Many of us have an idyllic vision of what retirement will be like—endless days of relaxation and recreation. But the rules of retirement are being re-written. This will come as no surprise given the changes in our culture and nation’s economy during the past several years. It may also be a little unsettling to some, as there was some comfort in the knowledge that, after decades of working, you could retire and enjoy your remaining years in peace and tranquility. But there are reasons why baby boomers might not ride off into the sunset as previous generations have.
- Retirement can be boring. It may be great for a while, but many miss the challenges that came with employment. Besides, you can only play golf or tend to your garden for so long, and traveling can cost a lot of money. Then too, while expecting to fill too many days in the company of loved ones, it may become clear that they have their own routines and commitments.
- Funding Retirement. We hear often that many retirees haven’t planned properly for retirement—nor does the current state of the economy, during the past several years, bode well for being able to have enough money to do the things you want to do. According to a recent survey, more than 80% of retired or soon to be retired baby boomers plan to do some type of work, in some capacity, during their retirement
- The increasing cost of health care. This alone is reason enough for people to forestall retirement, especially now that pension plans are becoming a thing of the past. You may have to re-assess the manner in which you withdraw money from retirement funds, with the help of a financial planner.
- The Social Security conundrum. What will Social Security look like in the future, if indeed it survives. I believe that it will, but the shortfall is a little scary and it’s just something else to weigh on your mind, for those approaching retirement years.
- Lifetime workers. Yes, they do exist. I personally know someone who claims he will never retire, and he plans to work for the unforeseeable future. Others retire, and after a year or two re-enter the workforce on a part time basis—while some transition from a full time job to a part time position—one that relates to their knowledge and expertise.
- Innovators. A 30 year retirement is no longer out of the question. Medical advances have improved our chances for living longer and healthier lives. Given longevity, there are those who want to enlarge their capacities and look for ways to continue growing—in a completely different field.
Do most people want to work full time? No. The golden years may not be so golden on your body. But people still want to work and enjoy the flexibility of working on a part time basis—giving them the opportunity to enjoy their retirement and to spend more time with friends and family; or engaging in their favorite hobby.
Americans are renowned for their strong work ethic. Today, there are so many things to consider when we think about what we call “retirement “. Those with creativity will plan well.
It’s always interesting to read columns such as this. With Americans attitudes/feelings about “work”, it makes me wonder how we would do with European or Australian style vacation time. They often start with a minimum of 4-6 weeks (20-30 days) with mandatory usage of that time, and go up from there. On a recent cruise, we met an Australian couple who were taking 3 months of built up time to travel, and would still have 6 weeks upon return to their jobs. For them, it is “forced”, as not taking it incurs a liability for the company. The built up time also accrued over a surprisingly short time.
I started work at the megacorp in the UK, and when I transferred to the US payroll I was not pleased to lose a week’s vacation! The work day was also longer and there was no flex time.
At that time employees were not required to take their vacation days and I was surprised to discover that some people had a sizable amount banked. (I always took all of mine.)
John, This has become an often discussed topic. American culture is more work centric because it was populated by immigrants who came here, risking everything, for a better life through work so that they could climb the prosperity ladder. They didn’t come here to relax.
Additionally, European labor laws are different. A certain amount of vacation time is mandated by the government. whereas here in America, That decision is left to the individual company.
Thanks for the thoughtful post. After thirty years of intense work with my firm, I started part time this week (not working Fridays). The decision to try part-time as a transition to retirement was informed in no small part by the discourse here on Humble Dollar. Too soon for me to provide any findings, but I was definitely not bored yesterday on my first Friday off. Thanks again!
You are so welcome, Richard, and We’re so pleased at Humble Dollar that you sound happy with your decision. Thank you for your comments.
