Can You Imagine If You Never Retire? 1 in 4 Think That’s That Their Fate.

never retire

Many people are planning ahead for early retirement. However, that’s not the full picture of the American public. Despite the fact that lots of us think about retiring in our thirties, forties, or fifties, there are also plenty of people who don’t plan to retire early. In fact, according to one survey, one in four people think they may never retire.

People Who Think They’ll Never Retire

Twenty-three percent of those surveyed believe that they will never retire. 80% of those people were under the age of 50 at the time of the survey. That leaves 20% that were age 50 or older and couldn’t see retirement in their future.

The main reason that people assume that they’ll never retire is that they don’t think that they’ll be able to afford to stop working. They don’t have enough money set aside in savings or retirement funds. They still have bills to pay. Many don’t even own the home that they live in.

Plus, as people get older, they need more medical care. If they don’t trust that Medicare will cover their needs, then they may feel like they have to keep working. They figure they’ll just work until they die.

People Who Plan To Work Longer

There are plenty of people who think it’s unreasonable to assume they’ll never retire. However, they believe that they’ll keep working into their older years. Twenty-three percent of those surveyed believed that they would keep working past the age of 65, which is often considered “normal” retirement age.

Therefore, nearly half of those surveyed believed that they will never retire or that, if they do, it’ll be after age 65. Another 19% say they’ll retire at 65. Many people are are living longer and longer, which means a lot of years after age 65 during which they have to support themselves. If they don’t have enough money in savings then it may make more sense to keep working than to retire at or before 65. Approximately 20% of people age 65 and older in America are currently working or looking for a job.

Elderly People Are Often Forced to Stop Working

Unfortunately, the reality is that a lot of elderly people do stop working, even if they don’t wish to do so. They may think that they’ll never retire but then life happens. Circumstances conspire against them. They get injured or ill and can’t keep working. They get laid off and have trouble finding new work in a market that’s biased towards hiring younger people. Or perhaps they find themselves having to do caregiving for an elderly spouse. Whatever the reason, they end up retiring, even if they aren’t financially prepared to do so.

People Don’t Feel Ready for Retirement

Regardless of when they expect to retire, most people don’t seem to feel prepared for it. 45% of those surveyed said that they are not at all prepared for retirement. Another 33% said that they are only somewhat prepared. The good news is that younger people recognize that they aren’t prepared and people who are getting closer to retirement age feel a little bit more ready for that reality. Still, nearly one third of people over age 50 said that they are not at all prepared for retirement.

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Parents Expect To Support Adult Kids Longer Than Kids Think … But Also Find It More Embarrassing

support adult kids

Millennials and Gen Zers tend to think that they’re going to be financially independent by age 22. Parents expect to support adult kids longer than that. However, parents find it embarrassing to support adult kids much more so than the kids themselves do.

When Kids Plan To Be Financially Independent

The Young Money Survey asked,

“At what age did you become, or expect to become, completely financially independent from your parent(s)?”

On average, both young millennials and members of Gen Z said age 22. That’s the age many kids graduate from college, so it makes sense on paper.

That said, there was some wide variation. 42% of Gen Zers and 34% of millennials expect financial independence by the age of 20. On the other end of the spectrum, 9% of Gen Zers and almost twice that many young millennials don’t anticipate financial independence until age 30.

Moreover, 2% of millennials say that even after age 30 they will not be financially independent from their parents. There were no Gen Zers in that category. Is that because they’re a generation that’s better with their money? Alternatively, is it because they’re young enough that age 30 seems impossibly far off?

How Long Parents Expect to Support Adult Kids

Most parents didn’t think that their kids were being realistic with those ages. More than nine out of ten parents surveyed expect to support adult kids to the age of 25.

Parents who have to support adult kids much longer than that are embarrassed by the idea. On average, they say it’s embarrassing to support adult kids past the age of 27. In fact, 60% of parents say it’s embarrassing to support adult kids between the ages of 20-29.

Only 25% of parents say that it’s okay to support kids up to age 29 but that sometime in the next decade, it gets embarrassing. A few parents aren’t embarrassed to support adult kids later in life. 4% said it gets embarrassing between ages 40-49 and 3% said it starts getting embarrassing after age 50.

