Today on the minute – retirement myth #3
As I have talked about for the past couple of days, I had a long conversation with an old friend this past weekend and he had some really weird notions about retirement, notions that I called retirement myths. Today I want to talk about one more myth that I uncovered in our conversation.
And, this is one that many people I talk to are really relying on and that is working, at least part-time in retirement to make up the difference. But the reality is that although more and more people are opting for this option in lieu of saving for retirement now, many will not be able to make this option work. Studies have shown that while a large percentage of retirees want to continue to work after retirement, only about 30 percent of retirees actually continue to work after retirement.
So, why such a small number? Well, there are probably a number of reasons but my sense is that there are two likely candidates:
- Health reasons – they are simply not able to work
- They can’t find work – ageism is real, it’s alive and well and many employers simply don’t want to hire older workers and if you have a job many employers will encourage or nudge you to retire because you are most likely earning a higher salary than they would have to pay a new guy.
If this is an option you plan to choose, start your job search early or if you have always wanted to start your own business, consider that in earnest and start long before you plan to retire so that you can have a going business when you retire. Relying on Social Security alone is not good. In most cases, it provides about a third of what you will need today and your guess is as good as mine about what it will provide in the future.
And that’s the minute for today. You know I love helping people with all aspects of their financial lives. If you have a question, if debt is an issue or if you just want to get your financial house in order contact me at firstname.lastname@example.org or go to my website at psworth.com and sign up for a free discovery session.
Thanks for listening and as always remember that minding your money really is the path to a richer life!