Some important details when considering retiring, which I have rarely seen in print: If you take retirement early and receive SSI benefits, there is an income cap of around $17,000 per year, if you want to continue working. If you wait until age 66 there is no cap on additional earnings. In a short time, the cap is for 66 and two months. This is important if you want to continue working because of necessity or desire. Also, remember to factor in the cost of health care between the time of retirement and when Medicare kicks in. This conversation needs more focus on basic specifics.
31
I’ve watched... numerous times in the past... an early morning TV show. ...Joe Scarborough... where all he spent time speaking about was eliminating entitlements...such as Medicare. Please don’t correct me...he was speaking of MediCARE. Medicare! Now... how will seniors in our country survive without Medicare. There are enough restrictions on it. What other country does not care for seniors who have spent their lives working hard. Now we worry whether we will be able to pay bill. To me, it is alarming that more is not being done to nurture seniors. Today, I heard on a show...that Joe Biden will never win because his audiences are filled with seniors. Not younger voters who are wanted. So....we are the forgotten generation!
18
"an international development expert specializing in sub-Saharan Africa, was making $200,000 a year as a consultant"
So -- she was already overpaid by $190,000 for a bogus job.
27
The headline has it backwards. Working as long as one can is a great retirement strategy, which can often make up for any savings mistakes along the way. Many retirement experts recommend it, as opposed to trying to catch up in one's 50s and 60s. Not saving enough while working is the risky retirement strategy.
The point is that a savings strategy should be chosen that pretty much guarantees a smooth retirement regardless of the age that one leaves the labor force.
16
I decided in my 40s to steer clear of the for-profit sector from then on. I made the right decision, and for 15 years I've been at a public university. It's not perfect: There are politics, favoritism, and groupthink everywhere. But people do care about their work, and it's reasonable humane. No one in my job would be let go at 55, career ruined, just to save money.
31
my view is that if you plan to retire you should do so as soon as you are financially able to. obviously if you love your job and want to keep working until you keel over at your desk or what ever is its equivalent thats fine. however the vagaries of life make putting of retirement past the time when its financially possible to do so is not a good bet. also one should factor in drawing social security before the 66 to 70 range. may financial advisers recommend waiting, but they usually dont consider that as soon as you start drawing social security you start getting the annual cost of living increases. this can reduce the additional 8 percent per year you get for delaying social security past 62 to 5 to 6 percent in most years. this means that you will have to live even longer to make waiting worth the wait. so dont.
18
It’s an odd choice to photograph Parker sitting on two of the four dog crates that old her cruelly confined dogs. And then to use that photo to head the article? It sure doesn’t make me feel any sympathy her. Awful.
18
Expecting people to work until 66 or 67, when they have done hard physical work all their lives is ridiculous. And, remember, when Tax Deferred Annuities came out in the early 70's, we were told if we saved 2% and our employer had a 1% match, we'd be able to retire in style. Then somebody ran the numbers, and it went to 10%, 15% and finally, in my age group, I'm supposed to save 30%. Nobody can do that! Quit complaining about how boomers haven't saved enough money - 401(k) and 403(b)s are failed retirement plans. We don't make enough money to save 20% or 30% of our incomes. And my employer is well-known for firing gray haired employees, but they have deep pockets, and nobody has the cash to take them on. When I walk out that door, my conscience and my hard drive will be clear.
49
This article does little to suggest "Plan B" for many who got downsized in the 2009 recession, took big hits to whatever savings they had, some losing everything. Many of US cannot possibly considering retiring - but rather, hanging on to when we can collect full social security, and not be penalized for other income. I "made my bed" divorcing in 2007, my ex is enjoying a retirement and pension, while I am still paying off Parent Plus loans from the children's college degrees. I highly recommend that retirement issues be discussed during divorces of long term marriages with dependent children. Especially for parents who may have had breaks in their employment, and lower salaries that precluded aggressive savings.
31
Another strategy, viable for some, is to retire but not to collect Social Security until 70 to maximize benefits. Delaying collecting increase payout by about 8% yearly. It does require careful planning.
3
@sosonj, and maybe a cash-in-hand job to he span the gap? Cash that doesn’t get reported in full to the IRS? Jobs like house sitting, yoga instruction, handyman work, light carpenter, etc. I’ve paid plenty of semi-retired, cash-only workers over age 60, for various services.
13
I'm in my mid fifties and work 60 hours a week at two jobs to help prepare for my retirement years. Luckily both of my jobs pay well and have excellent benefits and retirement plans. I've been at my full time job for close to 30 years and my part time gig for ten. One job offers a 401k and the other a state pension and I've been fortunate to acquire some rental property as well. i say this not to toot my own horn but to express my solidarity with other readers and the pressure we all feel to prepare for retirement. I had some set backs in my thirties and some health problems that really made me think hard and not to take anything for granted. And unfortunately we have corrupt politicians who will do nothing to ensure the the longterm viability of Medicare and Social Security.
176
@Craig D. Eakins, good for you for thinking it through. I know so many people who put nothing away for retirement, and it’s not because they don’t have the money to save or invest. They don’t save for the future because they spend all their money on pleasures they can’t really afford. And they are often the same people who say health care and college should be free for everyone.
26
@Passion for Peaches Thank you Passion for Peaches. I've been more lucky than good but I'll take it. Not sure if I agree with your overall assessment but in this country folks should always work hard and there's no reason in America why we can't have affordable health care, education and a strong social safety net for the elderly after they retire. We are rich enough and we can do it together as a nation.
72
@Passion for Peaches Yeah, all they needed to do was to give up the venti latte every day and they'd surely have more than enough to retire on. And if they'd skipped having cable TV, no skipped having a TV at all (maybe by reading library book by the light of candles they dipped themselves) then they'd surely be rich!
60
At 66, I have been retired for 6 years. That is considered young by today's standards; which are becoming as draconian as the Gilded Age.
Wages have been essentially stagnant for the last 40 years and the cost of living, especially health insurance , has skyrocketed. 2 parents have to support a family where one parent sufficed when I was a child. How in the heck is anyone suppose to "save for retirement" when most families couldn't pay for an unexpected $500 bill? Most are living paycheck to paycheck.
I was the last of the Federal Civil Service Retirement System (CSRS) eligible, and accumulated 30 years of service by age 60. I have a pension, reduced by my eligibility for SSI, but still a pension. My career was anything but steady. I left Govt. service in 1988, 1992, and didn't re-hire until 2001; trying other careers and seeking other challenges.
I am glad I saved money all my working years. I bought a house as soon as I was eligible. I bought one new vehicle in 1980, and bought used cars since. I pay off all credit cards every month and rarely purchased anything on a whim.
There is a cost to this: I have never been to Europe, Asia, Australia or anywhere off the North American continent. Vacations meant traveling within the US. I never had a family and wondered how people who did could afford one.
I could still be bankrupt by a single health issue, as could all Americans without universal healthcare.
332
@LaPine You still have time to go to Europe, Asia, Africa, etc. Travel! You deserve it!
47
@LaPine Wait a second, so it's either universal health care or nothing? You suddenly don't sound such a careful planner, or I am missing something.
8
My mom worked until she died at 55... & so I planned to retire early in case I too died young (my genes are not the best). I sacrificed & saved & have met my early retirement goals, as best as one can anyway. But how does one plan for outrageous healthcare premiums, copays, & prescriptions? No matter how solid my finances, the potential for disaster looms. Yet if I continue working, my health will suffer.
Healthcare... the leading problem facing retirees...
455
@BeTheChange Wll last I looked you are covered by Medicare at 65 -- the age most people retire.
6
@BeTheChange
My health did not suffer *because* of work, and I worked until I was 80. Do get Medicare, though. The cost of an ER visit 3 years ago was $8,000, and Medicare paid every cent.
19
@Mary Rivka
Medicare doesn't cover everything and if you're eligible for any insurance coverage from any employment, no matter how expensive it is or how poor the coverage is, you may not be covered by Medicare Part B.
32
Am 65, have about 35 weeks before I can collect Ssocial Security. I am overeducated in a very poor paying field. The last few years have been a nightmare with ageism issues. I have been replaced three times with undereducated 20 year olds who are cheaper. Some of the issues are addressed in this article- the age issue is a monster. No pensions are rampant, and if you do not make a good wage, savings are impossible. Also- one thing not addressed is the issue of workplacces not wanting to pay your astronomical health insurance over 50. This form of ageism is not addressed. I would like to hear from more people like myself who were getting by frugally. lost work in their 50s or 60s- had aging parents, health issues ( I have neither) and other crisis of adult life that cost time and money. I think there are many of us who are going to be living in poverty than is addressed.
464
@Jackie Lannin Exactly. I was fortunate that neither of my parents required financial help before they died, but health care is the huge elephant in the room, particularly for me. I'm 58 and fortunate to have no issues, but my better half has plenty and he's on my insurance. Health insurance tied to employment is a terrible idea in general but even more so as you get older.
334
@H Silk
Unfortunately, in the US it is the way to keep people tied to employers.
We don't have that problem in Canada.
What they use to keep us tied to the workplace is our meagre old-age security, which is actually dwarfed by your social security (Canadians don't know that, though).
I know it's the maximum, but your close-to-$24K-a-year is but a dream in Canada, where our maximum combined old age security and Canada Pension Plan (for working Canadians only) max out at no more than CDN$18K per year.
25
@Michele K I don't know the math, I'm taking your word on these number, but I suspect the lower social security payments in Canada are greatly offset by your taxation and national healthcare system. My Canadian friends here were very surprised to learn that social security payments are taxed in many states, including the one I live in, and that, unless you can show very low income, Americans pay about $7,920 per person each year for Medicare Parts B & D plus the supplemental "doughnut hole" policies that must be purchased from private insurers. And none of this covers dental or vision care, which increase greatly as we age, and we also pay for prescription drugs albeit at a lower rate (maybe).
61
Well, if America would give their older people health care before 65, we wouldn't have such a crisis on our hands. That America doesn't have health insurance for its citizens is unbelievable in todays automated work markets.
715
@RCJCHC Hear, hear, hear! The lack of healthcare makes all the difference. No one will hire you if they think about how your age and health status will affect their costs, if they offer insurance at all. And if you get gig work that pays enough to cover your bills, it could be too much to qualify for lower cost individual plans. And if you make little, you might not be able to keep your house, but you might be lucky enough to qualify for expanded medicaid (if you live in a state that was progressive enough to take it). I appreciate the politicians who talk about universal healthcare or Medicare for all, but at this point, I'd settle for Medicare at 55!
