Is "working in retirement" an oxymoron?

[Scanner]

DisneySteve,

Some of it is due to poor financial habits but I don't know. . .I palpate something more.

Take my wife and I as a "for instance" - you may even be an example.

We have done everything "right" as far as things go. We both pursued professions. We both work. We don't take expensive vacations - maybe we "fast food it" too much. . .we aren't saints. We never amassed credit card debt.

Yet, neither were our parents and they are sitting good with pensions and so forth. They are "taken care of" by corporate America and the State of NJ (teacher's pension). Even though we are college educated and my parents weren't (hers were), I don't think we are going to do better than them necessarily, when you figure cost of living.

My parents bought a house for $18,000. We bought our first for $130,000. . .our "final house" (barring moving) for $242,000. . .I don't know, it just isn't the same for our generation.

I am not trying to shift blame or anything but it appears our call will be to work. I don't mind that - like I said, I am not sure what I'd do in retirement anyway.

I know you didn't intend to make it a generational thing but let's face it - the subject of retirement spans generations.

I guess Generation X, who has been called slackers, doesn't want to hear it when we reach 65 and we are all working part-time for the most part. That's a big fat "up yours" to the Baby Boomers for expecting every American to have 4.2 million dollars in their retirement accounts by age 65

[disneysteve]

Scanner - It isn't a Gen X thing at all. It is the Baby Boomers and pre-Baby Boomers (whatever that generation was called) who are setting this trend. Why? Probably a combination of reasons. The Boomers have enjoyed a much higher standard of living than previous generations and don't want to give that up in retirement. There has been the loss of pensions, as you noted. At the same time, there has been a decrease in personal savings rates and an increase in typical debt load. That is leaving many Boomers financially unable to stop working and maintain anything near their current lifestyle. Also, there are non-financial issues. People are living longer, healthier lives and want to stay active and involved in society. They have defined themselves by the work they do and feel lost without a job to go to each day.

Overall, most of us enjoy a far higher standard of living than our parents' generation. I think we are pretty frugal relative to our peers, but it is still far better than I had growing up. Our house is bigger. It is furnished nicer. Our kitchen is stocked with high quality cookware and knives (we both love to cook). Our modest 27" standard TV is bigger than the biggest we had then. We have nicer cars with all kinds of safety equipment, air conditioning, better stereo systems than we had in our homes 30 years ago, etc.

In contrast, my 77-year-old mother lives very simply, as she always has. She gets by very nicely on SS and investment income, and that isn't because she has a 7-figure nest egg - she does not. It is because her needs and wants are few. She sold her house in 2006 and moved into a senior apartment complex. That resulted in a net gain of over $700/month for her between lower living expenses and higher investment income. Apartment living is way cheaper than owning a home, even though the home was paid off 40 years ago. She actually has a positive cash flow, taking in more money each month than she spends. How many future retirees will be able to say the same?

[Gruntina]

Overall, most of us enjoy a far higher standard of living than our parents' generation. I think we are pretty frugal relative to our peers, but it is still far better than I had growing up. Our house is bigger. It is furnished nicer. Our kitchen is stocked with high quality cookware and knives (we both love to cook). Our modest 27" standard TV is bigger than the biggest we had then. We have nicer cars with all kinds of safety equipment, air conditioning, better stereo systems than we had in our homes 30 years ago, etc.

Keep in mind that today's time (what ever generation that is labeled) that more young adults and teenagers has a lot more opportunity to earn a good amount of money at a younger age as well compared to the older generations. Among the very wealthy people, there is definitely a newer trend of more younger people that are millionaires due to the internet/engineering and media business. This changes our life outlook by giving us more choices what to do with our money rather worrying about how to come up with money. If this was not the case, I am sure it would have been more like old times.

[LuckyJB]

Find something you will love to do then you wont have a problem with work being work.

[LuckyJB]

And when we work...we hopefully learn to save and invest...making an upward wealth curve.....so we have $ for retirement.....X-Curve.