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1 in 4 Americans never plan on retiring

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  • 1 in 4 Americans never plan on retiring

    Saw this on CNBC this morning.
    I'm not sure how accurate these types of surveys are but it is concerning if it's true.

    Financial instability was the number one reason given as to why people said they will keep working
    Brian

  • #2
    CHICAGO >> Nearly one-quarter of Americans say they never plan to retire, according to a poll that suggests a disconnection between individuals’ retirement plans and the realities of aging in the workforce.

    Experts say illness, injury, layoffs and caregiving responsibilities often force older workers to leave their jobs sooner than they’d like.

    According to the poll from The Associated Press-NORC Center for Public Affairs Research, 23% of workers, including nearly 2 in 10 of those over 50, don’t expect to stop working. Roughly another quarter of Americans say they will continue working beyond their 65th birthday.


    According to government data, about 1 in 5 people 65 and older was working or actively looking for a job in June.

    For many, money has a lot to do with the decision to keep working.

    “The average retirement age that we see in the data has gone up a little bit, but it hasn’t gone up that much,” says Anqi Chen, assistant director of savings research at the Center for Retirement Research at Boston College. “So people have to live in retirement much longer, and they may not have enough assets to support themselves in retirement.”

    When asked how financially comfortable they feel about retirement, 14% of Americans under the age of 50 and 29% over 50 say they feel extremely or very prepared, according to the poll. About another 4 in 10 older adults say they do feel somewhat prepared, while just about one-third feel unprepared. By comparison, 56% of younger adults say they don’t feel prepared for retirement.

    Among those who are fully retired, 38% said they felt very or extremely prepared when they retired, while 25% said they felt not very or not at all prepared.

    “One of the things about thinking about never retiring is that you didn’t save a whole lot of money,” says Ronni Bennett, 78, who was pushed out of her job as a New York City-based website editor at 63.

    She searched for work in the immediate aftermath of her layoff, a process she describes as akin to “banging my head against a wall.” Finding Manhattan too expensive without a steady stream of income, she eventually moved to Portland, Maine. A few years later, she moved again, to Lake Oswego, Oregon.

    “Sometimes I fantasize that if I win the lottery, I’d go back to New York,” says Bennett, who has a blog called Time Goes By that chronicles her experiences aging, relocating and, during the past two years, living with a pancreatic cancer diagnosis.

    Meanwhile, Americans have mixed assessments of how the aging workforce affects workers: 39% think people staying in the workforce longer is mostly a good thing for American workers, while 29% think it’s more a bad thing and 30% say it makes no difference.

    A somewhat higher share, 45%, thinks it has a positive effect on the U.S. economy.

    Working Americans who are 50 and older think the trend is more positive than negative for their own careers — 42% to 15%. Those younger than 50 are about as likely to say it’s good for their careers as to say it’s bad.

    Just 6% of fully retired AP-NORC poll respondents said they left the labor market before turning 50.

    But remaining in the workforce may be unrealistic for people dealing with unexpected illness or injuries. For them, high medical bills and a lack of savings loom large over day-to-day expenditures.

    “People like me, who are average, everyday working people, can have something catastrophic happen, and we lose everything because of medical bills,” says Larry Zarzecki, a former Maryland police officer who stopped working in his 40s after developing a resting tremor in his right hand and a series of cognitive and physical symptoms he at times found difficult to articulate.

    At 47, he was diagnosed with Parkinson’s disease. Now 57 and living in Baltimore, Zarzecki says he has learned “to take from Peter and give to Paul, per se, to help make ends meet.”

    Zarzecki has since helped found Movement Disorder Education and Exercise, a nonprofit organization that offers support and treatment programs to those with similar diseases and certain traumatic brain injuries. He has also helped lobby state and national lawmakers to address rising prescription drug prices.

    He receives a pension and health insurance through the state, but he spends more than $3,000 each year out of pocket on medications.

    “I can’t afford, nor will my insurance cover, the most modern medication there is for Parkinson’s,” he says. “Eat, heat or treat. These are decisions that people in my position have to make. When it’s cold out, or if it’s real hot out, do you eat, heat (your home) or treat (your ailment)?”

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    • #3
      I don't think I'll ever retire. I've heard too many bad things about it. Like you never get a day off.
      How can you have any pudding if you don't eat your meat?