78
I,m sorry but this is just another article blaming older workers for not taking responsibility for their retirement.
The premise of this piece, "Why didn't they save a million dollars during their working years?" ..or" Why didn't they see the recession coming in 2008?" and "Why didn't they realize that employers would dump them on the street at age 55, or 60?"
All working Americans need a Government run retirement savings plan, that starts with their first job, with mandatory contributions, and seamlessly, moves to their next job. This plan would grow as they move from one job to next with matching employer contributions.
Not one managed by the private sector who will skim off contributions with high management fees..
If the unions, in America hadn't been gutted by "right to work " legislation pushed by the GOP, Unions would have fought to give their members a true retirement benefit.
I was a union member, and I know that is why I have a retirement income, beyond Social Security.
746
@skier 6
Unions did fight for pensions, without giving it much thought. Rather than setting up their own pensions, the unions instead got promises from companies. But companies come and go, grown and shrink. If you start work at 20 and live to 90, the company must still exist and be going strong for 70 years; most companies don't do that. Sensible companies stopped making pension promises when they realized that it was incredibly risky for them to do so -- no company can plan ahead for 70 years.
.
Mandatory IRAs (regulated and run by third parties) with mandatory employer matching contributions make a lot of sense, although Chile and Australia have both had those programs for decades and have suffered scandals. Don't kid yourself that it is easy to make this sort of thing work.
.
If you're a former union member and your pension pays out at full rates, you've won the lottery and got lucky. Corporate pensions were never sustainable; they were always a false promise negotiated by union leaders and company presidents who wouldn't be around to see the tragic results of their promises. Don't kid yourself that we can or should go back to corporate pensions; it won't and shouldn't happen.
70
@skier 6
It did say in the article you can't recover from a layoff. It was a depressing article but I didn't get the impression it blamed the older workers.
42
@skier 6
I too have a union pension along with union health insurance. I doubt without being part of an organized group that I would have ever had a pension. We have needed a national retirement system like the unions for all workers for a long time
97
Current affairs make me sick. I plan to dedicate time in retirement to political activism, but can’t relate to the kale eating, organic wine drinking, gluten-free, Keto dieting book club set, & I don’t use Facebook. So where do I start?
I’m a poster child/senior, getting by with a fraction of the salary I lost when laid off at 46. As a single older mom, all my saving was spent on healthcare paid out of pocket. After various under paid, overqualified jobs, I returned to school and started an entry level job at 52 with benefits I couldn’t afford to leave as health issues cropped up in my 60s. Its took over 10 yrs to reach 3/5 of my former income - just high enough to not qualify for assistance (aka “working poor”). The work I do now is paid in the six figures in today’s younger job market - I Googled it. Ironically, at twice their age, I’m paid half as much.
Corporations have no interest in seniors as we are a liability in their workforce. We serve them best as a retired consumer demographic. They sell us dreams of leisure & security while suckling on our dwindling retirement funds.
It’s time to wake up the sleeping giant: 10,000 people are retiring EVERYDAY. That’s a lot of newly found free time for activism by people who have gone through The Wringer.
Seniors across all cities & socioeconomic classes must unite to make changes. We’re all in the same boat. If we don’t fix the leaks, who will?
43
As soon as I hit my early retirement age it's "Philippines or bust". My retirement dollars will spend a LOT farther there than anywhere here in the States.
13
People, part of the answer is learn to spend less. Pay your dues, of course, but beyond that listen to your needs, not the needs of all those hell-bent on selling you something.
15
We are not even small cogs in a large machine anymore. We are the grease between the cogs and chains and we get slung or fall off the machinery in small greasy puddles on the floor.
You live and die and you just hope in between...
13
My full retirement age is 67.5, but I am hoping to retire at 62. I do not want to work until I drop dead
15
Having spent several years in the UK many decades ago and being familiar with healthcare systems in other advanced countries (such as Canada, Europe and Australia), I have long wondered why Corporate America itself hasn't risen up and called for national healthcare.
Rather than force thousands and thousands of businesses, large, medium and small, to divert time and effort away from their core functions to establish and manage their individual employee healthcare plans, why not consolidate all of those plans into a large, single-payer "group" plan -- such as Medicare for All -- to be run by the U.S. government for those who choose to use it (while leaving those few with the necessary resources free to resort to privately-funded medical care)?
Wouldn't that approach also help businesses make better hiring decisions by setting aside their need to take likely healthcare insurance costs, not just job qualifications and experience, into account in making hiring decisions?
At this point, I can't think of any reason for the current approach to healthcare in this country other than the consequences that such a shift would have for political campaign financing in the U.S, especially in the wake of the Citizens United decision.
Am I missing something?
35
@WW -- yes, I believe you are missing something, but maybe I'm just paranoid. Employer-provided healthcare keeps us tied to our jobs, makes it harder to move to a better position or negotiate. Along with the insurance and pharma business interests, this is more than enough reason to oppose single-payer or other non-employer-provided healthcare.
14
The other issue no one really talks about is folks in their 50s becoming disabled who quickly lose a good portion of their salary and start having a lot of medical bills.
So much for saving more for retirement and paying thousands for medications.
28
Our government's definition of the perfect American is someone who retires on Friday and dies on Saturday. Believe it.
55
I'm sorry, but the "possible age discrimination" comment is naive to put it mildly!
34
There will be more discussion of suicide as a retirement and estate planning tool.
35
Instead of cutting Social Security, cut welfare
3
@NYC Dweller
Hear, hear!
@NYC Dweller If you mean corporate welfare in the form of tax breaks and subsidies, then yes. If you mean all the various forms of assistance hard working people collect when times get tough, then be prepared for all the charities to be overwhelmed.
46
@NYC Dweller
As the cost of the Boomers becomes apparent I doubt later generations will see any difference between Social Security and the other forms of welfare that you despise.
7
So what sort of plan would you suggest? Most of us can barely afford to put any money aside for retirement and still make ends meet. I've worked overtime and taken extra jobs to try to keep up, but there are only so many hours in the day - and when you get paid a pittance per hour, it takes a lot of hours just to pay the mortgage, the utilities and the grocery bill. Then there are medical bills, of course.
But you tell us we don't have a good plan for retirement. No kidding.
I suppose we all should have chosen wealthy parents so that we could have gone to ivy league schools and landed jobs on Wall Street. How foolish of us not to have done so.
49
An interesting article. But, it overlooks the more important question: "What exactly would plan B consist of?" If Plan B is needed because your health doesn't allow you to work to 65 or 70 as you originally planned for retirement, its hard to imagine what plan B might be. Spend less? Save more earlier on? Not clear what can be done....
11
I believe that it involves a Wayback Machine and magical thinking.
25
Age discrimination is rampant, and very subtle. The messages that a person of a certain age is not wanted, "good enough" or valued run the spectrum from diminishing, disheartening, to savage.
19
People should be made aware that their purpose is to make money for wealthy people. If you are older and making less than previously, then the wealthy folks are making more.
The move toward instability in older Americans is a shift in policy that has been happening since the 60s. Yet, many older people vote for politicians who hurt them and help only the wealthy, and this includes the GOP and most of the DFL, especially the older politicians.
It certainly is unfair, but no one in this country knows what fair is. The people whine when it affects them, but never lift a finger when it is someone else.
Get used to the cruelty because this is what you vote for. If you can't see that then okay. Live with what you sowed, because it is the people of this country, not the crooks who fleece them, that have sown this end.
I know the people you elect are crooks. Why don't you?
39
As usual the same assortment of six figure income characters, suffering.
13
People seem to be working longer because they must and have not prepared. Either that or they have no life, interests, or think they will die if they retire. They are so silly; they cannot let go of their money, title, etc. Make your children financially independent so when you are older they will not ask or steal your money have seen it happen too many times.
2
the Trump government reformed the Obama rule that your financial advisor works in a fiduciary manner. again the gov is here to protect the profit maker, not the people. so Sad
31
What these stories fail to mention is that people are trying to retire while still in debt. Having a Mortgage, Renting a Condo or Apartment, Car Payments Maybe two cars, Credit Cards that are not paid off. Then trying to retire with just SS alone and some savings?
Everyone should really plan on being DEBT FREE by their 60’s. Second have a job that has a retirement Pension Benefit. Third have your own Annuity Investment plan for lifetime monthly payments. Fourth have a 401k or Roth to supplement the income and have a healthy savings in CASH for emergencies or entertainment.
11
@Erick. Many of us did plan to be debt free by our 60's...and then life got in the way. Divorce, illness and job loss have impacted many Americans who thought they were well on their way to a safe and secure retirement.
40
@Steve Don't you just love being lectured about how you did everything wrong? My husband and I were both laid off at 58, then he got sick, then we cared for (and paid for) his mother who lived with dementia for nearly 3 years, dying at 95. I was lucky enough to find another job at 60 that I love - and it actually paid more than my previous one - so I plan to stay in it until they drag me out. You can't have a couple of years like we did and come out the other side financially healthy, unless you're rich. I'm about $300,000 down from where I was when I was 58, and I'm never getting that back.
35
this works in government and public education..you are protected by seniority and can choose your date of retirement, you will have meetings (on the clock at work) and projections printed of your pension, health once you firm the date. However in the private sector quite often your last day is unknown, I know on Martin Luther King day 2018 I was told today was last day, and was forced to leave within an hour. I just made it to social security but many are not so lucky, also just paid off house and kids had graduated and working. The difference between private and public sector is amazing
25
@arthur More people need to understand this stark difference. Public job benefits exist because people are FORCED to pay taxes. Private benefits exist at the behest of the market (customers). One is coerced, and one is not.
7
@c smith believe me I am more than aware. My wife has worked too little(has an MBA but left to raise kids and could not get back on full time horse it seems) will get $1000/mo social security. I have many friends whose wives were public school teachers or state employed nurses who will have 60k pensions. I wonder if I will be able to survive and tear myself apart with regret/anger. I think so but the cumulative effect of their vacations, helping kids etc may be too much
7
I was hoping to work until I'm 70, but the gap between having to pay for Medicare at 65, and reaching my full retirement age at 66, is what drove me to take SS early. I was just getting by, when I was hit with $320 a month in Medicare premiums. Why isn't anyone talking about that?
So I filed for SS, and its not enough to live on, but its been water in the desert. It was that or continuing to spend down my retirement savings to make ends meet. I'm healthy and self-employed at something I love (an artisan field, meaning low income), so I hope to keep working until I'm 70 and try to build up my savings again.