Kids Aren’t as Embarrassed to Receive Support

Members of both Gen Z and the Millennial generation say, on average, that age 30 is when it starts to get embarrassing to receive financial parental support. However, more than a third don’t find it embarrassing until sometime in their 30s. 8% of young millennials and 9% of Gen Zers say it’s not embarrassing until you’re in your 40s. And 5%+ say it’s not embarrassing to receive financial support from parents even after the age of 50.

Other Survey Findings

So, the younger generations expect to be able to support themselves sooner, even though they aren’t embarrassed if they can’t.

Here are some of the other findings from the Young Money Survey:

  • Most of these kids expect to earn as much as, if not more than, their parents.
  • About two thirds of them are setting aside savings, but most of them are saving less than $200 per month.
  • About 1/3 of millennials and less than 1/4 of Gen Zers have emergency funds set aside.
  • Fewer than half of millennials and less than one third of Gen Zers have and follow a budget.
  • 2/3 of those surveyed would rather contribute to their own retirement than donate to charity.

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How Money Can Affect Relationships: Both Negative and Positive

How Money Can Affect Relationships

We all know how money can affect relationships negatively. After all it’s one of the most common things that couples argue about. However, have you ever thought about how money can affect relationships in positive ways? Whether for good or bad, communication is the key to dealing with money in your marriage or primary relationship.

How Money Can Affect Relationships Negatively

Money is one of the biggest sources of conflict in most marriages. Even before you get married (if you choose to do so), money can rear its ugly head in your relationship. Here are just a few of the most common ways how money can affect relationships negatively:

  • When one of you out-earns the other, it can lead to feelings associated with a sense of power imbalance. This can also relate to strain over ingrained beliefs about gender roles in the home.
  • One of you has significantly more debt than the other which creates arguments. Similarly, if you have different viewpoints about how to deal with debt, then you could end up resenting one another.
  • You have different money personalities. For example, one is a spender and the other a saver. If you don’t respect each other’s approaches, then you could have a problem.
  • If you haven’t discussed your long-term goals then you might not be on the same page financially. This can show up in arguments over day-to-day spending.

Money is rarely just about money. People come to the topic with a lot of emotions, thoughts, and behaviors. Many of these things have less to do with money and more to do with beliefs about career, identity, family, power, security, and love. If you’re not discussing the underlying issues, then you can end up fighting about money. Since money isn’t the true issue, the problem is never resolved.

How Money Can Affect Relationships Positively

It’s easy to become afraid of dealing with money in your marriage. However, it helps if you think about how money can affect relationships positively. If you have open, authentic communication, respect one another, and are willing to compromise, then money can actually be the source of some beautiful things in your relationship.

For example, one of you may become physically or mentally ill and thus unable to work. This could add up to a lot of medical debt as well. If you approach this setback in a healthy way, then it can be a period that strengthens your relationship.

The spouse that is able to carry the couple financially during this time may feel like they have a small bit of control during a scary time. The spouse that is ill may experience a kind of relief that gives them space to heal. It’s not an easy time, but it doesn’t have to be one in which money is the enemy.

It’s All About Communication

There are several similar scenarios that have the potential to be negative but could also be positive for your relationship. More than anything else, though, you can work together to use the vehicle of money as the starting point to discuss those deeper issues. If you recognize that it’s not really about money, then you can dig into the deeper emotions and issues at the core of the problem.

For example, let’s say that you’re fighting about one person working while the other is a stay-at-home parent. You fight about the lack of money or how money is spent. Underlying issues might include:

  • Fears by the stay-at-home parent that they aren’t doing enough to support the home
  • The stay-at-home parents feelings of losing their financial autonomy and what that means about their identity and life options
  • Hesitation by the stay-at-home parent to express times they’re dissatisfied with staying home because they’re “lucky” not to have to work
  • Fear by the working parent that the children are closer with the other parent
  • Resentment by the working parent that they have to be at work all day
  • Emotions about the power dynamic that might relate back to childhood issues

Those are just a few of the things that might be unsaid when fighting about money. If you can discuss money practically and respectfully, then you can make space to deal with those other issues. It’s all about communication. The more you learn to talk about money with each other, the more ways you’ll see how money can affect relationships positively.

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