I was on a retirement finance social media site recently and the posted question from a pre-retiree was: “What, if anything, has surprised you about retirement?”. My somewhat glib initial answer was that what surprised me was that I didn’t like it. I found I was, in fact, bored and unfulfilled-in baseball parlance “not ready to hang up my cleats”. A reason for the surprise was that I had been on the long runway to retirement for several years at megacorp and the job had become increasingly draining-all I could see was the finish line. After I retired, we went on a very nice trip visiting a National Park, part of an established joint retirement plan to visit all the NPs. After getting home though, I put up a shingle on LinkedIn and to my surprise got part time contracting/consulting work. That was 7 years ago. Some of the work has involved travel and my wife has joined me and we have added personal travel around the work. On one trip to Switzerland she reconnected with a Swiss exchange student who had attended her high school. They now have regular calls and visits. On other trips we have been able to visit distant relatives and friends to renew and sustain relationships. I have really enjoyed the work and helping young folks. From a financial perspective, although we would have been OK if I wasn’t still working, doing so has had huge benefits including a bridge to delayed SS without drawing on retirement accounts. On the home front, I’ve been able to develop a structure of fulfilling activities and social engagements, some with my wife and some not, now such that I am slowing down the work a bit and the motivation for working is not quite as strong although I’m not ready to say with finality that I am hanging up the cleats just yet.
What is the name of this retirement finance social media site? Thanks!
Rob, I enjoyed reading your comments—a reminder to all of us that the mind as well as the body needs a good run too. Overtime, our physical fitness will generally decline, no matter how much effort we put into staying fit. But by keeping the brain, actively engaged and constantly learning, we can prolong its ability to function properly.
Being creative helps conquer boredom—it will also keep your brain in great shape during your later Years.
Thanks for an interesting article Marjorie. I’ve seen each of your points exhibited by friends or colleagues. Many of my former colleagues had planned a pre-65 retirement, but have ended up deciding to work to 65, or at least closer. Health insurance is certainly one of the reasons. Our company’s traditional pension was frozen in April 2014. That means a meaning full reduction in what they had expected to receive upon retirement. I know a few folks who have been able to move to a part-time role, or a consultative role. I found consulting a good way to continue to use my mind, skills and experience, and make a bit of money also. Happy New Year.
Thanks for your supportive comments Rick. We’re all born with the ability to be creative, but not everyone has the capacity to understand how to use it. You certainly have no problems there.
Through all your endeavors you seem to be successful. I do believe that people like you just naturally attract good outcomes.
From my observations, a major determinant of happy retirement is health. Money is a distant second. If you are blessed with good health, you have many options to enrich your life in retirement – part time work, travel, hobbies and social networks.
When you are planning for retirement, it is wise to focus on your health (mental and physical) while building financial security.
smr, thank you for your salient comments. We certainly have an obligation to do our best. But life can be extremely illogical. There is no rational reason why sometimes misfortune strikes. Life isn’t fair. It may appear that there are no rewards for living your life carefully and being good—and no rewards for suffering misfortune.
Witness Jonathan and I include myself. At the same time, we have been blessed with strengths, talents and creativity to help us deal with it all.
I retired at 59 in 1999 in order to spend more time on investments. I retired also because commuting was getting more and more difficult. I was driving about 38 miles each way. My wife was an anesthesiologist. She was making enough money, so there was no pressure in making both ends meet.I had a Ph.D. in engineering but my interest was in investments.
Mr. Narayanan, I often hear people talk and write of the need for teaching financial literacy. Sometimes what is missing in the conversation is something you possess—an unparalleled interest in the world of investing.
I remember your first article written for Humble Dollar, where you so adeptly wrote of your success in finance. You also expressed an interest in expanding your writing skills. I’ve often wondered if you pursued that talent.
Thank you for your comments. Continued success in all your endeavors.
Thank you, Marjorie, for your cautionary advice.
I LOVE retirement (3 years in; age 66), feel incredibly blessed to afford it, and am never bored. The important pieces for me have been channeling my work ethic into volunteer activities, creating a central place for exercise and nature, and continuing on a path of lifelong learning. I also feel fortunate to work in a college lab several (largely unscheduled) hours a week — great for socialization, being among the young, and using the mind.
Jo Bo, you have embraced everything that is worthwhile to ensure a happy retirement. It was uplifting to read about your activities and interests—Continue on your journey of lifetime learning. I wish you many fulfilling days during a long and enjoyable retirement.