11
The lesson in this for the young is, invest every dime you possibly can as soon as you start working. Start with a total market index mutual fund, such as that offered by Vanguard. Corollaries include never borrowing money to buy a car. If you buy a house buy the least house that you need, not the most that you can afford at the moment. Moments do not last.
35
@Richard Schumacher
I wholeheartedly agree with investing at Vanguard. We moved all of investments, taxable and retirement, to Vanguard. They are very low-cost, have an excellent website, and are trustworthy. We took advantage of their financial plan service and were extremely happy with the written and oral advice we received. We will stay with Vanguard for the rest of our lives. I
recommend reading any of John Bogle's books (Vanguard's founder) and A Random Walk Down Wall Street by Burton Malkiel. Costs matter!
15
I'm getting a crash course in healthcare costs because my mom got lung cancer and is now having complications. She is 77 and I'm 49, working full time with a school age kid at home. I learned the hard way that Medicare only pays for 20 days of hospital or skilled nursing care at 100%; then there is a co-pay, which in our case came to $170/day for skilled nursing care. The next step, if you need care 24/7 like she does, is to go to an adult family home and spend literally all your money on that, and then you apply for Medicaid because you're now poor. Most AFHs won't take Medicaid right away because it *doesn't pay enough*. They require 1-3 years of "private pay" first. This is not illegal, and the AFHs do need to make enough money to run their business, but the gov't is definitely not doing the right thing here. If you are unlucky enough to have dementia without major physical problems, you don't really have any options for publicly funded care. In a way we are lucky that her body started to break down along with her mind, so she's eligible for care. She is upset that none of her retirement savings will go to me and her granddaughter, it's all going to the AFH until it runs out. This is literally in our contract with them.
Why do we make disabled, elderly people pay for their own healthcare? This system is ridiculous and doesn't serve anyone well.
71
@Mollyo There is nothing wrong with making the elderly exhaust their savings before the govt picks up the tab. Why should an elderly person get to hand their savings to their children and then stick other taxpayers with the bill for their care. The government doesn't have an unlimited amount of funds either. I'd like to know why it costs more than $500 a day for unattractive places with mediocre food and barely attentive care.
35
@Mollyo I'm sorry to hear about your mother's illness. It's a pity she didn't look into getting a Medigap supplement plan or Advantage plan when she signed up for Medicare, because Medicare Parts A and B are not enough to cover extended hospitalizations. The "adult family home" you refer to is also known as a care home or board and care. The one my MIL was in for seven months charged her slightly more than $5,000/month. Fortunately, she had purchased LTC (long term care) insurance and kept up the premiums so her estate was ultimately reimbursed for that cost when she passed away at age 90.
8
@Steve: If only the elderly were required to do so equally. The Koch brothers, Sheldon Adelson, Robert Mercer, Jeff Bezos, and our other multi-billionaires could pay for the rest of our elderly and still die rich.
17
After experiencing it myself and seeing it happen to so many others, I have come to realize that once you hit 50 you have to be prepared to be let go by your employer at any time.
So set your expectations and plan accordingly. The only one who is going to look out for you is you.
45
I agree -- if your economic plan for your life involves a benevolent employer continuing to employ you, you're living in a dreamworld.
Everybody should always be cultivating the next wave of skills that will put you hotly in demand (this goes whether you have blue-collar or white-collar skills), and professional relationships of loyalty & trust outside your current job.
13
While it may be tempting to frame this issue as a generational battle within the workforce where cheaper younger labor replaces older costlier labor, the reality is that the economic model of this country no longer works for any of its workers, old or young.
The replacement of defined benefit retirement plans with 401(k) plans, in tandem with financial illiteracy and astronomical fees charged by non-fiduciary financial companies, have resulted in an aging workforce that cannot afford to retire, especially in the aftermath of a recession.
This makes it harder for young workers entering the labor market to advance their careers. In their cases, much of the money they could be saving for retirement is instead used to pay down their student loans, and who can fault them, since the ~7% interest rates on their loans are about the same as the historical market returns? The American dream was predicated on home-ownership, but real estate prices make young workers more likely to rent than to build equity through owning a house.
There is no way around the fact that the cost of healthcare, education, and housing are massive factors in the plight of the American worker. And even though these issues are glaring, half of our government is intent on cutting Social Security and Medicare benefits rather than strengthening them when they are increasingly needed.
61
@Bob And unlike many baby boomers, these young workers will not even inherit enough for a down payment if their elderly mother ends up on Medicaid.
10
Thank you NYT for running this article. I have been waiting for it and I requested it in several comments I made in response to similar articles.
I am over 60 and employed, but, I have been self-employed for 35 years.
Two friends, educated, successful and in tech and healthcare were laid off within the last 3 weeks. In our circle an over 55 PhD is out of work and 55 year old executive has been out since December. Two other overs 55s finally found jobs but it literally took 2 years to happen and were based on connections.
This is the dirty little secret of Trump’s booming economy.
Yes being self-employed is a good strategy for aging. However it is not without ups and downs and it is not for everyone.
Yes. Save as much as you can. I did not realize in my 40s and 50s that I was in my peak earning years. Now I pass this advice to all of my younger friends.
As for the older workers, there are some options such as FlexJobs and some sites specifically for senior workers.
Finding work after 55 is a difficult daily challenge for so many who have so much to offer, especially if they want to remain in their homes in NY Metro.
My suggestion is paid mentoring programs to exchange skills between senior and new workers. The pay for the seniors could be lower than their former salaries, and the work would be helpful and meaningful to both young and older workers and to society.
22
Many very moving comments. One thought from an oldie whose circumstances are happily pretty comfortable:
We as a nation are now several decades into the displacement of defined benefits pensions, but are having great difficulty adjusting to the new reality. I think we missed a bet by dismissing with political scorn the Bush administration's plan to reform our retirement system. Too many Americans are --or think they are -- experts on their favorite sport or hobby, but have little knowledge of -- or interest in -- basic financial matters. The government takes out of their paycheck the money to pay their federal tax obligations and support social security but basically leaves them to their own devices in providing for any additional financial security. Why not take a few bucks more out of their paychecks for required, fraud-resistant, investment in the economy on which we all depend (or expand the earned income credit concept to provide the investment for those who can't afford any further reduction in their take home pay)?
Also, a little more self discipline might be in order. Back in the fifties, which some of us are old enough to remember with affection, there was usually one family car, one TV, one phone (which was the property of the phone company) and most family vacations (back in Eastern Pennsylvania) were a few days at Lake Wallenpaupack or the Jersey shore.
10
@Lou Sernoff
I’m up for discipline for all our politicians. Some delivered with a stick.
9
@Lou Sernoff As you say in regard to individuals saving for their retirement, "a little more self-discipline might be in order." I would agree with that. But your statement that "I think we missed a bet by dismissing with political scorn the Bush administration's plan to reform our retirement system" is nuts. Do you recall the economic bubble of 2008? George W. Bush (and possibly yourself) advocated investing a portion of Social Security income from safe U.S. Treasury bills in the stock market. How do you think that would have worked out? The last place I would choose to invest my monthly Social Security payment is in the stock market. Charles Schwab also advocated investing a portion of Social Security in the stock market. I wonder why he felt so strongly about that? There are a number of ways to protect the long-term health of Social Security and Medicare, and Congress has for years avoided confronting this issue with realistic solutions . Depending on the stock market is not one of them.
10
@Lou Sernoff
GW Bush wanted to privatize social security, giving individuals the ability to invest it where the individual saw fit. Most individuals are not well-educated financially, nor disciplined enough, to invest in secure instruments, so we would have seen seniors with no social security and no retirement savings, whatsoever. GW's idea was to help the investment brokers get rich, not the individual workers paying into social security. It was a ruse and a bad plan from initial conception.
Recall, the Republicans do not look out for the common man - they look out for their bottom line and lining their pockets at the common man's expense. Vote accordingly in 2020, as it may be your life you are voting for.
28
Extra needed income can be had by renting out a room to a student or professional. This can be a godsend to those in their 50s or 60s who have lost jobs, and have had a hard time getting back into the game. Whether you have a house or an apartment, if there is a room to rent, make it as nice as possible, check out what rooms rent for in your neighborhood, and voila! You have created income that you would not have had before.
16
@MoreBlack
If you're single, extra income can also be had by giving up your house or large place and renting a room. There are many large beautiful houses with empty rooms and great owners. You may find yourself not so lonely, and a couple of footprints will be reduced as well.
3
Why aren't European engineers, (the ones Trump wants) lining up to come to the US?
Because we have such a deplorable safety net--especially as
the US is arguably the most successful country this planet has ever seen.
To have so many children and elderly living in poverty in this country is a disgusting disgrace.
106
@SLBvt - I recently retired and moved to Europe because I cannot afford to live in the United States as a senior citizen. And it is only getting worse in the US ...
31
@SLBvt
Thank the Republicans for most Americans substandard of living - and lining the Republicans pockets so they can live high on the hog! watch what happens to your taxes over the next few years. The middle and lower classes will be footing the Chump Tax Steal for the next 9 years. Best to vote Dems in 2020.
12
So many factors come into play here where the ability to see ones self into a comfortable retirement is not always the case. My own personal experience has been a 30 year high tech career, experienced 5 layoff's, managed through a great network to never loose site of the goal to remain 'gainfully' employed, protecting income and continued investments | savings. Some destiny we can manage and some is just out of our control. Being present every day, practicing good health, loving family, friends and doing your very best by what you put into the universe is how I choose to live my life. Thankful for loved ones who are there for the journey.
14
We have more information available than ever today. Sometimes I think too much because opinions are all over the board. I'm 68. Worked fulltime until last year. I was scared to quit because what I heard for the last 20 years is "you need a million dollars to retire" and "even that might not last". I saved the max plus catch up in my 401k for the last 10 years. Also had a employer match. Paid down my debt. But no way was I going to reach a million dollars soon. Afraid to quit even though I hated my job the last few years.
But medical issues occurred and I had to retire. I fought it kicking and screaming but we were offered a bonus to retire. $15k more than they first offered. Given the option of lump sum or monthly pay. I was vested in my pension and past my full SS retirement age. Indefinitely eligible for my former employer's health plan; they still pay their portion of the premiums. My part is deducted from my pension.
I found I didn't need a million dollars to live comfortably. Able to delay social security for awhile longer. Relod to a lower cost area. I have enough from my pension to cover monthly expenses. I haven't had to draw off my 401k; can leave it indefinitely until RMD kicks in, that's coming fast.
