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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7 Best Retirement Podcasts to Start Tuning in to Today

podcast

If you aren’t listening to personal finance podcasts then you’re missing out on some great money education. If you’re interested in early retirement, retiring rich, or simply making the most of your retirement years, then you should be listening to retirement podcasts. Here is a list of seven of the best retirement podcasts on the air today.

1. Personal Profitability

This is a diverse money podcast that covers a variety of topics, several of which relate to retirement. For example, you’ll find a lot of information here about wealth-building, which is key to having a good retirement experience. There are quite a few FIRE episodes. For example, check out 3 Steps to Get Started on Your FIRE Plan. Plus, there are episodes specific to retirement planning. For example, listen to Retirement Planning with Christine Russell. Recent episodes are about half an hour long; older archives are a bit longer.

2. Financial Freedom

If you want to retire early then this is one of the best retirement podcasts for you. Grant Sabatier, author of Financial Freedom and creator of Millennial Money, obtained his own financial freedom by the age of 3o. He shares his own tips and interviews other people about how to achieve the same goal. There are many different approaches to retirement. For example, you can take mini-retirements over time to avoid burnout, which you can learn more about from this episode.

3. Listen Money Matters

This is another of the best retirement podcasts for people focused on retiring early. It’s all about how to earn as much money as possible right now so that you can retire and enjoy your later years work-free. In addition to all of the individual episodes, they’ve curated some of the best information for you into organized playlists. For example, check out Lessons from Self-Made Millionaires or Get Your Cashflow On with real estate investing.

4. Retirement Answer Man

What better place to get your retirement questions answered than from the Retirement Answer Man? With nearly 300 episodes to date, this podcast by Roger Whitney is one of the best retirement podcasts you’ll ever come across. It answers not only basic questions but also really in-depth aspects of retirement. For example, listen to The Pros and Cons of Variable Annuities for retirement. Alternatively, learn about how your personality plays into retirement planning.

5. Rock Your Retirement

The best retirement podcasts aren’t just about how to handle your finances. Instead, they’re also about how to live your best life after your retire. That’s what Rock Your Retirement is all about. Recent episodes include a series on dealing with pain as you age and how to handle the challenges of living in a multi-generational household.

6. NewRetirement

This podcast features interviews with an intriguing array of professional people who share their tips and tricks for maximizing both money and happiness upon retirement. Recent episodes have included interviews with investment entrepreneur Brian Bollinger, personal finance journalist Cameron Huddleston, and former Dwell Magazine CEO Michela Abrams.

7. Retirepreneur

More and more people are retiring from full-time work only to switch over to past-time passion projects that still earn them an income. It’s a great way to embrace retirement without getting bored. This podcast is all about how to make that happen. Specifically it’s about doing part-time consulting work post-retirement. For example, listen to Senior Start-Ups, Side Hustles, & Chat with Dawn Starks.

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Pros and Cons of Taking Early Social Security

early social security

You can begin taking early social security payments as young as age 62. Most people start taking it around age 66. Some people believe that you should wait until age 70 if you’re in a position to do so. What’s the right answer? It’s hard to say. There are some big pros and cons to taking that money early. Understanding those can help you make the right decision for your own retirement.

What Happens When You Take Early Social Security?

Generally speaking, you’re able to get your “full retirement” when you reach around age 66. (This varies slightly depending on individual circumstances.) If you take that money early, then you don’t get the full amount. Therefore, your monthly Social Security payments are lower than they would be if you waited.

On the other hand, you start to receive that money sooner. If you reach age 62 and really need that Social Security income, then you might find that it’s worth it to take the lower monthly amount. You’ll start getting that monthly check years before you would if you waited until reaching full retirement age.

So, in terms of the most basic pros and cons, taking your money earlier means:

  • The benefit is that you start receiving your money sooner.
  • The drawback is that you get less money per month throughout your retirement.

Social Security May Change in 2035

The Motley Fool makes a great case for taking early Social Security, which is that big changes may await when it comes to social security. In fact, Congress may cut benefits by 23% for all people receiving social security from that point forward. Therefore, if you’re thinking about retiring between now and then, it might be worth it to take the money early.

Yes, you’ll get less per month when you do that. However, you’ll earn the full “lesser” amount every year up until 2035. The longer you wait to start taking payments, the less time you have to accrue money before that potentially huge Social Security cut.

Of course, we don’t actually know for sure what decision Congress will make. There’s a chance that they won’t make that cut. Or it might not be as big. Therefore, taking early Social Security is a risk. You may opt for the lesser monthly amount now, hoping to accrue more before the big cut, only to find out that the big cut doesn’t happen. You’ll still get the lesser monthly amount. It’s not like you can go backwards in time and “take back” your decision to take early Social Security.

So, taking the money early means:

  • You might get more money overall by cashing out as early as possible before a big cut.
  • If the big cut doesn’t happen, then you might not have made as much as you potentially could have.

We Don’t Know How Long We Will Live

If you had a crystal ball then it might be easier to decide when to take your money. If at age 62 you knew that you only had ten years left to live, then obviously you would take early Social Security. On the other hand, if you knew that you were going to live another thirty years, then you might opt to keep on working until you could completely max out that retirement income.

Unfortunately, there’s no way to know. So the pros and cons really depend on factors that we can’t entirely know or control. All that you can do is make the best decision possible with the information that you have as you reach retirement age. Consider your health and likely longevity based on family history and other factors. Think about how much money you’ll likely get if you take early Social Security vs. the full amount. Weigh what would happen if Congress cut that amount in 2035. Then do your best to decide how the pros and cons balance out.

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