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You Can’t Always Get What You Want
Some Boomers imagine working forever, but life surprises them with early retirement
We’ve all heard about Ed McMahon’s woes by now. I’ve tried every which way to understand what went wrong with his thinking, but it’s hard.
I get that he’s generous and gave away tons of his money to others in need. I know he has previous wives to support and a current one whose clothing design business he invested in heavily before it went belly up. And word was he might lose his McMahonsion to foreclosure, since he owed nearly $700,000 in back payments.
What I don’t get is how an 85-year-old man can say his financial woes are due to the fact that he broke his neck and couldn’t work in recent months. Tell me the truth: do you honestly see yourself working for a living in your mid-eighties? I’m not saying it’s a bad idea—-heck, it might be a great idea, if you’re doing something you love.
But how on earth could you count on being physically and mentally capable of working at that advanced an age? Wouldn’t you want to, say, have a paid-off house by then, just in case?
U.S. News & World Report, in an article aptly titled “Getting Ready for a Surprise Retirement,” says:
The vast majority of baby boomers want or plan to work in some capacity as long as they can. Eighty-four percent of people between the ages of 51 and 70 expect to work after they formally retire, and nearly two thirds say they can’t see themselves ever retiring completely, according to a survey by management consulting firm McKinsey Global Institute. The McKinsey analysis also indicated that 60 percent of boomers will need to work in order to maintain something like their current lifestyle.
But what if the world doesn’t turn out to be perfect? What if something happens that makes it so you can’t continue to work?
An Urban Institute analysis offers a sobering look at what can go awry with your retirement plans. It looked at people who were 51 to 61 years old in 1992. A decade later, over three quarters of them had lost their jobs, become widowed or divorced, developed new health problems, or were confronted with frail parents or in-laws. Any of those circumstances can take a bite out of retirement plans, if not force workers to scrap them altogether. A third of the participants had a health condition that limited their work, and 19 percent went through a layoff or business closing, the study found. And laid-off employees who managed to get a new job were less likely to get health insurance and earned about 25 percent less per hour, says Richard Johnson, a coauthor of the study.
Look, I love the stories of the geezers who walk to work every morning, put in twelve hours six days per week because they want to, and then die happily during a coffee break. It makes me happy to think of people well past the age we’ve come to think of as “retirement age,” still useful and fulfilled, doing exactly what they love and what they planned to do.
I’m just sayin’, you might wanna have Plan B in place.
And if you’re positive you’ll be working until you’re 85, I’ve got a McMahonsion to sell you.
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Are You a Late Boomer?
If looming retirement is catching you off-guard between an aging parent and a revolving-door kid, you might be. If you've delayed travel only to discover they've changed the names of all the countries, you are. And if you're a member of the Baby Boomer Generation who's ready to give back but you've forgotten where you put it, stay tuned. From healthcare to personal finance, from career changes to volunteerism, it's time to boom where you are planted.