Everyone's situation is different. Take what you read online with a grain of salt. Be cautious with advice from fin'l advisors looking to invest your money. Plan as much as you can but some things you can't control.
23
Most of us - won’t have pensions. So unfortunately the million dollars may not be anywhere near enough for those without them.
12
@Ann
Based on my personal experience, I strongly suggest avoiding financial advisors (aka vampire squids) no matter what. Anyone can put their money in a low cost market index fund (Fidelity or Vanguard). Put it in and leave it there. The hard part is not panicking and selling on the downturns, but even that is doable.
7
Maybe the photo of the person losing her $200,000 a year job wasn’t such a good choice. For many that is four years salary. Watch out, some coastal elitism is showing.
34
@Karen It is not unusual at the top of an entrepreneurial career to have a few stellar years. Take home from $200k would be about 50-60% that in a high-tax state. The cost of DOING a career at that level is not cheap -- subtract expenses. Then add cost of living in the kind of metropolitan center that a consultancy makes connections in, then subtract possible care for an elder parent. She does not look so rich or so "profligate" if you drill down to the possible realities on the ground. Plus, she DID save, and it lasted for many years? I think she deserves a lot of credit for "doing everything right" -- and sharing the lessons of what has to has to have been a very humiliating downfall.
24
@Karen your use of costal elitism just feeds the widening divide between Americans This woman lives in a city and is educated and makes and very good income for any part of the country Thats not elitism thats being a very productive member of society. BTW her taxes support many of the folks who live in states where incomes are depressed.
22
@Ij
I know all this, but thanks for big-metro splaining. Guess I need to work a little harder on my satire.
7
Sometimes a union comprised of American citizens sounds pretty good. At one point it was our officials until dark money and lobbyists took over.
14
Although ageism in the workplace is nothing new, it has definitely become more pervasive as health care costs continue to balloon in this country- it is the new red-lining of a certain demographic group- in this case, people of a certain age who are viewed more as a liability than an asset by companies whose main job, let’s face it, is to maximize profit.
16
@Lucian Fick Why did the article only touch on ageism as the key factor in not holding down your job, or getting a new one, as you drift past age 55? It is nothing new: older workers cost more to hold on to, often have higher salaries and health care costs--but more to the point, older workers don't fit the culture of today's "start-up" corporate culture. Why wouldn't businesses want the experience of an older and presumably more battle tested employee?
4
One of the reasons that someone might find themselves retiring earlier than planned, in their early 60s, say, is to care for an elderly parent. It is now very common for someone in their 60s to have a parent in the 80s or 90s who needs care, who might have dementia, and there are no good solutions for that. Usually, daughters end up paying the penalty (and losing some Social Security because of that).
An aside point, regarding Social Security, though you might get a higher monthly payment by delaying when you start collecting, if you live long enough, you will get more total Social Security income. The same is true, of course, for any annuity. Actuarially, it is to their benefit to pay more to you for holding off. They are betting you won’t live long enough to make up the difference of what you did not collect. There is a certain break-even number of payments, and after that, by starting earlier, you come out collecting more money in total than you would have had you waited. It’s motivation to live a long time! (I know, at the expense of the next generation. Thinking of “Boomsday” by Christopher Buckley ...)
28
Universal income and universal health care in the age of automated job stealing and an aging population. America could easily pay for both. They just have their electorate duped into thinking it is too expensive and then their politicians grant huge tax breaks to the very wealthiest among them. Americans need to wake up and stop voting against their best interests. Government is important to keep the law of the land and it is important to protect the citizenry. Pay yourselves, Americans.
72
@RCJCHC
We are a greedy country. It's dog eat dog only we're the dogs being eaten. And too many in the electorate seem to like it.
15
@RCJCHC
Government is not working.
Law of the Land? Laws are gone! We live in Trump America.
8
I'm a math teacher. I taught at a small, rural school in Wisconsin. In 2010, Scotty Walker came to power as Governor, along with a Republican legislature, and they wasted no time enacting Act 10, which gutted public-employee unions, along with an $800,000,000 cut to the state's education budget. I was (permanently) laid off at the end of the school year. Thirty resume' packets sent out that summer yielded three interviews and no job. I was 63 and scared to death, since I was too expensive to hire by schools suddenly forced to make drastic cuts to their own systems' budgets. What my school district did was eliminate half of the courses I taught, then eliminated half of one of the science teachers' courses- she had a minor in math- then let her teach math for half a day, and eliminate my position. It was the students who suffered from having less courses to choose from, but who cares? The state saved all that money, didn't they?
I was fortunate enough to land a math teaching job with the state prison system that Fall, simply because the pay rate was fixed, making my experience an asset rather than a liability. After three and a half years away from home, I was able to transfer to a prison close enough to home to commute there. I'm past 70 now, and will continue to teach until I decide that I WANT to retire, health permitting. So my story has a relatively happy ending, but I can freely empathize with others not as fortunate.
71
@TRA Congratulations on your career success! I was laid off in 2008 by my part-time employer. That job was keeping me afloat, as my free-lance business had long since dried up. Fortunately, when my boss called me on the phone to inform me of the layoff, I was already in graduate school. I began teaching full-time eight years ago and see no reason to stop for 4, 5, 6 years or so.
8
The article calls people's plans to keep working until age 70 or more "optimistic". But it used to be that those who planned to retire earlier were "optimistic". What happened?
Well, younger people have been persistently harangued that Social Security will "not be there" for them. Financial products companies have gleefully promoted thousands of articles encouraging people to plan to take care of themselves –by buying their services and products, of course. We should have advanced our country's guarantee's of a decent working life and a decent retirement, but instead everywhere people see themselves as alone and powerless and do not recognize their responsibilities to self-govern or the collective wealth we share through planning and taking care of each other together as a society.
No individual should count her retirement plans as complete unless they include a political component. People of all ages must insist that their representatives in the federal government move to improve and enlarge Social Security and work to make certain that we all get healthcare as well. Every-man-for-himself is not a viable strategy for human beings and has never been so, despite Republican and Libertarian cries to the contrary.
We are social animals. It's foolish and unrealistic and for nearly all unworkable to deny that. We neglect our social structures and our individual limitations at our peril and, significantly, at our species' peril as well.
64
I am in my 50's with no pension. Luckily I have Health Insurance but I can tell you that age discrimination is very alive and well in the working world. If you really think you are going to work until 70 in corporate America, you may want to rethink that. When you do get laid off in your 50's there is no work available outside of fast food and Walmart. I have to wait until 67 to get Medicare. I seriously doubt I will ever see the full amount of Social Security that I am eligible for - it will be insolvent by the time I get there. I am sure that benefits will be cut by then. Retirement will not be easy and money will not be there to live on - I have saved a lot but I will totally be living off my savings account. Hopefully by then we will have universal health coverage. I won't be paying the taxes for it though as there will be zero money coming in.
13
@Sarah99 Sarah you are so right. I was laid off from my job as Site Supervisor. I was 55. I couldn't get arrested! Now I work in Security. No sick time, a small amount of vacation time. At least I have health care.
4
@Sarah99
You can apply for Medicare Plan A, 3-6 months before your 65th birthday. NOT at 67.
Be sure to do so.
8
The article's content further reinforces the need for generalized health care programs and transportable retirement plans that supplement social security, thereby allowing many in our population to weather the uncertainties of life. I would suggest that the author spend some time comparing our "you're on your own" approach" to those in Germany where some of the risks of unemployment and health issues are mitigated by programs enacted by the government to address societal risks.
35
Behind on our retirement savings due to job losses for my spouse and a cross country move to be near new jobs and family. High housing costs will send us back East when we aren't both working full time. We'd like to keep working til 68, but ageism will probably push us out of full time work. For me, health may be an issue. Skilled professional nurse - have to be able to lift, stand, etc.ADHD makes extensive computer use a challenge. Lifelong habit of paying our bills on time and not buying stuff that won't last have been good habits. Periods of unemployment helped us have ideas on stretching the dollars.
17
@mary Yup it's the soft ware and laptops used for health care documentation and the lifting and bending and fine and gross motor therapy techniques and time on feet and running around non stop that start having a real impact on one's body after around 40 years of being a therapist and/or nurse. Arthritic joints slows down keyboard skills thus you take longer to document. Everybody's waiting for you to finish so they can get on it. And on top of that you're not meeting productivity standards and just take too long. So what if you are experienced with many more skills than new grads. They are cheaper and do whatever the boss says. So what happens next you get written up and leave, get laid off, or fired.
6
I might be an unusual example of reinventing myself. (Of course, there was a foundations to work on this). I was born and raised in Cuba. My good fortune was having a wise mother who insisted I learn English from a very early age and enrolled me in an all English language school. We were not given any Spanish until fourth or fifth grade (taking into consideration that at home, radio, etc. we were exposed to Spanish). After 8th grade you were given the option to do H.S. all in English or in Spanish. I chose the English. Long story short, after years as a bilingual secretary in Havana, I left Cuba in 1960 (have never gone back) for New York. In 1990 a friend suggested we take the test given by the U.S. Courts to qualify as interpreters. I passed it with flying colors, but never got to use my certification fully until 2012 when they sold the Miami company where I had worked mostly as a translator even after retiring in 1999. So at 81 years of age I began interpreting for the courts in Florida, working as a contract employee when needed. Still do translation of documents from home. These days, at 87, I choose my jobs, am active, more or less healthy, and enjoying what I do. In my opinion this would have been impossible anywhere outside of the U.S. This is a country of opportunity for those who want to forge ahead. As the saying goes, "where there is a will..."
38
I am 69 and loving my job. However, I have always saved and lived within my means so I could retire if I had to. I moved cross country just to keep my present job. But that's because I can't imagine not working. And as we all know, only a current employer is going to be interested in an older experienced employee. Just like husbands, it's a bit too late to start over.
I returned to school 20 years ago for a law degree back when I could afford to take off three years. Fortunately an experienced attorney is valuable. Mind you, my ex left me with almost nothing at 45. My other long-term game plan was 100% health self-care -- exercise, eating well, keeping my weight down. I saw this as an investment in my economic future. At 69, more important than ever. I would like to work for another 10 years if possible.
So I am being very judgmental when I ponder how the lady who was making $200,000 a year saved so little and was not prepared. She's a lot more confident than I was. I always lived on half of my income and socked away the rest and assumed the wolves would soon be at the door. Guess she wasn't concerned back then. Yes -- I am a neurotic planner. Maybe other people should stop whining and start worrying sooner rather than later.
