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Do you plan on retiring?

post #1 of 4
Thread Starter 
I think we all know the tropes by now. Many Generation Xers and Yers often wonder if they will be able to retire. I think that's a genuine concern when you consider a few factors. First, the decline in defined benefit plans and retiree health plans. That's not going to change; the two institutions that still widely offer pension plans, government and unions, are laying off workers and they're not being replaced (federal gov't. is an exception, as it is growing and they offer only a partial defined benefit plan). There also seems to be a generational attitude about saving for retirement. One study says that only 4% of workers under 25 are maxing out benefits to their retirement plan. I question the claims that this is some new trend, as sub-25 workers have less disposable income with which to beef up retirement accounts.That's not a new thing. But I honestly never hear people in my age group discussing IRAs or 401(k)s. They do often discuss how much credit card and student loan debt they have, though.

I found this very interesting: "the percentage of young workers who cited their pension plan as a reason for staying with their current employer has jumped from 28% two years ago to 43% now." (http://www.foxbusiness.com/personal-finance/2011/04/25/young-workers-want-good-old-fashioned-pension/) The peace-of-mind factor is obvious in a recession-esque economy, but I wonder if young people are seeing how their Boomer relatives with nice pensions are able to maintain comfortable lifestyles.

OK, so the question is: do you plan on retiring? Do you think you'll have enough income to do so? I think it's fair to wonder if the traditional notion of retirement will change drastically over the next couple of decades. Decline in defined benefit plans, longer lives, etc.

Some interesting reads about this and similar topics below. I'd like to read more on the subject so if you have recommendations, please list.

"By choice or necessity ,generation staying in workforce"--http://www.chicagotribune.com/special/primetime/chi-primetime-retirement-041311,0,4198022.story

"The Disappearing Defined Benefit Pension and Its Potential Impact on the Retirement Incomes of Baby Boomers"--http://www.ssa.gov/policy/docs/ssb/v69n3/v69n3p1.html

"The Rise of 401(k) and other Defined Contribution Plans"--http://research.stlouisfed.org/publications/review/02/01/23-34Friedberg.pdf
post #2 of 4
Interesting question. It's a tough call. When all the defined benefit plans around the country (and the world for that matter) were set up, people were living to about 70, so you work till your 65 and retire for 5 years and that's it. You have 45 years of work to save up for an average of 5 years of retirement. These days people are living to 80+ and working till 60 (or even 50 or 55 in some cases), so people are working for similar periods of time that they spend retired and that is going to have to change. People in 20 years time won't be able to retire until they're 75 or so I think.

The government are going to have to suck this one up too, but they don't want to, because in the short term doing so will be political suicide. One of the major problems with democracy actually is the short termism that it engenders. Legislators can't do what's best in the long term because it's going to hurt in the short term and people don't like that.

All of this of course is exacerbated by increasing costs for young people. If you want to retire at 60, even 65, you need to start saving a LOT of money when you start working in your 20s and 30s. People have huge loans from college and so on and they worry about paying that off first (which is fair enough), but the later you start saving for retirement, the more it costs. The lack of company support for that is making it harder and harder to do that.

To your original question, yes, I plan to retire. I need a few things to go in my favour if I'm to retire when I want to. First of those is hitting the winning powerball numbers Saturday night smile.gif More seriously, I have a decent company plan, but I'm not holding out too much hope of actually seeing it. The way the law is right now, it's basically guaranteed, but I just don't see it as sustainable by the time I hit retirement age.

Disclaimer: I'm a little "in drink" right now, so don't quote me on any of this shog[1].gif
post #3 of 4
did not read all words.

i dont know how the fuck im gonna pull it off but i certainly plan on retiring. i have a tiny roth ira and some savings. hopefully ill find a way. or inherit a lot of money.
post #4 of 4
I run a business. unless someone buys this from me I plan to work here indefinitely, but I will take it way easier as I get older.
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