The financial press is picking up a story about a lifestyle survey of recent retirees Putnam Investments commissioned. It's not pretty.
Expediter newbies and wannabees are well-positioned to avoid the regrets many of today's new retirees have. They are making a career change into something that is hopefully more lucrative. They are making new business plans which force them to think about their finances and retirement planing anew. In addition to their short term career change goals and intermediate term business goals, long term retirement goals can and should, I believe, be addressed in expediter business plans. Think past the new truck. Think past the second new truck that will replace your first. Think past the new piece of land or new house you plan to buy with your increased expedited earnings.
Think about your old self, wrinkled, finding it hard to walk around, unable to drive. What will you rather do, hire an attendant to provide an hour or two of in home care twice a week, or be forced to sell everything you have so you can be admitted to a nursing home?
That's an admittedly overstated picture, but the point is the same. People that prepare now for retirement and old age will have a better go of it than those that don't.
The 11/8/2004 USA Today story about it says in part,
"The average annual income for new retirees, before taxes, was $36,000 in 2003. About 42% of retirees reported incomes of less than $25,000 a year. A quarter said their incomes were less than $15,000.
More than half said their standard of living had declined from when they were working. Thirty percent said they were living comfortably, but not as well as when they were working, and 21% said they were struggling to make ends meet.
• Savings accounted for only a small percentage of retirees' income. In 2003, income and withdrawals from investments made up 11% of retirees' income. Social Security made up 41% of annual income, while payments from a traditional or cash-balance pension plan accounted for 24%.
Future retirees probably will need to rely more heavily on their personal savings for income. Many big companies are reducing or eliminating traditional pensions. And many younger workers are skeptical about the future of Social Security."
The story goes on to report the regrets millions of today's new retirees have.
The story is written by Sandra Block. Story title is, "Life's no box of chocolates for today's retirees, so start saving now." It can be viewed at: http://www.usatoday.com/money/perfi/columnist/block/2004-11-08-ym_x.htm
Expediter newbies and wannabees are well-positioned to avoid the regrets many of today's new retirees have. They are making a career change into something that is hopefully more lucrative. They are making new business plans which force them to think about their finances and retirement planing anew. In addition to their short term career change goals and intermediate term business goals, long term retirement goals can and should, I believe, be addressed in expediter business plans. Think past the new truck. Think past the second new truck that will replace your first. Think past the new piece of land or new house you plan to buy with your increased expedited earnings.
Think about your old self, wrinkled, finding it hard to walk around, unable to drive. What will you rather do, hire an attendant to provide an hour or two of in home care twice a week, or be forced to sell everything you have so you can be admitted to a nursing home?
That's an admittedly overstated picture, but the point is the same. People that prepare now for retirement and old age will have a better go of it than those that don't.
The 11/8/2004 USA Today story about it says in part,
"The average annual income for new retirees, before taxes, was $36,000 in 2003. About 42% of retirees reported incomes of less than $25,000 a year. A quarter said their incomes were less than $15,000.
More than half said their standard of living had declined from when they were working. Thirty percent said they were living comfortably, but not as well as when they were working, and 21% said they were struggling to make ends meet.
• Savings accounted for only a small percentage of retirees' income. In 2003, income and withdrawals from investments made up 11% of retirees' income. Social Security made up 41% of annual income, while payments from a traditional or cash-balance pension plan accounted for 24%.
Future retirees probably will need to rely more heavily on their personal savings for income. Many big companies are reducing or eliminating traditional pensions. And many younger workers are skeptical about the future of Social Security."
The story goes on to report the regrets millions of today's new retirees have.
The story is written by Sandra Block. Story title is, "Life's no box of chocolates for today's retirees, so start saving now." It can be viewed at: http://www.usatoday.com/money/perfi/columnist/block/2004-11-08-ym_x.htm