25
@Mary Rivka
I have one word for you: Cancer.
It can strike anyone anytime. Exercise and diet will not prevent it. The luck of the draw.
You’ve made some good life choices, and some bad ones, same as everyone else. You’re not smarter than all those other people who do not share your success.
Just lucky.
124
@Chickpea
Disagree, there, Chickie. Looks like Mary Rivka is making all the right moves. I've heard that luck occurs when preparedness meets opportunity.
5
@Chickpea
Actually, her planning and saving wasn't luck; it was good sense. Maybe not having cancer was luck, though.
6
Life expectancy when Social Security/Medicare retirement age set at 65 was enacted was 58 for men and 60 for women. The government expected most people to DIE before they ever got it. 2008 recession took my retirement and I had to start again at 50. I was fortunate to buy a house in Calif and even luckier to keep it through the recession. That IS my "Plan B" -- of course I'm lucky to work for myself in a profession that allows me theoretically to make money until I quit, but every day is a struggle to pay today's bills, never mind save for tomorrow.
17
By the time I was 40, I had over 2 years worth of income saved. Lost every penny of it after an under-insured driver crossed the center line and hit my car head-on.
I had good insurance but no affordable insurance policy can cover that degree of damage and injury.
It does no good to save if you have no way to protect your savings. Bankruptcy laws protect grifters such as Trump, not the average working person.
261
@Lynn
Money in retirement accounts is shielded in bankruptcy. If you had it in a brokerage account or cd's or something you would be out of luck, but as long as those funds were in retirement accounts you could declare bankruptcy, start over and still have your retirement money there, 100%. I hope you didn't drain retirement accounts to pay medical bills, bad idea.
15
@Aaron This is a good point, and one that I tell my husband and friends all the time: money in a retirement account is shielded from bankruptcy unless you take it out willingly. However, the problem is that not everyone has access to retirement accounts. Sure, you can open an IRA, but you can only save about $5k per year in that (and that's TODAY, if this person started saving around 2000 or earlier, the limit was only $2k per year at that time). If you want to save more (or need to save more), there are a lot of small employers that don't offer 401k plans or any other retirement plans.
23
@Aaron
No, I didn't drain the accounts to pay medical bills. I drained the accounts to pay utility bills, property taxes, etc. and to feed myself for the 3.5 years that I was unable to work.
Thanks for the suggestion but even if I had the money in a retirement account, I expect I would have needed to take it out for general living expenses. His insurance did cover my $100,000+ medical bills.
40
Definitely the ingredients of a back up plan are missing from this article. Working as an independent creative in advertising and design for 35+ years, I have faced a seachange as I have gotten older. Over the past 15 years I learned many skills required as the computer became essential in what had been an analog business. I changed styles, was flexible and creative in my marketing, and had some phenomenal years in which I set aside savings.
All that is useless when positions in agencies like “art buyer” or “creative director” are replaced by “production coordinator” and instead of being asked to bid on a job you are asked for your “day rate” and expected to do a high profile corporate identity at a rate competitive with someone on “Expendable Turk,” who may be working for a dollar an hour in India. The new illustrator must be entrepreneurial, a brilliant brand, savvy in all social media and telegenic on YouTube. Judging from Instagram, the average age appears to be 29. If you are in your 60’s good luck with that.
To pay property taxes I turned part of my house into a rental: every unmarried person I know in my age bracket has done the same. I have started a new business focused on interior design and fine art, and am halfway to meeting my goal of replacing my previous earnings (lowered by 50% from their peak.) I have also started mentoring and teaching others on an a reasonable rate that creative businesses can afford. Fingers crossed I can make it to SS at 68.
44
@Ij if you have got a web site, let us know!
5
Health insurance is a significant reason why many people delay retirement. Few employers offer insurance to retirees under 65 and who wants to take the no-insurance risk until they are eligible for Medicare. The article should have offered more insight into how health insurance affects one’s retirement planning.
81
The combination of a country where there is no longer any job security because its governing elite allows destroying its unions, exporting its manufacturing base to China, never offering healthcare and upper education that are affordable, having a tax system that favors the very rich, and resulting in its heavily indebted people living above their means, could only result in poverty retirement for many. I am sorry Americans still believe Anglo-Saxon capitalism (the type with no conscience) will make them all rich. They would be much better off in social democracies, yes, socialist countries! Unfortunately, the Republican and the center right Democratic propaganda machines will scare off Americans painting Social Democracy as if it were anything like the catastrophic Soviet, Cuban and Venezuelan dictatorial models, not the social democratic successes like Denmark, Sweden and many others. The propaganda is very effective. I am afraid, and almost certain, Americans will vote against their own interest again and again!
163
It will be in the interest of Americans on the left to stop referring to absolutely every other western liberal capitalist democracy on the planet as a “socialist” country simply because we choose to pool resources in order to provide health care for our citizens. America is the capitalist outlier, not everyone else.
84
@Viking 1 - Pls do not assist in promoting the fallacy that "democratic socialism" is the same as "socialism" - IT IS NOT. Also, "social democracy" is quite different than "democratic socialism". Americans need to learn the differences; it IS important.
29
@JFB
We know that. And too many gullible fools buy into their own financial subordination.
7
Interesting to note the concerns expressed by many of your readers about medical costs. Canadians are always puzzled how the US 'elite' continue to demonize universal health care.
It works just fine, folks; ask any Canadian retiree.
Too expensive for the US treasury? Some suggest that diverting some of that massive military budget would help.
Americans are pretty smart; you'll figure it out.
247
@J.T.
The irony is that Canadian universal health care is actually cheaper, by 50% per capita. And everyone is covered. Why? Because it is not-for-profit, and administrative costs are 90% lower.
120
@J.T.
And yet, we still have the same workplace ageism going on.
And it causes us just as many problems, because our combined old-age-security and CPP maxes out at well under US social security.
Sure, ours is 'affordable', but if you end up pushed out of your job early, it's not much to live on, nor are you likely to qualify for the GIS either, as you will likely have built up some additional pension credits and other savings that would see you disqualified.
10
But if we haven’t figured it out by now, how smart are we, really?
18
Interesting that this article is appearing during our so-called zooming economy. The reality of which is debatable.
But I think the headline is click bait because working until an arbitrary age and then retiring is not really a plan.
Don't get me wrong I'm not going to blast people for spending like maniacs because that is not always the case. Age discrimination is real as is our collective terror of healthcare costs. And I challenge anyone to parrot the line 'healthcare is not a right.' Bah. We have a right to affordable healthcare.
I think it was Mike Tyson who quipped "Everything goes according to plan until you get punched in the face." This quote has helped me navigate some challenging times.
But this being said having a budget, sticking to it, and consulting with a certified financial planner who has no skin in the game other than to create some sort of plan with scenarios is extremely helpful. I'm sure there are good on-line programs as well but simply saving and leaving the rest up to chance is not optimum. It's not even a plan.
20
Argue about the beneficial merits of capitalism all you want, then look around you. The baby-boomers are not able to retire in anything approaching dignity. Yeah, it's our fault...and jr. it will be your fault as well,NOT. Which CEO was sent to jail after '08 for the carnage done to regular workers that now, as a result of their greed, will spend the rest of their lives in squalor and misery. Strangely enough, despite the nonsense spewed about unions it seems that only union members can actually retire.Hmmm...Unorganized..sad.. organized.. ok... Might there be a correlation?
91
So what exact advice do Mr. Johnson, Mr Miller and Mr Sanzenbacher really have to give, beyond "save more"? That is good advice, and it is especially helpful when you are young, and while you have a high paying position. ( so let's go all the way back to, say, age 18, and remind teens not to take out massive student loans which they might be paying off past age 50 . . . )
Plan B?
Most people who do have jobs are pretty fully involved with those jobs, so they don't have an opportunity to explore other careers while working. And if it comes to setting up a small business, taking money from savings to do this might work - or may leave you destitute, without job or savings.
Did it not hit the writer or these advisors that there is something flukey about the allegedly super low unemployment rate and the fact that people who are middle aged and experienced - not deadbeats - cannot find new positions?
Suggestions for fighting agism are lacking. Someone over 50 seeking a job can take courses, stay abreast of the latest technology, and wear the right clothes -- but they cannot come across as 21. It's even harder over 60.
Age discrimination is rampant and virtually impossible for an individual to prove. It would take connecting statistics across a company or industry's hiring practices to show how it affects job prospects.
160
How does a young person get one of those high paying jobs without taking out a loan for college?
11
Twenty-six years ago, during one of the many recessions I've lived through, i realized that I needed to have a plan to make sure I could depend on something, if I was pushed out of my profession. I always suspected that "working 'til I drop" was wishful thinking by my fellow Boomers.
It is very fortunate that I thought ahead, because good opportunities are getting fewer and farther apart. I was able to simply transition to funds I had saved. That wasn't easy, either, as Wall Street uses each financial bubble as a tool to empty the savings of the middle class. Everyone said I was stupid for avoiding those, but now the joke's on them.
My advice to younger people is to build some self-sufficiency into your future, whenever you can. Keep an open eye for opportunities that find you, and don't take advice from Wall Street.
18
Ageism is alive and well in Corporate America. This is especially true in high tech, where there's a saying: If you're over 30, you don't exist. If you're over 40, you haven't existed in 10 years. And if you're over 50, even your kids don't exist.
This is the truth. Believe me.
83
@Max Dither What Max said! I live within commuting distance of Redmond, Bellevue and Seattle and not only do I know it's true, but I see and hear it almost daily. A possibility for over 30's with tech smarts and an idea for a new app is to find a young brilliant developer to work with you, make a legal deal with them, get to work, get the app patented, and join the SeattleStartups mail list.
6
@Max Dither
Ageism is undoubtedly alive and well, but it's not universal.
When I interviewed at Google, in my 60's, it's true that my prospective manager was a young woman who looked a lot like the girl with the dragon tattoo, but there was a noticeable scattering of grey and even white beards around the Googleplex. OK, fewer women than men with white hair if you don't count the punk/goth fashionistas, but still...
10
@Max Dither - That is generally true except for one area of IT: Security. Get your CISSP or other cert and you can get hired. I am 67 and earning more money than ever in my lifetime of working. I love my job. Expect to retire at 70.