      Comment


      • #4
        Originally posted by TexasHusker View Post
        I don't think I'll ever retire. I've heard too many bad things about it. Like you never get a day off.
        I love when someone who is retired tells me they are going on "vacation". I always say, "from what?"
        Steve

        * Despite the high cost of living, it remains very popular.
        * Why should I pay for my daughter's education when she already knows everything?
        * There are no shortcuts to anywhere worth going.

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        • #5
          i dont think i can truly retire unless forced to for health reasons. I'm not too good with hobbies and stuff and i get really lazy if not doing anything I consider to be productive. I'd probably be like a poor warren buffet, working and keeping busy until my mind/body goes.

          Comment


          • #6
            I'd be surprised if the number wasn't higher than one in four. There is a very large segment of the US population that operates on day to day survival mode, doing rather low pay, low benefit jobs spending every dime they make living paycheck to paycheck. They have no savings and haven't really even thought much about it. When they hit social security age they soon figure out that isn't enough to live on so they continue to work any kind of job they can to get by. I suspect this is why you see so many elderly cashiers and employees at places like WalMart, etc.

            Comment


            • #7
              Originally posted by Fishindude77 View Post
              I suspect this is why you see so many elderly cashiers and employees at places like WalMart, etc.
              I think that's a combination of reasons. Some are doing it for the money. Some are doing it because they want to remain active and like interacting with the public in a relatively low pressure setting. I know people who fall into both of those categories.
              Steve

              * Despite the high cost of living, it remains very popular.
              * Why should I pay for my daughter's education when she already knows everything?
              * There are no shortcuts to anywhere worth going.

              Comment


              • #8
                I’d think even with savings most Americans will work at least part time to offset healthcare/property tax costs. Overall problem is that most Americans don’t plan for a $500 unexpected bill let alone retirement.

                Comment


                • #9
                  Originally posted by disneysteve View Post

                  I think that's a combination of reasons. Some are doing it for the money. Some are doing it because they want to remain active and like interacting with the public in a relatively low pressure setting. I know people who fall into both of those categories.
                  I know many in retail PREFER older workers now as they SHOW up for their shifts. Many also like being active and having people to talk to every day.
                  I live around many retirees and am surprised that some whom did not save enough, do not take advantage of the gig jobs out there to help make ends meet. I used to walk with some ladies but most just complained instead of looking into the many PT options out there. Think of all the sample ladies at Costco.

                  Comment


                  • #10
                    Originally posted by Fishindude77 View Post
                    I'd be surprised if the number wasn't higher than one in four. There is a very large segment of the US population that operates on day to day survival mode, doing rather low pay, low benefit jobs spending every dime they make living paycheck to paycheck. They have no savings and haven't really even thought much about it. When they hit social security age they soon figure out that isn't enough to live on so they continue to work any kind of job they can to get by. I suspect this is why you see so many elderly cashiers and employees at places like WalMart, etc.
                    I think it's an example of the Pareto Principle. Everyone talks about the high achievers, highly productive, etc, but no one talks about the low achievers, the less productive.

                    Comment


                    • #11
                      I am surprised it isn't a higher number. I know one couple who "retired" from their regular jobs and are working because they didn't plan for retirement. Another friend says she can never retire. She works two jobs, but will not try to save money or do anything to plan for retirement. Just says she will work until she dies. I look at her and see how her health is being effected and wonder how much longer she can make it.

                      Comment


                      • #12
                        I was doing some research on retiring this past week. I'm 63 with a birthday in two months that had to go on disability in my mid-40s and had gone through two divorces that had tapped me out. Since hubby and I got married I have worked hard even with limited resources to save towards retirement. Not anywhere near what 'they' say we should have socked away. However, when comparing us to other couples we have more put away for retirement than many in our age bracket. I will most likely be always working even if just part-time or less until I just no longer can physically help run the business. Where many say that they can't afford to put anything aside for retirement, sometimes I was tucking only $30-40 into the retirement account. I am enjoying watching it grow even after last month's roller-coaster ride of the stock market. Things are going a bit better for us financially so I am stashing as much as possible to the retirement account as I know I will need it more in a few years from now than I do now. But it is hard to save unless you are willing to put off today what you want so you can have what you NEED in the future.

