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Silver Conversationalist

Retirement Could Last Longer Than You Think!

How long do you think your retirement will last?

 

The average American will retire at age 66 and live until about age 79 = 13 years of retirement.

 

Lol, I am not sure as I retired at age 62. My grandmother lived until age 104. My mom until age 89. So.....

 

Hopefully Social Security is around until I die in spite of the naysayers. I need it.

 

What are your experiences and thoughts on this?

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Regular Social Butterfly

Retirement requires planning as for most there is NO mulligan, ie returning to the same high paying, benefit rich job.  

Many are just anxious to quit working, ie retire at age 62 with a greatly diminished SSA benefit. Few explores even genetics, considering their health, as to their likely longevity.  

Living on SSA is NOT retirement. At best it spells existence with no financial cushion to handle those unplanned expenses that crop up. 

It would be wise to try living on one's projected retirement income for one to two years before quitting one's job.  Granted, this is not an apple to apple comparison, as health care will be different.  One must make allowances, adjustments. 

The ONE recommendation I would make is jettison the DEBT, ie especially mortgage and credit card and commit yourself to living within your means. Some are disciplined and can do it.  Once retired our only choice is returning to work, but at what income? 

There online tools to estimate need but that is worthless as our needs, expectations are as different as are we. We MUST learn for ourselves and not rely on someone else's guess.  My conservative parents retired and still socked $$$ into savings, just in case an unplanned need arose.    

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Regular Social Butterfly

I find your response interesting as it differs so from my experience and that of family and friends.  I have children that hire as well as friends.  All, and I mean ALL, complain about a terrible work ethnic among millennials.  They expect big bucks but low expectations as to their contribution, motivation, drive, commitment and loyalty.  ALL would prefer someone from the boomer generation.

Granted, we do NOT learn as fast, may not be technologically capable, but exhibit a positive attitude and willingness to learn, to please.  We may not fit the needs of all positions, but many employers would jump at the opportunity to hire us for our positive attributes, experience, judgment, loyalty, etc.   

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Super Contributor

@AngelaRetired 

Depending on the male/female demographics of the selected group, average life expectancy will vary from group to group. Another factor that is important are the types of jobs the folks worked. For example, groups with more manufacturing jobs will have less life expectancy than office workers. So, the SSA provides a Actuarial Life Table that provides a sample of how to evaluate life expectancy from year to year. Hopefully, I have provided the copy and paste link https://www.ssa.gov/oact/STATS/table4c6.html Although the table divides males and females by 100,000 lives each, the SSA uses gender neutral formulas. If you understand the math behind that calculation, it is a slight advantage for the females. I have seen more and more articles mention an increase in life expectancy, but the numbers do not support it. We may see a decrease especially once COVID stats are averaged in. At any rate. using males and the SS table, about 50% of the males have passed by age 80. About 66% of males have passed by age 85. About 82% of the males have passed by age 90. And, about 95% of the males have passed by age 95. On average the females live slightly longer. Please note that once you attain your next birthday or age, your life expectancy increases. SS benefits will be available for the rest of our lives. However, it is the surplus in the Trust which is about $2.9 Trillion that will be depleted by approximately 2034 to 2035. Thereafter, SS benefits will be reduced to amounts that the current FICA taxes cover which is estimated to be in the range of 70% to 75%. It may be helpful to take a look at the SS Trustees Report which will be out later this month or early May. It will be boring reading inasmuch as there will be numbers and statistics page after page. However, it will give you an opinion, based on statistical data, how Congress after Congress and President after President have avoided this issue.    

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Regular Social Butterfly

Two points.  One need consider, in addition to actuarial tables, your personal health, wealth and longevity of your biological parents. Those factors are key drivers!!

Congress has a bad habit of dodging problems until they reach crisis mode and options are both fewer and less attractive to those that could have been employed decades earlier. 

Biden and Dems are irresponsibly piling on the DEBT without addressing any of our long running core problems like entitlements, healthcare, education among the TOP 3!! 