8
I find these "scary save for retirement" articles pop up regularly, without any basis on the actual facts of many US person's struggles. They're annoying. Healthcare: huge premiums, huge deductibles, huge pharma. There goes one source of savings. Jobs which offer 36 hrs so as to avoid insurance, whoops there it goes again. The plain fact that humans do have unexpected health issues. The fact that wages do not equal ability for current housing/apt costs. Taxes being controlled by wealthy "representatives". There are many kids with special needs. What happens when they are "adult" age? Leave them homeless? Relying on IRA's? Hahaha. Write something about "why" people cannot save for retirement. We are both educated. Life is capricious. I find happiness with loved ones, & let go of this type expectation during these times.
58
shorter; have more money
14
BTW kudos to the late Sen Powell of Nixon's reign. His "Powell Memo of 72" has succeeded beyond his wildest dreams - a Corporatacrocy of America.
11
Walmart's hiring and they don't care how old you are.
5
Here is what I saw in my thirty-six years as a professional tax preparer. The majority of clients spent all the money they earned and more. When their earnings went up, their spending followed apace. It never occurred to them to put anything aside just in case the gravy train stopped rolling in, that anything bad might happen. I have a close relative in his sixties who never saved a penny. He enjoyed great health and figured he would keep working until his Social Security maxed out. Then he had a surprise heart attack. No savings, no income, no prospects and no options at the age of 63.
60
@Chuck Burton Yep -- I always planned, scrimped and saved and lived within my means. Never took expensive vacations, ate out, and bought new cars. I have zero sympathy for the baby boomers who now have nothing. How about those $300 cable plans, expensive meals, vacations and oversize homes? Where did it get you?
9
@Mary Rivka Remember the fable of the grasshopper and the ant?
"You sang and danced during the summertime? But now it's winter. Sing and dance now."
4
Without some detail about "Plan B," this article is basically worthless. Tell people what they should have saved by what age.
If the Right Wing didn't have such a stranglehold on social benefits legislation, and a scofflaw attitude about paying taxes, we could have Social Security and Medicare benefits starting at 60. At the very least I could count on being insured at my expense, but coverage for pre-existing conditions could vanish at any time at the whim of the cruel Republican Party.
I've done all the right things: saved money, and paid down all my debt, but a healthcare crisis would still wipe me out. If there was a healthcare safety net, I would retire now and let Corporate America hire a cheaper younger person, or a more senior person who still needs to save.
130
@Just Live Well
If necessary I will leave the country. It's not that great of a place anymore.
15
Database programmer, statistical analyst.
Laid off at 55.
End of career.
There was no next job.
At least I’m well qualified to understand the data telling me I have lots of company.
:(
234
Database manager & programmer
Data analyst
Laid off at 47
Many different jobs
Retrained in biotechnology
Got in at the bottom at 52
Paid minimum wage
Today:
Database manager & administrator
Lab specialist
Data analyst
Working into late 60s
Pay just broke the low income threshold
Who’d a thunk.
21
@Chickpea This terrifies me. And if it happens during a recession, then your home & IRA are worth less, too. Which makes it harder to downsize and sell.
There needs to be a cushion for this. We do have unemployment (which is not enough and is determined by your state, anyway), but it is short term. What to do with the long-term unemployed? What happens when artificial intelligence, offshoring, etc. eliminates more jobs? (To whose benefit, BTW?)
16
I would say the majority of the planet works until they simply cannot anymore, then hopefully death comes before you are on the street.
41
@Chauncey Freedlander
I chuckled. That's it in a nutshell. Pretty depressing, eh?
6
One of the things my husband and I have done is join the Peace Corps after retirement. It doesn't pay except for living expenses but that allows us to save almost 100% of our retirement pay for 27 months. Plus we get to live in a different country for a while and it has been one of the most incredible experiences of my life.
The biggest hardship was leaving my dogs behind. Like Ms Parker I'm involved in showing dogs and they have been a big part of my life. They are happy living my daughter and grandchildren (and my younger one continues to show) but I didn't realize how difficult it would be for me.
60
Is it still safe relatively speaking? Which countries? Most news points to not many countries liking Americans, especially presently. I’ve always though Peace Corps was brilliant idea, so I’m genuinely curious about real statistics on this possible opportunity. Outside of loving life and humans equally, how does it fair overall for safety as an American participating?
5
@L They go to quite a few countries and some of them are very stable and peaceful. For other places, the volunteers safety is a priority.
I purposely chose Ukraine because I have had a live long interest in this part of the world. I have felt very safe here and we're watched over closely. They recently changed the application process so that applicants can choose where to go, list places they don't want to go or be willing to accept any assignment.
11
Happened to me at 61 when my employer of 15 years went bankrupt in 2008. It didn't help that the economy collapsed a couple of months later. After my two years of unemployment ran out I accepted the inevitable.
15
Working until you decide to retire is unrealistic in today's economy with age discrimination especially for women. Many things changed in 2008 and one thing that remains today is lots of age discrimination.
98
@Jacquie You hit the nail on the head. Age discrimination starts even younger if you're a woman, as I found out. Laid off at age 40 during the last recession; unemployed for two years, then was able to string together freelance/contract work for three years; finally in a full-time position again, but it is tenuous, and had to accept title/pay that was below what I had at age 39. 90% of my coworkers are under 40, and there is no career mobility for someone like me, facing 50 in less than a year. And, given my wages, it's very hard to save money for the future. The struggle is real.
15
The way to save is to live below your means, few people do that. How do working class people with extra cars, boats, campers, time shares, vacation homes, multiple pets, dining out, expensive vacations and big houses ever retire? They are forced to.
11
@AG
How are working class people that already can't afford "extra" cards, boats, time shares, etc, supposed to save?
27
@AG So, working class people aren't supposed to have multiple pets? BTW, virtually all of the people I know who take expensive vacations and have vacation homes, etc., are solidly in the middle class.
8
@kathleen cairns
Well -- I make $100,000 a year at 69, but I travel a lot. And no I would never have a pet. I prefer to be generous to my kids and put more money away then pay for dog food, dog walkers, kennels, and vet bills. Suit yourself but stop complaining.
4
At 74, I have dealt with age descrimination since the day I turned 50. I had been a creative director in marketing communications with a long history of improving my clients' revenue stream in millions of dollars. But in an industry constantly recruiting much younger people, It felt like all of those firms lost my phone number.
A very successful, and established, designer in L.A. told me the problem was, creatives in their 50's were losing jobs to those in their 40's; those in their 40s were losing their jobs to those in their 30's; (you can see where this is going); they lost their jobs to the 20 somethings; and, then, that group lost out to college interns.
In 2005, the symptoms of a coming recession began to arrive: clients cutting their budgets, taking much longer to pay invoices, all while inside contacts were moving on to other employers, sometimes in other states. So all the networking efforts of 20 years disappeared.
But here is was the hardest part: all those face-to-face interviews that usually landed a job, were replaced by computer analytics. All resumes went to a third-party computer server to determine your worth to the company. The chemistry between a prospective employee and the employer has been bypassed in favor of a binary decision made by faceless servers calculating your age.
Unfortunately, the online job application web sites eliminate too many qualified candidates through discriminatory algorithms written by young programmers.
203
@David Ohman A computer read your CV? Insane! I'm glad I'm not young anymore.
14
@David Ohman, yes when I was laid of in '08 I must have applied to hundreds of jobs via websites. They might as well have been going into a black hole for all the responses I got. Finally got back to work through an employment agency, temping until I was hired full time.
21
@birdnesthead ....and this is what millennials face. No more face to face interviews. Computer algorithms. At this point in our country, business/corporations/shareholders are the ones in charge. Does anyone ever give any credit to the millennial for coming of age during 9/11, and the very real fall out from that? Why does this always get ignored.
I just can't ever figure out what they're going to do with all that money ......................it cannot hug you. What losers in this brief life.
8
I wrote something and lost it- but essentially, the three experts who were interviewed had no recommendations beyond save more - - - an to make an honest assessment of you ability to keep working. And then?
And there is no comment about how our incredibly low unemployment rate -- is, perhaps, incredible. If well qualified people cannot find jobs -- what jobs are out there?
Plan B? How many people with a full time job ( or two jobs) now have the time to simultaneously develop a second career?
There is age discrimination which cannot be proven by an individual alone. It has to be shown to be a pattern, which requires information that might be available in a state labor department. And it might require testing, by sending out applicants with equivalent qualifications other than age.
So yes, of course, plan as much as you can, and learn to put aside money for yourself as a priority. But -- now that Gen X is around age 50, I wonder how many of them are still paying off student loans? How many will be laid off due to down sizing before they ever can build a nest egg?
28
@cheryl
The problem is that Americans are taught, and believe, that job loss is a personal failure.
They fail to understand that what’s happening is a system failure, engineered to benefit corporate interests at the cost of citizens who are kept powerless by unavoidable crippling debt, an insecure job market, and the fear of losing access to healthcare.
143
@cheryl I am 51 and still paying down my GSL. I would love to save that money
4
Trump’s newest immigration plan is to severely limit family based chain migration and expand merit based migration for foreign engineers, etc. Corporations will be able to fill high paying positions with low paid professionals and leave the low wage jobs open for unemployed American workers and seniors.
Win/win? No.
11
I personally want to see universal healthcare. Barring that, is Medicare at 50 politically possible? That is the age when workers start to be really, really expensive to insure. If workers 50-65 were suddenly cheaper to insure than younger people, it might mitigate some age discrimination.
At the very least, people laid off at fifty might have the option to survive on low paying jobs or gig work until they hit 65 because they wouldn't need to be paying health insurance premiums on the individual market.
114
@Arvind Debbie Stabenow, congresswoman from Michigan, has introduced a Medicare-at-50 bill. It's one of many ideas. Vote in Democrats in 2020 and we will have some kind of reckoning about this.
15
I already knew that, and it's not helpful information.
I hope to work until I'm 70 because, well, life. Cancer, divorce, and being a stay at home mom all derailed my finances and/or career for about a decade, and I'm doing the best I can to "catch up" but it is what it is. I know better than most how health can change, but barring money falling from the sky, I'm going to need to work into older age in order to have any financial security.
I love my work and hope that continues all the way until the end. I'm good at what I do, so fingers crossed that I continue to learn and grow and be appreciated by my administrators all the way until 70. No, it's not ideal, but it is what it is.
27
I retired 11 months from full retirement age and it was the best decision I ever made. I could still work if I wanted to because I have a skill that is in demand no matter my age. The biggest reason that I was able to retire is because I was able to continue my health insurance. I have younger friends (late fifties and early sixties) who would retire in a minute if they had access to affordable health insurance.
