Monday, August 22, 2011

The New Retirement Age

In 1949 the average retirement age for men globally was 64.3. But by 1993 the average global retirement age had fallen to a low of 62.5 These retirement statistics come the Organisation for Economic Co-operation and Development which analyzed retirement ages in 30 countries which have national retirement plans.

Today the age is 63 at which private-sector employees with full-time work in an uninterruped career can first draw retirement income and other retirement benefits from the respective national pension schemes without any penalties or reducions. The estimate is the average retirement age will rise to 64.6 by 2050.

All sorts of studies indicate that anywhere from 25 percent to 50 percent of Americans plan to work past the traditional retirement age of 65. Some plan to never retire but as a columnist recently stated, "Not planning to retire is not a retirement plan."

The important point here is that there will be a big disonnect between the percentage of Americans who plan to work past 65 and those who actually are able to do so. A recent study indicated that currently only 16 percent of American men work past their 65th birthday.

Here are are a few funny retirement quotes for your enjoyment:

    Retirement Age? For Many, It'll Be 80
    — Headline on Smart Money Website

    Sentimentalists are they who seek to enjoy without incurring the Immense Debtorship for a thing done. It is a happy pastime and an important science to the timid, the idle, and the heartless; but a damning one to them who have anything to forfeit.
    — George Meredith

    A happy retirement doesn't require oodles of money, nor should it mean fighting the cat for food.
    — Shelley Fralic, Vancouver Sun

    It helps to have money in the bank, too.
    — Jeff Schlegel, writing in about The Coming Retirement Wave

Sunday, August 7, 2011

Is Social Security Sustainable for My Retirement Plan and Your Retirement Plan?

Is Social Security sustainable enough to include it as a major part of your retirement plan and my retirement plan? Probably not. I certainly won't count heavily on any government programs such as Social Security in my retirement plan.

The U.S. federal government already spends $26,000 per year for every American retiree (anyone over 65). Almost half of the American federal budget today is accounted for by and Social Security, Medicare, and Medicaid. If nothing changes, (unlikely, of courese) these three programs will consume more than 100 per cent of the U.S. budget in 25 years.

PIMCO CEO Bill Gross in an article called Skunked states that the U.S. situation is much worse when one includes the unfunded liabilities of Social Security ($8 trillion), Medicare ($22.8 trillion) and Medicaid ($35.8 trillion).

What's more, Silicon Valley venture capitalist Mary Meeker calculated the balance sheet for the country of USA as if it was a company, and estimated that America Inc. presently has a negative net worth of $35 trillion to $40 trillion.

Clearly, this is definitely unsustainable. No doubt there will be major cuts to American social programs along with significant tax increases.

Social Security may still be there twenty years from now but the writing is on the wall. It will be severely reduced. There will be a major restructuring of the American programs including Social Security simply because the system can't afford all the debt:

Here are some retirement quotes about Social Security and money to place things in proper perspective so that your retirement plan and my retirement plan make more sense:

    If you are thinking that government will take care of you [in retirement or otherwise], prepare for a rude awakening — government is planning on your taking
    care of it.
    — Jon Hanson

    There are seven sins in the world: Wealth without work, Pleasure without conscience, Knowledge without character, Commerce without morality, Science without humanity, Worship without sacrifice and politics without principle.
    — Mahatma Gandhi

    If you want to retire happy, great health is important. The foundation for all happiness lies in health. Physical, mental, or spiritual health — you must use it or lose it!
    — from How to Retire Happy, Wild, and Free

    May you always have work for your hands to do.
    May your pockets hold always a coin or two.
    May the sun shine bright on your windowpane.
    May the rainbow be certain to follow each rain.
    May the hand of a friend always be near you.
    And may God fill your heart with gladness to cheer you.
    — Irish Retirement Blessing

    If you want to be truly prosperous, forget about keeping up with the Joneses. Their prosperity is a facade. They are broke — and in debt big time!
    — from the book Zen I Got Rich by Ernie Zelinski

    Reflect upon your present blessings, of which every man has many — not on your past misfortunes, of which all men have some.
    — Charles Dickens

    "The book [The Joy of Not Working] should be "must" reading for
    every pre-retiree who dreads the thought of boredom and inactivity in retirement."
    — Retirement Planning Journal, (Published by International Society of Retirement Planners)
For more retirement quotes see: Sensational Retirement Quotes for Smart People

Sunday, March 6, 2011

Prosperity in Retirement

If you would like a prosperous retirement, here are a few prosperity quotes to place retirement prosperity in proper perspective: Added are some retirement quotes as well:

    A whole generation of Americans will retire in poverty instead of prosperity, because they simply are not preparing for retirement now.
    — Scott Cook

    Americans have always been able to handle austerity and even adversity. Prosperity is what is doing us in.
    — James Reston

    Your prosperity will grow to the extent that you do. Your feeling of prosperity may require that you overcome the fear of leaving a secure job for a less secure job, with less pay, but a lot more freedom. Fact is, feeling more prosperous doesn’t necessarily mean earning more money. Sometimes it means earning less money.
    Ernie Zelinski author of How to Retire Happy, Wild, and Free

    People who don't respect money don't have any.
    — J. Paul Getty

    When it comes to making more money, most people look at the world and see the same opportunity they’ve seen before: typically, a job. Because they don’t awaken their mind and expand their vision, they don’t see other opportunities. Yet opportunities do exist. So how do you change your thinking so you can see them? One way to jolt the brain out of its preconceived category thinking is to bombard it with new experiences.
    — Joe Vitale

    Social Security is a secure way to find great pleasure in being terribly deceived.
    — E. Z. writing on his Redroom Author's Blog

    Prosperity is, in large part, an attitude within an indvidual, who knows there are many opportunites, who knows that one has to capitalize on these opportunites, using one's creativity to transform these opportunities into things that benefit society, that end up rewarding the individual and makes the individual prosperous at the same time.
    — Dave Erhard
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