I loved working and love not working. Life continues and endlessly interesting. I am lucky I read people like Jonathan and Bogle along the way to plan financially.
The capacity to grow is indispensable for handling the free time that a balanced lifestyle affords.
Agree that reading books written by Jonathan and others who “know their onions”, is key to self education in financial planning.
Thanks for reading and commenting.
Marjorie, great article that covers many of the aspects of retirement, all of which are valid considerations. I would just add a couple more that I have found in my 15 months of retirement.
These activities fill quite a bit of my time and I rarely find myself bored or looking for things to do.
Luv to ride…life does offer us so much in the way of interesting pursuits. You seem to have found the key to a well balanced retirement.
Thanks for mentioning the New Jersey senior Citizens Learning Center—and thanks for reminding us not to let the couch, the fridge and TV become our 3 best friends.
Thanks for this article. I find retirement to be anything BUT boring. As noted by others, there are kids and grandkids (and for some, great grandkids) to visit, nurture, and cherish. There are hobbies old and new. There are still household and yard chores for many of us. Travel is a discussion during each and every year. Social activities are no longer limited to Saturday evenings – we’re always available and our calendar is an open book!
Jeff, people like you who cherish and can handle freedom are seldom bored. You seem to be busy doing things you love and always wanted to do.
Life can be a series of adventures and wonderful discoveries because you are a creative person and not easily bored.
Marjorie, thanks for a reminder that when or if we retire from our job, we shouldn’t retire from reality. The more senior members present remind us that life continues to have its challenges and pleasures, heartaches and victories.
Ed, from the first sentence of a comment, in its abbreviated form, on the Forum website,I can tell who the commenter is, and I’m usually not wrong. Your comments are sensible and thoughtful, never challenging, always kind and complimentary—and you “get” the crux of the post.
Actually, the article is slanted towards boomers of your generation—those who may be newly retired or on the cusp of retirement. As you have pointed out life goes on after retirement, and not without problems and challenges—sometimes of a different nature—the worst being health issues.
You are still in the category of what some call “the youth of old age “ Enjoy your health. Happy New Year.
Another great post Marjorie!
As I have commented before my retirement hasn’t been boring.
Grandchildren, family, friends, books, puzzles, games, and endless internet surfing all seem to eat up lots of time.
Not to mention hobbies old and new.
I did get a chuckle out of “endless days of relaxation and recreation”.
Even though we downsized there are still the mundane tasks of cleaning, upkeep, repairing and the like to do.
Not to mention Doctor visits and all sorts of seemingly inscrutable medical “tests”.
Throw in some travel and I have to marvel at how I got in ANY personal time while I was working.
Winston, thank you for your kind comments.
You are not alone in your concerns about the time spent on doctor visits. And the endless tests. Currently, I see an Oncologist, a Cardiologist , a.kidney specialist, an endocrinologist, a rheumatologist an ENT doctor and a doctor who specializes in neuropathy..I forget what kind of a “gist” he is.
Most of them want blood work and CT scans, and an ultrasound at periodic intervals.
its my part time job keeping track of it all!
you sound happy in your retirement . Im glad for you.
The key is to start investing early; 10-20% of gross income
Saving + Index Investing=wealth
Kenneth, your formula has proven to be a winner. Thanks for reading and commenting.
The idyllic futures we imagine are probably because we Americans tend toward optimism, that we tend to see a better future. When we’re young and overly busy there’s often less time to reflect on out disappointments but in retirement they can become a focal point.
I say let’s keep dreaming the big dreams
Thank you Scott. Your point is well taken. Where would we be without our hopes and dreams? But in order to realize our dreams we need to have a plan and to act on those plans
with dedication, and commitment. The universe helps those who help themselves.
“… people still want to work and enjoy the flexibility of working on a part time basis…”
People with certain kinds of jobs, requiring brain rather than brawn, may want to continue to work. Even they may not have the choice – try getting a tech job in your fifties.
However, no reason you have to work to avoid boredom in retirement. I retired at 53, in 2000, and I have yet to be bored. I did work as a part-time contractor for a few years after I retired from the megacorp, but I didn’t miss the work when I stopped.
