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]

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]

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]

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]

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]

Any excess money that they have now is mostly a waste.

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.

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]

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.

 

[Cut-Throat]

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]

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]

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?

 

[Cut-Throat]

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]

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]

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.

 

[johnbrady]

Interesting musings here. A common theme that rings true for me is the, shall we call it frugalness, of our forbears. Certainly that applies in the case of my parents, who were children of the depression. They had a comfortable lifestyle as young kids, and then in their teens the economic rug was pulled out.

Now they have plenty of resources. They live in a very middle class golf community in Ft. Myers, whereas they could live in a much nicer one. They won't by a new car, the old Park Avenue ('93 or so) runs great. Except of course when it's breaking down somewhere in the Florida traffic. Their latest adventure is buying stuff at the Goodwill. I have to admit some of is pretty nice, though.

Thanks for your thoughts on this. I can't imagine retiring to where my folks did. It seems too sterile and a little too boring. On the other hand, they love it. So Godbless.

 

[youbet]

On the other hand, they love it. So Godbless.

There ya go...... When your kids think that whatever you're doing for retirement is sick-o, dumb, boring or whatever, you can think back to your folks. They did what they wanted.....screw what the goofy kids think. And you'll smile and do what you want.

 

[LoveNumbers]

Great thread. Thanks for starting it.

My dad left his native land with only the clothes on his back. I was born into a great country with unlimited potentials. Material-wise I am doing much better. Money was tight but my five siblings and I were never hungry.

Will I retire any different than my dad? The money I made through out my career is probably 1000 times more than he ever did. But contentment is something I've yet to learn. My dad is still taking classes in the local college at age 90. If I ever learn to stop complaining about the social injustice, I'd have arrived.

Jenni

 

[renferme]

I Er'd at 57.5 ; my Dad retired at 62.
I was ready to retire and am happy, part-time fun job with the Pgh. Pirates.
My Dad moved from Pgh to Clearwater FL and was unhappy. He was tired of working,
but had no hobbies and nothing to do, was bored to death,,, and boredom nearly killed him. Took him 10 years to "learn how to retire".
I have a friend that ER'd about 6 months ago, he's coming back to the same job as a contractor... I suspect his "retirement" went something like my Dad's.
I guess if you ER - you'd better be prepared for it.... and not just financially.
The mental aspect is very important.

 

[excellent]

If the generations find satisfaction in their own unique ways then I don't see how their retirements are that disimilar. My father is content with wearing worn shoes, driving an old car, eating non-name brand foods from the market, and helping out in the community. My mother enjoys watching her children live life and gets satisfaction from many places such as church, friends, and the like. I think it's true that you learn frugality and the worth of a dollar largely from your parents. It took me a while to realize why my family lived we do when we could be "living" the life that others in their career fields choose (IE not LBYM and actually having many areas of debt), but I'm glad I learned it this early. I am actually kind of against all of the corporate overbearing forces in the world right now. Anyways, I plan to retire within 2 decades (Mid 30's or so) and I hope to find the same satisfaction from life that my parents have (Being able to do community works and be there for those in need full time would be awesome).
Sorry if it's off topic as I don't really fit into the right age bracket to even be in this thread but the stuff I wrote is just my opinion anyways...