The second part is my lifestyle. I have no debt, my hobbies and activities are inexpensive (outdoor stuff like camping and hiking), and I am fortunate to be relatively healthy.
27
@tnh2o
Everyone I know who is delaying retirement is doing it primarily because of access to health insurance.
If Medicare were available to people in their 50's and early 60's, I suspect a lot of people would consider retiring then, or at least wouldn't be stressed about the possibility of getting through a job loss or reduced employment without being devastated financially.
23
how great for you. and your advice for the rest of us is...? most of us thought our skills would always be needed.
5
@tnh2o. My situation is the same as your's except I retired early at 60.
2
My wife is being forced to work until 70 in order to be able to collect her full social security benefits. We couldn’t afford to live on her benefits if she retired now, and I don’t make very much money through my Etsy shop. It’s awful. She’s 65 and deserves to retire. Working is harmful to her health. The federal government is running people into the ground. It’s not a choice.
36
@Lisa
Are you saying that working in general is harmful to health? Or does she have a disability or hate her job? Or does she work for a petrochemical company that dumps waste near your home? Big differences.
3
Reminds me of the saying, "Men plan, God laughs." Unfortunately a person simply cannot plan for any and all vicissitudes of life. There are simply too many wild cards and as one reader points out, access to affordable health insurance is certainly one of, if not the biggest, of them all.
Exactly how does one make plans for all possible imaginable and unimaginable scenarios: If I lose my job, if my spouse becomes terminally ill, if I become disabled, if we BOTH lose our jobs, if my child requires 24 care, if a natural disaster destroys our home, and on and on.
51
@C. Holmes
Health-related needs and costs are, for most, the big unknowable. They can make a shipwreck of even the best laid retirement plans, no matter how much many will try to save.
29
I'm 61, and I'm a public high school teacher.
I decided two years ago to move back to Nebraska to be closer to my elderly parents.
I knew it wouldn't be easy to find a teaching position in Nebraska because of my age, and I'm an expensive employee because of my experience. However, I sent out one application to a smaller district near my parents' home, was called for the interview, and got hired. It was the best move I ever made.
I'll admit my story is anecdotal, but if you want to keep working after a certain age, you can't just give up because a few people in the New York Times have had struggles. You need to knock on doors and keep on knocking.
41
@John I'm glad for you, John. I think the point of the article is that many, many people are in this predicament because of systemic issues like the 2008 recession, job loss, stagnant wages, the vilification and decimation of unions, the burden shift from pensions to 401K's, the lack of universal and affordable health insurance. If you view the TED talk you'll hear that 1/2 of all US households have no retirement savings at all. It's the default in the US to blame people for their predicaments-- if only they'd saved instead of buying expensive coffee. It's not just a few people in the New York Times. Maybe people were just trying to live their lives as best they could with the economic deck stacked against them.
41
@John Congrats!
2
@Chris As you note, the decimation of unions, and of pensions in general play an extraordinarily large part in Americans' financial insecurity. Decades ago, people could retire knowing they had more than one source of income. We can also blame today's predicament on the rise of HMOs, which have made health care much, more expensive, while lining the pockets of CEOs and other top executives.
17
All the comments about the need to save more or the need for more government programs are valid to some degree, but do not address a significant issue. Why, in a time of historically low unemployment, does a skilled worker who is willing to work not have a job? The answer in this case, short and simple, is that she is considered too old. Her job has been broken up into temporary "gigs" for younger people less concerned about their own need for benefits (health insurance, retirement). She is offered wages for people with no experience. This is not only true in the world of business, it is true for many professionals, including doctors and lawyers and airplane pilots.
182
@MEM
Well, it’s getting harder for the millionaires to keep up with the billionaires, so they simply have to put the squeeze in everyone else however they can.
48
The author has tried to 'sugarcoat' the situation far too much. Particularly by pretending that there are real options for most people.
Plan B - if you can work one - has to be developed well before you may need it. Essentially a scalable side-hustle; or a personal interest that can be monetised if required. Not everybody has that.
Given the shakiness of the US "safety-nets" you need to be prepared to be 'retired' (discarded) at any time and, if over 50, never get another permanent position. This will be exacerbated at any age if you have a disability, such as limited mobility.
There is currently no good answer to this and there will not be until the US starts regarding its citizens as people rather than "expendable organic production units".
185
no kidding... I got laid off at the peak of the great recession, at 46. 45 in person interviews and 4 years later, still no job. You can tell from searching Linkedin a couple months after your interview who got the job. Inevitably, someone both more experienced in the exact job AND younger. Pretty much have to do your own thing and figure out how to make money on your own. Anyone counting on being able to make money as an employee in your 50's, outside of healthcare and education where careers are stable, is taking a big risk. People working much past 50 are either business owners, lawyers, docs, teachers or in government.
73
The last sentence is true. People who have professional degrees do get better jobs. I have a teaching credential & Library degree. I enjoyed my years of working and retired at 70. There are many other professionals who have kept working because it was fulfilling.
8
@Smokey geo
Last sentence is too limited. If you have a special, needed skill and experience, you could be paid for it. Technical editing was a good profession for me for 34 years, and I kept learning. Retired at 80.
5
My plan, since I'm already 66. I'll work, and reevaluate where I am after two years. If I feel that we need it, I'll work another year.
5
Wanted to retire at 70 to maximize Social Security benefits but an injury at my physically demanding job changed the plan. I hated the job anyway so retiring at 66 + four months was best for my overall well-being. Haven't even tried to find other work as I know all about age discrimination, which is very real.
Everyone's plans have to take into account where they live, or where they want to live in retirement. The desirable places are so expensive that you can't leave anything to chance. If you want to retire in one of those places, that needs to be part of the plan from day one of your working life. Save Your Money.
But remember, not having to go to a job is a great luxury in itself. I wish I had more money for other luxuries, sure, but I appreciate them more by looking forward to them.
35
I think it might sound cruel to say I am glad to read about others in the same position I am in, but it's nice to know I'm not alone. After a series of hard changes, like losing a thumb and the digital revolution which decimated my industry, I have had major changes to my employment. I am grateful now, at 65, for a job working at a small company in a new field that has allowed me to apply my old accumulated skills in a new way, but I make about as much as I did in 1975. Not much. I use the income to slow down the draining of my savings, but I will still probably retire this year to ultimately relocate to a much less expensive area. My advice, expect change, don't count on anything and concentrate on the small accumulation of happiness. If you can find your bliss outside of the world of accomplishment and wealth and you'll be more successful than most.
102
@coco
As Denver became nearly as expensive to live as my beloved home of coastal SoCal, I discovered the list of senior housing available through Volunteers of America. Waiting lists are pretty full but, I got on a list in Durango, CO. A year later, an apartment was available and, when they calculated my usual healthcare expenses, the rent became so affordable, I could essentially retire in one of the most beautiful places in America.
Yes, I wish I could afford to live near the ocean again but, through a series of life-changing events, I was forced away from the coastal cost of living.
Still, given the beauty of Durango, and all of the outdoor activities included (hiking, biking, horseback riding, river rafting, skiing), this is a great place to live. And this is a very friendly town.
I wish you well.
26
" ..might be due to age discrimination"...ha! For sure their "downsizing" was age discrimination. I faced it in 2008 when laid-of due to the crash. Our stock market driven business culture forces companies to continuously lower expenses. How do they do that? By firing the oldest most experienced and highest paid amongst the team! But work is "at will" so the employee is left with little recourse except to lose the last 10-15 years of "saving while working" that this article so blatantly suggests. More ageism; as if the reader needed to be told.
128
@Ms. Young - right below this article is one stating Ford will lay off 7,000 salaried employees across the country in order to increase profits as sales slow. Not hard to guess which ones are first in line to be cut.
47
At 61 my best assets have been a) be constantly curious, b) be forthright, c) respect your customer's perspective, d) clean up your mistakes. I haven't been unemployed since delivering papers in 4th grade.
10
@James B - @James B - you neglected to mention e) your good luck.
28
@James B yet. i have plenty of friends, professionals with degrees in their fields, who boasted the same.... until their firms or employers eliminated their departments, "reorganized" or just plain laid people off. nice to be smug. better hope it doesn't happen to you.
41
"..but it’s best to have a backup plan."
Back-up plan? BACK UP PLAN?! How old is the person who wrote this? What would be the back-up plan to a lifetime career? To what horse does a person switch after their lifetime of networking and resume credits results in squat?
After the '08 recession I barely ever worked again, the last decade of my working life on food stamps and cash under the table, minimum wage situations. Back up plan? Save every penny all your life because rapacious capitalism will cash you out unexpectedly on a whim, on a moments notice? Because some CEO needs a bigger paycheck?
See you in Mexico.
549
@Myrtle Markle: The best, indeed just about the only, backup plan is to vote Democrat, in every state and federal election. Today's Trumpublican politicians don't give a fig about the 99.9%.
88
@Richard Schumacher
The only back-up plan suggested here is no matter how long and hard you're working at one job, you should always be training for another and yet another in your spare time.
I keep remembering the poor workhorse in Animal Farm who was always exhorted to "work harder, work harder" until the poor horse finally collapsed and died.
78
The article ignores the health insurance issue, which is critical. Many IRAs are drained paying for an individual plan in that gap between when the worker is pushed out of employment due to ageism and when she reaches Medicare age.
373
@The Poet McTeagle Even if we cannot get to universal coverage, if we shore up Obamacare and lower the age of Medicare eligibility, we would help a lot of people. Lower Medicare eligibility even to just 60 and you lower the premiums in the Obamacare pool by transferring the older, sicker people to Medicare. Where they are the youngest & healthiest, which lowers the per-beneficiary costs of Medicare. But adds to the total cost because there would be more beneficiaries. Still. Not the worst compromise.
17
I was laid off 3 years before full retirement benefits. The company I worked for moved all the younger people to different positions that would not be eliminated a few weeks before the RIFs started. Many of our jobs went to India. When they started coming back, I couldn't even get an interview for my old job. I know how specialized the job skill set is, and there was zero chance they hired anyone with qualifications approaching my skill set (or others in my department).
The cost of group health plans DOES depend on the gender and age of their employees, and it was deliberate discrimination. No way to fight a company of that size. We were forced to sign NDAs and train our replacements in order to get any severance at all.
