Thursday, March 28, 2013

I Plan on Retiring Later but not “Feeding” the Economy

A recent CNBC.com article discussed how workers retiring later is helping to take some of the burden off of Social Security and helping to “feed” the economy.  According to the article and a quote taken from RAND Corp. demographer Peter Morrison, "Older workers with earnings bolster payments into Social Security, have more discretionary income as consumers and offer employers flexibility to staff up with part-time workers bringing a lifetime of work experience,".

Personally, I have no problem with people working longer, and at this point in my life, I’m planning to work part-time well into my retirement years myself.  However, this doesn’t necessarily mean I plan to be “feeding” the economy in the process.

Getting Out of the Way for Others
I doubt that my children want to hear that I’ll be happy to deprive them of jobs by hang out in the workforce into my 70s just because I haven’t saved enough for retirement.  While I plan to continue working at least part time -- if nothing else but to stay busy and because I like to be productive -- I have no desire to take jobs from those youngsters looking for work.  Not only could my presence in the workforce hurt the economy by taking jobs from others who are possibly more willing, able, and needy (as we see in some cases with today’s economy and the baby boomers who are unwilling or unable to retire), but I would at least like the opportunity to enjoy my golden years without the stress and pressure of having to work.

 Saving Now so I Have Options
In an effort to provide myself with options in retirement, and so that I can have the best of both worlds -- working part-time to stay active, yet having time and money to enjoy life as well -- I’m working hard now to save for retirement.  To some, my savings system might sound odd, and in many ways, I’m not saving as the typical person aiming for a secure retirement might. 

While I do have a retirement account, it’s not funded as well as some financial advisors might like to see.  Why?  Because rather than focusing on putting money away, I’ve instead focused on paying down and paying off debt.  By ridding myself of things like student loan debt, a mortgage, owning a vehicle outright, and not taking on credit card debt, I’m working toward setting myself up early in life to (hopefully) save more money later by not having to pay so much toward debt.

Still Earning, but Not Hurting Benefits
During retirement, though I hope to work part-time, I’d like to earn enough to help out with paying bills and add some additional financial cushion to our situation, but not so much that I’m affecting our financial situation negatively.  Earning too much could cut our retirement benefits and add to our tax burden.  Therefore, while I want to continue to earn a paycheck, I want to ensure that this work doesn’t interfere with our enjoyment and quality of life, end up actually reducing our benefits, or steal work from someone who really needs it. 

 
 

Sources:

Nasser, Haya El.  CNBC.com. “Economy Feeds on Workers Who Delay Retirement”.  January 25, 2013. http://www.cnbc.com/id/100408181. February 13, 2013.

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