The impact the stock market has had on investment programs may have a lot of Grandboomers rethinking their retirement plans. Jump in and take Social Security at 62, even though the checks were discounted, sounded pretty good when there was a sizable bankroll to back it up.
But, a lot of that's washed away now. And, you may be in for another surprise if you still think you can retire at 65 with full benefits. This is the last year you can retire at 65 and receive full benefits. For full benefits in the future, you'll need extra months, and ultimately extra years to qualify for a full check.
Albeit late, we came across a copy of the June 3 edition of US News and World Report. It's chock full of articles on retirement.
The cover story was written by Tim Smart and Paul J. Lim and gives a cross section of Americana from the very poor to those who play all day. With input by so-called experts, they note that "there are more than 34 million retired Americans, a figure that will swell to 69.4 million in 2030. And guess what? For the most part, they're enjoying it. Those who prepare for retirement both financially and psychologically view it as 'a whole new life' or a 'continuation of life as it was,' report 78 percent of people over 55 surveyed by financial services firm AIG Sun America."
They conclude that retirement, despite current concerns about meeting big ticket items like college bills, the golden years can be a time for "much happiness and exploration."
According to the article: "Earlier this year, aging expert Ken Dychtwald joined AIG SunAmerica and Harris Interactive in surveying 1,000 pre-retirees and retirees about their attitudes. Based on this work, the team grouped respondents into four categories: ageless explorers (27 percent), comfortably contents (19 percent), live for todays (22 percent), and the sick and tireds (32 percent). Among the survey's strongest findings: that those who had prepared for retirement, irrespective of their wealth or income, tended to be the most satisfied.
"Dychtwald says the results of his research should serve as a 'wake-up call' for today's 76 million boomers, the oldest of whom, born in 1946, are beginning to enter the retirement world. If so, it will be just one of many. The generation of 40- and 50-somethings has led a life of instant gratification; and as they progressed through life's stages, they rewrote the rules of every phase from adolescence to parenthood. Now, they must begin planning for the day when work is no longer Job 1. And they are doing so amid the worst stock market and economy in over a decade. Still, Dychtwald thinks boomers will reshape retirement, preferring not to go quietly into the dark night, choosing to continue working some, starting new enterprises, and otherwise stretching out their transition years. 'They're beginning to take notice of their moms and dads and formulating which version of aging they're going to emulate,' he says.
"The toughest reality for boomers may well be their own unrealistic expectations for retirement. In a 1999 survey of boomer attitudes for AARP, researchers Roper Starch found that 80 percent of those queried said they planned to work at least part time in retirement. Yet the percentage of current retirees who actually work is far less, fewer than a third."
They have the statistics, but here at Grandboomers, we hear from a lot of you who are getting along just fine in this down economy. And, some of you are raising your grandchildren to boot! Sure, Grandboomers had it better growing up than the previous generation. Historically, that's what happens for each generation. Grandboomers thinks we're a lot tougher, more intelligent and resilient that than the experts give us credit for. We'll get through this with pride and be fine.
As a bit of comfort, another article, notes: "Perhaps the most encouraging fact is that you can probably get by on less than you think or than is often proclaimed. For a 65-year-old couple earning $50,000 a year to maintain their standard of living in retirement, they'd need pretax income of $37,000, given lower costs for such things as transportation and clothing, taxes, and other expenses, according to research by Georgia State University's Center for Risk Management & Insurance Research. Social Security should take care of nearly $24,000 of that for the typical 65-year-old couple, Georgia State researchers say. So, they would need about $13,000 a year from savings and other sources. 'One of the faults of the financial planning field has been that we keep saying you need $1 million to retire,' says William Gustafson, professor of family financial planning at Texas Tech University. Many retirees are relieved to find they don't need to be millionaires to live comfortably."
There are a number of web site references available at www.usnews.com/retirement, covering travel, health benefits, government benefits, bank rates, grand parenting, and gay retirement. It's worth the look.
© 2012 Created by Myles Bristowe.