                        Gailete
                        http://www.MoonwishesSewingandCrafts.com

                        Comment


                        • #13
                          Originally posted by Gailete View Post
                          I was doing some research on retiring this past week. I'm 63 with a birthday in two months that had to go on disability in my mid-40s and had gone through two divorces that had tapped me out. Since hubby and I got married I have worked hard even with limited resources to save towards retirement. Not anywhere near what 'they' say we should have socked away. However, when comparing us to other couples we have more put away for retirement than many in our age bracket. I will most likely be always working even if just part-time or less until I just no longer can physically help run the business. Where many say that they can't afford to put anything aside for retirement, sometimes I was tucking only $30-40 into the retirement account. I am enjoying watching it grow even after last month's roller-coaster ride of the stock market.
                          I think that is the BIG disconnect for many lower income workers. Many simply read/ see the astronomical amount that "they" ( so- called experts) say you will need.
                          Saving 30-40 dollars seems like emptying a bathtub with a teaspoon. I think we need to address the issue of saving for retirement in a different way to reach more people not just articles and news promising doom and gloom to those who do not have a million in the bank by 40-50. I think we should encourage all savings even if we do not reach some hypothetical MAGIC number.
                          Where are there the cheerleaders for those of us that have at least some savings? ...…. Nope we are forgotten. Media only celebrates those who have tons saved up or pity those who saved nothing.

                          I look at those around me who are trying to live on SS and even a small payout from another retirement vehicle would make it much easier, but most figured it was too little to make a difference.

                          I have found that those small amounts DO add up and like you said in conversations with others ( if they are truthful) I find myself in a much better place then some even those whom made more per year in their working career. I set aside often very small amounts whenever I could.

                          I also think there is a huge disconnect with far too many believing the idea that people simply cannot save. I have seen many in all types of jobs ( low and high income) it was if saving was a priority or not.

                          I found it ironic that when some people were pushing for mandatory 401K enrollment usually taking 2-3% .
                          Yet they often talk about this" huge group is living paycheck to paycheck and can't save". So on their own people can NOT afford to SAVE but IF/ WHEN mandated the line was "it is only 2-3% they won't even notice it". It can't be both
                          I know we have had MANY threads talking about personal finance education. This is usually not done as there is not a one size fits all answer or method. So people water the ideas down to the point it is worthless.

                          Comment


                          • #14
                            Originally posted by rob62521 View Post
                            I am surprised it isn't a higher number. I know one couple who "retired" from their regular jobs and are working because they didn't plan for retirement. Another friend says she can never retire. She works two jobs, but will not try to save money or do anything to plan for retirement. Just says she will work until she dies. I look at her and see how her health is being effected and wonder how much longer she can make it.
                            I worked with some people like you described.
                            I always found it fascinating that some of us were terrified that would be us, so we worked harder to save and others simply felt "see I will just do that when I am older "and so they felt it was zero use to save.

                            Comment


                            • #15
                              My ex, my son's father, never saved a penny while we were married towards retirement, although I do know that he spent over $7K on baseball cards. He still collects tacky stuff like bobblehead dolls and at one point was collecting plates. I could see in the window from the driveway before he moved that one of the plates was of Princess Diana. He is one of those that falls into the trap of if they say it is collectible it must be so he collects it. Over the 4th weekend, both my boys were chewed out by their aunts for not paying sufficient attention to their dad and that they were paying for him to have a home care person come in once a day. This man is independent, comes up from FL in the summer, drives around and does his own thing. What he is diagnosed with is from the descriptions I was hearing is the same thing he was doing/no doing when we were married. I don't know if they thought that my boys should be chipping in for this care person, which I have no clue what he needs help with. Yet because he never saved, his sisters over the years have helped him out and I know neither of my sons can help him out. Why is it his sisters and children should be left to pick up the pieces of his life that he never thought about? How much would that $7K, if invested, have been worth if put to grow to from the late 80's to this point in time?

                              You are very right Smallsteps, all we hear is that we need a million bucks to retire. Wanting to retire or not, most people do and then find that they have to get a job as a WM greeter to make ends even begin to meet. I have been living on SSD for a long time now. I know how much more we need and I am working towards that goal! And what I find is that so many articles make it sound that when you hit 65, you don't save anymore and start taking your money out of your account right then and there. What is wrong with practicing economy and some frugality and putting off tapping your savings for several years. Which is why it is so important to have bills and mortgages paid off before you retire, and why do some take out mortgages for $300K+ for a new home at that point in their lives?
                              Gailete
                              http://www.MoonwishesSewingandCrafts.com

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