“… traveling can cost a lot of money…”
It can, if you choose, but it doesn’t have to. In fact, you may have more fun, and certainly learn more, if you travel cheaply. (I often recommend Rick Steves’ “Europe Through the Back Door” although he has moved more upmarket as he has gotten older. Lonely Planet and Rough Guide are good for budget travel in Asia.)
Hi Kathy, Of course we know there are so many who would like to return to work and can’t. My own husband is a good example. He suffered heart failure and required surgery the year he retired.
As for traveling, I’m so glad you were able to fulfill your heart’s desire to travel and found a way, through careful budgeting, to make your dreams come true, and to enjoy life in your CCRC.
Hi Marjorie, sorry to hear about your husband. I was observing people retiring at 65 and six months later they seemed either to have serious health problems, or were back at work. Not what I wanted.
Thank you, but I would say innate frugality as much as careful budgeting. If I saw a pricey hotel I would think about how many more days travel I could get for the same money staying somewhere cheaper…
Being a Chicagoan …I “knew somebody” so I was able to get my last IT job even though I was likely waaayyyy, wwwaaayyyy past my “sell by” date.
I have been retired 15 years, partially retired a year earlier. I think the essence of your observations -aside from not only the need for more education, but people pay in attention to it, is the mistake some people make of setting an age to retire.
How many times have we heard “I plan to retire at 50 or 55 or 60. Setting such a goal may sound nice, but that does not mean a person is ready to retire even ignoring the financial aspect. I say when your ready, you will know it.
I once ran a voluntary early retirement program with very lucrative added benefits. 1300 people jumped at it – we expected half that. Within six months there were people asking for their job back as they made a mistake – and it wasn’t about money. A few claimed to have jeopardized their marriage because they had not discussed their decision.
My view is some people enter retirement with unrealistic expectations even plans. Among those married they may fail to consider what retirement means to the spouse, working or not.
I never found retirement boring and at this point I welcome a boring day. Everyone on HD knows my views on funding retirement, but let’s leave it at create a steady income stream to ease stress.
Our health care premiums increased (at 65) but our out of pocket costs disappeared. Combined we have incurred well over $500,000 in charges since being on Medicare and paid only the Part B deductible.
No politician, not even ..l will allow SS to go away.
Yup there are people who just don’t want to retire. Have at it if it makes you happy.
I started working in the company mail room in 1961. When I retired in 2010 there was a guy still there who had been there since 1955. He was in his 80s collecting his pay, pension and SS and had more money than he knew what to do with for him. He only had a sister and he told me was hoping to buy her a house. Good old Tony passed away never retiring, but apparently being happy.
An undiscussed question may be, given our workforce issues and national debt, can the Country afford to have workers entire, especially early?
I had similar thoughts when I heard others wish out loud for early retirement. I spoke with a few of them, and asked whether what they really wanted was the financial security to make choices. When reaching 50 or some similar age, to be able to afford to choose options, such as early retirement, or scaling back, to change careers, or to just continue plugging away. In other words, financial peace of mind.
Dick, many thanks for reading and commenting. We can always count on you to give a good accounting of your life in retirement. Everyone’s journey is different.
With your children, grandchildren, golfing and prolific postings you certainly have plenty to occupy your time. Best of all—you are blessed with good health to enjoy everything all the more. We should all be so fortunate in having such a high level of satisfaction.
I hope your good luck continues and wish you a happy, healthy, prosperous New Year.
If Americans are taught more about finances and healthy living earlier in their life, more of them will be able to have a good retirement no matter when they decide to do it.
Hi Nick…The premise of the article is really that people want to work after retirement from their primary job—simply because they enjoy working and because now, more than ever, it provides a practical solution to the ever increasing cost of retirement.
We are all different and have different circumstances. I think the “bucket list” is overrated. As Jonathan has written about, on a few occasions, he most enjoys the simple pleasures—the small delights in the unfolding of his days and still being able to continue his life’s
creative work, if only on a limited basis.
Thank you for your comments Nick and for reading.