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Thread: Is 70 the new retirement age?

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    Is 70 the new retirement age?

    Is 70 the new retirement age?

    Yes, very likely so. I posted an article from Forbes (not lost behind a paywall) several times that discussed the labor force participation rate and which provided loads of statistics showing the drop was in the younger cohorts. That is a very bad thing for reasons that I argued several times previously.

    Many people look forward to retirement after spending years struggling through the daily grind. Unfortunately, a growing number of Americans may have to wait even longer to make their grand exit from the workforce. Although the average retirement age in the U.S. is just 63, according to a recent study by human resources consulting firm Willis Towers Watson, almost a quarter of Americans believe they won't be able to retire until age 70 or older. Worse yet, 5% are convinced they'll never be able to retire at all.

    Even workers who plan to retire at 65 aren't so sure of themselves. Those surveyed admit that, while they'd like to retire at 65, they think there's a 50% chance they'll wind up working until 70.


    So why all the negativity? A lot has to do with insufficient savings. With Social Security only designed to replace about 40% of the average American's pre-retirement income, most of us have to save independently to ensure a reasonably comfortable retirement.
    Older people working longer is not going to have the economic impact of younger people actually working.
    Maybe that is why some economists see the flaccid GDP growth rates as the new normal.
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    many people will work past 70. it is already occurring.
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    Retirement is something that isn't attainable unless you are playing on the stock market from a very young age, or you are in the top 10-15% economically. Most young people are doing neither, so I think their belief that they will never be able to retire is fairly accurate.

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    Quote Originally Posted by exploited View Post
    Retirement is something that isn't attainable unless you are playing on the stock market from a very young age, or you are in the top 10-15% economically. Most young people are doing neither, so I think their belief that they will never be able to retire is fairly accurate.
    If the younger cohorts are not in well paying jobs, they are not building families, buying homes, and saving for retirement. That creates a long term economic drag.
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    I think (in my opinion of course) there are three main reasons why many older workers who are physically able to, continue to work:

    1. Financial concerns; many companies no long offer a defined pension plan; some workers who have 401.k plans are woefully underfunded and they may feel that they may not have enough funds to maintain the desired lifestyle they want upon retirement;

    2. Social Security concerns; as mentioned in the OP, SS generally makes up only 40% of their regular earnings and those who do not have defined pension plan nor 401.k cannot live off of Social Security (SS was not designed to replace pensions when created, only to supplement them as a safety net), so in many cases, they cannot retire at this point;

    3. Some people actually enjoy their jobs and for them it's not just rewarding financially but also a stress reliever for those who have no interests outside of work (work is their life) and will continue to work until they can physically can no longer.

    Saving early by investing in a managed 401.k should pay bountiful amounts 30-35 years down the road when it becomes time to contemplate retirement; regardless how much you put in, make sure you pay yourself each and every paycheck. That'll give you peace of mind.

    Just my thoughts.
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    Once I tell you that we agree to disagree there will be no more discussion between us in the thread so please don't waste your time continuing to argue your points because I will not respond.

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    I might add that the American dream has gotten a lot larger than it was in the past. Before the credit crisis, people were biting off far more than they could chew in terms of credit on the basis that nothing would ever change in terms of employment and earnings. People have learned the hard way that what seems plausible for two people earning, is not plausible if one loses their job. People used to understand that purchasing something like a house means buying with the knowledge that you may have to weather several months without income at some point or another, so you don't buy the house that taxes your income to the limit so that you can put money away for a rainy day, and if unemployment happens, you can still meet your obligations. Instead, we had 30 somethings buying the sort of homes that 50 somethings were buying in the past with all of the high-end finishes.

    How many on this forum grew up in a home with granite counter tops, 4 bathrooms, a completely finished basement with a theater room, a brand new vehicle in the driveway and 2 vacations a year? I don't know about you, but my middle class family home had carpenter built cabinets in the kitchen with arborite counter-tops, two bathrooms for a 4 bedroom home, with wall to wall carpeting and one finished room in the basement (because it was a side-split), with the rest for laundry and fix-it projects. We kept our vehicles for many years and my father did 99% of all of the maintenance and mechanical work on them. Vacations were a trip to the beach or on occasion a longer trip to see a relative. In those days women mostly stayed home, so there was only one income and people really lived within their means. I recall a point where my father was unemployed, but it was not for long - still, the bank was not foreclosing on the house.
    In quoting my post, you affirm and agree that you have not been goaded, provoked, emotionally manipulated or otherwise coerced into responding.



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