It's dishonest and unethical of employers to offer long-term benefit packages to people and then RIF them off before qualifying. I would have taken a different position if I had known they would do that; would have gone to a different company. People make long-term decisions based on what companies promise, but companies are allowed to break those promises with impunity.
Similarly, the US government allows companies to discriminate, which affects SS benefits. It's not possible to prove it on the individual level, but there is a clear statistical pattern. I feel the government should be required to provide benefits that would have been earned but for age, gender, and race discrimination.
265
@ms Amen to that
19
@ms
The politicians on both sides of the aisle have been kicking the Social Security funding can down the road for at least 60 years. It would be a foolish mistake to expect politicians of either party to take the necessary steps to protect our retirement income. It's far, far easier them to let the system fail and then look for someone to blame. Rest assured, you will be paying the price of their neglect.
I am one of the early baby boomers and have saved as much as possible for my retirement, recognizing in high school that Social Security may not be there for me. So far, I have been pleasantly surprised, each month I still receive a check.
Since the early 1970's, you could not expect to work for the same company your whole career. I am on my 6th employer. Only one of the former is still in business under their original name, the rest having been bought and plundered by our wall street masters.
The only path I can see is to develop skills, work hard, live on much less than you make, save as much as possible, and lower your expectations.
26
@ms
That is barbaric and vicious. And America.
48
For all that I know, working indefinitely by choice sounds impossible, if not foolish. But in this case, the system doesn't really meet the expectations. Perhaps a chunk of funds dedicated to building rockets could be derived to fund a better well being for the elderly?
20
American politicians , the GOP in particular caring only for the top10% , are totally unsympathetic to aging workers losing their jobs , healthcare and position in the society .
This is a particularly troublesome and common issue that should be promptly addressed and put on the front burner of this election campaign, since it entails the future of so many Americans, not least the availability of Social Security and Medicare .
99
Worktirement is what most professionals want as they reach their 60's. That is, work 7-9 months a year and take off 3 or 4 months for holidays and travel. Additionally, projects for people in worktirement don't have hard deadlines, just time frames for completion.
This is the Gig economy for baby boomers.
16
The rest of the story is whether you will live long enough to take social security at your full retirement age. Look at your own and your family's health history; if you aren't in the best of health, and parents and siblings are dead or dying by age 70 or earlier, it might make sense to take social security early, and if possible, transition from the job market altogether, or to a part-time job so that you can better attend to your health issues.
I retired fully from paid work 2 years ago at age 62, but haven't yet taken social security. I had intended to wait until my full eligibility at 66 and 2 months, but I'm seriously considering taking it now due to health issues that were in the background when I retired, but are more pressing now...
58
I have a chronic illness and hope to retire at 62; 3 more years.
3
Universal income is the answer that makes sense to me.
Not enough to entirely live off of, but enough to supplement the huge swing that's going to come in the next decade with A.I. and sophisticated automation on the rise.
We'll ALL be out of a job soon, not just retirees,
77
@Nick
We've been automating jobs away for the past 200 years, just as fast as we can. Today's unemployment rate is 3.6%. Don't hold your breath waiting for the AI/automation apocalypse. It takes an enormous amount of effort and engineering time to automate a person out of a job. I worked for 25 years automating industrial plants. AI is just another tool; it doesn't change most of the difficulties of automation.
8
@Nick
Sure - multiply the population of the USA and the 'basic' income you are proposing and tell me who is going to pay for that bill?
Hint: current estimates to get everyone to the 'basic' poverty level of $12K - roughly $3.8 trillion annually. The figure represents 21 percent of US GDP or 78 percent of tax revenue.
Let me guess though - someone else will have to pay.
7
@Nick, Universal Basic Income, UBI, is exactly the plan of Andrew Yang, who is getting traction in the presidential race
https://www.yang2020.com/policies/
6
When it comes to looking for career employment in today’s age and cost focused market — 55 is the new 65. Mid Fifties age limits the scope the employer takes on the candidate. I do believe that one underlying issue rarely examined concerns health benefits. Most salaried, career persons over 50 have employer delivered health insurance. The employer sees a 55 y.o. employee with a premium almost triple of what it pays for a 25 y.o. employee. Not to mention the lower salary and longer trajectory of how to make the younger person productive.
114
@Will Eigo With the ACA I place,is it really that large a difference in group insurance rates?
1
@Margo The ACA rules regarding pricing insurance apply only to the individual market, I believe. Rules like having to cover pre-existing conditions and parity for mental health specialties apply to group (employer) policies, too. Interesting, as even just changing this provision to apply to employer policies would reduce discrimination in older workers.
1
"Ms. Parker’s story is a cautionary tale for anyone planning to postpone retirement and work indefinitely: It’s a fine aspiration, but it’s best to have a backup plan."
I think working as long as possible is for many seen as the only option, unless the backup plan is winning the lottery. Or perhaps I'll reduce my living expenses by joining the "tiny house" trend and make my home in an abandoned storage container...
71
As someone who went through it, my advice is, invest as much as you can, as early as you can, in IRAs. You can never count on being able to put anything away in your later working years, as you do not know fi the rug will be pulled out from under you. Try to make as much as you can to live on while your IRA investments grow. If you can keep on working, at least part time to support yourself, delay applying for Social Security retirement benefits as long as possible, but not past age 70.
41
If you're making $200K per year, why don't you have a boatload of savings? Like, a boatload?
Living small (smaller house, fewer objects, staycations, children in public schools) helps build wealth early.
107
@Alive and Well Exactly what I was wondering. She was making 200k a year, and then after 10 years of part time employment, she had burnt thru her retirement savings? I have lots of sympathy for people who don't make much and live paycheck to paycheck and really can't sock much away, but that isn't the case here.
28
@Alive and Well Chances are, Ms. White was not making $200,000 for that long before she was laid off. Second, it's well known that a lot of African American women high income earners (see e.g., Stacy Abrams) use their highest earning years to support their extended families (parents, siblings, nieces and nephews) since black families have historically faced oppressive policies that prevent wealth accumulation. Not mention student loans and the like. $200,000 doesn't let have a "boatload" of savings in that situation.
In contrast, I work with many 20 somethings and early 30 somethings who make $200k and can save a lot due to having parents who paid for school, no extended family asking for assistance, and living frugally, as you suggested.
75
@David Goldberg apparently she did save if it took ten years to burn through. Most people can’t go 10 days.
47
Expect the unexpected. Realize that no one is irreplaceable. Employers today are not looking to retain employees long-term.
That should be ones focus to prepare for retirement.
35
The "recipe" for a pleasant retirement:
(1) Never spend money you don't already have = do not get credit-card debt;
(2) Never spend every penny you earn = live "below your means", and never mind what the Jones's next door think of you.
(3) Do not feel you have to get all the "stuff" that is available nowadays, even if "everybody" has it.
(And if you are lucky or "good" enough to be paid $200,000 a year, start saving now and do not complain when you lose your job.)
80
@Fran Good luck with all this if a serious unexpected health issue arises. There's a reason this is the only country where people go bankrupt due to health issues. Also, let's always remember the people who play with money and ruin people's 401K plans. What happened in 2008 can and wil probably happen again.
93
@Fran All three of your "ingredients" are the same single bit of advice.
11
@Fran
Also include the rest of these markers:
4) Always treat people like you need a job
5) let your boss tell you how your work is done
6) Never make fun of someone’s work, you may have
to do the same
7) Don’t talk about how you worked at the other job
8) Bring donuts to work
9) Listen and laugh
28
People talk about when they want to retire. Advertising talks about how people want to keep working in retirement. (not sure what makes that retirement then.) I've long said that the reality is I, and most, will retire at whatever age I am over 50 when I get laid off. But there's no way for "regular people" to save enough for that.
112
@Mo
If your life plan is to wait for disaster to strike, it probably will at some point. We all live too long to have life-long jobs. Develop some marketable skills.
4
@Tom Meadowcroft
55% laid off or disabled and forced into an early retirement at an age where no one wants to hire them.
When you get to over-50, you will understand that it's not about marketable skills at all.
30
@Michele K
I'm 54, and I just changed careers. I worked at preparing for it for 3 years before I made the move. It used most of my free time. I changed to a lower paying job that I can likely continue at until I'm 70; better yet, I'll probably want to.
.
Never stop learning; never stop changing; don't let life just happen to you.
4
It happened to me. At 62, my position was eliminated and I was forced to look for a job for the first time in years. I was interviewed by 25 year olds who would ask me "where I saw myself in 15 years," and I thought at first they were joking. I answered honestly, at first, and said that since I would be in my mid-70's by then, I hoped I'd be retired. When no one would hire me, I realized they were serious about that question, so I fabricated an answer about welcoming challenges and devoting myself to meaningful work, or whatever. Anyway, eventually my unemployment ran out and my savings almost did too, so I took early social security and looked for part time work to supplement that. That was easier to find, and allowed me to at least be honest in interviews. I could say that I was partly retired, but still wanted to work some. I didn't have to pretend that I was devoted to whatever industry the job was in and I didn't intend to work forever. I eventually found a great part time job in an industry I knew nothing about and have thoroughly enjoyed the experience and learning. It turns out that it was all for the best, and I might keep this job until I can't drag myself out of the house anymore. I've found that I can live on less than I thought I could, and that working only part of each day gives me time to pursue other interests. All in all, it's been a good experience.
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@Ms. Pea--I should have added that I do have a modest 401K waiting for the day when I can't work anymore. It won't last if I live to be 100, so I am waiting as long as possible until I start to draw on it, but it will supplement my social security when I can't work anymore. So, I don't have to work until I drop dead, which is a comfort. I know many don't have even a small retirement fund, so I consider myself lucky in that respect.
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Yet part of the proposed solution to the Social Security funding crisis is to increase the age at which people can receive full benefits? Our politicians need to tune in to what is really happening with people in their late 50’s and early 60’s.
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@MK Why would they care? It's not a problem they share with us. They get 6 figure salaries, great health benefits, lots of vacation time, and free travel among other benefits we don't even know about.
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@MK
A good plan to preserve Social Security; increase the contribution cap , presently at $132,900 in 2019. These are the maximum earnings that will be subject to the Social Security payroll tax.
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@skier 6 Why have a contribution cap at all on Social Security? Without a cap at least we could all benefit from the obscene earnings of the well to do, generated by the sweat of everyone else's labor and financial skimming of the moneyed classes, that the bought off politicians refuse to tax.
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Good article. Doesn't really address systemic issues - the squeeze many of us are in with aging parents, kids going to college or underemployed and pensions dwindling or nonexistent.
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