When is a lower paying job worth more? When you get to keep more of your paycheck. An excellent benefits package, for example, can save you money, while a long commute might cost you. The little things add up fast. …
Retirement often doesn't play out the way we intended. There has been a standing trend of non-retirees planning on retiring earlier than they're actually able to in the end. The average age of retirement right now is 62, although the average age of expected retirement is 66. But, what causes some workers to retire earlier than others? In a perfect world, we would retire because we could afford to do so, but unfortunately, other factors like stress or physical or health limitations are more often the cause.
Unfortunately, only a very small minority of workers are really saving enough for retirement. In fact, many aren't saving at all. Let's look at a couple quick statistics from a study done this summer by the U.S. Government Accountability Office (GAO) to see just how much folks are actually putting away. Here are a few facts.
There is no shortage of reminders urging you to prepare for your retirement in advance – even in your 20s, as far in advance as you possibly can. These days, people are also considering other kinds of preparations that go beyond finances. For example, there's a move toward emotionally preparing for retirement, which seems like a good idea since new research has linked depression with retirement, especially for men.
For many of us, retirement inspires mixed feelings. Of course it's an interesting phase of life to ponder. But, fantasizing about how lovely it will be to wake up without an alarm clock, or to retire the suits and ties and dress shoes to the back of the closet only to be worn again on special occasions, is really only the beginning. Pretty soon we start to wonder: what would I even do with all that free time?
There may be something of a retirement crisis in America. Due to a strained economy, high education costs, and fewer companies offering retirement accounts to employees, workers are expecting to retire later than they used to. But, for at least a decade, folks have tended to leave their working lives behind sooner than they expected – often due to health problems or some other factor. Now, although the expected retirement age is 66, the average age for making the move is actually 62. The crisis then is pretty clear – a lot of folks are retiring without quite being able to afford to do so.
Retirement can be one of the greatest times of our lives, and making smart decisions about how and where to spend those years can make all the difference in the world. You want to retire somewhere safe, somewhere lovely ... plus, wherever you choose needs to have solid healthcare options and, perhaps most importantly, a cost of living that you can afford.
Generation Xers are known for a lot of things. They're cynical, yet entrepreneurial, individualistic, and super tech-savvy. But some fear that, soon, they'll be known for something else – their total and complete lack of planning and preparation for retirement. Here's what you need to know.
A few weeks ago, I wrote about how retirees have more education debt than ever. For some, the simple solution is to pay down what you can with your monthly allowance and leave the rest to liquid assets. But for the more determined folk who've left the workforce, coming up with more money after retirement might mean going back to work — at least, part-time.