” that could dramatically reduce their retirement security.
According to the Center for Retirement Research at Boston College, there is a 69% chance of someone between the ages of 51 and 61 experiencing at least one of these events:
A major medical condition - 41.3%
A health-related work limitation - 33.7%
Severe disability - 6.9%
Enter a nursing home - 3.4%
Job layoff - 18.7%
Divorce - 2.3%
Widowed - 7.3%
(The column notes the percentages add up to more than 69% because some individuals experience more than one event.)
“Only three people in 10 get through their 50’s unscathed”, says Burns. This is why so many people in their 50’s and early 60’s respond to the two questions above with a “no, no” answer.
Yikes!
NOTE: This column is not currently available on Burn’s website. I will post a link as soon as it is available.
In his column today in my local paper (not online), Scott Burns talks about two critical questions those approaching retirement must answer:
1. Do I have the resources to retire now?
2. Do I have the option of working longer?
Burns discusses the relative merits of the four possible responses, from the most favorable (“yes, yes”), to the least favorable (“no, no”). However, the meatiest part of his column is devoted to the third, and likely the most common response to the two questions: No, I don’t have the resources to retire now, and yes, I have the option of working longer. He cautions those in this category to do a reality check, citing the very high likelihood of someone in their 50’s experiencing a “shock” that could dramatically reduce their retirement security.
According to the Center for Retirement Research at Boston College, there is a 69% chance of someone between the ages of 51 and 61 experiencing at least one of these events:
A major medical condition - 41.3%
A health-related work limitation - 33.7%
Severe disability - 6.9%
Enter a nursing home - 3.4%
Job layoff - 18.7%
Divorce - 2.3%
Widowed - 7.3%
(The column notes the percentages add up to more than 69% because some individuals experience more than one event.)
“Only three people in 10 get through their 50’s unscathed”, says Burns. This is why so many people in their 50’s and early 60’s respond to the two questions above with a “no, no” answer.
Yikes!
NOTE: This column is not currently available on Burn’s website. I will post a link as soon as it is available.