Retiring earlier and enjoying it

When I teach intro marketing, I always talk about the idea that "customer perception is reality": if my core segment tells me my product walks like a duck and talks like a duck, but I'm not selling a duck, well then maybe I should start listening to them. New research from the EBRI suggests that retirement might be one case where perceptions don't often meet reality...BUT perhaps we better start paying attention to reality. As Anne Tergesen reports in this The Wall Street Journal article, while many people think they will retire at 65, the reality for many workers is that they retire earlier than expected (at 62). One spot of good news, though: in line with some of Laura Carstensen's work, many retirees are quite happy with their spending patterns in retirement. Questions that arise for me: - Who are the folks who reported being happy with their spending? - What are they spending on? - Did they retire when anticipated or earlier than expected? - How are they spending their time (and not just their money)? And maybe most importantly: will the gap between expected retirement age and actual retirement age continue to exist, or might it close as more opportunities for part-time work (hopefully) become available to older workers in the future? In the article, I noted that ageism may impact the ability for older workers to continue to work. But whether ageism lessens over time - or worsens with intergenerational conflict - is anyone's guess.

When people asked my son, as a little boy, what he wanted to be when he grew up... ...he would say "retired like my grandparents" Why not--my parents travel, go to sports events, have friends, volunteer, and spend a lot of time with kids and grandparents. Nice work if you can get it! They have been proactive about thinking about their priorities, and planning for the future. Turns out, at least according to a recent article in the WSJ, that most people retire sooner than expected, and work less than expected, but are generally pretty happy in retirement. As long as they don't run out of money. (see article link in the comments) I am noticing many of my friends, not just those in their 60s, but those in their 50s, 40s, and even 30s, are thinking about retiring--often much earlier than theirr parents. So, is retirement something to aspire to as my son thought? Or something to avoid for as long as possible? (Photo of my parents with me, during a recent trip the three of us took to Montreal) ?? Bobby Armstrong #litrendingtopics #retirement

Relevant findings that remind us about the importance of starting capital accumulation early (20s) and proper planning during the decade before actual retirement (50s). "Some 28% of workers said they expected to retire?at age 65, up from 23% a year ago. This was the median answer to the question for workers and remains the default age of retirement in the popular imagination. The median actual age of retirement has been 62 for several years, the survey found—which is the earliest retirees can claim Social Security benefits." "People also imagine they will continue to work more after retirement than they actually do. While 75% expect to work for pay in some capacity in retirement, only 30% of retirees said they have actually done so, the survey found." "The gap between expectations and reality demonstrates the ways people aren’t great at imagining the years ahead, said Hal Hershfield, a psychologist at the University of California Los Angeles, who has studied the often-distant relationship between our present and future selves." The silver lining is that "most retirees say their lifestyle is the same or even better than what they envisioned"! With Paywall:

I worked until 70 and I feel great at 71! I have a great part-time job and still too much time to goof off! Problem is everything is going up faster than I thought it would. I may have to go back to work full-time, but that would not be the worst thing in the world!

I brought this up to my wife on a walk last week and there was a long pause....like it was dawning on her that I could be retired in 10 years. My plan is to work eternally but this report would argue otherwise. And if you need a copy of this article and are getting the Heisman (NFL Draft is tonight), let me know and I can get you a copy!