Unfortunately, this ideal view of retirement is more fantastic than realistic. You might want to get started on those dreams sooner rather than later. Here's why.
1. You Might Not Make It
Not everyone lives to a ripe old age. Lots of people pass away in their fifties and sixties. If you live long enough to retire, there's no guarantee that you'll maintain your health or your mental faculties in your later years.
Imagine trying to climb Mount Everest with a heart condition or advancing arthritis. Imagine trying to write children's stories while struggling with dementia.
Hopefully, you'll live a long and healthy life, but there are no guarantees - for you or for your loved ones. Dreams impact more than the dreamer.
Let's say that you dream of becoming a gourmet cook after you retire. Not all of your friends and family members will live that long. But if you get started sooner, everyone will be able to sample your award-winning recipes.
Let's say that you dream of becoming a gourmet cook after you retire. Not all of your friends and family members will live that long. But if you get started sooner, everyone will be able to sample your award-winning recipes.
2. Energy Crisis
Even if we keep ourselves fit, aging inevitably means slowing down. We lose a bit of vigor every year after forty. As time passes, we have to settle for a life of doing less and resting more. Environmental factors such as extreme weather become more to tolerate, as well.
If you're looking forward to an active retirement, keep in mind that at seventy you'll have less energy and stamina than you had at fifty.
3. Dreams Take Time
If your dream is to see the Taj Majal or to golf at Pebble Beach, you can buy a plane ticket do those things right away. But some dreams will require more time.
Let's say that you dream of writing mystery novels. Have you written fiction before? If you haven't, you'll need to develop writing skills before tackling a novel. Becoming a writer will take years of practice.
On the other hand, if you start writing smaller projects earlier in life - short stories or one-act plays, for instance - you might not have to spend the first few years of your retirement learning how to develop a plot or write convincing dialog.
Now considering finding a way to write entire novels while you're still working. If you start the process in your thirties or forties, you'll have decades to develop your skills, your ideas, and your writing style. You might be able to write a whole series of books.
The earlier you start, the more possibilities you'll have.
3. Dreams Take Time
If your dream is to see the Taj Majal or to golf at Pebble Beach, you can buy a plane ticket do those things right away. But some dreams will require more time.
Let's say that you dream of writing mystery novels. Have you written fiction before? If you haven't, you'll need to develop writing skills before tackling a novel. Becoming a writer will take years of practice.
On the other hand, if you start writing smaller projects earlier in life - short stories or one-act plays, for instance - you might not have to spend the first few years of your retirement learning how to develop a plot or write convincing dialog.
Now considering finding a way to write entire novels while you're still working. If you start the process in your thirties or forties, you'll have decades to develop your skills, your ideas, and your writing style. You might be able to write a whole series of books.
The earlier you start, the more possibilities you'll have.
4. The End Of An Era
Current attitudes about retirement date back to The New Deal. Social Security and the growing availability of automobiles provided seniors with a sense of independence and mobility. No longer worrying about becoming a burden to the families, seniors looked forward to enjoying leisure after their careers ended.
In the Post-War economic boom, companies and municipalities offered monetary retirement benefits to employees as an incentive for loyalty. After working at the same place for twenty or thirty years, retirees had both income and free time, and they looked for ways to enjoy themselves.
But the golden age of retirement has passed. Most companies have discontinued traditional retirement plans. Self-funded tax-deferred savings plans (IRA, 401k) have become the norm in an era where employees tend to change jobs more frequently.
For many retired workers, retirement turned out to be a false promise. Companies and municipalities facing financial hardship restructured or discontinue existing retirement plans. Retirement benefits were cut back or even eliminated.
5. You Might Need To Keep Working
One of the potential benefits of a long life is a longer retirement. But if you have a long retirement and your ex-employers are no longer willing to support you, your savings will have to last longer.
Let's say that after raising a family, you and your spouse together were able to save $900,000 for retirement. If you live for ten years, you can withdraw $90,000 per year. Unless you develop serious medical expenses, that might enable you to live in relative comfort and enjoy the occasional adventure.
But what if you live for thirty years instead of ten? Now your $900k retirement fund pays $30,000 per year. That's hardly a luxurious income, and as the years pass, it will buy less and less.
Now imagine that one of you endures a serious medical complication. You are, after all, getting older. It's not inconceivable that you'll need to raid you nest egg to pay for some big hospital bill along the way. That makes your financial picture seem even more bleak.
What are the options? How can you make your savings last longer? Some might suggest investing the money. That sounds nice. But remember that if you were Warren Buffet, you wouldn't be in this position. The average investor isn't likely to grow a retirement nest egg significantly over the long term. Careful investments might help you up with cost of living increases. But investment always involves risk. Are you prepared to lose thirty percent of your savings during a bad week in the stock market?
A more sensible option might be to maintain an income, whether by extending your current career, i.e. not retiring as soon as you can, by working somewhere else, or by starting a profitable business. If you're making money, you can defer your dependence on the nest egg and perhaps even grow if further.
Working also helps to maintain a sense of belonging and connection that some people miss when they leave their careers behind. So don't donate your business clothes to charity just yet. You just might have some more work to do.
Life's Great! Don't Wait!
The realities of retirement aren't always as appealing as we imagine. A lot of people end up struggling just to get by in their later years. They live to watch many of their dreams slip away.
Don't wait for retirement. If you live long enough, you have the benefits or the savings, that's great. Just don't count on that being the case. Even if you're a very careful saver, one significant medical emergency can wipe out your stash.
Live now. Tackle at least some of your dreams as early as you can. No one ever regrets getting started too early.
On a personal note, this is the two-hundred first post on the South of Someplace blog. You wouldn't be reading this if I had waited until retirement to begin blogging. What I post here won't change the world, but it's important to me and to family and friends. I'm glad that I started writing when I did. :-)
Copyright © 2014 Daniel R. South
Life's Great! Don't Wait!
The realities of retirement aren't always as appealing as we imagine. A lot of people end up struggling just to get by in their later years. They live to watch many of their dreams slip away.
Don't wait for retirement. If you live long enough, you have the benefits or the savings, that's great. Just don't count on that being the case. Even if you're a very careful saver, one significant medical emergency can wipe out your stash.
Live now. Tackle at least some of your dreams as early as you can. No one ever regrets getting started too early.
On a personal note, this is the two-hundred first post on the South of Someplace blog. You wouldn't be reading this if I had waited until retirement to begin blogging. What I post here won't change the world, but it's important to me and to family and friends. I'm glad that I started writing when I did. :-)
Copyright © 2014 Daniel R. South
All Rights Reserved
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