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Super Contributor

@AngelaRetired 

Depending on the male/female demographics of the selected group, average life expectancy will vary from group to group. Another factor that is important are the types of jobs the folks worked. For example, groups with more manufacturing jobs will have less life expectancy than office workers. So, the SSA provides a Actuarial Life Table that provides a sample of how to evaluate life expectancy from year to year. Hopefully, I have provided the copy and paste link https://www.ssa.gov/oact/STATS/table4c6.html Although the table divides males and females by 100,000 lives each, the SSA uses gender neutral formulas. If you understand the math behind that calculation, it is a slight advantage for the females. I have seen more and more articles mention an increase in life expectancy, but the numbers do not support it. We may see a decrease especially once COVID stats are averaged in. At any rate. using males and the SS table, about 50% of the males have passed by age 80. About 66% of males have passed by age 85. About 82% of the males have passed by age 90. And, about 95% of the males have passed by age 95. On average the females live slightly longer. Please note that once you attain your next birthday or age, your life expectancy increases. SS benefits will be available for the rest of our lives. However, it is the surplus in the Trust which is about $2.9 Trillion that will be depleted by approximately 2034 to 2035. Thereafter, SS benefits will be reduced to amounts that the current FICA taxes cover which is estimated to be in the range of 70% to 75%. It may be helpful to take a look at the SS Trustees Report which will be out later this month or early May. It will be boring reading inasmuch as there will be numbers and statistics page after page. However, it will give you an opinion, based on statistical data, how Congress after Congress and President after President have avoided this issue.    

View solution in original post

Regular Social Butterfly

Two points.  One need consider, in addition to actuarial tables, your personal health, wealth and longevity of your biological parents. Those factors are key drivers!!

Congress has a bad habit of dodging problems until they reach crisis mode and options are both fewer and less attractive to those that could have been employed decades earlier. 

Biden and Dems are irresponsibly piling on the DEBT without addressing any of our long running core problems like entitlements, healthcare, education among the TOP 3!! 

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Silver Conversationalist

Hi @Gorm50 excellent points!!! I have always had an issue with the famous reports that are based on a computer program versus real life. Yes, once this pandemic is behind us (hopefully in my lifetime/lol), REAL LIFE is going to get real and a lot of holes to fill up. I have nothing against certain groups getting the $$$$ but I feel from OBSERVING, it ENCOURAGES some (not all) to do whatever it takes to keep it coming. So glad they now REQUIRE welfare recipients (the able-bodied) to get job training (provided for free). As the saying goes, teach a man to fish.

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Silver Conversationalist

Hi @Tonster521 I appreciate you joining our discussion 🙂 I agree. The type of work and the covid will play a big part. I will take a look at the info you supplied, thanks!

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Regular Social Butterfly

Retirement requires planning as for most there is NO mulligan, ie returning to the same high paying, benefit rich job.  

Many are just anxious to quit working, ie retire at age 62 with a greatly diminished SSA benefit. Few explores even genetics, considering their health, as to their likely longevity.  

Living on SSA is NOT retirement. At best it spells existence with no financial cushion to handle those unplanned expenses that crop up. 

It would be wise to try living on one's projected retirement income for one to two years before quitting one's job.  Granted, this is not an apple to apple comparison, as health care will be different.  One must make allowances, adjustments. 

The ONE recommendation I would make is jettison the DEBT, ie especially mortgage and credit card and commit yourself to living within your means. Some are disciplined and can do it.  Once retired our only choice is returning to work, but at what income? 

There online tools to estimate need but that is worthless as our needs, expectations are as different as are we. We MUST learn for ourselves and not rely on someone else's guess.  My conservative parents retired and still socked $$$ into savings, just in case an unplanned need arose.    

View solution in original post

Silver Conversationalist

Hi @Gorm50 I appreciate you stopping by to join our discussion 🙂 With the pandemic, a lot of us are being forced to take early retirement. A job/lol. Hmmm, it was hard enough fighting AGE DISCRIMINATION now the pandemic. I hope they figure out the Social Security issues soon. Bottom line, we old folks need to be able to live out our remaining years. Luv your insights!!!

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Regular Social Butterfly

I find your response interesting as it differs so from my experience and that of family and friends.  I have children that hire as well as friends.  All, and I mean ALL, complain about a terrible work ethnic among millennials.  They expect big bucks but low expectations as to their contribution, motivation, drive, commitment and loyalty.  ALL would prefer someone from the boomer generation.

Granted, we do NOT learn as fast, may not be technologically capable, but exhibit a positive attitude and willingness to learn, to please.  We may not fit the needs of all positions, but many employers would jump at the opportunity to hire us for our positive attributes, experience, judgment, loyalty, etc.   

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Silver Conversationalist

Hi @Gorm50 awesome, glad to see this is happening. I think your skill set and location may play a part in your marketability. Lol, I am by no means an EXPERT. If you can fill a NEED, you got an INCOME SOURCE. A lot of us do CONSULTING which allows us to set our own schedule.

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